Reopening retail and hospitality

Three weeks since the reopening of non-essential retail here at Touchwood, an upscale shopping centre in Solihull, West Midlands. We're getting busier each week as confidence grows in the safe system we have in place with footfall numbers growing around 20% each week and reports that average basket spends are higher than usual.

Guests have been fantastically patient as they follow our one way system around the centre, understanding that it's here to keep them safe. We've also had some heartwarming feedback about how it is all working, thanking us for the efforts we've made to help people maintain social distancing whilst moving through a busy centre.

Given that the restaurants and coffee shops were only allowed to let people sit down to eat and drink at the weekend, that around 50% are not yet open or just offering takeaway and that the cinema remains closed, we must be happy with the level of footfall seen so far. Around 40% down on a typical week at this time of year.

It must be said however, that delays in communicating the return of hospitality and confusion around the government’s ‘one meter plus’ ruling have led to so many hospitality businesses keeping their doors closed for a bit longer or just offering takeaway services for now.  

I must praise the public after our first weekend of sit in dining and drinking. Impeccable behavior was seen from diners and drinkers across our hospitality venues, in some contrast to what you may have seen on the news.

So, with a safe system in place across the centre, guests feeling safe, happy, and starting to spend money again, the next challenge that faces us as a landlord is rent and service charge collection. 

The peril that Intu find themselves in is a concern and as we continue to work closely with our tenants to ensure as many as possible survive through the pandemic, we also have to protect ourselves or these businesses will have no platform to trade from. Rent collections are down significantly compared to the same point last year and we hope much of this is down to an increase in administration as landlords allow for payments to move monthly from quarterly.  

So far, we have lost just 3% of our businesses to the pandemic, all national chains that are no longer deemed viable.

The positive news, and this is often the case during recessions and downturns, is that there are several fleet footed businesses looking at this situation as an opportunity, poised to move into a recently vacated prime location. We are at heads of terms with a number of different businesses about coming into the scheme.

Whilst the future remains uncertain, one thing for certain is that humans always find a way to adapt. Things might look a bit different on the other side but we will have all learnt during this time and will have discovered new ways to trade and be successful.  

Tony Elvin, General Manager, Touchwood Solihull