Repositioning retail | Q&A with Global Mutual’s Rachel Scott

Place Yorkshire spoke to the senior asset manager for retail and head of leasing at outlet Junction 32, to discuss changing consumer habits and how shopping destinations have adapted.

Your career in retail asset management has spanned more than 25 years. What are the biggest changes you have seen during this time, in respect to consumer retail habits and trends, and how have retail destinations adapted?

One of the biggest changes I’ve seen is the rise of e-commerce. It’s definitely shaken things up. There’s a common misconception that online shopping has hurt physical retail destinations – which isn’t the full story.

What we’re really seeing is a shift in what customers want from in-person shopping. It’s now much more about the overall experience. People still want to see, touch, and try things before they buy. They’re also looking for a more experiential offer and are often time poor. Because of that, Junction 32 is seeing strong footfall and impressive sales as people see it as a great and worthwhile place to spend their time.

How have these changing consumer habits affected the leasing and management side of the retail business?

We’re seeing more and more retail brands starting out online and then moving into physical bricks and mortar stores once they’ve built a strong brand presence.

There’s also been a real shift in how asset management is approached in retail. At Global Mutual, we take a partnership-led approach. By building genuine purposeful relationships with the brands we’re investing in long-term success. It’s about working together to find what really works for each brand, which in turn helps us retain them.

Covid must have caused a fundamental shift for retail assets at the time. Is business completely back to normal following that, or are there still some hangovers? Did it cause any long-term changes in the industry?

Covid was undeniably a turbulent time for the sector, but one positive outcome has been a stronger commitment from both brands and asset managers to think more creatively and strategically.

For retail destinations, that means being inventive with asset management and thoughtful with tenant mix strategies. To do that effectively, we rely heavily on data and insights to understand what our visitors want and where each brand is likely to perform best within the centre.

For me, it all starts with really knowing your catchment and digging into the data. Outlet centres operate on a turnover based model, so it is essential to do everything possible to support brand performance.

What’s more, during Covid, the market was incredibly competitive generally due to the uncertainty over the future and physical retail. Now, demand has bounced back significantly, which is a huge positive for landlords and for the overall success of the scheme.

Have large retail assets suffered similarly to high streets?

Across our portfolio, we’re seeing some really strong results, driven by an adaptive and flexible approach to the market. At Junction 32, for example, the centre continues to grow from strength to strength, with occupancy levels close to full.

One key advantage retail destinations often have over the high street is single ownership, which makes it much easier to curate an interesting and balanced tenant mix without the complexity of different building owners having different goals.

What project/s stick out for you, that you’ve worked on during your career? What are the highlights?

I had the joy of working on Liverpool One as an asset manager and that was a fantastic experience. Having gone to Liverpool John Moores University, it was exciting to work on something with such personal relevance to me. It’s such a dynamic scheme and felt all the more exciting as in the same year as it opened, 2008, the city was European Capital of Culture.

And similarly, have there been any projects that were a particular challenge, and if so, what were your main takeaways from your experience/s?

I’m really passionate about the retail sector, so one of the biggest challenges for me has been that, in the past, I haven’t always had the luxury of working exclusively on retail projects. What I’ve learned from that is how fortunate it is to be involved in work that I genuinely care about and feel enthusiastic toward. I truly love shopping, and I believe that helps in driving the success of the retail destinations that I work on.

You are now focused on Junction 32. What is your vision for the retail centre, and how will you approach its leasing strategy?

As asset managers, our strategy goes beyond simply driving footfall, strong performance, and impressive sales – it’s also about curating a brand lineup that evolves with the needs of our customers. At Junction 32, that means identifying the right brands for the local community and staying attuned to what they want.

That includes bringing in exciting new names such as Dune London, Flannels, and Saltrock, all of which have opened in the past year, while also retaining the much-loved brands that consistently perform well. With the centre now close to full occupancy, our focus is on how we can continue to elevate the experience for our visitors.

You have worked all across the North of England. Have you noticed any Yorkshire-specific quirks or trends in your sector, or are retail assets across the North broadly similar?

As someone who has lived in the North since I was a young child, I know just how diverse the retail landscape is across different counties – each retail destination differs and has their own personality and it’s important not to make broad assumptions, but instead to really dig in and understand the specific ecosystem you are working in.

What I have found, is that in Yorkshire, there’s a real sense of passion, warmth, and honesty that fosters strong and positive working relationships.

Looking to the future, do you have any predictions for leasing prices across the region in the short and long-term?

The market in Yorkshire is definitely gaining momentum, and with that increased desirability, we’re seeing a noticeable rise in demand, which is having a clear impact on leasing values.

Ultimately, it’s great to see the growing visibility of the region directly contributing to the strength and growth of the retail market.