Pressure points – CACI
CACI’s Retail Footprint 2011 report, released last week, says the shopping centres in Bexleyheath, Southport, Blackpool, Wigan and Maidstone are under the most pressure from the “squeezed middle” shoppers who are reining in spending amid the economic downturn.
Paul Langston, consulting partner for location strategy at CACI, says that three of its demographic groups, labelled Secure Families, Settled Suburbia and Post-Industrial Families, live throughout the UK but are particularly concentrated in the locations above, where the retail centres will continue to “feel the squeeze”.
But it’s not all doom and gloom – the outlook for some other parts of the UK is more positive, with some groups of consumers still confident about their financial prospects. “Retail centres which serve these shoppers, such as King’s Road, Covent Garden and Westfield in London, as well as Edinburgh, Brighton and Glasgow, generally seem to be faring better and look set to have the best growth prospects,” Mr. Langston adds.
The dominant retail centres are also producing a stronger performance, he notes. “While consumer confidence appears to be weakening among some of the more affluent demographic groups, their willingness to spend on quality products in quality retailers, that tend to locate in the higher quality retail locations, is producing a virtuous circle for the top centres.”
CACI’s annual ranking of the UK’s top retail destinations puts the West End of London top, followed by Glasgow, Birmingham, Manchester and Liverpool. While there is no change in the top ten centres by forecast spend, the West End has increased its lead and Birmingham has narrowed the gap to Glasgow. CACI also says Westfield London has seen the greatest growth in forecast spend, at nearly 7%. “Looking ahead, the capital’s retail scene is set for a shake-up from the redevelopment of Stratford this September,” Mr. Langston notes.
“Meanwhile, the slides of Cardiff and Croydon reflect an ongoing squeeze from a strong combination of supermarkets and nearby retail parks,” he adds.
