Data has become an invaluable tool for placemakers. Still, without capitalising on the strategic insight available, you cannot deliver the high-quality customer experience that both today’s consumers and brand partners demand. Swift action has become necessary for brands, landlords, investors, and management teams.

One common challenge for fast paced environments like retail and leisure is that even organisations putting resources into data gathering can be disappointed by the lack of usable analytics that this yields. Traditional methods or retail intelligence apps with static numbers and reports do not always meet current needs. Our experience providing solutions and analytics puts us in a prime position to understand these frustrations and address the data-decision gap that threatens a collaborative dynamic with brand partners around timely shared insights.

Our tool Retail Advantage, holistically addresses data opportunities by bringing performance metrics together for a consistent, current view. Tailored visualisations and reporting are designed to answer relevant questions and can flag and serve insights to the right people through augmented capabilities. Having the right tools allows placemakers to see what works for their customers and under what conditions. The same approach can be used to inform leasing decisions and support the brand partner journey. 

“We use data daily to help and nurture our brand partners with a 360-degree picture of how they trade in comparison to others in their category, the centre trading averages and comparisons to other locations within our portfolio. Our management style is collaborative and supportive, it helps tremendously that Realm staff are predominantly from a retail background meaning that we see our role as collaborators. Sharing the results and insights we get from Retail Advantage makes us leaders rather than managers or simple custodians, there is a much greater sense of proactivity and not relying on chance when making important decisions.”

Anand Basu-Attwood, Commercial Operations Manager at Resorts World Birmingham, a client of Retail Advantage

From initial discussions, smart tools and data-driven insights enhance tenant attraction and performance. Retail Advantage helps identify suitable partners by analysing customer demographics, foot traffic, and competitive landscapes, allowing leasing teams to target brands that align with local demand. Analytics also assist in optimising the mix of your places and spaces, ensuring that the retail, leisure and F&B complement each other to maximise foot traffic and cross-spending.

The variety and volume of customer data organisations can collect has increased dramatically, creating difficulties in processing it efficiently. In some cases this leaves you feeling like you have less control and understanding than before. Intelligent digital tools make it faster to reap the benefits from different touchpoints across the leasing journey. By creating an ecosystem that answers questions and informs decisions, retail stores and destinations can avoid accumulating costly, non-relevant data with no clear outcomes for coherent and connected analysis. The efficacy of using individual data points is also amplified when seamlessly integrated, supporting a more engaged and productive workforce that is well supported to satisfy customer demands.

“It is integral that we are able to provide our brand partners with the knowledge, background and trade patterns of our Centres as well as the locations, regions and countries in which they trade. Retail Advantage helps us gather, analyse and dissect this data from a wide selection of sources on a daily basis. We then provide a service to our brand partners, advising them about what this information shows and how best to use it to maximise trade and performance across our portfolio.”

Eleanor James, Head of Brand Development at McArthurGlen, a client of Retail Advantage

No matter where your organisation sits on the AI debate, from already adopting it to being curious to fearful, there are clear opportunities in retail and leisure to help grow capacity and upskill your teams. We still see a lot of best-guess approaches or processes that rely too heavily on human labour. 

AI is becoming a powerful tool in the future of retail places, but for it to be effective, the use of the right technology and consultancy partners is integral. By moving beyond using data to create simple charts and graphs and instead adopting augmented analytics, we can help shopping environments democratise more data and provide real-time guidance to the frontline and centre of operations. 

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We speak to Outlet Evolution, clients of ART’s Retail Advantage platform, to discuss ready to apply analytics and how innovation has proved an essential partner for growth.

Outlet Evolution Services is a specialised company in the Outlet Sector, managing and leasing over five different outlet centres in the Central European Region. By relying on a network of preferred partners, be it advertising agencies or innovative service products like Retail Advantage, Managing Partner Sebastian Sommer shares their strategy of keeping the costs of centre management as low as possible in order not to burden tenants excessively but also not to reduce returns for investors.

“We value partnerships driven by mutual goals, this applies both to investors and our brand partners alike. All growth is targeted to be sustainable reflecting profit targets from all stakeholders. While this may sound academic, it’s actually very specific. From mutual business plans to ready to apply analytics and a very flexible commercial marketing approach, we have gradually evolved our management style over the last years.”

Outlet Evolution Services Managing Partner, Sebastian Sommer

ART Software Group Director, Gareth Jordan has a firsthand view of how the right technology partners can help transform retail spaces and create true destinations. Retail Advantage meets operators’ needs with the data environment and insights to achieve their strategy. Many sites, locations and schemes vary in size, explains Gareth – it might be an inner city space with less than ten shops, where it is about nurturing what is there through a very hands on approach combined with real-time feedback and visibility on what is or isn’t working. Or, the objective might be to increase the  size of the offering, so the analytics need to show you if the brand mix is working and will remain compelling as you scale.

“Retail Advantage is a tool to garner growth on many levels, whether the objective is to grow in quality, in size and breadth, or maintain a relevant offering. We must all be proactive in fast-changing retail places, so data and analytics are central to that. The product grows with the scheme, which makes it exciting as our platforms are flexible and scalable.”

ART Software Group Director, Gareth Jordan

“Reliability and commitment are key to our business. We build and select our partners based on their attitude to our business and the cutting edge it can bring to us. This is exactly how we teamed up with Retail Advantage,” says Sebastian. Elaborating on their work with Outlet Evolution, Gareth discusses how Retail Advantage is being used at the destinations. ”It is always exciting to be a part of these sorts of projects where we are involved from the early stages to help provide visibility and answer questions on what is working. Outlets have long been an important element in retail but you need a strong and very specific strategy. At Hanse Outlets and Fashion Outlet Marl this has been approached in the best way.” 

“Seeing, breathing, and working with a retail mindset is the key for any successful outlet center management. With plenty of years in the retail sector, our team provides such know-how, but only with a flexible technology tool kit that provides quick but granular information, the real impact on the business can be brought to life.”

Outlet Evolution Services Managing Partner, Sebastian Sommer

Hanse Outlets is a perfect example of Retail reinventing itself. From an old retail park with local, convenience driven offers and DIY stores, the area has seen a constant investment and development over the last 6 years. With a total of 13.000sqm GLA and over 45 brands, the outlet has been opening its major Phase II Extension throughout 2023. “By the end of 2023 over 2.3m guests have visited the outlet center, fueling substantial growth with our brand partners and having delivered the best commercial year ever.”

While Fashion Outlet Marl opened right in the first wave of the pandemic, it has yet to realise the traction the outstanding location will achieve. “Its inner-city location connected to a shopping center with over 5m visitors p.a. offers the best of both worlds, convenience shoppers looking for a bargain and day-out travellers enjoying the offers, particularly on Fridays and weekends. Due to intense retail and marketing management, Footfall and Sales have grown 30% like for like since 2022, and we expect that momentum to continue,” explains Sebastian.

Fashion Outlet Marl’s current footprint of 25 stores will see a major development of over 30m€ over the coming 1-2 years, bringing the outlet centre to over 50 stores and making this a true outlet destination within Germany’s most populated region. With a total of over 15.000sqm GLA this outlet can grow up to 80 stores in the near future. 

“Understanding and touching the customer journey while building rapport and loyalty through this has been top of mind for every operator in recent years,” Sebastian explains. There is hardly unlimited growth in Footfall as consumers have plenty of choice; therefore, more than ever before, it is about creating true destinations. “It’s a people business, and by continuing to create memorable moments for our guests, we can’t wait to keep on growing. It is obvious that business decisions should consider a data driven layer of information. Not that data takes decision on its own, but it serves as a value advisor.”

Gareth agrees with this and remarks about the essential shift from descriptive insights to more advanced connected retail intelligence. “Experience and expertise will always be the drivers of success. Then it becomes a question of the clarity that the supporting information provides. Getting closest to the moment with the latest data possible; being able to see what the trajectory is now … Engaging Retail Destinations require a  level of data-driven analysis that reveals a broader picture to operators so they can take their next steps with confidence. As Sebastian says, it’s a people business, so whilst we are understandably excited about the uptake of opportunities from AI and Machine Learning, our clients’ experience and human objectives will always be at the root of our tools. As they grow, so do we.”

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Images courtesy of our client Outlet Evoltuion Services

This trend can significantly enhance a shopping centre’s offering and generate sustainable profitability if landlords and operators utilise data insights to effectively plan and measure their leisure pivot. Proven benefits include driving footfall, increasing dwell time, and enhancing customer experience. Strong communication with tenants can also help retailers be part of the journey so that everyone can capitalise on the potential of new lifestyle destinations. 

Tenant Relations

You must be armed with accurate data and analytics to guide you and your brand partners through any changes for successful implementation. 

Retail Advantage is a powerful insights platform with tools to help you measure and make wins. An accurate, current view of the data is essential to understand whether visitors who engage in competitive socialising activities spend more time at the shopping centre and which conditions turn longer visits into increased spending in retail stores, restaurants or other entertainment venues. Here are some important things to consider and measure for successful implementation: 

• Impact on Existing Tenants: Data-backed insights will help you assess how new attractions affect current tenants. Increased foot traffic can benefit nearby stores, but noise or crowds might be a concern. A trusted view of KPIs will arm your launch and help address any teething issues.
• Synergies: Identify opportunities for alliances between the new attraction and existing tenants. For example, a mini-golf course next to a family restaurant could be mutually beneficial.

• Communication is key: By maintaining open and transparent communication with existing tenants, you can effectively address their concerns and manage their expectations. Retail Advantage provides a Retail Community & Insights Hub, a platform designed to foster collaboration and achieve the best performance. This ensures that your tenants have up-to-date information, enhancing the overall success of implementation.
• Community Engagement: Competitive socialising venues may host events and special promotions that can foster not only tenant synergy but also customer engagement. Strengthening community presence can increase loyalty and garner support from local residents, further driving traffic and sales opportunities.

Incorporating leisure in a data-oriented way will win competitive advantages. As consumer preferences shift towards experiential shopping and entertainment, properties that offer unique and engaging activities are more likely to stand out in a crowded market.

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Image of Hollywood Bowl courtesy of our client Resorts World Birmingham

From challenges to opportunities, the morning focused on environmental, social, and governance (ESG) and anti-social behaviour with difficult and emotionally charged sessions, before moving on to the evolution of places and AI’s role in that journey, where the mood was upbeat in embracing change through collaboration. 

Gareth Jordan, ART’s Director, chaired a reflective session following AI presentations from Alex McCulloch, Director at CACI and Ross Powell, Technologies Director at JLL. The panel discussion delved into current approaches to insights and strategy through data and a grounded view on how that continues to evolve for both the full price and outlet sectors. It was important to debunk some myths surrounding AI to understand its capabilities and limitations for retail destinations. Aside from agreeing that AI is not about to replace our jobs, it could be said that jobs might be taken by people using AI! Seriously though, the consensus was to enhance roles, rather than replace them, with new technology, making tasks easier and decisions better and faster.

Alex Petit, Head of Data & Insights at Global Mutual, set the tone in answer to Gareth’s first question about the key components of active management. “We’ve spoken a lot about data, and data can be scary, but I wanted to make a point about active asset management and the success factor is you in the room.” Alex elaborated: “The last 12 months have seen a lot of activity from an investment perspective, and a recurring question I always get is around measuring the value of active asset management. This is where Retail Advantage is a valuable tool and other data pointers, which are really helping us to measure value. So understanding how a centre is performing, what’s happening from a turnover perspective, what sales coverage you get… so I think it’s a good way to introduce the subject – yes it’s about data, but it’s about you, because you are the ones producing the good work, and we are just here to measure it.”

The discussion moved on to the important KPIs when approaching Sales Performance insights and how data is being used on a daily basis to inform decisions. Glynn Edwards – Trading Director at Landsec, explained that while they use fairly traditional KPIs like sales, density, and things you would expect to see, Landsec has made good headway in the volume of data with AI, bringing better coverage. “But when you look at sales, one thing that has changed quite dramatically is what is included in that number. You look at the introduction of click & collect, digital sales in a physical store, and all of a sudden the success of a particular store is a lot more confusing. You may have a brand that does not make significant money from the store, yet they consider it a successful store, so you need to look at the value from a different perspective. That has been a fundamental change, so understanding the ‘halo effect’ through footfall monitoring and customer data is important.” 

Alex answered next, “Just to add to that, it’s super important to understand what’s happening within the four walls, but it’s also very important to triangulate sales with catchment data – demographics, mobility and banking data. People who know me know I am the queen of bad analogies, so I’m sorry, but I am living up to my reputation. First, it is really important to understand what slice of the pie you have. In a cost-of-living crisis, the pie may have shrunk, so understanding that the slice of the pie isn’t growing is an opportunity to understand what really matters to you, your investors, or your shareholders. So it’s great to know what’s happening inside the box, but relating it to the catchment is really important to measure share of wallet evolution.”

Kenny Murray, General Manager at McArthurGlen Cheshire Oaks Designer Outlet and Regional Retail Lead for UK & Canada, brought in the evolution of how we treat data: “Cheshire Oaks Opened 29 years ago this month, and in the old days, the data we used to get from brands was very transactional. You take the sales data to calculate the rent, but I think because we are retailers, we are naturally curious, and we realised there was much more we could do with that data. And it wasn’t just about density and sales return; it was also about what the store commercial was like, what the units they were selling were, and what the average selling price was. What would we see happening in terms of average unit price – was it going up? Or was it going down? And also looking at things in terms of asset management, which Alex touched on, the importance of understanding the capture rate.” Kenny explained that this approach is fundamental to their relationships with brand partners, enabling them to understand and resolve any issues. 

Gareth raised a question around regional comparisons and whether this was a useful performance metric. Kenny said, “I think that’s an interesting thing for us, and I think over the last few years, we’ve gotten much better at looking at things from a regional perspective. We’ve identified that the more we can work with a brand partner on the numbers, not just on one location of the business, but across multiple locations, brings a real big opportunity to drive performance overall.” McArthurGlen’s Friends and Family marketing campaign gave a good opportunity to share how they work with brands around KPIs on promotions so that they can understand how to maximise it together. “From day one, when any brand joins a McArthurGlen centre, it’s a partnership,” Kenny added. 

Gareth asked Glynn for his take on regional comparisons and whether “local” brands are still having an impact for Landsec at the moment. Glynn explained that “in terms of geography, there is value in those comparisons, but we also have different destinations with plenty of very different guests. So you could compare them, you get some value, but generally, they are vastly different. So you actually find out more about how different they are. We look at our data using geography, end-use and a whole raft of other metrics. Local brands still absolutely have impact – and in many ways, they’re more important than ever. So many of our retail spaces in the UK now have such a similar lineup of brands driven by their global success and appeal. We all want the biggest Zara, we all want the biggest JD, we all want the biggest Next. Unfortunately, that leads to pretty homogeneous centres, so local brands can be the best way to differentiate and stand out from the crowd.”

Gareth touched on a conversation with host Darren Pearce during the break about security, facial recognition and monitoring, leading to the question of the day: “Are we seeing AI replace humans already?” 

“Not replacing humans. But I think it is making us slicker in terms of the way that we operate,” said Kenny. He described the efficiencies made possible through innovation and the way that the outlet sector has transformed their deliveries of stock – dramatically reducing stockroom size thanks to the use of technology providing up-to-the-minute visibility on the stock movement. 

Alex followed with another compelling example: “We are talking to an F&B operator, and the brand’s background is interesting because the founder used to be an analyst in the banking sector. We are helping him understand and predict the footfall pattern for the F&B unit he’s looking at. Given that he’s using all fresh ingredients, understanding how much to buy on which day or how much could be wasted makes a massive difference between a super profitable unit and just breaking even.” 

Glynn also raised the increasing connection surrounding insights: “I think we probably share more data now than we ever have with brands – and with that, you get far more collaboration.”

Gareth moved on to a potentially divisive question about outlet vs full price, but no boxing gloves were required. Kenny commented, “I think it’s the detail at which the outlet sector works with brands is a big distinguishing difference… I think the full price market has followed for sure. You can definitely see that, but I think we’re still further ahead. And I think that ties into the question you asked about looking at things from a centre perspective or are we looking at things more regionally? If you look at McArthurGlen we are looking at things centrally, we are looking at things regionally and we’re also looking at things at a group level. Brand partners really want to work with us because they understand that we will help them maximise the potential within our centres. And I think that’s the part that outlet retailers need to continue to do, and you see full price working more in partnership with the brand partners, too – looking at how they deliver events and experiences that will drive footfall into the stores.”

Landsec has a mix of both outlet and full price, and Glynn gave his perspective next: “I think they’re probably more similar than they’ve ever been before; people could be in an outlet now and not necessarily realise it, the lines are being blurred, so people just want to shop brands and it does not necessarily matter.” 

Alex agreed that they are getting closer and closer and raised the benefits of Global Mutual having full price and outlet destinations with the technologies that cover both. However, she raised one big difference in how valuers value outlets vs full price: “Full price is seeing more and more turnover rents, and if you think of churning tenants in an outlet, it is something that is viewed very positively because you can keep on growing your densities. Sadly, when it comes to shopping centres where most investors want longevity and a very stable income, having that churn means that valuers take a dimmer view of that. So the valuation system needs to evolve.”

Apart from the light-hearted questions Gareth finished on courtesy of AI using ChatGPT, Glynn ended with an interesting point comparing the last decade’s predictions around the death of bricks and mortar due to online shopping with fear surrounding job losses from AI. He quoted share of market statistics from an earlier presentation, explaining that the opposite has happened and that online sales have been going down for the last three to four years. “We will find a new balance between the two, but the reality is that we learn to adapt to it; we have brought it into our everyday lives, and the same will happen with AI,” concluded Glynn. 

Whether you want to understand how to get more from the data you collect or learn more about how the industry is using AI-enabled tools to simply and quickly achieve connection and collaboration, let’s discuss.

Stay tuned for next year’s line-up for Retail Destination Live

At ART we have been working closely with Landsec over the past 3 years to provide them with performance analysis tools and a community hub to support their retail destinations. This connected environment has been an important feature to assist site staff and brand-partners in navigating what has been a challenging year for most shopping locations.

We caught up with Colin Wilding, Senior Centre Director for insights at Gunwharf Quays, to get his perspective on the situation from the cultural harbour-front location in the heart of Portsmouth, as they head towards a New Year. 

Non-essential retail was raring to re-open for the run up to Christmas, and guests at Gunwharf Quays were welcomed back with the same commitment to safety they experienced during the reopening in the summer, but this time a covered marquee has also been introduced to provide comfort from inclement weather, should guests need to wait for capacity restrictions to ease.  

“The health and safety of our guests and onsite teams remains our priority as we reopen following the second lockdown” Colin says.  “Our team are all supporting our guests with guidance on social distancing and will be available to help answer any questions with regards to the location of retail brands and the centre’s facilities. The centre signage has also been updated to support these important messages.” 

Analytics help designer outlet teams manage, grow community and map recovery, and long before the pandemic Gunwharf Quays has used Retail Advantage to measure multiple metrics and performance. Right now, Colin tells us that for him and his team “data is incredibly important to help ascertain where queues are likely to form and to allow us to pre-plan the flows around the centre. The more dynamic the availability of data is to us the more quickly we can support our guests and our brand-partners to experience a seamless experience.” 

Home to famous brands, Gunwharf Quays’ strong offering of sportswear, homewares and lifestyle, all with up to 60% off regular retail prices, positioned them well for this year’s situation and  trends.  We are yet to see how the great loungewear pivot will trend post-pandemic, but Colin says “we have noticed a strong shift towards casual wear and homewares as more people are – not surprisingly! – spending a greater proportion of their time at home.”  

Collaboration across the retail outlet and leisure destination community is arguably more important than ever, and it benefits the guests, teams and brand-partners. “Regular updates on learnings and sharing new ideas and innovation have become even more important this year. Trends and behaviours have changed rapidly and the need for immediate communication has definitely increased.” 

The pandemic has given the industry a moment to pause, be imaginative, and reflect on past experience.  So, if Colin could offer himself one piece of advice before starting his career in retail, what would it be?

“Listen to others, respect experience and never underestimate the power of a strong team.”

Good words of advice for us all to take into 2021. Forget ‘new normal’, the New Year is a new beginning towards a ‘better normal.’  

Colin Wilding – Senior Centre Director of Gunwharf Quays

Set on a tranquil marina, it is easy to see why Affinity Lancashire is attracting customers to return for its offering from fashion to furnishings with a bit of that much needed feel-good factor.

“Since the reopening we have achieved 70% of footfall and like-for-like sales growth of 14% which reflects the confidence our customers have in us” says Catherine Holmes, whose approach prioritises the safety and wellbeing of customers and visitors.

Following advice from the government and Public Health England, the team has implemented one-way systems, utilised floor graphics, installed hand sanitising stations and information points, removed seating and closed children’s play areas. “These changes are also reflected in each of our stores across the centre to maintain customer safety throughout their whole journey with us.”

Part of that journey, is a return to the simple but necessary comforts offered at destinations like this. “Our customers are looking for some sort of normality, providing it is safe. Whilst many public bathrooms across the UK remain closed, at Affinity Lancashire we understand our customers often travel some distance to visit us and these facilities are important to them, so we are working to keep them open. Customers can use them while maintaining social distancing and they are cleaned hourly.” 

From the customers, to the team and tenants, Catherine says: “the foundation of any relationship starts with trust.”

“For team members, we take the time to set individual goals which are tailored to their skillset and support them in achieving these through coaching and development, allowing the individuals and the centre to flourish as a result. It’s equally as important to forge relationships with our occupiers from store managers through to regional and head office. As a centre team, we must understand our occupiers, their business model and their objectives to ensure we can help their business grow.”

Analytics help centre teams manage, grow community and map recovery, and long before the pandemic Affinity Lancashire has used Retail Advantage to track sales performance. “At a local level, this helps us make strategic decisions and determines how we operate. The data, for example, is used to review sales performance and densities to compare categories geographically across the centre, allowing for identification of areas which would benefit from additional footfall. This in turn can be utilised to turn these quieter areas into hubs of activity through innovative use of space such as soft play, picnic areas and events. We are now adapting these areas to be COVID Secure to maintain the customer journey and experience as restrictions are lifted.”

So, what advice would Catherine give herself before starting her career in retail?

“Staying team focused is the key to any business success, you need a diverse skill-set to run a retail outlet which needs to work for an entire community. I take pride in what we’ve built at Affinity Lancashire and all the team genuinely want our customers to have the best experience. I like to remind myself that going the extra mile for a customer means different things to different people – whether it’s helping a customer who’s car has broken down or assisting a family who have lost a child’s toy. It is the kind of service which creates a legacy for years to come.”

Catherine Holmes – Centre Manager at Affinity Lancashire

We can learn lessons from leaders in markets further down the line from their initial outbreak. Here at ART, it has never been clearer that a professional analytics platform to share knowledge and connect everyone with access to the right depth of information is essential. So, here are some ways to keep on top of the data and utilise it to manage critical situations and map your recovery strategy.

Lessons for Retail and Leisure leaders in the time of covid-19

Create clarity for tenants and employees. Official advice can be too slow or not specific enough for your business needs, so it is important to try to create clarity for partners and employees, even though the status of the situation is changing.

Real-time accurate data is essential to make difficult decisions. A professional analytics and communication platform also helps you be attune to your tenants sentiment and needs and allows you to be consistent with your messaging and operational direction to retail teams. Not only can you share clear instructions for the safety of your employees and customers during a high-risk time, you can also empower employees with the analytics they need to take informed initiative – unique to their location, role or task. In China for example, which appears to be in the early stages of economic recuperation, some businesses adopted this two-pronged approach where strong direction from leaders was complimented with encouragement for employees to innovate.

Tailor your recovery strategy by destination. It is essential to easily segment different metrics such as sectors as different product groups will require different approaches to see them to recovery. Health guidance and public policies will also vary by location, so it may require a bit of flexibility within the geographical structure of your business. The Retail Advantage destination analytics platform allows you to standardise data coming in and increase the speed and accuracy of reporting across a portfolio.  This allows you to continually react to regional differences and adjust the tone of your communications, marketing activities, and budget allocation accordingly.  

Opportunity comes amid uncertainty. The crisis is impacting everything to various degrees, but it is good to have a more granular view to quickly maximise on hot-spots. One thing we can predict is that with all the postponement, the aftermath will see real world social networking.

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