Traditionally, the healthy buzz of deals rumbling away, talk of growth plans, schemes springing up and future tactics has been the background noise of BCSC.
But while the buzz was still there, it was somewhat more muted. This time a year ago retailers and landlords were just starting to feel the tingle of ten years of free-flowing business wear off, but few would have dared to imagine that the comedown might have been as hard as it has.
Reticence has replaced confidence. Expansion freezes have replaced unhindered store growth and talk of developments being put on hold and even coming off site has replaced assured conversations of a pipeline stretching long into the distance.
But talking to the retailers, agents and landlords that are the front line of the industry you are reminded that they are a pragmatic bunch with no desire to bury their heads in the sand. Most of the industry remembers at least the last recession and the one before it. and knows that there is no need to panic. In fact one landlord told me that he had spoken to 85 retailers interested in taking space throughout the conference.
Of course talk is free, and turning an initial chat into a deal is, as agents know all too well, easier said than done. But there are still players out there with grand ambitions, as this week’s news that Cult Clothing and Superdry owner Supergroup is keeping its foot on the accelerator proves.
But it can’t be denied that for the most part retailers, developers and agents were sombre about prospects for the near future.
The current global crisis has been compared to the great depression of the 1930s in its possible severity. But bare one thing in mind. During that particular slump, brutal as it was, both the Empire State Building and The Chrysler Building were completed in Manhattan.
Property may be on the ropes, and this week’s MAPIC is likely to be just as restrained, but the sector can and will bounce back.
No comments yet