Hammerson footfall outperforms the market in 2017, but sales fall

By

Barbara Santamaria

Published
Jan 31, 2018

An increased focus on leisure helped shopping centre owner Hammerson post an increase in annual footfall, while men’s fashion and sports and athleisure brands drove sales.

Footfall across Hammerson UK centres increased by 0.4% during last year, and outperformed the market benchmark every month of 2017. By contrast, the wider UK shopping centre sector saw footfall fall by 2.8% in 2017, according to Tyco shopping centre footfall index data.

Hammerson owns some of the UK’s largest shopping centres including Bullring, Bicester Village, Dundrum and Victoria Gate.

A calendar of interactive events, innovative pop-ups and targeted activities was able to positively impact footfall and sales at the shopping centres, with footfall up 4% at the Christmas light switch on at Cabot Circus.

Over the Christmas period, retail sales across UK shopping centres outperformed the market (-2.7%), but were still in negative territory, down 1.3% on the previous year.

The whole year painted a similar picture, with sales down 2.6% across Hammerson’s UK portfolio, compared to a 3% decrease for the wider market. While women’s fashion continued to struggle, sales of men’s fashion were up 3.8% during the year and sales of sports fashion increased 1.8%.

Consumers also continued to demand experiences, with leisure sales up 6.9% in the UK, further supporting Hammerson’s strategy of enhancing retail destinations with events and experiences.

David Atkins, CEO of Hammerson, commented: “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. 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.”