Retail Asset Performance Measurement & Improvement

Investing in Strategic Research & Analysis to Achieve Out-performance in Asset Value

Growth

Our Clients – UK, Ireland & Middle East

What’s Unique About Millward Associates?

Retail Operations

Market Research

Knowledge of Asset

Valuation

Rare combination of experience & formal learning

20 years of practical application on leading malls for blue-chip clients

Notable career firsts

Our Client Work

2002 to present The Mall Cribbs CausewayAnnual peak & off peak strategic performance reviews – as process flow chart

2011 to present Capital & RegionalAll malls – biennial strategic tenant profitability & rent affordability review

2005 to present Dundrum:Annual strategic performance review – as process flow chartTarget retailer market appraisals

2004 – 2010 Dublin Central:2004 & 2005 Dublin region strategic opportunity research2006 to 2008 working with John Lewis & Chartered Land

2007 to present The Pavilions:Annual strategic performance review – as flow chart

2015 Marshes, DundalkBiennial asset performance optimisation strategy – as flow chart

2010 to present, The Liberty RomfordBiennial strategic performance review – as flow chart

Over-riding Goal

Whether in a growing or declining market, clients want to:

“Achieve out-performance in asset value through a combination of rental growth and improvements in tenant mix that positively

impact yield”

Driving Asset Performance Improvement

Asset value is dependent on retail performance:

Providing what Consumers want

Via the optimum mix of Merchandise & Experiences

Delivered by a Tenant mix – profitable and able to afford rent

Effective use of Space to maximise profitable retail trading

This is the engine room of asset value growth

Low-cost Entrée to Working With Us…

…the Full Strategy Context

The Questions We AnswerWhy are some tenants more successful than others?

What sales do they achieve?

Are they profitable?

What rent can they afford, can we leverage it?

Who are our customers?

How many do we / could we attract?

Who are our most valuable customers, how do we identify them?

How do we target them and measure the change?

Who are our competitors, what’s the size of the threat, how is it evolving?

How do we identify which retailers will deliver for us before we admit them?

How can we best configure retail space to optimise profitable sales and long-term rent potential?

Growth Begins & Ends With Consumers & Retailers

Three stages to our approach:

1. Research :Supply – retail researchDemand – consumer research

2. Analysis:Market Capacity – supply & demand gapsTenant Performance – actual sales / profitability / affordable rentPerformance Improvement Potential – tenants / sales / rent headroomBalanced Scorecard of KPIs

3. Strategy:Tenant Mix Recommendation – rent & asset value growthSupport Client Decision Making – realize performance improvement

Others do it, but not with the same depth of experience, insight & authority

What They Say About Us

“Mark Millward provided detailed, specialist knowledge of retail supply and customer behaviour in Ireland, as a business consultant, to enable us to properly evaluate the market opportunity for our brand within this new market. I would be happy to work with Mark on future projects”  Michael Flood, Manager Strategic Customer Analysis

“Mark Millward is thorough, professional and discreet. His work is well presented and always delivered on time. Mark’s work is used to inform our asset management, tenant mix and leasing strategies. His conclusions have a strong influence on our actions in the following year and have proved to be insightful on many occasions. I would have no hesitation in recommending shopping centre owners to use Mark’s services.”  Dominic Deeny, Chief Executive

As a fund manager of shopping centres I have instructed Mark to analyse the trading performance and therefore sustainable rental levels for retailers of a number of assets within my fund. He carried out a very detailed piece of work and presented it in a helpful and clear way to allow me and the asset management team to benefit from the report. The team and I use the report to set the asset business plan with a clear understanding of what different retailers can sustainably afford to pay at a time in the retail market when retailer failures are common place. This information means we can set realistic return projections and income budgets. The information is also used during letting discussions with retailers to clearly show them the trading potential of the assets. I would recommend this service to owners of retail assets and retailers to ensure both parties understand the trading potential”. Justin Brand, Director of Real Estate, Aviva Investors

Our USPs

Expert in the fundamentals of retail performance

Dedicated application of senior retail expertise to client work

Commitment to a grass roots research process:Consumer demand? Engage with them in the act of shoppingRetail performance? Interview store managers

Finely tuned and highly realistic ‘sense-checks’

Advice which stands the test of time, irrespective of external conditions:BoomBustRecovery

Who We AreOur Team:

Mark Millward – managing director & lead consultantFootFall, Head of Consultancy FSP, Partner John Lewis, various operational roles

Harrods

Denise Emslie – consultantNEXT, Regional ControllerMiss Selfridge, Store Manager

Clive Vaughan – consultantVerdict & Retail IntelligenceASDA & J Sainsbury

What’s Your View – field servicesDr Andrew Broadbent, CES Ltd – geo-demographics, gravity modelling

We Can HelpWe can do it all at once :

Strategy – tenant mix re-engineering to deliver asset value growth

or in manageable chunks:

Market Research & Analysis capable of identifying opportunities for rental income growth:

“The Business in the Building” – tenant turnover, profit & rent sustainabilityConsumer survey researchPedestrian flow surveysPre-acquisition studyTenant due diligence & appraisal of future earnings potentialPre-investment due diligence

Measuring & improving the impact of marketing spend on asset performance

Next Steps

Is there an opportunity?

Determine usability of existing research outputs

Agree scope

Reconvene to discuss proposal – date?