Why ‘wow’ is vital to complement character in successful places

Alison Clegg, Managing Director, Asset Management at Grosvenor Britain & Ireland

Published by CoStar on Tuesday 8th June

Having said previously that character is key in successful place making, a second element is becoming evidently as important as we emerge from lockdown: delivering a ‘wow’ factor.

During the successive lockdowns, destinations had a responsibility to keep the public safe.  As freedoms gradually returned, the imperative for landlords and operators was to reassure visitors of their safety and wellbeing.  Now, as we increasingly return to normality, the onus and message is shifting.  While reassuring visitors will rightly remain for some time, there is a new imperative: consumers want to be inspired.  ‘Wow’ matters.

So what creates the ‘wow’ factor?

In short, there is no ‘wow’ panacea.  Instead, in Grosvenor’s experience, it is a combination of an offer, an environment, and an experience that is hard to find elsewhere, if not impossible.

The starting point has to be the brands on offer in the destination.  They should be more than just a store, embodying everything the brand stands for, in particular the products sold and how they are merchandised.  Ideally, they should also reflect the surrounding context, especially important with the current rise of localism.

We are in the fortunate position in Liverpool ONE of having a number of stores, restaurants and bars that deliver the requisite ‘wow’.  JD Sports’ flagship is a great example.  One of the brand’s largest globally, it is a dominant presence on Paradise Street that does not disappoint as one crosses the threshold into its world.

Similarly, David M Robinson’s boutique on South John Street is as impressive a homage to jewellery as anything on Bond Street in London’s West End.  Likewise, Beauty Bazaar Harvey Nichols on Peter’s Lane is one of only two in the world.  It even goes as far as having a ‘Wow’ champagne bar on the first floor.

Liverpool ONE’s F&B operators are in on the act too, with many delivering a unique sense of occasion that befits the Instagram generation.  One example is Boujee, which opened late last year and has since created a pink flamingo-themed experience on Chavasse Park that has proven a hit on social media.

The place itself must also deliver a ‘wow’.  Architecture and character play a key role, but so too does the variety and combination of experiences. Surprising and delighting visitors adds to the ‘wow’ delivered by shops, restaurants and bars, and creates more reasons to visit.

In the past, and hopefully not-too-distant future, that was achieved by hosting events such as the world-famous Liverpool Giants.  There are also other very creative and engaging ways to deliver a ‘wow’ in a post-pandemic world though, such as the recent River of Light Trail that connected a series of locations in Liverpool city centre.  And as footfall builds, the desire among brands to open pop-ups and experiential activations is increasing in parallel with growing consumer confidence.

But it is not just products, store design and the wider experience that deliver a ‘wow’.  Service matters too.  Done well, it can make a crucial contribution to the bottom line.

Prior to the pandemic, Grosvenor was tracking the quality of experience provided by Liverpool ONE’s tenants and the impact on sales performance.  The research, which involved a mystery shopping programme overlaid with sales, footfall and other data, was a ‘wow’ in its own right.  It revealed a direct correlation between the quality of service and sales.

Brands with a 100% score in the mystery shopping assessment achieved a 7% increase in sales, compared to a 5% drop in sales for brands scoring below 70%.  Overall, there was an 8% performance difference between brands providing above average service and those providing below average service.  By sharing the feedback with tenants and improving customer service in-store, Liverpool ONE’s team helped tenants deliver an additional £3.2m of sales.

While the research was paused during the pandemic, Grosvenor remains committed to it in the long-term and the program is restarting.

The whole Liverpool ONE team is also committed to ensuring the destination and its tenants continue to inspire.  ‘Wow’ is very firmly on the agenda and we are confident that, just like character, it is helping Liverpool ONE to thrive as the recovery gathers pace.