John Magee - Collaboration between stakeholders was key before the pandemic – now it’s crucial if businesses are to survive.

Stakeholder engagement is not a new concept – in fact it’s as old as the hills, but what does it really mean?

I’ve held various retail and property roles over the years - in store management, shopping centres and property asset management and it has always been important to balance the views and needs of different stakeholders – from team to tenants, client to consumer, local authorities, concession partners, BIDs, the list is almost endless. 

From the beginning of the first lockdown in March 2020, the spotlight was shone directly on businesses and in terms of retail it was shone on the key relationships between property owners / managers, occupiers and customers.  Many of the challenges faced were the same as always, but suddenly they were all happening at once and with a pace and intensity never seen before – conversations about leases, rent concessions, marketing and public relations, safety and cleanliness to name just a few – all further exacerbated by the fact that many of us were suffering on a personal level too. 

It quickly became clear that these challenges were easier to deal with in the cases where there were already existing strong relationships.

As we move through the peak of the pandemic and start to explore the future of our retail places, I believe that this newfound level of engagement between different stakeholders must be maintained if businesses are to survive and thrive again as quickly as possible - when this level of engagement works successfully businesses benefit in several ways: commercial performance gets better (because everyone is pulling in the same direction), efficiency improves (as decisions made collectively are less likely to need changing) and trust develops between partners (as information is shared openly and honestly).

One example that highlights this is the growing move towards turnover rent agreements which gives instant incentive to both landlord and tenant to have the most productive relationship possible – when it works well this means collaboration on areas such as stock management, marketing, customer service, public relations and attracting new customers and this obviously benefits both parties – consequently this usually also translates into a better experience for the consumer as it is their actions (choosing where to spend their money!) that determine the ultimate success or failure of the partnership.    

Early evidence would suggest that some of the changes we have seen in consumer habits (such as shopping locally, maker fewer visits but with higher average spend and a renewed desire for leisure and experiences) are here to stay - at least for the foreseeable. These new opportunities can only be capitalised on if the key stakeholders are closely aligned - crucially by a shared understanding in what the customer is looking for and what makes them want to return to a given place.