Prospectus - Invest Glasgow

Prospectus - Invest Glasgow

Prospectus - Invest Glasgow

RETAIL PROSPECTUS

Prospectus - Invest Glasgow

2 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 3 2.2 million tourists visit each year – £619 million spend £47,513 GVA per job filled – 2nd highest of 10 UK core cities ‘Shopaholic’s Paradise’ – Lonely Planet UK’s 2nd Largest Retail Centre by Spend Global Brand Retail Destination UK’s No.1 Out-of-Town Retail centre #1 57 million people – annual footfall on Glasgow’s prime Buchanan Street ‘Friendliest City in the World’ – Rough Guides £862 million Retail GVA Retail Workforce of 34,600 people Year-on-Year Increase 12% Prime Rent Significant Retail Development and Investment 2nd Highest Prime Rent in UK at £314 per sq.ft. £4.2 billion Annual Retail Spend – 2nd highest in UK by 20 million day visitors £1 billion annual spend ECONOMY ƒ ƒ Scotland’s Largest City ƒ ƒ Powerhouse of the Scottish Economy ƒ ƒ 4th Largest City in UK ƒ ƒ 414,000 Jobs ƒ ƒ Diverse and Resilient Economy ƒ ƒ £43 billion Gross Value Added (GVA) for Glasgow City Region, 32% of Scottish total ƒ ƒ Glasgow City Region has 34% of Scottish Jobs and 28% of Scottish companies ƒ ƒ Target of 50,000 new jobs by 2023 DEMOGRAPHICS ƒ ƒ 615,000 City Population ƒ ƒ Glasgow City Region population of 1.8 million EDUCATION ƒ ƒ World-class Talent Pool ƒ ƒ 44% of Population Educated to Degree Level ƒ ƒ 130,000 Students from over 135 countries ƒ ƒ 5 Higher Education Institutions ƒ ƒ 3 Super Colleges INVESTMENT ƒ ƒ Over £15 billion capital investment since 2011 ƒ ƒ No. 1 City in Scotland for FDI, 5th in UK ƒ ƒ Top Ten Global City for FDI Strategy ƒ ƒ Largest sporting infrastructure outside London REASONS TO INVEST IN GLASGOW COMPETITIVE ADVANTAGE ƒ ƒ Top Large European City of the Future ƒ ƒ Competitive Business Environment ƒ ƒ Lower Property Costs than Manchester, London and Edinburgh ƒ ƒ Lower Salary Costs than London and Edinburgh CONNECTED ƒ ƒ Glasgow is Scotland’s main transport hub ƒ ƒ Excellent road, rail, shipping and air services ƒ ƒ Easily accessible from 3 Scottish airports serving over 150 worldwide destinations WORLD-CLASS SPORTING AND EVENTS CITY ƒ ƒ UK’s Best Convention Bureau 11 years running ƒ ƒ The SSE Hydro – World’s 3rd busiest entertainment arena ƒ ƒ 5th Best Sporting City in the World ƒ ƒ UK’s first UNESCO City of Music

Prospectus - Invest Glasgow

INVESTGLASGOW.COM \ 5 4 / RETAIL PROSPECTUS A GLOBAL BRAND CITY Glasgow also boasts many unique independent designer and flagship stores for British and international retailers. The city is home to an abundance of luxury outlets while independent retail is vibrant and continues to grow in variety and scale. Glasgow is a world-class shopping destination and is actively engaged in attracting a number of global brands. Demand for prime retail pitch in the city remains extremely strong and Glasgow has recently welcomed more global brands, Massimo Dutti (their first UK store outside London), T2, Monki and Kiko Milano, among others. WHISTLES COS GIO-GOI ZARA KIKO CATH KIDSTON VANS BELSTAFF URBAN OUTFITTERS ALL SAINTS T M LEWIN THOMAS PINK APPLE STORE FOLLI-FOLLIE TIMBERLAND HOTEL CHOCOLAT BOSE THOMAS SABO CRUISE THE DISNEY STORE L.K. BENNETT DOWER AND HALL T2 TED BAKER SWATCH FRENCH CONNECTION CASTLE SUPERDRY JOHN LEWIS REPLAY END KAREN MILLEN SWAROVSKI LINKS OF LONDON DUNE SPACE NK GANT HAWES AND CURTIS SKECHERS FAT FACE H&M REISS L’OCCITANE HOLLISTER PRETTY GREEN LIPSY JACK WILLS OFFICE HOBBS MASSIMO DUTTI JIGSAW KIEHL’S MICHAEL KORS MANGO MULBERRY NIKE KURT GEIGER JO MALONE “Boasting the UK’s largest retail phalanx outside London, Glasgow is a shopaholic’s paradise. The ‘Style Mile’ around Buchanan Street, Argyle Street and Merchant City is a fashion hub.” – Lonely Planet: Great Britain

Prospectus - Invest Glasgow

6 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 7 BUCHANAN GALLERIES Provides a gleaming, modern showcase for over 80 famous retailers – anchored by John Lewis. The world-famous department store, renowned for exemplary customer service, has four floors filled with everything from fabulous fashion labels to covetable homewares. This huge mall is also home to a mesmerising mix ranging from UK High Street fashion favourites such as Next, Warehouse and River Island, to the eye-catching jewellery of Swarovski and Thomas Sabo, the super-cool Californian vibe of Hollister and the hot Spanish style of Mango. The biggest global brands and major UK retailers can be found in Glasgow’s Style Mile – a square mile in the very centre of the city which houses an extraordinary concentration of shops. There is an exceptional selection of outlets in the Style Mile with malls, independent boutiques and designer stores including: Buchanan Galleries, Buchanan Quarter, St. Enoch Centre, Princes Square, Argyll Arcade and House of Fraser. THE STYLE MILE BUCHANAN QUARTER A recently new development at the top of Glasgow’s prime retail pitch, Buchanan Street, brings an eclectic mix of retail and residential property to Scotland’s premier shopping and leisure destination. With the addition of exciting new retailers including H&M‘s largest UK store, Paperchase, Gap, Fat Face, Skechers, Office and Watches of Switzerland among many others, Buchanan Quarter has quickly become established as a firm favourite with shoppers. ST. ENOCH CENTRE Situated at the corner of Buchanan Street and Argyle Street and anchored by a huge Debenhams store teeming with choice in fashion, beauty and homeware. St. Enoch Centre is a gleaming modern mall housing the most popular names in High Street shopping including H&M, Topshop and Superdry alongside world-famous brands such as Hamleys and The Disney Store.

PRINCES SQUARE Over twenty five years ago, this early 19th century architectural gem, half-hidden behind Buchanan Street, was restored, roofed over and filled with stylish temptations. Today, Princes Square’s delights range from hot heels at Kurt Geiger and covetable trinkets at Dower & Hall and Links of London to a whole world of beauty at Space NK and Jo Malone London plus goodies for the home at Le Creuset and Castle Galleries. Since its inception Princes Square has been a major fashion destination in Scotland. It is the perfect location for the Scottish outposts of fashion grande dame Vivienne Westwood and super-cool outerwear brand Belstaff – alongside affordable contemporary style from COS, Whistles, French Connection, Reiss, Ted Baker and many more. ARGYLL ARCADE The Argyll Arcade offers the largest and finest selection of diamond rings, diamond jewellery, wedding rings and luxury watches in a single location in Scotland.

Widely regarded as the diamond jewellery centre of the North, the Argyll Arcade hosts more than 30 jewellers and diamond merchants all under one roof. MERCHANT CITY The nearby Merchant City is a vibrant quarter full of bars, restaurants and high-end boutiques. The Italian Centre and Ingram Street are home to a range of designer names including Emporio Armani, Ralph Lauren, Mulberry, Hugo Boss, Replay, Cruise and Jigsaw. HOUSE OF FRASER There are shops, there are department stores and then there are premium department stores. Established in 1849, Frasers is one of Scotland’s premium department stores. Standing at the bottom of Buchanan Street, the most iconic building on Glasgow’s Style Mile, offers five floors of temptation including an internationally renowned Beauty Hall and brands that you will not find anywhere else in Scotland.

Prospectus - Invest Glasgow

8 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 9 PRIME RETAIL MARKET OVERVIEW Glasgow’s retail sector generates an annual spend of more than £4.2 billion, £862 million in GVA and sustains a substantial retail workforce of 34,600 people. Post Brexit, the retail sector continues to demonstrate real strength and resilience. Indeed, Glasgow’s enduring appeal to international retailers, most notably Buchanan Street has seen a surge in demand and rental growth on the street. In the last 12 months, the Zone A rate has jumped from around £280 per sq.ft. to a peak of £314 per sq.ft. – a very healthy year-on-year increase rate of 12%.

This continued surge in demand for prime retail space in Glasgow is evidenced by the recent acquisition of the former 65,000 sq.ft Forever 21 store on Buchanan Street by H&M, the largest of its 260 UK store portfolio, and the arrival of other global new entrants including Kiko Milano, Hotel Chocolat, T2, Clarks and Nespresso (Colliers International). Since late 2013, more than 200 of Glasgow’s city centre retailers have extended their opening hours to 7pm on weeknights, bringing the city more in line with continental operating hours. The move comes on the back of strong customer demand and consumer research. Footfall figures recorded on four key locations on the Style Mile collectively amounted to just under 57 million people. Glasgow is a ‘shopaholic’s paradise’ according to Lonely Planet and is ranked number one UK retail destination outside of London’s West End. Over half a million square metres of retail space can be found in the city, with prime and super prime shopping to be had within one square mile in the city centre, known as the Style Mile. Buchanan Street, Glasgow’s premier shopping street, is the busiest high street in the UK, after London, with an average hourly footfall of 6,500 people.

Annual footfall – 57 million people MARKET INDICATORS INDICATOR MARKET OUTLOOK Prime Rents Rental growth possible in prime locations, softening rents across secondary centres Prime Yields Predominantly stable with inward pressure across the leisure sector Supply Demand continues to outstrip supply in the best locations Demand Concentration of demand in prime locations while softening demand in secondary locations UNITED KINGDOM RETAIL MARKET SNAPSHOT Source: Cushman & Wakefield – United Kingdom Retail Market Snapshot Q3 2017 PRIME RETAIL RENTS (September 2017) HIGH STREET SHOPS Zone A £ SQ.FT YR Zone A € SQ.M YR Zone A US$ SQ.FT YR Growth % 1 YR Growth % 5 YR CAGR London (West End) 2,200 16,146 1,780 0.0 17.1 Glasgow 310 2,607 287 3.3 4.0 Manchester 280 1,747 193 1.8 3.1 Leeds 245 1,528 169 0.0 0.4 Edinburgh 215 1,808 199 0.0 2.5 Birmingham 210 1,310 144 2.4 2.0 Cardiff 205 1,279 141 0.0 3.2 PRIME RETAIL YIELDS (September 2017) HIGH STREET SHOPS (FIGURES ARE NET, %) CURRENT QUARTER PREVIOUS QUARTER PREVIOUS YEAR 10 YEAR HIGH 10 YEAR LOW London (West End) 2.50 2.50 2.50 4.25 2.25 Glasgow 4.00 4.25 4.50 6.75 4.00 Manchester 4.00 4.00 4.25 6.75 4.00 Leeds 4.50 4.75 4.75 6.25 4.50 Edinburgh 4.75 4.75 4.75 7.00 4.75 Birmingham 4.50 4.50 4.50 6.75 4.50 Cardiff 4.75 4.75 4.75 6.50 4.50 GLASGOW RETAIL MARKET SUMMARY: HISTORY AND OUTLOOK PRIME RENT % PRIME INCOME RETURN % PRIME APPRECIATION RETURN % PRIME TOTAL RETURN % Glasgow 2003-09 1.5 5.1 2.9 8.0 2010-15 1.9 4.9 2.0 6.9 2016-21 0.9 4.5 2.8 7.4 Europe index 2003-09 4.7 6.0 6.6 12.6 2010-15 5.4 5.3 9.7 15.0 2016-21 2.3 4.1 2.5 6.6 MARKET SIZE – TOP 10 UK RETAIL CENTRES CENTRE RETAIL SPEND POTENTIAL VITALITY RANK CHANGE SINCE 2014 London (West End) £9,141,226,044 14 +2 Glasgow £4,260,877,222 38 +30 Birmingham £3,378,666,154 34 +31 Manchester £3,534,636,565 52 -9 Leeds £3,180,292,167 35 +4 Liverpool £3,102,829,857 47 0 Nottingham £3,003,776,127 55 +14 Cardiff £2,798,170,147 62 +4 Newcastle-upon-Tyne £2,796,940,154 84 +22 Edinburgh £2,346,843,910 17 +5 Sources: CoStar Portfolio Strategy; Various Brokers Source: Harper Dennis Hobbs Vitality Index 2017

Prospectus - Invest Glasgow

10 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 11 VIBRANT OUT-OF-TOWN RETAIL In total, there are five ‘out-of-town’ retail and leisure parks across the city of Glasgow and its near-by surroundings, namely Glasgow Fort, Silverburn, The Forge, intu Braehead and EK (East Kilbride). Global shopping brands and independent retail is thriving in the city but ‘out-of-town’ shopping is also booming with Glasgow Fort once again ranked as the UK’s leading retail park destination (Javelin Group, Venuescore 2017).

Glasgow Fort and Silverburn are Glasgow’s newest, biggest and most successful ‘out-of-town’ retail and leisure shopping destinations. SILVERBURN Built in 2007 and located in the south side of Glasgow, Silverburn is one of the largest shopping centres in the UK. It includes 1,000,000 sq.ft. of retail and leisure space, 2,000 parking spaces in a multi-story car park and 25,000 ground spaces. Anchored by UK staple retail brands including Marks and Spencer, Next, Debenhams and Tesco, Silverburn has around 100 retail outlets and a substantial day leisure offering that comprises a 14 screen Cineworld cinema, 14 restaurants and several fast-food and coffee shop chains including everyday favourites such as Five Guys, Carluccio’s, Nando’s and Tim Hortons. Silverburn operates with extended opening hours very similar to those of Glasgow Fort, which again, has proven to be very popular with shoppers.

SCALE AND CAPACITY FOR MULTIPLE RETAIL SITES Glasgow’s successful and extensive ‘out-of-town’ retail market has grown exponentially over the last 10 years. This has resulted in extensive retail chain expansion and roll-out activity by many large UK and international retailers to take their presence beyond Glasgow city centre into all city areas and neighbouring towns. GLASGOW FORT Glasgow Fort opened for business in 2004 and is now the United Kingdom’s number one ‘out-of-town’ retail and leisure park. The centre offers a whole range of the UK’s favourite retail brands. With almost 100 outlets, Glasgow Fort is an award-winning shopping experience with 2,500 free parking spaces. Situated in Glasgow East, just off junction 10 of the M8 motorway, the Fort, as it more commonly referred to by patrons, is very accessible and home to leading shopping brands including Marks & Spencer, Topshop, Zara, River Island, H&M, Next and Schuh. New investment and development has seen the addition of an 8 screen Vue cinema and an array of eateries including Nando’s, TGI Fridays, Wagamama and many more.

Extended opening hours to 10pm through Monday to Friday to 8pm and 7pm on Saturday and Sunday respectively, provides the modern-day shopper with the retail accessibility they demand. Naturally, the Fort’s leisure facilities open later still.

Prospectus - Invest Glasgow

12 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 13 KEY RETAIL DRIVERS People from all around the world visit Glasgow because it is now one of Europe’s most vibrant and cosmopolitan cities, where business, sport and international culture flourish. The city that inspired From a declining industrial centre to one of Europe’s hippest spots, Glasgow has undergone one mighty transformation (worldtravelguide.net). A world-class city in which to live, work, study, invest, meet and visit, Glasgow is Scotland’s cultural powerhouse. It proudly boasts the largest cultural offering and largest sporting infrastructure outside London. the art nouveau genius, Charles Rennie Mackintosh, is now a dynamic 21st century metropolis. Each year, millions of people from across the world visit Glasgow to enjoy everything it has to offer. COMPREHENSIVE RETAIL OFFER Glasgow is an exciting and extensive retail destination for shoppers. The Style Mile’s Buchanan Street adjoins Sauchiehall Street and Argyle Street to form what is known as Glasgow’s ‘Golden Z’ of retail. These three major city retail thoroughfares are relatively unbroken and despite being some distance apart, each area within the ‘Golden Z’ will be visited by a large proportion of shoppers as part of one shopping trip.

FOOD AND BEVERAGE Integrated food and beverage is a key value driver and an increasingly important component of a retail destination’s overall brand proposition. Glasgow’s integrated food and beverage provision throughout the ‘Golden Z’ is substantial and varied and provides RETAIL AND LEISURE shoppers with real choice. Whether they want to simply enjoy a coffee at Costa, afternoon tea at Darcy’s or dinner at the NY American Grill, there really is something for everyone. Sector growth remains strong and is demonstrated by high-profile new-arrivals including Tim Hortons (first outlet in Europe), Taco Bell (first outlet in Scotland), The Ivy, Smash Burger and Vapiano.

Beyond the integrated retail food and beverage offering, Glasgow’s food and drink scene is vibrant and firmly part of the city’s unique culture. Glasgow’s culinary offering is imaginative and cosmopolitan and the range of choice for visitors is breathtaking, with new restaurants popping up on a regular basis. This distinctive food and drink experience is guaranteed to enhance the visitor experience in the city. LEISURE TOURISM People from across the world visit Glasgow to experience its cultural offerings including the city’s excellent museums, world-class art galleries and exhibitions, theatres, festivals and breathtaking scenery.

WORLD-CLASS CULTURE Home to the Royal Scottish National Orchestra, National Theatre of Scotland, BBC Scottish Symphony Orchestra, Scottish Opera and Scottish Ballet and an internationally acclaimed reputation in contemporary art, design and music. A CENTRE OF EXCELLENCE FOR VISUAL ARTS Seven Turner Prize winners, including the 2014 winner and 11 nominees have lived, trained or worked in the city in recent years. EUROPE’S FINEST CIVIC ART COLLECTIONS Two of the world’s finest civic art collections can be found in Glasgow, at the Burrell Collection and Kelvingrove Art Gallery and Museum. GREAT NATURAL BEAUTY The archipelago of the Clyde Coast and Islands and the Highlands’ stunning scenery is on the city’s doorstop, just 45 minutes away.

TOURISM Glasgow has a robust economy and a busy calendar of events until 2024, attracting leisure and business tourists all year round and ensuring the retail sector in the city thrives. BUSINESS TOURISM In the UK, Glasgow is second only to London in attracting international conference delegates with the capacity to host more conferences and welcome more business delegates than Scotland’s six other cities combined. The leading industry body International Conference and Congress Association (ICCA) ranks Glasgow 28th in its index of 400 conference cities globally. Apart from London, no other UK city is included within the top 30. In May 2017, reflecting Glasgow’s position as a conference powerhouse, ICCA reported that Glasgow attracted more international delegates in 2016 than major competitors including the likes of Geneva, Sydney, San Francisco and Johannesburg and held more international conferences than Zurich, Frankfurt am Main, Moscow and The Hague.

Glasgow’s tourism business is not seasonal; with a year-round conference calendar, Glasgow is always open for business., Tourism Day Visits 20m people £1b spend Leisure Day Visits 46m people £1.5b spend 3 hours+ average SPORTING AND EVENTS CITY Glasgow is recognised as having the UK’s Best Convention Bureau (11 years running), one of the world’s top five cities for sporting events, and in The SSE Hydro, has the third busiest entertainment arena in the world.

Prospectus - Invest Glasgow

14 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 15 GLASGOW – OPEN FOR RETAIL BUSINESS RETAIL INVESTMENT The public and private sectors in Glasgow adopt a proactive and innovative partnership approach to continuously improve and develop Glasgow’s retail sector to vigorously sustain its position as the largest and best retail destination outside of London. This has seen significant investment in retail infrastructure in the city on a staged basis over the last decade. Exciting plans are in place to deliver further significant expansion in the retail and leisure offer in each of Glasgow’s three prime shopping centres over the next few years. SAUCHIEHALL STREET AVENUES PROJECT As part of the Glasgow City Region City Deal funding, Glasgow City Council is investing approximately £115 million within the city centre to deliver on the Enabling Infrastructure – Integrated Public Realm programme. Better known as the ‘Avenues Programme’ it will implement catalytic measures to dramatically improve the quality of the city centre environment. By redressing the balance between vehicles, pedestrians and cyclists, and transforming perceptions of the city for citizens, visitors and investors alike, the Avenues programme aims to make fundamental improvements to Glasgow’s city streets. The Sauchiehall Street ‘pilot’ project to be delivered by the programme, commenced in January 2018 and set the benchmark for all other designated programme ‘Avenues’ in the city. The aim is to totally transform the western half of Sauchiehall Street from a somewhat hostile, traffic dominated street, to a place for people to enjoy with a more attractive, safer and inclusive streetscape – and a mixed, economically sustainable offer.

COUNCIL BUSINESS SUPPORT FOR LOCAL RETAIL The excellent retail offers available in Glasgow city centre and its ‘out-of-town’ retail destinations prove to be very popular with shoppers. However, the local retail network consisting of over 2000 retail enterprises (13.5% of Scottish total), operating across 34 designated local town centres throughout the city, is also very popular and is proactively supported through Glasgow City Council’s comprehensive city- wide retail business growth programme.

SAUCHIEHALL STREET AVENUES PROJECT PRINCES SQUARE BUCHANAN GALLERIES ST. ENOCH CENTRE

Prospectus - Invest Glasgow

16 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 17 With a can-do attitude, a commitment to being the most business-friendly city in the UK, and more than two million visitors a year – it is people that make Glasgow different. WHY GLASGOW? OPEN FOR BUSINESS Top businesses choose Glasgow for many reasons. They say it is because of the quality and loyalty of the flexible and qualified workforce, the cosmopolitan feel of a large city, great access, world-class and cost-effective office space and one of the most sophisticated and competitive telecommunications environments in Europe. ƒ ƒ Highly qualified and flexible workforces – it is what every employer needs. Glasgow is one of Europe’s top ten cities for business friendliness and connectivity and fDi Magazine’s runner up in the ‘Top Large European City for FDI Strategy (2018/19)’.

ƒ ƒ Number one city in Scotland for FDI and ranked 5th in the UK (2016). ƒ ƒ Since 2011, the city has received more than £15 billion in capital investment across housing, retail, health, education, hotels, offices, leisure and industrial space. ƒ ƒ The first Scottish city to secure City Deal funding from the UK and Scottish Governments. £1.13 billion will fund major infrastructure projects and drive innovation, whilst levering in £3.3 billion of private investment. ƒ ƒ An economic powerhouse – Glasgow city region generates £43 billion gross value added (GVA) every year to Scotland’s economy. ƒ ƒ Generating £47,513 GVA per job filled, Glasgow has the 2nd highest level of productivity of the 10 UK core cities.

ƒ ƒ Excellent transport links – the city is served by three international airports with direct flights from over 150 destinations. Once you arrive, getting about is easy by road and rail. ƒ ƒ Office, leisure and retail space – to suit every type and size of business – and exciting new development opportunities too. FORWARD-THINKING CITY Scotland’s economic powerhouse is setting its sights on becoming the most innovative and productive city in the UK. It is: ƒ ƒ A leading city for renewable technology by using its historic strengths in engineering and education, to deliver a low carbon economy that will deliver a greener environment for its residents and visitors.

ƒ ƒ Keeping pace with emerging trends including the provision of flexible co-working space, build- to-rent city centre living while future-proofing investment through enabling infrastructure, smart technologies and world-class digital connectivity. ƒ ƒ Meeting and exceeding the most demanding digital technology requirements of its modern business community. The Gigabit City fibre network is transforming the city’s digital infrastructure, supporting internet connectivity of up to 100 times faster than the UK average. The state-of-the-art network will future-proof the city as the demand for greater bandwidth continues to grow.

ƒ ƒ Establishing Scotland’s first two innovation districts in Glasgow’s West End and Merchant City to encourage business clusters and to stimulate growth in the Life Science and Higher Education sectors. These will maximise the benefits of existing high value industries including pharmaceutical manufacturing, distributed energy, photonics, bio-nano technology, and aerospace manufacturing. ƒ ƒ Delivering exciting City Deal projects, with over £100 million of city centre investment underway with the ‘Avenues Project’ which will see Glasgow’s major city centre streets revitalised to improve connectivity, infrastructure and streetscapes through installation of intelligent lighting schemes, new paving, traffic calming measures and tree planting.

ƒ ƒ Setting its sights on becoming one of Europe’s most climate-ready regions. Communities across the region are being transformed and future-proofed as a result of investment in green networks incorporating sustainable urban drainage, as well as large-scale flood prevention schemes. ƒ ƒ Creating a smart business environment with world-class facilities that support future savings and efficiencies for any business to flourish. KEY SECTORS Glasgow’s new Economic Strategy 2016-2023 was launched with the prime objective of making Glasgow the most productive major city economy in the UK. Alongside this, the strategy has set an ambitious new jobs target of 50,000 by 2023. Glasgow is among the fastest growing cities in the UK and the key to this success is the diversity of its business and industry base and its highly skilled workforce. Economic and productivity growth is focused on 8 key sectors: � Digital Technology � Financial and Business Services � Creative Industries � Low Carbon � Health and Life Sciences � Engineering, Design and Advanced Manufacturing � Tourism and Events � Higher and Further Education 1 # 50 Number one Scottish city for FDI and ranked 5th in the UK (2016) New jobs target of 50,000 by 2023 Home to Scotland’s first two innovation districts

Prospectus - Invest Glasgow

18 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 19 Glasgow is wonderfully connected – making it easy to do business in the UK, Europe and beyond. CONNECTED CITY AIR Glasgow Airport is Scotland’s principal long-haul airport offering direct flights to North America, Europe, Asia and the Middle East. It is located approximately 9 miles west of the city centre and was voted best European, UK and Scottish Airport of the Year in 2016. RAIL Glasgow is served by two main railway stations, Central Station and Queen Street Station, and has the largest suburban rail network outside of London. Regular connections to London and major English and Scottish cities makes travel throughout the UK simple. Glasgow city centre is also served by a subway and low level train system which links the city to outlying residential areas. PROUD TO SERVE SCOTLAND PLANE ƒ ƒ 150+ destinations worldwide ƒ ƒ Direct flights to North America, Europe, Asia and the Middle East ƒ ƒ 200+ flights daily ƒ ƒ 9.4 million passengers per year ƒ ƒ 30+ new routes for 2017 – Frankfurt, Munich, Krakow and Madrid ƒ ƒ Most European destinations within 2 hour flight ƒ ƒ London 1 hour flight time ƒ ƒ 438 flights per week to London TRAIN ƒ ƒ Central Station – 38 million passengers per year ƒ ƒ Queen Street – £750 million improvement programme ƒ ƒ 38 trains per day to London Euston ƒ ƒ 8 trains per hour to Edinburgh ƒ ƒ Edinburgh – 50 mins ƒ ƒ Manchester – 3 hrs 20 mins ƒ ƒ London – 4 hrs 30 mins BUS ƒ ƒ 16 million passengers per year ƒ ƒ 40,000 passengers a day ƒ ƒ 170 bus services in and out of Glasgow SUBWAY ƒ ƒ £300 million refurbishment ƒ ƒ 15 stations ƒ ƒ Runs every 4 mins at peak times ƒ ƒ 13 million passengers per year CAR ƒ ƒ Edinburgh 1hr 5 mins ƒ ƒ Manchester 3hrs 30 mins ƒ ƒ Birmingham 4 hrs 30 mins ƒ ƒ London 7hrs 20 mins ROAD Scotland’s trunk road and motorway network connects its cities, towns, airports and ports enabling easy movement of people, goods and services. Roads are well maintained and, in general, the traffic density is lighter than other parts of the UK. Glasgow is served by four motorway systems which efficiently link the Glasgow city region and beyond. E-CONNECTIVITY Digital connectivity in the city meets and exceeds the most demanding technology requirements and expectations of our modern business community. For example, free wi-fi is available throughout all areas of Glasgow’s city centre, as standard. Our Gigabit City fibre network is transforming the city’s digital infrastructure, supporting internet connectivity speed of up to 100 times faster than the UK average. This state-of-the-art network will future-proof Glasgow as the demand for greater bandwidth continues to grow.

20 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 21 AWARD WINNING CITY TOP LARGE EUROPEAN CITY OF THE FUTURE 2018/19 Glasgow has achieved an outstanding set of results in the prestigious fDi Magazine ‘European Cities of the Future Awards 2018/19’. In the Large Cities categories, Glasgow was awarded: Top 10 overall Large City; Runner-up for FDI strategy; and Top 10 for Business Friendliness and Connectivity. TOP TEN GLOBAL CITY FOR FDI STRATEGY 2016/17 Glasgow has been recognised as a Top Ten Global City for FDI Strategy. Ranked 7th, this is a true endorsement of the city’s appeal as a location for FDI. Glasgow also received bespoke awards for worker training (The Glasgow Guarantee) and a specialism award for life sciences. ONE OF THE WORLD’S BEST PERFORMING FINANCIAL CENTRES – Global Financial Centres Index 2017 The Global Financial Centres Index (Sep 2017) has ranked Glasgow in the Top 50 of the world’s best performing financial centres (out of 92) and in the Top 15 of Europe’s best performing financial centres.

Glasgow has the third most important financial centre in the UK and has its own dedicated International Financial Services District. ONE OF THE WORLD’S TOP SPORTING CITIES AND NO 1 CITY FOR SPORT LEGACY Glasgow is ranked 5th in the world’s top 10 sporting cities – according to the internationally recognised SportBusiness Ultimate Sports City 2016 Awards. The city was ranked ahead of Olympic cities such as Los Angeles, Tokyo, Sydney, Amsterdam and Paris. Glasgow was also named the No. 1 city in the world in the Legacy category to recognise its longstanding commitment to increasing sports participation and creating new sporting opportunities for citizens.

TOP UK CITY FOR RETAIL OUTSIDE LONDON Glasgow is one of the UK’s largest and most successful shopping locations, after London’s West End, it is the first UK city for retail by comparison spend (tourists, workers and residents) (HDH 2017). WORLD’S TOP INDOOR ARENA – THE SSE HYDRO The SSE Hydro is ranked first in the global Billboard Chart Top 10 Venues Index ahead of Hallenstadion in Zurich, the Mercedes-Benz Arena in Berlin and Brisbane Entertainment Centre, Australia. It is third in Pollstar’s Top 100 global arenas list ahead of Madison Square Garden in New York and the Ziggo Dome in Amsterdam.

BEST EUROPEAN, UK AND SCOTTISH AIRPORT Glasgow Airport celebrated its 50th Anniversary in 2016 by scooping a range of prestigious awards: the Airport Council International Europe’s (ACI Europe) Best Airport Award; Scottish Airport of the Year 2016; UK Airport of the Year; and the Airport Operators Association (AOA) Airport of the Year. UK’S BEST CONVENTION BUREAU 11 YEARS RUNNING The Glasgow Convention Bureau at Glasgow Life was named the UK’s Best Convention Bureau for a record 11th time in 2017. At the influential Meetings & Incentive Travel (M&IT) Awards, held in London, Glasgow beat off strong competition from across the UK to become the first organisation to collect the top prize on 11 occasions and over consecutive years. 1ST EVER CONVENTION BUREAU TO RECEIVE A GREEN TOURISM AWARD Green Tourism, the world’s largest certification programme of its kind, assesses businesses on their green credentials with Glasgow Convention Bureau awarded a ‘Silver’ grading for demonstrating a progressive approach and commitment to sustainability – the first convention bureau to receive such an award.

PROUD TO SERVE SCOTLAND 4TH IN THE WORLD FOR SUSTAINABLE BUSINESS TOURISM Now ranking number 4 in the world, Glasgow has been recognised as one of the world’s leading cities for sustainable business tourism by the Global Destination Sustainability Index after climbing 3 places and increasing its overall score by 16% on last year. ‘BEST IMPROVED DESTINATION’ AWARD 2017 (ICCA) Glasgow Convention Bureau has been awarded the “Best Improved Destination 2017” Award at the International Congress and Convention Association (ICCA) Congress in Prague in recognition of the city’s enhanced sustainable business tourism offering.

22 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 23 INDUSTRY PERSPECTIVES Despite a challenging backdrop of economic and political uncertainty Glasgow’s retail market has remained robust and in fact one could argue prime retail in the city centre has never been so strong. Buchanan Street remains the city’s crown jewel and has witnessed an extremely positive last 12 months with demand at an all-time high and rental growth witnessing unprecedented levels. New entrants onto the street include Kiko Milano, T2, Swatch, Scribbler, Hotel Chocolat and Nespresso who are due to open in early 2018. A number of international retailers are rumoured to have outstanding requirements including the likes of Ralph Lauren, Lyle & Scott and Kate Spade.

Out with Buchanan Street we have also witnessed activity from new entrants including Tim Horton’s who chose Glasgow to open their first UK store and are opening multiple sites across the KEVIN SIMS, SENIOR DIRECTOR, CBRE LTD ADVISORY & TRANSACTION SERVICES | RETAIL SCOTLAND city including Argyle Street, Sauchiehall Street and George Street. We have also continued to see a number of new restaurant brands investing in Glasgow including Vapiano who are due to open at the north end of Buchanan Street in early 2018, Taco Bell who have just opened their first Scottish store on Sauchiehall Street and the Di Maggios Restaurant Group who have recently opened The Citizen adjacent to their Anchor Line and Atlantic operations on St Vincent Street.

Glasgow City Council are committed to a number of streetscape improvements throughout core retail locations in the city which will help attract new retailers to the city and retain existing occupiers who have forthcoming lease expires. With improvements planned for both Buchanan Galleries and St. Enoch Centre the future looks bright for the UK’s 2nd biggest retail market. John Lewis is at the heart of Glasgow’s vast retail offer, occupying a prime position on the city’s famous Buchanan Street. The shop has gone from strength to strength over the course of its 18 year history. It is an important retail anchor for the city centre as well as a major employer, making a significant contribution to the vibrant social and cultural life of the city.

KATHERINE RUSSELL, HEAD OF REAL ESTATE, PLANNING, POLICY & COMMERCIAL, THE JOHN LEWIS PARTNERSHIP John Lewis sees a bright future in Glasgow and supports the proposed investment by the City Council and Land Securities to further enhance the profile of the shopping district, including Buchanan Galleries. This investment will help maintain its profile as one of the UK’s major shopping cities. Despite a challenging backdrop of economic and political uncertainty Glasgow’s retail market has remained robust and in fact one could argue prime retail in the city centre has never been so strong.” – Kevin Sims, CBRE Ltd

Top companies choose Glasgow for many reasons; because of the quality and loyalty of the flexible and qualified workforce, the cosmopolitan feel of a large city, great access and one of the most sophisticated and competitive telecommunications environments in Europe. Glasgow offers excellent, competitively- priced leisure and retail spaces to suit every type and size of business and exciting development opportunities too. Invest Glasgow offers comprehensive business support and guidance, providing one point of contact to all businesses, property investors and developers seeking to invest in the city.

All of this contributes to why Glasgow was recently named one Europe’s top cities for business friendliness and connectivity, and fDi Magazine’s runner up for FDI Strategy in the large cities category. Come and see for yourself. TO FIND OUT HOW INVEST GLASGOW CAN SUPPORT YOU, CONTACT: INTERESTED? FIND OUT MORE invest@glasgow.gov.uk investglasgow.com @invest_glasgow Invest Glasgow +44 (0) 141 287 8616

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