Hammerson on a leasing high despite shopper drop

Brent Cross owner Hammerson today admitted fewer people were visiting its shopping centres in the UK and France, but managed to increase first-half rental income after signing a record number of new leases.

Chief executive David Atkins blamed softening consumer confidence for the 3.9% sales slide at its centres but said the broader picture for retailers was better than the numbers suggested.

“People shop in a more targeted way. They do their research, pre-order and collect. Stores have a halo effect and are very much valued by retailers,” he said on the rise of online shopping.

He added that retailers were prioritising the best sites and shopping centres, although some discussions over leases were taking longer to complete.

Hammerson pushed up net asset value by 4.3% in the first half. Rental income rose almost 10% to £184 million, with profits up 6% to £119.4 million.

The company expects to begin its Brent Cross extension and new Croydon shopping centre, which it is developing with Westfield, in 2018.

The property owner is also trialling technology that will ease the pain for reluctant shoppers. These include a chatbot that can answer customers’ questions and help them navigate around shopping centres.

Fashionistas have been using an app called Style Seeker, which lets them upload a picture of an item of clothing and can pinpoint stores in a centre that sell the same thing.