Falling shopper visits have not stopped major landlords placing bigger bets on retail. October’s deals and trading updates reveal where confidence is concentrating.
One response to falling shopper numbers is to tighten the purse strings. Another is to agree to spend £516 million on a shopping centre.
Landsec chose the latter. On 1 October, it announced an agreement to acquire Gateshead’s Metrocentre, with completion then expected by the end of the month. Less than two weeks later, it completed a £95 million purchase of an additional stake in Bluewater.
Meanwhile, the BRC–Sensormatic monitor, released on 9 October, showed UK retail footfall falling 2.9% year on year in September. Shopping centres suffered a sharper 3.5% decline.
If there was a memo to investors about caution, it’s clear not everyone agreed with it!
The explanation lies in the growing distance between retail’s broad averages and the performance of particular destinations. October’s announcements suggest confidence is concentrating around places that brands want to occupy and customers still have reasons to visit.