How Landlords Can Attract the Right Occupiers with Location Intelligence
In an era of rapid change, data is the key to unlocking opportunities in the retail sector. Retail landlords who harness the power of location intelligence can make informed decisions, attract the right occupiers, and create spaces that thrive in the new retail economy.
The retail landscape is undergoing a seismic shift. As consumer behaviours, mobility patterns and economic dynamics evolve, retail landlords must adapt their strategies to stay competitive. The key to success lies in leveraging location intelligence—mobility and demographic insights that enable landlords to benchmark locations, select sites and attract the right occupiers. At VI, we explore how data-driven strategies can help landlords navigate this new era of retail.
Benchmarking Retail Locations with Precision
Gone are the days when static data sufficed for evaluating retail locations. The rise of localism, remote work and shifting consumer preferences has fundamentally altered footfall distribution. Here’s what the data tells us:
Commuter town centres are thriving: With a 22% increase in visits and a 26% rise in weekday activity—notably on Fridays—commuter towns are becoming vibrant retail hubs. Professionals spending more time in their local communities are driving this growth.
City centres face challenges: Footfall in city centres has declined by 36%, with the steepest drops on Mondays and Fridays due to reduced commuter traffic. This trend highlights the need for landlords to pivot toward locations that align with new consumer movement patterns.
Neighbourhoods and commuter belts areas are booming: Areas around major cities have seen a 32% increase in footfall, fuelled by regeneration projects and new housing developments. Residents are increasingly favouring local shopping experiences over city centre trips.
London districts are evolving: Footfall in London districts has risen by 16%, thanks to regeneration efforts and demographic shifts. These areas are transforming into self-sustaining economic hubs, reinforcing the importance of data-driven decision-making.
By understanding these trends, landlords can identify high-potential locations and tailor their strategies to meet the demands of today’s consumers.
Understanding Occupier Site Selection to Attract Key Tenants
Occupiers are becoming more discerning in their site selection, and landlords who align with their priorities can secure high-performing tenants. Here’s how different retail formats are faring:
- Retail parks on the rise: With a 7% increase in visits, retail parks are thriving due to the convenience of large-format stores, DIY outlets and food and beverage (F&B) options. Landlords can capitalise on this trend by tailoring leasing strategies to attract brands that resonate with these preferences.
- Leisure parks as experience destinations: Footfall in leisure parks has grown by 8%, reflecting consumers’ growing preference for experiences over material goods. Landlords can position their spaces as hubs for innovative entertainment concepts to attract occupiers.
- Outlet centres facing challenges: A 7% decline in visits to outlet centres highlights the need for landlords to rethink their offerings. By focusing on unique in-store experiences that go beyond price competition, landlords can counter this trend.
- Out-of-Town malls need reinvention: With a 14% drop in footfall, out-of-town malls must adapt to shifting consumer behaviours. Data-driven repositioning, such as mixed-use developments and service-led retail, can unlock new opportunities.
- Health and beauty defying the trend: Despite broader declines, health and beauty services in malls have seen a 26% increase in visits. This surge underscores the importance of incorporating wellness-focused tenants into leasing strategies.
Understanding these dynamics allows landlords to align their property offerings with occupier demand, ensuring they attract tenants that thrive in the current retail environment.
Agility: The Key to Business Success
In today’s rapidly evolving marketplace, agility isn’t just an advantage—it’s a necessity. Businesses that can swiftly adapt to changing conditions, seize emerging opportunities, and make informed decisions quickly are the ones that thrive. This agility relies heavily on access to timely, accurate data.
Attracting the Right Occupiers
To secure high-performing occupiers, landlords must align their properties with changing consumer preferences. Here’s what the data reveals about specific retail categories:
In-town malls struggle: Footfall in in-town malls has dropped by 19%, largely due to their reliance on traditional retail categories. A rethinking of tenant mix needs to happen to stay relevant.
Dining trends reflect shifting habits: While mid-range restaurants have seen a 27% decline in visits, premium dining options are up by 8%, and takeaways have grown by 18%. These shifts reflect changing spending habits and the need for landlords to adapt their F&B offerings.
Cafés as footfall drivers: With a 7% rise in visits, cafés are emerging as key destinations. The increase in remote work has positioned them as flexible workspaces, social hubs and convenient grab-and-go spots.
Pubs and bars face challenges: A 19% decline in visits to pubs and bars highlights the impact of economic pressures and evolving social behaviours. Landlords need to consider how to reposition these spaces to align with health-conscious and cost-sensitive consumers.
By leveraging mobility and demographic data, landlords can identify emerging trends and align their properties with the occupiers that best meet consumer demands.
The Future of Retail: Data-Driven Decision-Making
The retail landscape is no longer defined by traditional metrics. Today, success hinges on understanding and adapting to the complexities of consumer behaviour, mobility patterns and economic shifts. Retail landlords who embrace location intelligence can:
Benchmark location performance with precision.
Identify high-potential sites that align with occupier demand.
Attract tenants that resonate with evolving consumer preferences.
The shift toward localised, experience-driven retail underscores the importance of actionable insights. By leveraging data, landlords can navigate the challenges of the modern retail landscape and position themselves for long-term success.
The future of retail is data-driven—are you ready to embrace it?