The Future of Station Design (FOSD) conference gave one of our directors Neil Grice the perfect opportunity to raise some key points on the development of retail in the rail network. For those of you who missed the event, the panel held a healthy debate that was restricted only by time. Neil’s main views are listed below.
During the discussions, it became clear that Network Rail and the train operating companies (TOC’s) faced problems in terms of dealing with Listed Buildings and smaller stations and were currently struggling with the length of franchise & access to capital.
Neil made the point that occasionally train operating companies ignore small stations for the larger trophy developments. In many cases retailers are being offered units that are too small with significant drawbacks, and then questions are asked as to why the unit is not trading to its maximum potential.
Had the debate had more time, there were a number of points that Neil would have raised, including:
Space Allocation
Grice Collins Long have a concern that when retailers are offered difficult space, this often has a natural knock on effect on trading potential, this is not always acknowledged. There is also little acknowledgement that units can take up to three years to reach mature trading, a point that is not reflected in the leases.
Uneven access to opportunities
There is a real fear that not all units are offered out to the market fairly and that certain established operators are given first refusal. In addition, less established operators will not be offered premium units. This will inevitably lead to bland unexciting projects and an inability to embrace new concepts
Centralised Register of Properties
There is currently no easy way getting access to a list of stations in the UK with available space, particularly those run by the train operating companies. This makes it very hard for new entrants to find suitable retail space. Grice Collins Long’s solution would be a centrally agreed website where all train operators post their available properties. This would improve the flow of information between landlords & tenants, reducing time and costs.
In summary, Grice Collins Long believes that travel retail offers retailers a hedge against declining High Street and shopping centre sales. Particularly if group transactions were negotiated, whereby retailers not only take units in the mainstream and high profile sites, but also there was a commitment by these retailers to take smaller operations in smaller stations.
If you agree or disagree with any of these comments, and would like more information on Grice Collins Long, their work and their approach please contact:
