Many in the retail property world rely on the Requirements List to help define their tenant line up. Why? At FSP, we’re rather surprised that people, other than those aiming for a quick fix, have a use for it. What about the long term objective? It is the retail and catering mix of the centre that sets it apart from its competitors. The mix should therefore be under the control of its managers, not the whims of retailers.
You don’t need to rely on the Requirements List to determine your tenant line up. Shoppers are attracted to the centre by what’s inside and retailers are attracted by the profile and behaviour of the shoppers. Retailers who understand their own customers will want to know how the centre’s shopper profile relates to their own customer profile. Your tenant mix planning should rely on the shoppers you want to target. Your letting strategy should be formulated to show your preferred retailers how your centre can work for them, irrespective of what the requirements list states!
FSP research shows that retailers who take new sites backed by relevant market data consistently trade better than those that are deal driven. It’s obvious really but all too often ignored.
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