Michelle Whitelaw: shops are adapting to change
Retail is tough, but the director of Livingston Designer Outlet says there are reasons to be optimistic writes TERRY MURDEN
As Forth Radio’s Lynsey Gibson led the entertainment in Cafebar Nineteen62, all thoughts of a cost of living squeeze and a nervous period for the retail sector were set aside for a special evening. Livingston Designer Outlet, one of Scotland’s biggest shopping malls, was marking its 25th birthday and this was a time to celebrate.
Michelle Whitelaw, who was hired in March as centre director, acknowledges that “it is tough and it will remain tough”, though she insists the positives are being overshadowed by regular gloomy reports. “If you look at what the economists are saying they will say things are not picking up. I would say it is on a growth trajectory.”
She points to recent high profile signings such as outdoor clothing business Columbia, which is opening its first store in Scotland, Hamilton & Burns adding a deli and tasting bar to its Cafe Nineteen62 that has become a popular destination. Monsoon has taken a double unit. Games company Ravensburger has opened a pop-up.
“The CEO [of Ravensburger] has just visited and was surprised by the rate of sales,” says Whitelaw, adding that successful pop-ups can transition to permanent store openings.
Figures support her belief in the ‘growth trajectory’. UK retail sales are at the highest level in more than three years, up 0.5% in September, well above the 0.2% contraction anticipated by economists polled by Reuters. It was the fourth monthly rise in a row and brought volumes to their highest level since July 2022.
Footfall at Livingston Designer Outlet rose 6.42% to six million visitors in 2024 over the previous year. A similar figure is expected this year.
Whitelaw says that refreshing the tenant mix helps stimulate interest among consumers who are making more calculated choices about their shopping habits.
“They are looking for an experience. It is no longer enough just to open the doors and expect them to come in. It is about how each retailer’s staff engages with customers, adding a personal touch, and making sure each store is beautifully set out.”
Livingston Designer Outlet has its roots in McArthur Glen and is now owned by Global Mutual, which builds specialist real estate platforms.
As an outlet its occupants – which include blue chip brands, such as Calvin Klein, Nike, Boss and Kurt Geiger – provide stock not necessarily available elsewhere, even online, or at a discount that will attract those seeking something different.
“The stack ’em high model is no more, says Whitelaw. “Consumers are price conscious and have less disposable income, but they still want desirable things.”
Online growth has made retailers more adaptable, she says, and technology is playing a key part. “They can see what is happening in other stores across the country in real time and within an hour they will have an offer on that will drive sales.”
She acknowledges that many retailers have downsized their stores nationwide, but Livingston has seen a lot of brands taking larger units and investing in shop fit-outs.
“It comes back to creating the right environment,” she says. “We strive to deliver a premium setting and over the years retail centres have moved from just having shops. Consumers want a multi-dimensional appeal with food & beverage and events.”
The venue has a well-established Vue cinema and early next year will welcome a new leisure operator which is taking 30,000 sq ft. Introducing more leisure activity also provides some stability to the more cyclical retail sector which is vulnerable to swings in the economy.
Whitelaw would like governments to respond more favourably to the rising costs facing retailers, with the prospect of yet more tax hikes and another rise in the living wage. She would also like ministers to do more to help women in the workplace. “We have a big female workforce and child care costs are very high,” she says.
Is she generally optimistic or pessimistic about the immediate future?
“It is difficult to be negative because it does feel very dynamic here, so I have to be optimistic,” she says, noting the way in which companies have responded to the impact of online sales, particularly during the pandemic.
“We have reached an equilibrium. Retailers have learned new ways to do things. If you asked me before Covid if there should be an online tax I would have supported it because I saw how detrimental it was to bricks and mortar retailers.
“Looking at it now, retailers have online platforms and just see it as part of their business. It is what the consumer wants.”
PERSONAL CHECKLIST
Occupation: Centre director, Livingston Designer Outlet
Birthplace: Dundee, raised in Perthshire
Age: 51
Education: Chartered Institute of Marketing and Heriot Watt university
Career highlights: Began her career at Marylebone Warwick Balfour (MWB) and later joined UK leisure retail specialist, X-Leisure where she was responsible for driving value-based marketing for the launch of Xscape Braehead and Snozone. Moved to Ocean Terminal, the shopping mall in Leith, to spearhead operational and marketing functions.
What makes you angry?
People being treated unfairly.
Mentors?
PY Gerbeau has an amazing style and direct approach. In my early career he pushed me way beyond my comfort zone. Latterly, I would add Charles Hammond, a business leader who has been a great source of advice and support over my career since 2008 and Jonathan Feldman CEO Global Mutual [owner of Livingston Designer Outlet]. They are both leaders I admire for their charismatic style of leadership, supportive and strong guidance. In my short time working for Jonathan it has been incredibly supportive.
Other interests?
Hill walking and I am training for a 300-mile charity cycle ride in India for Marie Curie. It will be over six or seven days and includes a 6,000 ft incline. I have only been on a bike a few times but I have a good mental attitude to see me through. I’ve been through nine pairs of shorts trying to find something comfortable.
Early career ambitions?
I wanted to be a lawyer, but it didn’t happen. My daughter is a trained solicitor.
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