Wrap Text
Creation of Nationwide Consumer Facing Shopping Centre Brand - Change of Name
CAPITAL SHOPPING CENTRES GROUP PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: CSO
Issuer Code: CSCSCG
15 JANUARY 2013
CAPITAL SHOPPING CENTRES GROUP PLC
CSC ANNOUNCES CREATION OF NATIONWIDE CONSUMER-
FACING SHOPPING CENTRE BRAND AND TRANSFORMATION
OF ITS DIGITAL PROPOSITION
KEY INITIATIVES, BENEFITS AND TIMELINE
With 320 million customer visits and over 30 million unique visitors a year,
Capital Shopping Centres is the UK’s leading specialist shopping centre owner,
developer and manager. This scale and specialism gives us a unique insight into
today’s consumer and what they are looking for from their shopping experience.
CSC has the physical scale to establish a strong national brand to integrate the
online and shopping centre retail experience. Today we are announcing a £25
million investment to create a nationwide consumer-facing shopping centre
brand, intu, and a transformed digital proposition.
Key initiatives:
• Creation of a single brand, intu, to be incorporated into the names of
the company and our directly-managed centres
o providing a compelling national proposition for retailers and
other commercial partners
o supported by a “World Class Service” approach from our 1,800
staff
o involving refreshing changes to our centres’ physical
environments
• Integration of the physical and digital environments to provide a
seamless multi-channel experience for our visitors through
o installation of a new fibre optic network for every centre
o provision of high quality free WiFi throughout the malls
o the launch of intu.co.uk, a transactional, fashion-focused,
mobile-enabled website
• Overall investment of £25 million, comprising £7 million on brand
creation and roll out, £8 million on digital infrastructure and £10
million on the acquisition and start-up phase of intu.co.uk
Benefits:
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• For visitors: improved customer experience, including additional digital
services
• For retailers: higher spend both in-store and online from enhanced
footfall, dwell time and customer service. Effectiveness of centre-by-
centre marketing spend much improved as the unified brand reduces
duplication. National awareness and marketing opportunities increased
• For our people: a more dynamic, creative and engaging culture,
focused on customer experience and supporting innovation and
personal development
• For our investors: driving income through enhanced propositions to
consumers and retailers, consumer spending on new value-added
services and new revenue sources such as national commercial
partnerships, digital commissions and advertising
2013 timeline:
• On 18 February 2013 CSC will change its name to intu properties plc
• In March Trafford Centre will launch free WiFi, followed by Lakeside in
April, Eldon Square, Newcastle, in May and all centres by February
2014.
• From March to June all our 1,800 staff will attend training in World
Class Service
• In April 2013 intu.co.uk, our new eCommerce site, will be launched
• From May 2013, the intu brand and visual identity will be rolled out
across our centres in the form of physical signage, enhanced customer
service desk facilities and national consumer activity commencing with
a major launch event
David Fischel, Chief Executive, commented:
“With over half the UK population visiting our shopping centres each year, we
have the scale to seize the opportunities provided by the changes in the retail
marketplace. We are investing £25 million in digital infrastructure, an eCommerce
website and a new brand. We very much look forward to implementing the
initiatives announced today, which mark an exciting next phase in the evolution
of our market-leading UK shopping centre business, to the benefit of customers,
retailers, staff and investors. ”
A conference call with analysts and investors will take place at 08.15 GMT on 15
January 2013. This press release will also be available at www.capital-shopping-
centres.co.uk
Sponsor
Merrill Lynch South Africa (Proprietary) Limited
Enquiries:
CSC:
David Fischel Chief Executive +44 (0)20 7960 1207
Matthew Roberts Finance Director +44 (0)20 7960 1353
Kate Bowyer Head of Investor Relations +44 (0)20 7960 1250
Public relations:
UK: Michael Sandler/Wendy Baker Hudson Sandler +44 (0)20 7796 4133
SA: Nick Williams/Morné Reinders College Hill +27 (0)11 447 3030
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EXPECTED TIMETABLE OF STOCK EXCHANGE EVENTS
The dates given in this expected timetable are based on the Company’s current
expectations and may be subject to change.
Announcement of name change…………………………………….. 15 January 2013
Last day to trade on the LSE and JSE under the old name
Capital Shopping Centres Group PLC…………………………….. 15 February 2013
Change of name of Capital Shopping Centres Group PLC
to intu properties plc………………………………….…………………… close of business
on 15 February 2013
Capital Shopping Centres Group PLC shares begin trading
under the new name of intu properties plc under
LSE code INTU and JSE code ITU………………………..………….. 18 February 2013
Record date for change of name (JSE only)…………………….. 22 February 2013
Certificated shareholders: existing share certificates remain valid
South African shareholders should note that, in accordance with the requirements
of Strate, no dematerialisation or rematerialisation of shares will be possible from
Monday, 18 February to Friday, 22 February 2013 inclusive. No transfers between
the UK and South African registers may take place from Monday, 18 February to
Sunday, 24 February 2013 inclusive. The ISIN number for the shares will not
change and remains GB 0006834344 for both the UK and South Africa.
This press release contains “forward-looking statements” regarding the belief or current expectations of Capital
Shopping Centres Group PLC, its Directors and other members of its senior management about Capital Shopping
Centres Group PLC’s businesses, financial performance and results of operations. These forward-looking statements
are not guarantees of future performance. Rather, they are based on current views and assumptions and involve
known and unknown risks, uncertainties and other factors, many of which are outside the control of Capital Shopping
Centres Group PLC and are difficult to predict, that may cause actual results, performance or developments
to differ materially from any future results, performance or developments expressed or implied by the forward-
looking statements. These forward-looking statements speak only as at the date of this press release. Except as
required by applicable law, Capital Shopping Centres Group PLC makes no representation or warranty in relation to
them and expressly disclaims any obligation to update or revise any forward-looking statements contained herein to
reflect any change in Capital Shopping Centres Group PLC’s expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is based.
Any information contained in this press release on the price at which shares or other securities in Capital Shopping
Centres Group PLC have been bought or sold in the past, or on the yield on such shares or other securities, should
not be relied upon as a guide to future performance.
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CAPITAL SHOPPING CENTRES GROUP PLC (“CSC”) TODAY
ANNOUNCES CREATION OF A NATIONWIDE CONSUMER-
FACING SHOPPING CENTRE BRAND AND THE
TRANSFORMATION OF ITS DIGITAL PROPOSITION
Elevating the role of our centres
The Group has been providing shopping experiences for decades - today we are
setting out details of our initiatives to take the consumer experience to the next
level.
CSC has the physical scale and reach to establish, through a national brand and
digital innovations, a seamless multi-channel retail experience.
We own and operate some of the best shopping centres in the strongest locations
right across the country, including ten of the UK’s top 25. You can find every one
of the UK’s top 20 retailers in our centres alongside some of the world’s most
iconic global brands. Two thirds of the UK population live within a 45 minute drive
of a CSC centre.
With 16.6 million sq. ft. of retail space, valued at £7 billion, our centres attract
over 320 million customer visits a year (Appendix 1). Our centres’ websites were
accessed during 2012 by 9 million unique devices, of which 50 per cent were
mobile, and attract 1 million monthly visitors.
We have been at the forefront of UK shopping centre evolution since the 1970s
and have focused on creating compelling destinations for consumers with added
theatre. To that end, last year we announced plans for an investment of £1 billion
over the next ten years on active management projects and major extensions of
existing assets.
With the initiatives announced today, we are seizing the opportunities presented
by the fundamental changes taking place in the UK retail marketplace and the
new technology available to us. With an investment of around £25 million in our
infrastructure and teams, we will create:
• a national brand (“intu”) with 30 million unique visitors a year across the
UK
• a new digital experience in our centres and beyond
We will focus all our teams on an enhanced service ethos based around our
clearly stated core values – creative, bold and genuine.
Our objective from these initiatives is to generate a stronger relationship with
consumers, delivering more frequent visits, longer dwell time and increased
spend. This will in turn enhance our proposition to retailers and open new sources
of income. We aim to reinforce our market leadership position as we elevate our
centres’ role in people’s daily lives.
Opportunities in the changing marketplace
Retail change is accelerating. A safe, clean, functional place to shop is no longer
enough if it fails to spark the imagination or emotionally engage. People are
increasingly blurring the boundaries between shopping, eating and entertainment.
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Consumer activity and retailer investment has been focusing increasingly on the
top centres such as CSC’s. These offer a compelling mix of global and national
retail brands trading out of flagship stores combined with a wide choice of places
to eat, drink and be sociable.
The consumer opportunity
The scale of our operations provides us with a unique insight into and
understanding of these changes. Last year, as well as traditional demographic
customer research, we conducted in depth ethnographic studies of a series of
customer “missions”, considering the entire journey from home to centre and
back again. We looked at each group’s motivations and reasons for visiting and
compared this to their actual experiences at CSC’s and other landlords’ centres.
Our research confirmed that a visit to a shopping centre is about far more than
just shopping. Our customers value, for example, spending time together,
discovery and something to entertain the whole family. Their experience is
influenced by a range of physical and emotional drivers. This research
highlighted a massive opportunity for us to deliver more to consumers, creating
value for intu properties plc (“Intu”).
Technology as an enabler
Technology has facilitated further blurring of boundaries. Long-standing shopping
habits are altering radically, with new channels involved in all aspects of a
purchase. Estimates indicate that almost half of UK internet users now make use
of the internet at some stage of the shopping process, over 10 per cent of UK
retail sales are now online and two thirds of all UK consumers have researched
online before buying in store.
Use of mobile devices for research and buying has exploded in the last two years.
Research has shown that by mid 2012 over half of fashion consumers had used a
mobile device to make purchases and almost two thirds of smartphone owners
had used their phone in purchase processes.
Online shoppers tend to be more affluent, especially smartphone users. Retailers
have generally noted that shoppers using more than one channel spend more
overall than those using a single channel.
Multi-channel retailing
The best retailers recognise the importance of operating coherently through
multiple channels, combining the website and physical experience to increase
brand loyalty and sales across the business.
Online messaging encourages customers to visit stores. In turn, in-store
experiences are enhanced by digital functionality. A flagship presence in the
highest footfall destinations such as CSC centres is key to overall brand reach.
This synergy between online and physical retailing is demonstrated by click-and-
collect and return to store facilities. These offer additional flexibility and
convenience to consumers and, for retailers, fulfilment efficiencies and
incremental revenue.
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Summary of key initiatives
Intu will build on CSC’s strength as the UK’s leading specialist shopping centre
owner, developer and manager to seize these opportunities.
Through a series of initiatives starting today and intensifying through 2013, the
experience of CSC’s visitors will be revolutionised under a new banner:
• we will launch a consumer brand, intu, across our directly-managed
centres, which will provide national coverage and recognition
• we will provide “World Class Service” in each of our centres, offering a
customer experience of surprise, delight and variety
• we will make visual changes to our centres’ environments with elements of
the new brand appearing in refreshing ways
• we will provide free, high quality centre-wide WiFi through a new fibre
optic Cisco network
• we will launch intu.co.uk, a transactional, fashion-focused, mobile-enabled
website which will offer our retailers’ products, available for collection in
our centres, as well as high quality editorial content
• intu.co.uk will also provide content to amplify our social media dialogue
with consumers and further improve the reach of in-centre events
• we will use our national scale to stage uniquely creative events for our
customers
These changes will be rolled out in all of CSC’s 12 directly-managed centres.
A nationwide consumer-facing brand
National brand
The names of the company and our centres will change (see Appendix 2). Their
identity will communicate to visitors the added benefits of being part of the
intu family while retaining local characteristics and prominence. They will become
associated with each other and with Intu’s nationwide digital and social media
presence.
The three core values which we have embraced for Intu, to be creative, bold and
genuine, will affect every staff member and each business relationship.
Our national brand will:
• provide the essential foundations for the delivery of the new customer
experience
• improve the clarity of our messaging to retailers, particularly in respect of
our scale, reinforcing our position as the market leader
• much improve the effectiveness of our £12 million annual centre-by-
centre marketing spend. We currently operate 15 different shopping
centre brands which are locally recognised and respected but which
individually have limited reach. The unified brand will reduce duplication
and increase national awareness
• provide a compelling proposition for national commercial partnerships
through the combined firepower of our property portfolio and digital
channels. We have already attracted for example Paramount for film
promotions, Elite Model Agency for a national model search and Look
magazine for national fashion campaigns. A unified brand will reinforce
our unique reach
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• enable our people to rally around a more dynamic, creative and engaging
culture, focused on customer experience and supporting innovation and
personal development
World Class Service
During 2012 we piloted a customer service programme at Braehead, entitled
“Scotland’s Best”, which was based on Trafford Centre’s long-standing World
Class Service. The pilot proved highly successful, with improved customer ratings
in all categories and more than three quarters agreeing that “we are going the
extra mile”. The programme will now be rolled out across all our directly-
managed centres.
All of our staff will take part in workshops over the next few months to create
understanding of our cultural shift and to embed the principles of our customer
service ethos. Everyone will have the support and operational framework to put
the vision into practice within their team for the benefit of the wider business.
Delivering a seamless multi-channel experience for our
visitors
Our aim is to transform our digital proposition and for intu.co.uk to provide the
UK’s leading digital shopping centre experience. We are investing in infrastructure
and teams to enable us to develop new value-added services with a personalised
touch.
Consumers will be able to buy online around the clock from our centres’ websites
or intu.co.uk, for delivery to home or one of our centres. Within our centres, our
customers will be connected to high quality WiFi, enabling them to stay in touch
with news and social networks, stream and watch video and be open to receiving
relevant mCommerce messaging (on request). WiFi will also facilitate shopping
research and access to retailers’ websites.
Most of CSC’s centres were constructed without integrated cabling networks. Our
approach is to deliver the latest high quality technology across the portfolio. To
this end we are rolling out our own future-proofed, centre-wide, high capacity
fibre optic cabling and WiFi networks:
• installing 115 miles of cabling, 1940 WiFi access points, intelligent Cisco
network and resilient 100MB data communications links
• enabling WiFi throughout our centres with a minimal one-off registration,
making the internet and social media accessible throughout the visit
• direct ownership of the network and WiFi technology enables Intu to
influence the entire customer journey and experience
• enabling expansion of our digital services, mobile customer service
offerings and improved in-centre footfall and dwell analytics
• providing a platform for interactive technologies such as augmented reality
(AR), quick response (QR) code scanning and near field communication
(NFC)
• the comprehensive network will allow for the integration of operational
systems to increase our responsiveness, effectiveness and efficiency
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We have acquired a transactional, mobile-enabled website with a curated range
of fashion-oriented products:
• to be launched as intu.co.uk in April 2013
• building on our centres’ websites’ 9 million unique visitors and 1 million
monthly visitors
• offering products from a range of retailers
• features will include a single checkout for purchases from multiple
retailers, virtual fashion events, high quality lifestyle editorial content,
curation by fashion stylists and a click and collect facility in intu centres
• direct revenue will be derived from sales commissions and digital
advertising
• further revenue from events offerings and digital services
• the site’s existing start up and development team are remaining with the
business
Each shopping centre already has Facebook and Twitter sites, with a doubling in
followers/likes last year. Downloads of our four centre-specific apps quadrupled
over the same period.
£25 million investment
We are planning an overall investment of around £25 million in our infrastructure
and teams over 3 years. The principal components are physical rebranding in our
centres and employee engagement, digital infrastructure and the eCommerce
site:
• we anticipate that the national roll out of Intu’s visual identity, largely
physical changes at centres, and our employee engagement programme
will require an investment of around £7 million. Most of this will be
accounted for as an exceptional cost in 2013
• we expect capital investment in digital infrastructure at the centres to total
around £8 million. This will be depreciated over an average of 10 years
• during 2012, we acquired a start up transactional website business for £1
million plus a three year earn-out of up to £4 million, to be launched in
April 2013 as intu.co.uk. We expect to invest a further £5 million over the
next three years before the business reaches break even levels of trade
2013 timeline
On 18 February 2013 CSC will change its name to intu properties plc.
In March Trafford Centre will launch free WiFi, followed by Lakeside in April, Eldon
Square, Newcastle, in May and all centres by February 2014.
From March to June, all 1,800 staff will attend training in our new customer
service approach, World Class Service.
On April 2013, intu.co.uk, our new eCommerce site, will be launched.
From May 2013, the new brand and visual identity will be rolled out across our
centres in the form of physical signage and national consumer activity
commencing with a major launch event.
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Multiple opportunities to drive improved financial return
CSC’s operational and financial return is driven by the virtuous circle of positive
customer experience generating footfall, dwell time and spending, providing the
environment to which leading retailers are attracted and in which they flourish.
Intu will benefit directly and indirectly from the combination of:
• enhancing footfall
• improving dwell time
• increasing average spend
• improving retail mix
• new sources of income such as national marketing partnerships,
transactional website, value-added customer services and digital
advertising
The enhanced intu experience will engender deeper visitor engagement and
loyalty. In turn, this stronger proposition to retailers and catering and leisure
operators will improve the tenant mix and feed through to an improved financial
outcome.
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Appendix 1 – our scale
Portfolio key facts
Total retail area 16.6 million sq. ft.
Number of units c 2,500
Number of car park spaces c 60,000
Annual footfall 320 million
- proportion female 71%
- proportion ABC1* 61%
Estimated unique visitors 30 million
Average dwell time 106 minutes
- in town centres 77 minutes
- out of town centres 137 minutes
Aggregate spend c £5 billion
Average spend per visit £16
- in town centres £11
- out of town centres £25
Gross rent receivable 2011 £432 million
Total asset valuation 30 June 2012 £7.0 billion
* Proportion of customers within UK social groups A, B and C1, defined as members of households whose chief earner’s
occupation is professional, higher or intermediate management or supervisory. Compares to UK average of 57%
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Appendix 2 – brands
Graphic removed – please refer to full announcement available at www.capital-
shopping-centres.co.uk/investors/
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