Attention to Retail

'Portas Pilot' Entries - A Few Favourites...

2012-05-15T08:15:15Z

Housing & Local Government Minister Grant Shapps tweeted yesterday that the successful bids for town centre regeneration funds via the 'Portas Pilot' scheme will be announced at the end of the month.

With hundreds of entries reportedly clamouring for the cash, I had a look at a few of the video entries to get an impression of how the town teams were going about pitching to the government.

With an extremely broad creative brief, it is of little surprise that each submission differs from the last - and as such, it's extremely difficult to judge which ones will be successful. There are some which unimaginatively point the camera at vacant stores with the word 'Help' emblazoned across the screen, and others who have clearly tried to stand out by engaging the town in wacky dance routines in various (former) retail hotspots.

The ones which I found most appealing came from towns such as St. Austell, Warwick, Grantham and Aylsham; as they seemed to have more of a focus on what their towns specifically require in order to regain the vitality of ages past - and already appear to have a plan as to how best use the government cash.

There were also interesting entries from Ripon and St. Ives, who have focused their regeneration plans around unique heritage sites, and embraced the potential of tourism to help boost town centre footfall.

The most bizarre entry comes from Exmouth; wherein a teenage girl is apparently beamed down from space, and then escorted around the town by someone looking suspiciously like her sister, before concluding that the townsfolk are spending entirely too much time larking about by the beach, and not enough on their 'quite nice' high street, before she's whisked back into the orbit. The tagline, 'bring them here, keep them here", is altogether more sinister than was surely intended.

Also, if you'd like to see perhaps the worst impression of Mary Portas ever performed - check out Tamworth's effort.

Some common themes mentioned in almost every entry are the failure of councils to come up with innovative town-centre-saving solutions over a number of years (or even decades); the cost of town centre parking or the lack thereof; proliferation of supermarkets & out-of-town developments causing town centres to falter, and the impact that on-line shopping has had on the high street. These, of course, are aspects that the government and Ms. Portas are already painfully aware of.

One wonders how the winners will eventually be chosen. Do the video entries carry as much weight as the application form? If so, does 'view count' get factored into the final reckoning? Are CACI ratings consulted in order to determine the most deserving of town centre investment?

We'll find out in a couple of weeks - but for now, I'll champion Warwick's entry one last time...local bias at it's best!

The "Average" Retail Space.

2012-05-10T13:44:16Z

IPD this week published their comprehensive annual lease review, which indicated that 2011 saw another decline in the average lease length taken for retail space - not to mention another increase in the percentage of leases containing lease breaks.

The study shows that over the past nine years, the average lease length has fallen from just shy of ten years to just under seven. In addition, the percentage of leases which now include a break has doubled.

The figures got me wondering about 'averages' across the retail market - and whether the available space across the country could be distilled down into one unit; the ultimate 'average space', to display what's typically available to UK retailers at this point in time.

Using samples from EGi's researched availability, which currently holds over 12,000 retail units being marketed, I found that the average retail unit currently available measures 2,941 sq ft; would be marketed with a lease length of 11.82 years; and would have an asking rent of £43,281 per annum.

Breaking these figures down by Property Type:

'Average' Shopping Centre Availability: 2,482 sq ft; 11.45 years; £72,195 per annum.

'Average' Retail Park Availability: 12,800 sq ft; 14 years; £171,094 per annum.

'Average' Other Retail Space: 1,837 sq ft; 11.57 years; £29,437 per annum.

Breakdown by Lease Type:

'Average' New FRI Leases: 3,069 sq ft; 11 years; £57,303 per annum.

'Average' Lease Assignments: 3,746 sq ft; 13.23 years; £111,547 per annum.

Whilst this is only a sample, it indicates that the space being marketed at the moment would, on average, be looking for a retailer to commit to a lease length far above that which is representative of the market. The difference between assignments and new leases can probably be attributed to struggling brands trying to divest themselves of lengthy, expensive obligations agreed during better economic times.

The majority of the 'other' retail space is located on high streets - and the fact that, on average, the £/sq ft ratio is closer to that of retail parks than shopping centres shows the level to which those spaces have struggled to attract occupiers. Indeed, shops have been going for as little as £1 per annum - so perhaps it's surprising to see the figure so high!

On average, then, retailers are currently best off going for a new lease on an out-of-town scheme; whilst the most costly deal would be agreeing to take an assignment at a shopping centre - which honestly comes as no surprise at all.

Cinemas - Cruelly Overlooked as a High Street Remedy?

2012-04-24T11:04:55Z

The Local Government Association published a survey earlier this month which tackles the issue of high street 'clustering', which I have blogged about before on here, and once again it is of little surprise to see such things heavily lamented by council members. What I find particularly interesting about this survey, however, is the type of premises that councillors feel will help most to regenerate struggling high streets.

The officers rate books and clothes stores, restaurants, and local butchers and bakers highest with over 90% of those surveyed claiming these types of outlets were the most important elements needed to help restore the future vitality of Britain's high streets. Surprisingly, however, only 68% seemed to think that leisure elements such as cinemas and bowling alleys were of importance to ensuring town centre recovery.

The results seem to largely ignore the fact that supermarkets have largely made the traditional high street model redundant via a combination of favourable parking provision and unbeatable prices over a sustained period of time, perhaps pointing to a degree of romanticism. This feeling doesn't appear to be shared by developers and shopping centre owners nationwide.

Legal & General's Castle Place Market in Trowbridge; Harbourside Developments' Telford Shopping Centre; Capital Shopping Centres' Potteries Centre in Stoke and Key Properties' Kingsmead Centre in Farnborough have all received permission since the start of 2012 for either a cinema-led extension, or a reconfiguration of existing space to accommodate a cinema. Not to mention the plans submitted in February by Hammerson to develop almost 90,000 sq ft of leisure and restaurant space at Centrale, in Croydon.

Whilst these are only a handful of examples, they represent the major retail developers' recognition of how beneficial leisure space can be in a town centre scheme. On the surface, cinemas and bowling alleys, to use the survey's examples, are footfall-drivers and dwell-time boosters; but, crucially, they also offer at least an imitation of the social aspect of town centre shopping that has perhaps been lost through the proliferation of supermarkets.

If town centres are indeed to recover to the level we want them to, they have to provide something that is unattainable in out-of-town schemes or even on-line. This, regrettably, puts an arrow in the idea that the traditional high-street model can be revived, but it gives license to look towards a model that can ensure future success by driving shoppers into the centre of towns to engage in activities besides shopping.

Developers seem to have cottoned on to this notion - and perhaps it's time councils did too.

NPPF: Victory for town centres, or staving off the inevitable?

2012-03-28T08:13:44Z

It's telling that the responses from the British Retail Consortium and BCSC to yesterday's new planning guidelines were altogether more positive than those given less than a week ago following the budget.

The main section of the significantly-condensed planning document which would concern retailers and developers is that which deals with the future vitality of town centres, and how planning guidelines can assist the market in making vibrant, competitive, successful centres a reality; and not just a celebrity's dream.

It was pleasing to see the document make reference to the individuality of town centres, and recognise that local authorities need to govern what constitutes sustainable development in their area. The authorities can define the extent of their town centres, and develop their area plans around these parameters. This in turn will mean a greater power to refuse permission to schemes which are seen as being detrimental to the progress of urban recovery, and thereafter, development.

In strengthening the Town Centre First mechanism, the framework has certainly put faith in the long-term ability of struggling town centres to recover - but in terms of shopping and retail, the question remains whether the problems are too endemic for a planning reform to fix. Several planning hurdles may have been removed for town centre retail schemes from a development point of view - but can consumer behaviour change enough to make them 'viable' and 'sustainable'? And how many retailers will survive until the benefits of the guidelines are felt?

The public often give their backing to retail-led regeneration schemes in town centres, only to then either vote with their wallet and shop on-line, or to drive to the out-of-town retail park, where the stores are larger and the parking free. There also needs to be a little more help given to retailers in the battle to pay rent (an opportunity missed in the budget); as there is little point in making the delivery of a gleaming new project easier if there is nobody there to fill it.

The next couple of years will be of interest - as we observe just how quickly the reforms catch on, and how many schemes are turned down due to failing the requisite impact assessments. Only then might we see retailers, developers and, crucially, shoppers turn their eye towards the town centre rather than away from it. The NPPF may be seen as the first step towards town centre recovery - but make no mistake - there's a marathon still to run.

A million opinions...

NPPF: What does the planning policy mean for Wales?

Budget 2012: The Impact on Retail

2012-03-22T09:49:41Z

The national headlines belonged to the scrapping of the 50p tax rate, and the government's curious decision to alienate everyone over 65 - but there were some elements of yesterday's budget which will have some interesting implications for the retail market over the next couple of years.

Perhaps the aspect mentioned most often by retail experts is over something that the budget didn't do, rather than that which it did. With no respite coming from the Chancellor over the impending 5.6% increase in business rates next month, the cost base for retailers will increase over the next year - and will be in no way offset by inflation, or the cut in corporation tax.

Documents released yesterday indicate that government revenue will be around £592 billion will be raised in the 2012/13 financial year - up £3 billion on 2011/12; and the increase in business rates accounts for a third of this figure.

The decision to relax Sunday trading laws for eight weeks over the summer seems almost like a piece of opportunism, rather than a carefully thought-out piece of legislation, and has gained mixed reviews since its announcement. CBRE's Jonathan de Mello called it a 'timely boost', and that any other decision would represent a 'missed opportunity'; whilst the Association of Convenience Stores have labelled it 'devastating', as it will cost local shops around £480 million in lost trade.

Below-inflation minimum wage increases for adults and freezing the youth rates will certainly be music to the ears of under-pressure retailers; and the increase in personal tax allowances should eventually help consumer spend. The question is whether this increase is coming soon enough - as by April 2013, consumers will have had another year of purse-string-tightening, and the requisite shift in consumer behaviour will be a lot more difficult to engender.

This budget rather gives an impression of the government leaving the retail market in the doldrums for the time being, and rather hoping that the one-time cash injection provided by the Olympic summer can stave off total catastrophe until the population in general has more disposable income in 2013 and 2014. There are, of course, longer term issues over the market which need to be addressed - but the chance for a shot in the arm has gone, and retailers are now left to make the best of what they can out of 2012.

For more from EGi on the Budget - see the Focus Blog for a summary on the impact on regions & click here for a summary of all the major budget stories.

The Best Puns In Retail....

2012-03-06T09:41:47Z

One of my favourite podcasts opened this week with a canon of the presenters' favourite shop names, and as fears grow over the homogenisation of the U.K. retail scene, I feel a timely celebration of the most inventive store names from around the globe is needed...

As outlined in this Guardian piece from January - fish and chip shops have perhaps the richest area of comedy from which to procure their name. 'A Salt and Battery' the winner in this category - and I'm not just saying that for the halibut.

The delightfully named 'Hair Off The Dog' canine grooming salon recently took a unit on a high street in Newbury; and if you're looking for a 'superb' name for a cafe - look no further than this effort from Greenfield, Indiana.

My favourites from the U.K. are 'Amps & Decs', a music store based in north England; and 'Jamaican Me Hungry' - a Caribbean restaurant in Liverpool. Overall, though, the crown has to go to Toronto-based sports store, 'The Merchant of Tennis'.

Hats off to you all!

Supermarkets: Good, Bad, Or just too convenient?

2012-02-29T14:33:04Z

EGi this week reported some good news for the supermarket investment market via a report from IPD; which indicated that it was one of the fastest-growing commercial property sectors. This is the first time that IPD has grouped supermarkets in an investment category of their own when conducting its retail investment research - and much can be read into the fact that supermarkets appear to represent a much less risky prospect for investors than other retail assets, as well as offering a higher return than other prospective investments.

Good news, then, for anyone looking to dive into supermarket ownership - and also for any of the big four seeking to boost their expansion trail by divesting themselves of any owner-occupied premises - but what might this mean for the wider retail market?

Henry Porter launched a scathing attack on supermarkets on Sunday - calling for a 'Leveson enquiry for supermarkets' to attempt to prevent these retail behemoths from, as he sees it, fattening our children, ruining town centres, causing illiteracy, encouraging alcoholism and re-introducing a form of slave labour in order to boost profits.

So, to anyone of a similar persuasion to Porter, the IPD report should make for worrying reading; as with a dearth of truly healthy investment options currently available - it could foreshadow another unstoppable extension of the power wielded by superstores.

A common argument in defence of supermarket proliferation is that we, the consumers, are complicit in their expansion by opting to give in to their lower prices and higher levels of convenience - but what happens when those factors have such force that they destroy all existing competition, removing the element of choice entirely?

Testimony from Barnstaple last year tells a typical and all-too-often heard story of how the fanfares that greeted the arrival of a new Tesco Extra were soon drowned out by the 'high street closures' klaxon just months down the line; and residents have now taken matters into their own hands - petitioning North Devon Council to stop any further supermarkets coming to the town. They are not alone, with dozens of campaigns nationwide now actively seeking to discourage supermarkets from operating in their area.

Whilst I wouldn't go as far as Porter has, and lay the blame a disproportionate amount of the world's ills squarely at the door of Tesco-et-al; the Government may well want to look a little more closely at this issue, and possibly stymie the growth of supermarkets in certain areas in order to give town centres a better chance of recovery.

Bookies vs Portas - who's your money on?

2012-02-27T11:22:30Z

This month has seen a response from the betting industry to the assertion made by Mary Portas that gaming outlets were a 'blight on the high street', and that their proliferation is creating unsightly gambling 'clusters' on struggling retail hotspots.

The perception that December's High Street Review gave was that betting shops are wandering unbidden into troubled towns, sneaking into premises once occupied by banks, building societies and estate agents in order to fleece the community of its cash. Senior industry figures have now hit back, claiming that betting shops are taking space that would otherwise have been vacant, and that their contribution to both local and nationwide economies should dissipate any anti-gambling rancour.

The figures stack up for the gambling industry - employing an average of five workers per store, and paying an average of £10,000 annually in business rates as they contribute around £3 billion to the UK economy every year. With this in mind, it's surely no bad thing to put them in a separate use class, creating a level of authority at council level to decide whether or not there are valid enough economic factors to give approval to a gambling venue in their community.

Research from the Local Government Association suggests that the issue is not one of isolated resentment of betting shops, or indeed the idea of gambling, but rather an uneasiness within communities about how simple it appears to be for a new bookmaker to appear in their town centre. The survey also implies that the public perceive betting shops as being similar to sex stores, fast-food takeaways and tanning salons in that they are all 'blights' on the high street.

In my view, creating a new use class for gambling outlets could help to de-construct this negative perception, and shift public focus towards the economic benefits that a bookmakers can have on a local economy, outlined as they would be in any 'change of use' application. This may then result in more demand-led outlets nationwide, as communities look to the gambling industry to provide their high streets with a shot in the arm - when necessary.

I can understand why the Association for British Bookmakers is a little bent out of shape over the possibility of putting their stores in a separate use class; and sees it as a deliberate piece of restrictive policy against them. However, I think in time they might well find there is more to be gained from contributing to communities with the blessing of councils and the public than forcing an unwanted presence into retail centres through scattergun, unrestrained expansion.

KPMG: Mobile Technology to Decide High Street 'Battle'

2012-02-14T09:02:50Z

KPMG have this week published research which indicates that retailers worldwide are beginning to come round to the view that effective implementation of mobile technology is eclipsing more traditional ways of generating business.

The research, compiled following a survey of 350 senior financial officers of global retailers and consumer brands, also indicates that a decrease in annual revenue is widely expected, with opinion varying from country to country on how far mobile technology can help to maximise sales.

The U.K. respondents appear to be the least enthused about the ability of mobile technology to deliver a much-needed boost to retail sales, with only 36% of the Britons surveyed stating that yes; the technology will drastically help improve sales over the next two years - compared with 46% in Germany, 44% in America, and 50% in India.

Although it does indicate a lukewarm leaning towards the benefits of mobile transactions, those percentages seem incredibly low. Especially when considering further insight by KPMG published in September last year, which indicated that over 90% of financial services executives believed mobile payments were 'yet to go mainstream'. This is in spite of the fact that an estimated $3 billion worth of transactions were processed via mobiles last year - four times the amount for 2010.

What figures, then, can we expect when mobile transactions really take off? We could be looking at astronomical numbers - and it's then even more alarming to consider that less than four out of ten retail CFOs in this country remain, at present, unconvinced of its merits. Perhaps it's down to an inherent mistrust of new technologies, and 'Big Brother' paranoia thwarting appropriate progress in the fusion between the old and the new.

Do we, then, continue with the slow progression towards (and begrudging acceptance of) a coalescence of modern technology and traditional retail values; or do we do away with the myopia, and give mobile technology the chance it deserves in the immediate future to help resurrect a broken retail market?

I'd rather hope that more than 36% of retailers, agents and landlords in the U.K. would choose the latter.

Portas: 'Right Diagnosis; Wrong Prescription'.

2012-02-02T13:19:22Z

....At least that's the view that has been offered today by Phil Wrigley of LXB Retail and Majestic Wines, who has insisted that if the government were to adhere to the recommendations of Mary Portas' review, the High Street would be condemned to continue to plunge further into a 'Death Spiral', taking already ailing town centres with it.

Wrigley's own recommendation for our beloved urban centres to avoid this grim fate is to encourage increased conversion of high street premises to housing, which echoes some in-depth research conducted by think tank 'The Policy Exchange' in March last year.

Both Wrigley and the Policy Exchange have championed the idea of increasing flexibility within the current planning structure to allow properties to under go a quicker and easier transition, if required, from Class A to Class C. The common criticism of the current planning system is that councils' obsession with 'maintaining the town centre', or 'supporting economic regeneration', means that they occasionally force buildings to stay within a certain use class, often refusing a change of use until the premises have been vacant for a number of years.

The reason for this is that councils consider planning applications within the confines of local development frameworks (LDF) set out roughly every decade to outline how they hope the area to develop. Change-of-use applications which appear out-of-line with the LDF are seldom given approval, no matter what their viability, with councils more inclined to agree to a short term solution which fits in with their development plan.

I don't particularly share Wrigley's overriding negativity about the recommendations Portas outlined in December last year; but his view, substantiated by the think tank, represents almost the exact opposite way that Portas could have gone with her suggestions. It is a view that was perhaps too radical to suggest to the current government, who have already relaxed change-of-use laws pertaining to office buildings, with so far less-than-resounding success.

Is Portas, as Wrigley puts it, "propping up a failing sector", or is she attempting to exacerbate a latent desire within the British public to return to thriving town centres, thereby resisting the temptation to consign traditional high streets to the history books? What is certain is that the government's implementation of any of Portas' recommendations will be put under intense scrutiny, as the queue of people waiting to say 'I told you so' gets longer by the day.

Burlington Arcade restoration begins

2012-01-20T14:07:45Z

Regular readers of our retail blog will recall an earlier entry on the brewing row between owners and tenants of the Burlington Arcade on Piccadilly, W1, over plans to breath new life into the building.

Meyer Bergman, the European real estate firm that bought the Grade II-listed arcade in October 2010, has now revealed the first pictures of proposed new restoration works following the receipt of Planning and Listed Building Consent.

Work has now started and the first phase, which will focus on restoring the upper elements of the arcade, is expected to be complete by the end of April. It involves the installation of up-lighting and the re-painting of the painted elements in the original ecru white colour used in 1819 when the arcade first opened.

Work is being undertaken out of trading hours to allow shopkeepers to remain open for business throughout the process.

Markus Meijer, chief executive of Meyer Bergman, Burlington Arcade's co-owner, said: "We expect these works to be complete in time for the Queen's Diamond Jubilee celebrations and I am particularly excited that, once complete, we will have a view not seen for over 100 years and possibly not since Queen Victoria celebrated her Diamond Jubilee in 1897."

Olympics set to fuel retail sales uplift

2012-01-19T16:48:48Z

I'm not going to dwell on the bad news that has hit high streets across the country this week. The collapse of Peacocks, Past Times and Pumpkin Patch is well reported on EGi.

Instead, I'm going to turn to an upbeat report which forecasts that the Olympics is set to drive a 3.5% growth in retail sales in the West End in 2012.

The research, compiled by Springboard for the New West End Company, shows that retailers in the West End are optimistic that sales will peak at £7.7bn this year with further momentum gained during the Queen's Olympic Jubilee.

The report, A 2012 Retail Outlook, also found that 17.8% of total annual additional retail spend will occur in June and July, and that West End retailers expect to make an extra £16.6m in revenue as a direct consequence of the Olympics.

London mayor Boris Johnson has the following erudite comment to make on the findings:

"2012 promises to be a summer like no other, and businesses throughout the West End now have a unique opportunity to reap the benefits when the world comes to the capital. London undoubtedly has the best shopping district in the world and I have every confidence that retailers are doing all they can to plan, prepare and profit from the Games."

Retail Crime: The 2011 Picture.

2012-01-17T10:23:58Z

The British Retail Consortium this week published the results from its annual survey on retail crime, and it makes for very interesting reading.

Taking a sample of 52 retailers who account for 53% of the total UK retail turnover, BRC painted a picture of retailers experiencing fewer acts of criminality than in 2010, but the cost per incident rising dramatically to the overall tune of 31%. This figure doesn't even include the costs of the August riots - which, instead of causing 2011 to become a giant anomaly, are spotlighted at the end of the report, rather than being factored into it.

Increased cost per incident is one theme seen throughout the report, as it goes through the various felonies in detail. Theft was down 19% on 2010, but each theft cost retailers £85.50, an increase of 21% year-on-year; and there's a similar tale with burglaries, the number of which decreased by 42% to the lowest figure in seven years, yet the cost per incident increased by 83% to £2,093 for every offence. Additionally, employee theft is down 24%, but the value stolen each time has gone up 18%.

A clearer picture is given by the statistics for robbery, violence towards staff and criminal damage; all of which saw an increase of 20%, 83% and 63% respectively on 2010 figures. Little solace can be taken from the fact that the 83% increase in violence towards staff is mainly verbal, with the acts of actual physical violence the lowest in seven years. Abuse in the workplace is, as the BRC puts it, an 'unacceptable threat', and they encourage retailers to be more willing to report incidents across the board to help put a stop to this.

In addition, the BRC calls for further investment from retailers in crime prevention, an increased awareness of the damage caused by fraud and e-crime to retailers - seen as an 'easy opportunity' for criminals, and further co-operation between the BRC and police forces. The BRC state that a replication of the scenes of August 2011 are 'conceivable', given the deepening economic crisis, and that they can play an important role in communicating effectively with businesses during moments of unrest.

It was just such a moment in August which threw criminality against retailers into the public spotlight - and the figures outlined on the impact of said events are rather harrowing. The riots affected 20,000 employees - 1.5% of the UK's retail workforce; they cost the retailers in the survey £18.3 million in theft, criminal damage, burglary, arson and store closures. Additionally, an impact on sales was experienced by 56% of those surveyed.

One can't help but think that, were the figures from the UK riots included in the report, the figures that indicate 'below-7-year-average' figures for theft, burglary, robbery and criminal damage would not look quite so rosy. If the BRC are correct in their suggestion that a similar spate of lawlessness could hit the UK this year, retailers have to make sure that they are better safeguarded against experiencing a similar loss.

The full report is available here.

Online success shines through Christmas results

2012-01-12T17:57:18Z

This week has been quite a revealing week for the retail industry with some of the UK's biggest retailers producing their Christmas trading results.

There have been some clear successes. House of Fraser, John Lewis, Sainsbury's, New Look, SuperGroup, Debenhams, Majestic Wine, Foyles, Morrisons and JD Sports have all reported increased like-for-like sales figures.

But there was a more worrying picture being painted by the likes of Home Retail Group, Tesco, Mothercare, Halfords and Thorntons, which all flagged up falling sales. Some of these lacklustre results come despite widespread discounting in the run up to Christmas, which will have hit retailers' pockets.

A clear opportunity or warning sign (depending if your glass is half full or half empty) for both retailers and landlords to pick out of these results lies in the blossoming online sales figures. They helped some retailers push through a tough trading period.

John Lewis said: "Our very successful multichannel and online operations have been at the heart of John Lewis' performance. All three John Lewis markets were instrumental in driving sales in this area, with johnlewis.com outperforming its market and seeing 27.2% growth."

"As the 'Click and Collect' facility has proved to be so popular, from next month the number of collection outlets will more than double to 116, including collection points in 84 Waitrose branches, with more being planned."

Debenhams' like-for-like sales increased by 1.4% including VAT in the 18 weeks to 7 January 2012. However, its online business, which it says is a key component of its multi-channel offer, delivered like-for-like sales increase of 34.8%.

Ellen Flood, retail expert from Shopow says: "The internet is developing as a key element of the retail landscape. Online shopping offers shoppers an incredible amount of choice, convenience and savings."

"What we will see this year is the evolution of the high street with leading retailers changing their approach, and in many cases their product lines, to reflect the tastes of the modern shopper."

Big Brother Debate Sparks Unnecessary Fuss

2012-01-06T14:45:14Z

No, not the "celebrity" one.

There has been some furore recently emanating from human rights groups over the 'revelation' that shoppers' behavioural patterns are being tracked within retail schemes via their mobile phones.

It appears that, in a bid to better understand consumer behaviour, some of the major players in the market have advocated the tracking of mobile phones within their malls, indicating how shoppers operate. As the story has broken, it has inevitably sparked a 'Big Brother'-esque paranoia, despite the technology being categorically unable to store phone numbers, messages, internet history or any other personal information.

Upon reading what the technology does - I thought of it like this: You go into a mall, and Mr. Eye-in-the-sky stops seeing you as a human being with a past, two parents and a set of organs, and instead sees a neon cube with an identity code. Cube 30496745 then does X,Y,Z - leaves the mall, and then goes back to being a person.

The response to the use of tracking technology would suggest that there is a swat team on the roof of every mall in the country, waiting for the tracker to feed it something like: "Graham Shone just used a 'Next' voucher, then had a coffee - he's clearly a terrorist - move! move! move!". Perhaps its a personal thing, but I have no problem at all with anyone knowing where and in what order I do my shopping. In fact, good luck to them. My last trip to Westfield was so scattergun it would probably break the computer.

Using this technology is basically a more comprehensive and time-saving way of conducting surveys. The tracking is not designed to pigeon-hole individuals, but to create a better environment and experience for the collective. In addition, the technology is not only used in retail - as this eye-opening news item testifies. Why not embrace everything you can to help improve life for you and your customers?

A simplistic view, perhaps, but if you're that worried about your phone being tracked while you shop, then leave it at home - or switch it off. Yes, there are limits as to what should be monitored, but in my opinion this doesn't get near them. And think about this - if you're paying by card for your shopping, then surely your bank has even more sensitive information than Land Securities or Westfield will ever get hold of.