Land Securities bets on dining and leisure

Dining and leisure make up a significant portion of the retail mix at two new developments Land Securities is working on in Glasgow and Oxford.

At the latest edition of the Mapic retail fair in Cannes in November, the London-listed company announced that D&D London is making its first entry into the Scottish market, taking 10,000 sq ft for a rooftop dining destination at its Buchanan Galleries centre with views over Buchanan Street. Meanwhile Living Ventures Group is planning to open two concepts, the Artisan Kitchen & Bar totalling 13,000 sq ft, and The Alchemist totaling 7,000 sq ft.

The new contracts were spawned by existing relations with the restaurant brands, noted Bert Martin, development director Land Securities. ‘We already have an excellent relationship with both D&D London and Living Ventures Group, both of which brought exciting new concepts to our Trinity Leeds mall. We are delighted to sign them up in Glasgow, more than three years out from the opening.’

The three restaurant brands will form part of a 1,2 million sq ft retail and dining destination in the heart of Glasgow’s city centre where Land Securities is planning a major extension to its Buchanan Galleries centre. With its 110,000m2, Buchanan Galleries is two-thirds the size of the company’s Bluewater mall in Kent, he pointed out. ‘Glasgow is the UK’s largest retail city outside of London’s West End.’

The lettings are a sign of growing confidence and consumer demand, he added. ‘Buchanan Galleries is located in a prime retail district and Glasgow’s catchment is really strong. The rooftop level will have an enclosed glass roof anchored by a 10-screen cinema as well as the restaurants. It will offer a completely new environment for Glasgow city centre and reinforce Buchanan Galleries' role as the leading retail and leisure destination in the city.’

At Mapic, the company announced that a five-screen Curzon Cinema totalling 21,700 sq ft has been confirmed at the Oxford centre. Meanwhile luxury fashion brand Michael Kors has also agreed to take a 2,200 sq ft unit at the mall joining John Lewis which has already confirmed a 142,000 sq ft store, and Next which is taking 47,400 sq ft.

These are two of the most successful retailers in the UK, Martin pointed out. ‘Oxford is the most anticipated scheme in the UK. We are seeing quite some demand from retailers and are holding many active conversations. This reinforces our belief in the city and their belief in us.’

While cinema complexes are not always a guarantee for success in shopping centres in western Europe, Martin firmly believes that they can work. ‘The Curzon cinema is a boutique five-screen cinema. It is exactly appropriate to the Oxford catchment. The needs of the catchment are very diverse and we are providing a compelling offer for all audiences and a brilliant customer experience when they come.’

While Oxford has an affluent catchment, Westgate Oxford will not be targeting the luxury end of the market, Martin said. ‘From the research we’ve done, we believe in a tenant mix that offers the best of the best from the high street - affordable luxury or premium brands - plus a convenience element. The mix has to work pretty hard to satisfy the needs of a city that draws from so many consumer groups as well as international tourists and students. ‘

The growing importance of F&B in the retail mix of shopping centres is manifesting itself in various ways. ‘Shops are becoming brand portals, a place to showcase their brands.’

The speed at which the retail industry is evolving throws up new challenges for shopping centre owners, Martin conceded. ‘Retailers have issues that a landlord needs to understand. The speed of change is very challenging, you need to build in flexibility. Shorter lease terms allow us more flexibility to wring changes and alter the tenant mix and that is generating positive results. It is harder work, but that’s the way it has got to be. The days of 25-year leases have gone. It’s all about understanding the customers and the fact that their needs are changing. A shopping centre landlord needs to be able to provide a mix that reflects those changing needs.’

Like Buchanan Galleries, Westgate Oxford will also offer a rooftop leisure environment. However, in Oxford the rooftop will be open-air, Martin said. ‘There will be a dozen or so restaurants as well as leisure events. These events will offer a reason to come back and visit it again and again. Retail is not just about bricks and mortar, it’s also about incorporating public spaces. It’s about an experience, about entertaining people and giving them the opportunity to experience new things, to be gregarious together with others. It’s all about offering physical alternatives to sitting at home.’

At Westgate Oxford, the events will be held year-round, Martin continued. ’There are currently 26 city centre events every year. Our challenge is to explore how we can integrate and capitalize on those, for example through other activities, like sports events, or campaigns wrapped around retail offers. We aim to maximize the crossover. We will continually scrutinise our portfolio and keep it experiential. In terms of leisure, we are open-minded as to what it could be, spinning facilities, a gym, bowling…we haven’t fixed the outcome. That’s still a bit premature as we have another three years to go.’

In Oxford, the restaurant and leisure component will target the upper end of the market, Martin said. ‘Westgate Oxford is very much at the cutting edge and the leisure component will reinforce that. We think it will become a new benchmark. In terms of restaurants, Oxford is underprovided and the restaurants it has are quite disparate. We will be offering new brands and we are in a range of discussions to provide others that will be new to the city.’

Other leisure elements will also be added or enhanced, Martin said. ‘The Westgate centre already has a library which is one of the most successful in the country. But it’s an introverted building and it can be improved. We want to help make it more open.’

Martin views the physical side of the regeneration project as a major challenge. ‘The shopping mall is in the historic city centre, but we are working with a range of architects to create different blocks and real diversity in styles. That will help break the buildings up.’

The city of Oxford itself has a ‘fantastic’ brand, he noted. ‘We are talking to a large number of retailers from outside the UK. They get it, they understand that the city itself is a huge attraction. We will build on that existing recognition and we are exploring with the city how to work together to ensure that the city-wide relevance is integrated.’

The convenience element and customer care are also key, Martin said. ‘One element that we are working on is understanding how to make our customers’ experience better. Click and collect is one option, but we are also looking at a wider range of services. We will have the largest car park in the centre of the city. We are looking at an integration of technologies that can help customers plan their route, understand space availability and update real time based on their existing location. Other services we are looking at are delivery to the car and a concierge for park and ride. Our goal is to make the journey seamless.’