SGS, the owner of several prominent shopping centers in the UK, including Lakeside in Essex, Atria Watford, Braehead in Glasgow, and Victoria Centre in Nottingham, has reported a highly successful performance for the year 2022. According to the company, its occupancy rate and footfall have surpassed those of its competitors.
Last year, one of the major achievements for SGS was securing approximately 100 leases with popular brands such as H&M, Next, Flannels, TK Maxx, Calvin Klein, Hugo Boss, Pandora, Zara, and other Inditex brands. Furthermore, SGS managed to secure deals for the former Debenhams anchor units at Lakeside, with M&S signing up to occupy the space. Additionally, Atria Watford celebrated the opening of Next’s largest store in the UK, further enhancing SGS’s success.
The positive news continued at Braehead, where Superdrug announced the forthcoming opening of a new and expanded store. The health and beauty retailer will be relocating and upsizing to an impressive 11,000 square foot space. Atria Watford also welcomed menswear retailer Moss (formerly Moss Bros), which recently launched a 2,271 square foot store on the upper mall.
Furthermore, SGS disclosed that it is currently in advanced discussions for around 50 additional deals across its shopping centers. The company’s occupancy rate currently stands at 86%, surpassing forecasts, and is expected to rise to 88% once the new leases signed in 2022 come into effect. In terms of footfall, SGS’s centers have experienced an eight percentage point increase compared to Springboard’s benchmark for 2022.
In addition to its robust leasing activity, SGS has also introduced a new system called the ‘Retailer Information Portal’. This platform enables SGS to gather comprehensive data on tenant sales, profitability, and areas of overspend and underspend, providing a valuable resource for informed decision-making.
SGS has also outlined its strategic priorities for the next three years, which have received approval from the group’s investors. With plans to invest more than £130 million in its shopping centers and key tenant relationships, the company is demonstrating a commitment to growth and development.
Steve Gray, Head of European Retail Asset Management at Global Mutual, expressed confidence in SGS’s prospects and the resilience of its market-leading assets. Despite encountering some challenges, the company remains financially robust and well-positioned for expansion.
Overall, SGS’s impressive leasing activity, high occupancy rate, and increased footfall clearly demonstrate the company’s success within the retail sector. With continued investments and a focus on data-driven decision-making through the ‘Retailer Information Portal’, SGS is poised for sustained growth and prosperity in the years to come.
Useful links:
1. SGS Property
2. Global Mutual
