Insight into Action Ben Dimson October 2016 About British Land - - PowerPoint PPT Presentation

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Insight into Action Ben Dimson October 2016 About British Land - - PowerPoint PPT Presentation

Dec 08, 2023 474 likes •733 views

Insight into Action Ben Dimson October 2016 About British Land One of Europes largest publicly listed real estate companies Our properties cover 30m sq ft and are home to 1,200 organisations 20 bn total assets under management

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Insight into Action

Ben Dimson October 2016

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About British Land

  • One of Europe’s largest publicly listed real estate companies
  • Our properties cover 30m sq ft and are home to 1,200 organisations
  • 60,000 people live and work across our London office & residential portfolio
  • 330m people visit our multi-let retail sites every year

£20bn total assets

under management

£10bn retail assets

under management

“We create outstanding places for modern consumer lifestyles: places to shop, eat and be entertained”

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Channels have become blurred

Online and offline are symbiotic

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Convenience is key

Consumers shop more locally than ever before

1 Stores are at the heart of the consumer journey

89% of retail sales touch a physical store

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Consumer expectations are changing

Retail and leisure are increasingly intertwined

Executive Summary

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British Land is being proactive

By creating Places People Prefer

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True Value of Stores

  • From multichannel to omnichannel
  • How to allocate online sales?
  • The True Value of Stores formula
  • Beyond the True Vale of Stores there is a ‘halo effect’

Online sales of store operators Total online sales Online that touched the store

Source: Verdict

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  • Click & collect and store browsing boost UK physical sales by +5%

Physical sales £266bn True Value of Stores £278bn Total sales £313bn £5bn £8bn £18bn £13bn £4bn

89% of retail sales touch a store

89% of total retail sales in 2015 Click & collect sales Online sales browsed in store Online sales not browsed in store Online pure-play sales Mail order & TV shopping

Source: Verdict

Online sales of store operators Total online sales Online that touched the store

Boost +5%

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Physical sales £136bn True Value of Stores £148bn Total sales £174bn £4bn £8bn £11bn £11bn £4bn

Excluding grocery, the boost to physical rises to +9%

Click & collect sales Online sales browsed in store Online sales not browsed in store Online pure-play sales Mail order & TV shopping

Online sales of store operators Total online sales Online that touched the store

Source: Verdict

  • Excluding grocery, 66% of online sales are from store operators
  • Of those sales, 53% have touched a store

Boost +9%

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  • 1. The ratio online-to-physical
  • 2. Within online, the share of store operators vs pure-plays
  • 3. Within store operators online sales, the share that touch a store

The boost is determined by 3 levers

Physical sales Online sales Mail & TV Store

  • perators

Online pure-plays Touched a store Did not touch a store Click & collect Store browsing

Source: Verdict

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Boost varies considerably by sector

  • High boost in Electricals: high online penetration, showrooming and click & collect
  • Low boost in Health & Beauty: limited online penetration, impulse and needs-

based buying

+9% average boost excluding Food & Grocery +32% +25% +20% +12% +8% +5% +5% +3% +3% Electricals Sports & Toys Department stores Clothing & Footwear Entertainment Homewares Furniture & Floorcoverings Health & Beauty DIY & Gardening

Source: Verdict

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Role of store differs by sector

46% 49% 60% 77% 84% 87% 77% 90% 92% 6% 2% 5% 8% 3% 10% 13% 5% 3% 4% 8% 2% 2% 4% 17% 13% 7% 3% 3% 8% 2% 2% 44% 16% 9% 3% 6% 5% 3% 2% 2% 2% 3% 3% 2% 2% Entertainment Electricals Sports & Toys Clothing & Footwear Homewares Furniture & Floorcoverings Department stores DIY & Gardening Health & Beauty Physical store sales Click & collect sales Online sales browsed in store Online sales not browsed in store Online pure-play sales Mail order & TV sales

  • Examples:

– Electricals vs. Entertainment – Department stores vs. Clothing & Footwear

Source: Verdict

+3% +3% +20% +5% +5% +12% +25% +32% +8% TVoS boost

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Differences within sectors

  • Example: 20 leading Clothing & Footwear retailers
  • Boost to physical sales ranges between 0% and 30%

Retailer 8 Retailer 20 +10% Retailer 19 +20% Retailer 11 Retailer 16 +25% Retailer 13 Retailer 12 +5% +0% Retailer 17 Retailer 15 Retailer 18 +15% Retailer 14 +30% Retailer 9 Retailer 6 Retailer 5 Retailer 4 Retailer 10 Retailer 1 Retailer 2 Retailer 3 Retailer 7 Boost to store sales

Source: Verdict, the size of the bubble represents the 2015 True Value of Store sales

+12% average boost for Clothing & Footwear

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  • Under 35 year olds use stores the most, and their use of online pure-plays is lower
  • Over 35 year olds are heavier users of click & collect
  • Over 65 year olds still use mail order and TV shopping

Shopper profile, ex. grocery

79% 79% 77% 77% 80% 81% 3% 3% 3% 3% 2% 2% 3% 3% 4% 5% 5% 5% 5% 6% 6% 6% 6% 6% 6% 7% 8% 7% 6% 6% 4% 3% 2% 2% 1% 1% 65+ 55–64 45–54 35–44 25–34 16–24 Physical stores sales Click & collect sales Online sales browsed in store Online sales not browsed in store Online pure-play sales Mail order & TV sales

+8% +9% +10% +9% +7% +7% TVoS boost

Source: Verdict

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£136bn £151bn £4bn £9bn £8bn £11bn £11bn £15bn £15bn £20bn 2015 2021f Physical store sales Click & collect sales Online sales browsed in store Online sales not browsed in store Other remote sales

Outlook

  • Click & collect set to double by 2021
  • True Value of Stores to grow faster than physical sales alone
  • ‘Halo effect’ also expected to grow as stores continue to influence online sales

Source: Verdict

+16% Growth +11% Growth

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Channels are becoming increasingly integrated with the emergence of a ‘halo effect’

+55%

50 60 70 80 90 100 110 120 130 140 150 +20 weeks 15 10 5 Store Opening

  • 5
  • 10
  • 15
  • 20

weeks

Source: Hitwise, based on a sample of 18 retailers opening at BL schemes

+55%

Postal area share of retailer website visits, indexed vs store opening date

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True Value of Stores furthers our understanding of affordability

  • British Land retail portfolio affordability

5 10 15 20

%

10%

Rent to net sales Total occupancy cost to net sales

Excluding the True Value of Stores Including the True Value of Stores

Source: Verdict, British Land

9% 17% 15%

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Consumer expectations are changing

Source: Oxford Economics

Housing 25% Education 2% Other 11% Grocery 12% Fashion 6% Home & Leisure 11% Health & Beauty 4% Food & Beverage 8% Leisure 6% Historical focus Recent additional focus Not relevant to BL

Consumer spend (2015)

Transport & Comms 15%

77%

  • f F&B spenders in UK

centres also spend on Retail

38%

  • f Leisure users also spend
  • n F&B

F&B and Leisure are often interlinked with Retail

We are expanding into new segments to enhance the retail experience

Source: British Land exit surveys 2015

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Consumers are shopping more locally than ever before

78%

Distance

4.2 miles

Per shopping trip

  • n average

(vs. 5.2 in 1995)

Travel Times

18 mins

Per shopping trip

  • n average

“Which of the different aspects of the shopping experience listed below are important to you?”

78% 74% 60% 50% 39% 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Convenience Retail Offer Parking Facilities Quality of Shopping Environment Services

  • ffered

Food, drink & leisure

  • ffer

Source: DfT National Travel Survey 2014 Source: Kantar survey for BL, Nov 2015

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Retailers are creating hub and spoke networks

To support fulfilment and maintain brand awareness

Source: CACI

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Our portfolio is well positioned to meet both consumer and retailer demands Regional

Attracting visitors from a wide catchment for planned trips

Local

Fitting into the daily life of local communities

1 2

BL regional centres BL local centres BL asset catchments

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Accessibility Convenience & car parking Community Supporting & involving local people Communication Branding, messaging, marketing & digital

We

Connect

We

Design

Form Efficient & relevant built environment Authenticity Look & feel, streets & landscaping Function Facilities, safety & way-finding

We

Enhance

Segment mix Balanced retail, F&B, leisure & services Occupier mix Selecting brands which fit the location Occupier service Supporting our

  • ccupiers

We

Enliven

Customer service On-site hospitality & customer service Events Creating a buzz and driving footfall Experience Creating lasting impressions

We deliver through our Placemaking framework, Creating Places People Prefer

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Community

13,000 people benefited from

this year’s community programme

Tollgate, Colchester

Accessibility Promoting Click & Collect through convenient access & free parking Communication

10m website sessions p.a.

Glasgow Fort

We connect

Website Platform

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Function Doddle providing Click & Collect facilities at Ealing Broadway

Glasgow Fort Ealing Broadway

Authenticity

£60m

Meadowhall refurbishment currently underway &

£300m

proposed Leisure Hall Form

c.£300m invested in improving

the assets over the last 3 years

Meadowhall, Sheffield

We design

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We enhance

Occupier mix Broader range of new occupiers Segment mix

8% F&B, up from 2%,

with a target to double this Occupier Service Ability to assess peel-off rates using unit counters

Old Market, Hereford Whiteley, Fareham Whiteley, Fareham

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Customer Service

100% property management of multi-let

portfolio transferred to Broadgate Estates Events

150 events across the

portfolio in the last year Experience

4 centres benefited from

new play areas this year

Glasgow Fort Fort Kinnaird, Edinburgh Mayflower, Basildon

We enliven

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Case study of Placemaking in progress: Broughton, Chester

Enhance Connect Design Enliven

Footfall up 18%, ERV up 3%