Mention Croydon and the first thing the majority of people say is ‘Boxpark’. That, and the fact the place is a bit run down, is all people seem to know about this outer South London suburb. The metal shipping container type concept of Boxpark has become the ‘up and coming’ stamp of hipster approval and many councils and developers see it as an opportunity to regenerate their town centres, drive footfall and appeal to a younger audience.
Since its launch in 2011, Boxpark has morphed from retail to food outlets, and, now, work places. Just announced, Boxpark has nationwide expansion plans alongside two brand new concepts; BoxOffice and BoxHall. They currently have 3 sites in Shoreditch, Croydon and Wembley. and there are plans to expand with a further ten new sites over the next five years.
Left - Boxparks new concepts; BoxOffice & BoxHall
The new concept, BoxOffice, is a co-working space which will be incorporated into brand new Boxpark sites. The Boxpark and BoxOffice schemes will be a 50,000 - 150,000 sq ft. in size with developments featuring the Boxpark streetfood and bars set up on the ground floor and leisure operators such as virtual reality, cinemas, crazy golf and karaoke on the first floor and between two to four floors of co-working space above. Boxpark will work along alongside existing co-working companies on the launch and operation of the new BoxOffice concept.
BoxHall is a new food hall concept. These smaller, 10,000-20,000 sq ft, food and beverage destinations will be based on existing sites within city centres across the UK, featuring between six and twelve street food vendors at each site. Boxpark’s turnover is reported to be currently in the region of £10 million a year.
Boxpark founder and CEO Roger Wade said, “I’m really excited to announce our plans for our brand new BoxOffice and BoxHall concepts. Boxpark has always been an innovator in the retail and leisure sector and these brand new formats demonstrate our investment in continuing to evolve both the brand and the sites we build and operate. These two major new innovations will help us secure a further 10 sites across the UK over the next five years.”
They haven’t named the sites, but proposals were submitted to Brighton & Hove City Council to revive the crumbling Victorian arches on the seafront, and will incorporate a new premium hotel operator alongside a Boxpark.
Founder Roger Wade’s background is retail and he was the founder of footwear brand, Boxfresh. The pop-up Boxpark idea has been successful because it has mirrored Generation Rent. The temporary nature and its choice of more ‘edgy’ locations needs less investment and has less local competition. It’s the opposite of chainy, while still being a chain and situated at travel hotspots for a generation who aren’t learning to drive. Read ChicGeek Comment Neighbourhood Shops - here
Councils are also encouraging them too. Croydon Council gave Boxpark a £3million loan, plus another £180,000 grant of public cash towards its launch party. Croydon Boxpark has 40 traders from around the world, both established and start-up, set in over 90 shipping containers. With Croydon as a further example, while the Boxpark seems to be thriving near the main East Croydon station with direct trains to London and Brighton, Westfield’s much feted shopping centre in the middle of the town seems to be wobbling and being pushed back further and further. Bricks and mortar is expensive and these easily converted containers are ripe for small start ups, offer more customer choice and can be moved easily if a location doesn't work.
Right - Time Out Market London opening at Waterloo Station in 2021
When Boxpark first opened in Shoreditch it was retail focussed with brands such as Calvin Klein Underwear and Nike. It quickly moved more into food when it realised young people wanted experience over stuff. The two further Boxparks were purely food focussed. Now, they’ve realised there is potential to develop further and make ‘Box’ the ‘Easy’ brand for younger generations.
Eating at these places is cheaper and cooler than eating in standard restaurants. It has spawned imitators such as Pop in Brixton and GRUB in Manchester while chains like Byron Burgers and Jamie’s Italian have all suffered. Shopping centres and town centres are seeing that these hipster concepts appeal to Millennials and Generation Z who want authenticity, and, while a similar idea, they feel like the antithesis of the traditional American mall type food courts.
Food is the fulcrum for all these developments, and it's the theatre of food that creates the buzz and energy missing from many modern retail locations. People need to eat, it brings people together and makes them leave the house.
These mini-food halls are seeing a boon ATM. ‘Market Hall’ opened at Victoria Station and Fulham with a third opening, the flagship, ‘Market Hall West End’, opening late 2019 in the old BHS building off Oxford Street and will become the largest food hall in the UK. Covering 37,500 sq ft over three floors, with over 800 covers, "this impressive space will feature twelve independent food vendors made up of crowd favourites in Fulham and Victoria as well as some new faces, four bars, a children’s play area, three dedicated events spaces and TV recording studio including a demo kitchen". Market Hall founder, Simon Anderson, told the Big Hospitality website in April 2019, “We are concentrating our attention for the next year and a half within the M25 as we know the London audience well. When we go further afield we’ll go to the north first as half our management team is based in Yorkshire and has a good understanding of that marketplace. Within the next few years we hope to have three or four more sites in London and three or four out of London.”
These modern food halls are like an internet portal or host. The umbrella brand hosts numerous smaller and unknown brands offering more choice and novelty while charging a fee and not getting their hands too dirty. Shopping centre owner intu asked Market Hall to open at their Lakeside centre in Thurrock this Spring. I wrote this last year, ChicGeek Comment Returning Malls To Markets
'The Hall’ “brings together dynamic and independent food traders from across the south east and use the big-city energy, theatre and excitement of street-food to create a compelling dining experience for intu Lakeside’s 20 million annual footfall” says the blurb.
The Hall at intu Lakeside is 14,500 sq ft and includes seven kitchens, a coffee shop, pop-up areas for food trucks, two bars and seating for 680 people.
Other examples include the Time Out Market London, opening at Waterloo station in 2021 - Read more ChicGeek Comment Investors Letting The Train Take The Strain and Eataly, opening on Broadgate, next to Liverpool Street station, in 2020.
Left - Eataly opening on Broadgate in 2020
This global Italian food “marketplaces” operator, which combines retail and restaurant concessions, already has locations in New York City, Chicago, Boston and Los Angeles, as well as in Japan and Brazil. It promises a selection of “the best Italian products, restaurants, bars, quick services, exciting on-site production laboratories, and a cooking school.”
The Boxpark brand is the leader in this area of pop-up food malls and developers and towns are seeing this as a worthy replacement for the contraction in retail demand. The new BoxOffice and BoxHall concepts seem like logically growth of a popular brand.
Umbrella brands like Boxpark also know councils and shopping centre owners will offer financial incentives for them to bring these currently cool concepts to their locations. The only difficulty I see is expecting an unlimited supply of authentic, ambitious and quality start-ups to fill them. These concepts are only as strong as their groups of operators and it will be a fine balance of supporting them while profiting from them.
The next time you arrive at your local mainline railway station have a look at the retailers lining the concourse. Where once it was Boots, a few Upper Crusts and a plethora of deep-frying fast food outlets, is, today, being replaced by retailers who previously wouldn’t have been seen dead amongst the pigeon droppings and leaky roofs.
Following the huge success of retail rail developments such as Birmingham’s New Street and London’s Kings Cross/St Pancras, investors, who still want to invest in retail developments, are looking to where the people are and those symbols of the Victorian steam age are ripe for reinvention.
Rail travel is having a renaissance, in the last 20 years the number of people travelling on the UK rail network has doubled, and looks like it will continue to do so with its lower carbon impact and trends such as Sweden’s Flygskam - Read more here - making people think more about their travel decisions and the impact it has on the environment.
Left - Artist's impression of the new Waterloo development of the former Eurostar terminal
According to the Office of Rail and Road, rail passenger journeys in Great Britain in 2018-19 reached a record high of 1.759 billion. It increased by 3.0% compared to the previous year and was driven by a 3.9% increase in the London and South East sector.
London’s Waterloo is the busiest station in Britain for the 15th consecutive year, despite the total number of passenger entries and exits falling by five million to 94.4 million.This fall was in part due to a three-week closure for upgrade work in August 2017, which brought the former Eurostar platforms back into use after they were vacated in November 2007.
In the rest of the UK, Glasgow Central retained its position as the busiest station in Scotland and 11th in the overall list, with passengers using it 32.9million times this year, and Cardiff Central was top in Wales with more than 12.9 million entries and exits, making it 33rd overall.
We’re seeing a new golden age in rail travel and retail and property investors want in. Waterloo has unveiled plans to convert the former Eurostar terminal into a 135,000sq ft shopping mall to open in spring 2021. Called 'Waterloo.London', forty glass-fronted stores and restaurants will form a new “upmarket shopping destination to rival St Pancras International”. The new scheme is being developed by London and Continental Railways (LCR) – the UK government-owned property development firm and the company behind the redevelopment of St Pancras International train station. A mezzanine and public spaces will run along a new pedestrianised street called the 'Waterloo Curve’. Time Out Market will be an anchor tenant, consisting of 17 restaurants and three bars across two floors.
“Waterloo.London will set a new benchmark for progressive retail and transport destinations in the UK,” LCR development director Adrian Lee said. “Brands will have a truly unique opportunity to tap into a market of Waterloo’s 100 million passengers, the 20 million tourists that visit the South Bank every year, and its surrounding vibrant community and growing office population.” he said.
Over in West London, new plans have been unveiled for Victoria station, the UK’s second busiest station with almost 80 million passenger journeys a year, and said to be biggest overhaul in its 168-year history. Developers plan to take off the roof of the station, creating a giant concrete and steel box around the 19 platforms to allow the building of towers above. The Duke of Westminster’s property company, Grosvenor, developer Landsec and Victoria’s Business Improvement District, have held secret discussions over the past 18 months on developing London’s second busiest station. Details are still vague at this stage, but no doubt retail will feature heavily on the lower floors of the station. The current dated looking shopping centre at the back looks tired and isn’t integrated into the station design well enough.
Right - Waterloo.London will feature a TimeOut Market with 17 restaurants and 3 bars
Much needed modernisation of infrastructure has been a catalyst for cities to develop and reinvigorate themselves. Birmingham’s New Street station went from voted one of the worst buildings in the UK to a modern shopping centre with trains attached when it reopened in 2015. A huge John Lewis department crowned the mirrored steel exterior and has become a symbol of the regeneration of Britain’s second largest city.
These redeveloped train stations have quickly become favourites places where people choose their leisure time rather than simply travelling through. The top four UK stations for customer satisfaction according to Transport Focus data were London King’s Cross (96%), London St Pancras (95%), Birmingham New Street (92%) and Reading (92%), all having undergone major refurbishments in recent years.
The most successful rail retail development has to be St Pancras International, the glamourous home to the international Eurostar service. The station’s arcade area was built primarily as a beer store and 150 years later, and £800 million spent, it has, since its 2007 opening, continued to add premium retailers such as Fortnum and Mason, John Lewis, Godiva, Benugo, Nespresso, Fratelli, Chanel, GANT and Hamleys..
Today, it attracts approximately 50million visitors a year and 1 in 6 of those who visit the station do not catch a train. Total retail sales at St Pancras International during the Christmas trading period (22nd October to 31st December 2018) grew 6.3% year on year.
St Pancras International saw strong growth across all retail categories, including a 4.1% year-on-year growth in food sales, and an 8.7% growth in non-food categories. The station’s 6.3% like-for-like growth over the festive trading period, significantly outperformed the wider UK retail sales results, which were flat year-on-year and -0.7% on a like-for-like basis from December 2017.
People are time poor and combining a journey with a great shopping experience is one way to entice money out of people’s pockets. Consumers are increasingly lazy and no longer want to travel just to go shopping - Read more here - they want shopping integrated with the rest of their lives and their increasing desire to travel. Airports hold too many restrictions, so train stations are becoming an increasing focus. You rarely see empty retail units at stations. Developers need footfall and when yours in the tens of millions, it's difficult to see it not working. City centres will shift towards these rail hubs and they will no longer be the entry point but the destination.
Easily the most anticipated retail destination - we can’t use ‘shopping centre’ anymore, can we?! - of the year, and the final piece of the huge Kings Cross jigsaw, Coal Drops Yard mirrors the life of the entire area. From industrial power to warehouse parties to sanitised private/public spaces, this could be a micro model of London as a whole over the last 100 years.
Now reimagined by Thomas Heatherwick, who has joined the two ‘Kit-Kat’ pieces with a sweeping roof which lightly touches across the divide. This was the kiss Kings Cross/St Pancras was waiting for and not that cringeworthy sculpture greeting you as you disembark off the Eurostar.
Opening today, with over 50 new stores, it’s currently only about 50% open, and the most stunning aspect, the Samsung store inside the roof, is far from finished.
Firstly, the architecture is great. What could have been clunky, the roof is elegant and sweeping. Reslated in the original Welsh tiles, Heatherwick works his magic and creates something modern yet respectful to the original. This is the human scaled, brick built industrial Britain that is a joy to bring back to life.
Situated just down from Granary Square and up from the main stations, Coal Drops Yard opens out into a generous V shape with two main levels of shops and restaurants. This feels like the type of retail space you want to give yourself time to explore.
There’s also another space on the other side of the main block called Lower Stable Street that is for smaller and start-up businesses. It has touches of the Southbank with the concrete.
There are a few restaurants - Barafina, Casa Pastor and wine bar The Drop, but it feels the mix is too heavy on the retail, today, especially with the need to drive traffic. People don’t need to go shopping anymore, but they do need to eat. You could easily use the space in the middle for market type concepts.
They’ve made an effort to have a mix of brands - COS, Paul Smith, Tom Dixon, Cubitts, Universal Works, Rains, Aesop, Maya Magal, Miller Harris and Le Chocolat and there are a few that are new to me.
You want to explore, but there’s no element of surprise. The retail mix is dry. It’s from the Monocle school of aching design, devoid of personality. This feels like stylish retail from 10 years ago. We’re in the age of Gucci, of bonkers, of wanting-to-get-my-phone-out-and-take-a-picture-mental, not a single one of the finished shop fits was worthy of an Instagram. Even Paul Smith has produced one of the most conservative shop fits I’ve ever seen from him. You’d think he would have tapped into the rave culture history of the site, especially when you consider so many of his more casual clothes would have been worn there.
This is for one type of design customer and I don’t think that’s as aspirational as they think. It’s also needs a destination store. There was lots of talk from the lease manager about going to Paris for inspiration. When didn’t they resurrect Colette here or try a Dover Street Market type concept. It needs a pilgrimage store, or whatever that is in 2018, to get people up from the stations.
I really think Coal Drops Yard has missed a trick by not tapping into the nostalgia for the area. Those clubbers are now in their 40s with money to spend and families to bring. There are exhibitions regarding the history in the Visitors Centre, back in Granary Square, but I would have done more on site to remind people of their happy times spent at The Cross or Bagley’s nightclubs.
As I said, it’s not fully finished and all these things will evolve. When listening to Thomas Heatherwick give his welcoming talk I thought about the reinvention of Covent Garden, which he then mentioned, and was a huge success, and then I thought about the early 90s, when they tried to turn a similar concept, Tobacco Dock, into a similar retail destination. It was the wrong location at the wrong time. This is in a better position, but like I said, they need enough people to know about it to want to walk up from the stations.
I think we’ll see more food outlets eventually and also they need something like a vintage market, similar to Spitalfields, to raise the element of discovery and keep you coming back.
Read more ChicGeek Comments - here
If the headlines were to be believed you’d think the high-street was in terminal decline and everybody was withdrawing at the speed of knots. Store closures across the board and brands shrinking to survive, it’s armageddon on the high-street, they scream!
The retail market has always seen brands or chains crash and burn over the years. It’s part of the retail renewal cycle and allows others to appear and grow.
Left - River Island's new expanded store at Milton Keynes' Centre:MK
"As consumers, we are becoming more and more demanding, each new level of service experienced serves to simply raise the bar even higher. In the UK in February 2018 online accounted for 17.2% of total sales (source ONS). Whilst this is still increasing (15.6% in February 2017) it is still a relatively small proportion of total sales meaning that over 80% is from the high-street. So, it is clear that the high-street is far from dead but it is evolving at a rapid rate - Darwinism on the high-street if you like, where the process of evolution naturally culls the weak whilst the strong prosper and survive,” says Andrew Busby, Founder & CEO Retail Reflections.
Continuing to grow, online retail sales leapt to 18.8% last month - April 2018 - and it won’t be long before it hits 20% and maybe even 30%. For the offline retail optimist, though, it means 80% is left for the taking offline in physical stores.
But, while the focus has been on chains closing stores - M&S announced 100 stores closing by 2022 - there are a few strong and growing brands stealthily tightening their hold and grip on the high-street. The focus is on bigger and better stores in premium locations: less stores but better.
As brands vacate premium sites other brands can cherry-pick and expand into the gaps, but only in the top tier of shopping centres and cities.
For example, both Zara and River Island are carrying out major expansions of their stores at Intu Lakeside. River Island will be doubling the size of its store to 21,000 sq ft while Zara will treble its store size to 35,000 sq ft making the stores among the largest in the retailers’ portfolios. They are the latest retailers to invest in flagship stores at Intu Lakeside since H&M doubled the size of its store to 36,000 sq ft and Next opened an expanded 70,000 sq ft store in Spring 2017.
When Banana Republic vacated Westfield White City, Zara took the opportunity to create the biggest branch in the UK. River Island recently doubled the size of its store in Centre:MK in Milton Keynes. The retailer doubled its existing unit to 20,000 sq ft to accommodate the brand’s full range of womenswear, menswear and children’s fashion ranges.
Nick Tahir, River Island, Head of Menswear Buying says, “We have over 280 stores in the UK. In an increasingly competitive high street, it is important to keep River Island stores looking fresh, relevant and exciting. With 30 years heritage, naturally some stores will require a makeover and in some towns/cities and that has been a key focus for us, we have also been increasing our square footage, to accommodate the needs of our customer and our growing divisions (for example we launched RI Kids and RI Mini only a couple of years back and the demand is consistently growing).”
“Although retailers are seeing an impact on bricks and mortar due to mobile and online, retail is still the biggest mix of sales for us. With our heritage, stores will always play an important role. They are the heartbeat of the River Island. The challenge for us and our peers in the industry, is to keep our customers coming back again and again. We do this by enhancing their shopping experience – whether that’s through pop-ups and exclusive events, or through offering something that our customers can’t find with some of our competitors; take Style Studio for example, our complimentary Personal Shopping service. It is vital for us to keep revamping and improving our store aesthetic to draw footfall, creating theatre through VM and windows and of course constantly refreshing our product offering to stay relevant and exciting.” says Tahir.
As stores grow larger at key shopping hot spots, retailers can give fewer locations more attention and fine tune, update and invest in those locations. But, what this will also mean is many towns will lose their well known names and become secondary as the money is sucked into fewer, bigger places.
“Most retailers with a large store estate have too much space so what we're also seeing (landlord rent restrictions aside) is an expected re-sizing and in some cases re-purposing of space eg. Debenhams considering renting out space to WeWork.” says Busby.
“All this means that the stores which survive will need to be far better than those we currently experience. For example, the poor quality of the Toys R Us stores was a major factor in it collapsing into administration.” he says.
“But the fascinating dynamic is that quality and customer experience in store is largely dependent upon the particular shopping journey ie. if it's a distressed purchase then the customer just wants to get in, find what they need, pay and leave - as seamlessly as possible. However, if it's for say a luxury item they may well welcome, indeed, seek out engagement and advice; being quite happy to spend far longer. Both journeys will be judged by different criteria. The trick for retailers is to recognise what journey we're on and act accordingly. Facial recognition and AI is going a long way to be able to tell what mood we are in when we enter the store.” says Busby.
Right - Zara's new store at Westfield Stratford
The shopping centre companies know this too. The recently abandoned £3.4bn tie-up between Hammerson and Intu failed, I think, because Hammerson were probably only interested in a handful of their top sites like Manchester’s Trafford Centre. Trying to offload or revive the others would be costly and a distraction and knowing where the market is heading, it knows it’ll probably be able to bid on what it wants individually if Intu starts to wobble in the foreseeable future.
In order to survive it’s going to be about fewer players with less but stronger sites. As more close, it strengthens those which are left. If you believed the newspapers you’d think that every retailer had given up on physical stores, but the clever ones are only getting started. When the growth in online slows or plateaus, these proactive retailers will be positioned to take full advantage of the eventual return to the high-street.
Read more expert ChicGeek Comments - here
Shopping centres are morphing to survive. Opening cinemas, restaurants and other attractions to get people out of the house and their tenants happy with more footfall, they are trying to move away from being a one trick shopping pony. This is old news.
But, it’s all so chainy and sanitised; the antithesis of what is cool today. It’s basic.
Left - St George’s Market - Belfast
What’s cool today is start-ups, seasonal produce, artisans, craftspeople, farmer’s markets, Boxparks, ethnic food and passionate and motivated people seeing the whites of their customer’s eyes.
Shopping centres need to harness this energy and support it.
I’ve often been jealous of the historical, covered markets they have in many Northern towns. This isn’t poncey, Daylesford Organic type markets, but real markets for everybody, offering quality and affordability. Lots of fresh produce and home made products. I know, if I had one closer, I would use it.
I visited Belfast 18 months ago and fell upon St George’s Market. It was a mid-week wednesday in October and the whole place was buzzing. Built between 1890 and 1896, and supported by The National Lottery, the restoration preserved its Victorian heritage, from the authentic stone bricks to its Bangor Blue roof slates and replicas of original Victorian shops.
As well as restoring an important historical building, the project created a modern market place providing a space to trade and grow for over 170 small local businesses, and supports around 400 jobs each week.
Since its renovation in 1999, St George’s Market has gone from strength to strength, trebling the number of days it trades from one day a week to three. The huge variety and quality of products on offer helps to attract over 600,000 visitors each year. St George’s Market was named the UK's Best Large Indoor Market 2014 by the National Association of British Market Authorities.
There were signs on the doors saying there was a wait-list for stalls. It was a mix of food, arts and crafts, vintage artefacts and unique gifts. Of course, not everything was to the highest taste, but that’s the point of a market, it’s an excitement of discovery and unpredictablity. The opposite of a modern and bland shopping centre. It was thriving and it had an energy that I wanted to spend time in.
I recently visited Centre:MK in Milton Keynes. It’s a busy, 1970s listed shopping centre at the heart of the city. I had a walk around and noticed, huddled under a flyover type structure, was an outside market: little stalls selling vegetables and other types of street market products.
Shopping centres need to bring this inside, polish it up a bit and expand it. But not sanitise it. These types of markets were often looked down upon, much like Primark was - Read more here - but things change and we need a return to a type of frequent shopping that we’ve been doing for thousands of years.
Right - Kirkgate Market - Leeds
This is the modern version of an ancient market. Somewhere I can get great bread, home-made chocolates for presents and authentic products from all the nationalities who have made their home in the UK.
I live in Croydon. They opened a Boxpark over a year ago. It’s fantastic. It’s a large food court which feels like you’re trying something new and getting passion in every mouthful. It’s just food and you congregate on large communal tables in the centre after visiting what feels like an unlimited choice of cuisines.
People are just as tired of chain restaurants as they are of chain stores. It’s time for independents. These shopping centres could support whole armies of people itching to start their own enterprise. There are so many people wanting to follow their dreams and try something new without the prohibitive cost of opening a shop or starting a website. These brands are very active on social media and offer newness and a point of difference.
Large towns and highly populated areas could easily sustain a thriving market type concept. The shopping centre needs to be an umbrella rather than a controller. The other shops would benefit from more frequent visitors and the buzz of the shopping centre. This is also how future brands will start.
Remember Marks & Spencer started on a market stall in Leeds after all.