Hammerson footfall outperforms industry benchmark in 2017

Hammerson, the manager and developer of leading retail destinations in Europe, saw a 0.4 percent increase in annual footfall across its UK shopping centres throughout 2017, outperforming the industry benchmark which fell 2.8 percent.

The property developer welcomed more than 300 million visitors to its European shopping centres, with footfall outperforming the market benchmark every month in 2017, thanks to its strong offering of retail, leisure and entertainment as well as its seasonal calendar of interactive events, innovative pop-ups and targeted activities. During the Christmas light switch on at Cabot Circus footfall increased 4 percent year on year, as the shopping centre welcomed more than 22,000 shoppers between 5 pm and 8 pm, which helped boost sales by 100 percent. The Oracle saw footfall grow 6 percent year on year during the relaunch of The Riverside in September, which featured a Las Vegas style light and fountain show.

During the Christmas period, Hammerson's retail sales across its UK shopping centres outperformed the market as well, with December store sales falling 1.3 percent versus the market average which was down 2.7 percent. However, department stores across Hammerson's UK portfolio also reported a strong Christmas, with sales up 3.7 percent in December, underlining consumes preference for shopping at flagship stores in larger high-footfall centres. Retail sales including Hammerson major extensions which opened at Westquay, Southampton and Victoria Gate Leeds were up 3 percent in 2017.

The well-document challenges in mainstream women's fashion did impact headline numbers, but sales of athleisure and sports fashion were up 1.8 percent in 2017. Hammerson also reported a growing appetite for men's fashion at its shopping centres, with the category growing 3.8 percent in 2017. Consumers also sought out more experiences, with leisure sales up 6.9 percent, supporting Hammerson's strategy of enlivening retail destinations with events and experiences. The volume of leasing at Hammerson shopping centres was also up 34 percent in total, highlighting a record year of leasing for the company.

“Our shopping centres performed well at the end of 2017 with strong footfall and leasing. Consumers are spending more discerningly; exciting brands are winning market share; and footfall is drawn to centres which offer the full line-up of retail brands alongside entertainment," said David Atkins, CEO of Hammerson in a statement. "It is no coincidence that we have purposely positioned our shopping centres to respond to these trends, dedicating our time to carefully curating the right brands, adding more leisure space and creating an engaging environment for consumers. Our strategy is aligned with that of retailers and we have continued to see strong momentum in leasing in Q4 as we will update in February.”

Photo: High Cross, Courtesy of Hammerson