In the last of this year’s monthly market updates we look at just how merry Christmas might be for retailers and if landlords should be worried about the approaching final quarter day.
Local Data Company director Matthew Hopkinson said trading on the high street is still challenging and landlords probably should feel uneasy about the prospects.
He outlined the best way to protect yourself as a landlord, as retailer margins continue to tighten, while costs such as business rates, and utilities continue to rise.
“There will be a quite a squeeze on,” he warned, “We know that consumers have less money in their pockets going forward, and if I was a landlord I’d want to be absolutely certain that the retailers I’ve got are best supported and are driving footfall.”
But, he added, pointing to the difference between M&S and Next; versus Blockbuster and Barratts, “I’d also be very aware of the behaviour of those retailers nationally and what they’ve been doing over the last 12 months.”
Hopkinson pointed to click and collect as a driver of in-store sales, believing that getting it right will be a key factor for success in the next three to six months.
“Retailers need to optimise these channels whether it’s home delivery or returns to get people back into store, because, without a shadow of a doubt, if you click and collect you’re more likely to spend more in store than home delivery, so it’s about how you get people off their sofas back in store,” he said.
nadia.elghamry@estatesgazette.com
