11-02-2013, 02:35 PM
Shopping Centre Operations & Business Plan
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Overview
This book has been written for many types of people, all of whom have an involvement with retail property and its success. This Shopping Centre Business Plan model has been used by many industry professionals as they seek to enter or improve their position in the market. The best Shopping Centres use a plan and then keep to its formulation. It is important to know that at the beginning or formulation of your business plan, you will only know what you want to achieve and what the market provides you at that time. For that reason you must be continually aware of market changes and the need to adjust your business plan as you proceed. A Shopping Centre business plan is thereby a fluid and changing document that gives you stability and direction in an ever changing business environment.
INTRODUCTION
Shopping Centres have principally evolved from conception to a major part of our economic community since the end of World War 2. Prior to that time, any shopping and retailing outside of city centres occurred in small suburban local precincts. The basic shopping commodity products were then provided for in local groups of shops, which included Butcher, Fruit and Veg, Grocer, Delicatessen. It was unlikely that the shopping needs of a family extended beyond that ‘basic’ product more than a few times a year. The major world economic growth from the end of World War 2 and the evolution of the ‘Baby Boomers’ created both the need and the cash flow for new retail products and services. Particularly from the 1960’s onwards we have seen a major evolution in the way in which retail products are created and supplied to satisfy the seemingly endless customer demand. Product diversity is now forever growing and creating new markets for the ‘retail spend’ within shopping centres. The property market has moved with this trend and supported product growth with unique shopping outlets that came to be labeled ‘Shopping Centres’.
RETAIL ~ THE COMPETITION
As a property professional you will be exposed to many property types and retail is no different. Retail is however highly affected by customer demands and precinct and regional demographics. Being able to professionally compare and monitor retail premises or Shopping Centres in your precinct is a skill requiring a complete understanding of the product and the retail property discipline. Knowing your area and how the community accepts your property is part of good control and guidance which can steer your property forward.
Determining Market Share
Determining where your property sits in relation to its market will involve the following stages:
1. Identifying the trade capture area
2. Identifying the total GLAR (Gross Lettable Area Retail) of all the properties in the trade capture area
3. Proportioning the GLAR for your property against the total GLAR for the trade area (and the need to know your %)
4. Researching your customer spending patterns within age/time/commodity groups/amount