Posts How will the grey belt initiative affect North West England & Scotland?

How will the grey belt initiative affect North West England & Scotland?

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In our previous blog in this series, we assessed the impact of the grey belt initiative on housing nationally. In this blog, we turn our attention to two regions: North West England and Scotland, assessing the potential impact of the grey belt initiative on both regions.

How will the grey belt initiative affect North West England?

The North West represents one of the biggest opportunities for the grey belt, where 69,820 new homes could be delivered across the 951 potential grey belt locations identified by VirginLand. While the North West is not, in fact, the region with the largest number of individual sites (Scotland has 5,960 sites and South East England has 3,207 identified locations), it is home to the largest sites, with each location able to accommodate 73 units on average across 2.4 hectares.

What makes the grey belt a good bet for the North West is not just the number and size of sites identified, but their location relative to potential movers. In fact, 58% of all home movers in the North West live within the grey belt catchment, comprising over 1 million movers.

Using CACI’s Paycheck and StreetValue datasets, the affordability levels within the catchment of the grey belt sites can be assessed to better understand the regional role that the grey belt can play. At five times the average household income, house-price-to-earning ratios within the catchment area of the grey belt are in line with the North West average (5.1 times income) and below the national average of 6.8 times income. At the same time, private rents sit at just 18.3% of the average earnings, against a regional backdrop of 21.1% and national averages of 27.6% of earnings. The requirements of the grey belt in the North West are not necessarily to deliver dramatically more affordable housing than is already available in the area, but to increase the overall supply of housing.

How will the grey belt initiative affect Scotland?

As with the North West, the grey belt is well located to serve the needs of many home movers in Scotland, with 54% of all movers living within easy reach of the 5,960 sites identified by VirginLand. Although numerous, the sites in Scotland are the smallest of any region, averaging at just 0.4 hectares that could accommodate 12 new dwellings.

Unlike the North West, there is a clear set of characteristics among catchment movers that provide clear guidance on the type of housing that is needed of Scotland’s grey belt. Of the 665,000 potential catchment movers, 44% are expected to move to flats (against a national average of 18%) and 28% to move to social rented accommodation (against a national average of 19%). CACI’s geodemographic segmentation of the UK, Acorn, provides further clarity, with high concentrations of people moving to “Hard Up Household”, “Cash Strapped Family”, “Constrained Pensioner” and “Challenged Circumstances” neighbourhoods.

These demographic groups are some of the most economically strained within our society, and audiences that we have demonstrated in previous articles have had relatively little new housing delivery in recent years. On a practical sense, it has proved hard for private enterprise to make truly affordable new housing projects for these groups commercially viable because of the prices that they can afford to pay relative to project costs. However, this is a challenge that will need to be overcome to unlock the full potential of the grey belt in Scotland, either through closer collaboration or the delivery of blended neighbourhoods.

What conclusions can be drawn from these two regions and applies to the grey belt initiative on a national scale?

Contained within these two regions are the following important conclusions that can be applied to the national picture:

How CACI can help?

To learn more about how you can ensure that your developments are meeting the demands of local movers, contact CACI.

Missed the previous blogs? Find the links to the series so far below:

How grey belt sites will help tackle the UK housing crisis

Grey belt sites: what they are, locations & impact on housing

Assessing the impact of the grey belt initiative on a National scale

Assessing the impact of the grey belt initiative on a National scale

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In our previous blog in this series, we dove into what grey belt sites are, including their locations and projected impact on the future of housing. Today, we’ll examine the grey belt strategy on a national scale.

How can the grey belt initiative impact housing on a national scale?

As previously highlighted, the government aims to build 1.5 million homes in the next five years. If successfully implemented, the grey belt initiative could play a pivotal role in meeting this ambitious target. The former government set significant housebuilding goals—constructing 300,000 homes annually and achieving 1 million new homes over a parliamentary term. However, the figures for 2021-22 and 2022-23 fell short, with only around 235,000 homes built each year. With the new Labour government adopting even more aggressive targets, innovative strategies like repurposing grey belt land could be key to delivering homes on a larger scale.

VirginLand research has uncovered nearly 8,000 potential grey belt sites across England and a further 6,000 in Scotland. The 7,823 sites in England could collectively accommodate up to 450,000 new homes, while the 5,960 in Scotland could accommodate 74,000. With a total capacity of 524,000 new homes, the grey belt represents a substantial opportunity to address the housing shortage. In partnership, CACI has revealed that 36% of all home movers in these regions live within two miles of a potential grey belt site. To put this into perspective, nearly 5 million potential home movers are currently situated within the catchment areas of these sites. This emphasises the strategic importance of grey belt land, not only in providing housing, but in meeting demand where people are already seeking to relocate.

The fact that one in three movers live so close to these sites is a powerful indicator of the relevance of grey belt land in addressing the housing needs of a growing, mobile population. This proximity strengthens the case for rolling out the grey belt strategy on a national level, offering immediate and long-term benefits to communities in need of affordable housing solutions.

How undeserved & undersupplied groups will be supported by the grey belt initiative

The accompanying data illustrates the national picture of the new grey belt strategy, highlighting the importance of addressing the housing needs of underserved groups. Housing development has traditionally focused on a few demographic clusters, with the “Tenant Living” group (18%) receiving a large share of new housing deliveries. This reflects a growing focus on affordable housing and rental markets, which are crucial for tackling the UK’s housing crisis. However, the grey belt strategy seeks to broaden this scope, opening up underutilised land for development to benefit a wider range of demographics, including “Limited Budgets” (3.3%) and “Hard-Up Households” (2.8%).

Further research conducted by CACI highlights the potential of grey belt sites to serve undersupplied groups. Data reveals that people living within two miles of potential grey belt sites skew towards lower affluence groups, which have historically been underserved in new housing developments. Groups such as “Limited Budgets” (6.1%), “Hard-Up Households” (8.4%) and “Cash-Strapped Families” (7.3%) represent a significant proportion of grey belt movers compared to the profile of new homes delivered over the past five years.

This shift indicates that the grey belt holds immense potential to cater to these underserved demographics, offering new housing opportunities that align more closely with the needs of lower-income populations. By unlocking development in the grey belt, the government has the opportunity to meet its housing targets while addressing the imbalances in housing availability for a broader spectrum of society. This strategy is not just about numbers; it’s about making housing accessible and affordable for the people who need it most.

How CACI can help?

Stay tuned for the next blog in this series, where we’ll explore the potential that this grey belt initiative has on the North West and Scotland. In the meantime, contact CACI to find out how you can ensure that your developments are meeting the demands of local movers.

How grey belt sites will help tackle the UK housing crisis

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The UK has not been meeting its house building targets for some time. This is not new news, but it is worth reiterating the scale of shortfall. Over the past five years, we have consistently delivered 20% fewer homes than were targeted: a total miss of nearly 300,000 homes (or put another way, an entire year’s target). 

Couple this with projected population growth and we can see why house building has made its way up the political agenda. The population is expected to swell by 3.8 million people over the coming 10 years, and naturally, these people will need somewhere to live.  

In this blog series, CACI and Virgin Land will uncover key questions around the future of house building targets and how they can be addressed via grey belt sites, including their locations and desirability, whether they create suitable opportunities for inhabitants and how they vary by region.

Where should new house building targets be focused?

Population growth will concentrate around major towns and cities, especially given that 14 of the largest 15 towns and cities have projected growth rates that outstrip the UK average. However, cities are not always where the market has delivered new homes. In fact, eight of those top 15 towns and cities have housing delivery rates that lag behind the national average. Therefore, new housing targets should be geographically directed to the places that people want to live. 

Who should be the focus of house building targets?

Housing growth should be targeted at the people that need it most. Left to its own devices, the market has delivered new housing that concentrates around a few demographic groups. Using CACI’s Acorn segmentation to profile new homes delivered in the last five years, we can see clear trends in the data; Tenant Living (young, urban renters) comprise 18% of new homes but just 12% of the population, Semi-Rural Maturity and Mature Success (two affluent, older groups who are likely to be downsizing) collectively account for 20% of new homes but just 13% of the population. Lower affluent, urban families such as Limited Budgets, Hard-Up Households and Cash Strapped Families, however, have received disproportionately little housing development.  

This is not to lay blame on housebuilders; the commercial challenges of development in urban environments are clearly contributing factors, however, the impact is one of acute supply challenges in specific demographic groups who are coincidentally the groups most likely to be living in over-occupied housing. To maximise the impact of housebuilding initiatives, the route forward requires a more collaborative approach, which the newly formed MADE Partnership may well deliver. 

How will the grey belt make a difference for house building targets?

Central to the Labour government’s housing policy is the rezoning of poor-quality green belt sites into the “grey belt”, effectively opening swathes of previously unavailable land for development. But how influential could this policy change be? CACI and Virgin Land have partnered to uncover the potential impact that opening up the grey belt can have on housing market dynamics.  

How CACI can help? 

Stay tuned for the next blog in this series, where we’ll dive deeper into grey belts, their locations and their impact on housing. In the meantime, contact CACI to learn more about how you can ensure that your developments are meeting the demands of local movers.

Why retail destinations should invest in consumer experiences & perceptions

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Want to increase your visitors’ spend by 25%? Invest in your amenities.

Facilities are a vital part of retail and leisure destinations. Despite not directly producing turnover, they play an essential part in driving performance. Through research from our Shoppers Dimensions dataset– our database of over 1 million respondents across 270 UK-wide destinations which enables key performance indicator (KPI) benchmarking of assets against similar locations across the UK to contextualise performance and enhance decision-making– we analysed how various KPIs are impacted by consumers’ experiences and perceptions.

So, how exactly are services and amenities within retail destinations affecting consumers’ behaviours? How can retail destinations leverage these insights to bolster experiences and perceptions?

Vertical bar showing that if shoppers rated shopping centres 5/5, then there is a notable increase in retail spend according to CACI's Shopper's Dimension dataset research

How do consumers’ overall shopping experiences influence their spending behaviours?

According to our research, retail destinations capable of improving their rating of a person’s overall shopping experience may recognise an increase in their average retail spend by £21.

There is an uplift across the board when overall shopping experience is rated 5 out of 5, with average retail spend increasing by 25% and catering spend by 17%.

How do experiences & perceptions of toilets impact retail destinations?

It may not be a glamourous topic, but toilets are often called out by customers as an issue. They are expensive to renovate and maintain, and without a direct revenue stream associated with them, it is easy to think of toilets as a cost. Despite this, our data shows that investing in facilities can actually drive performance.

Firstly, when looking at shopping centre locations of those that rate the toilet facilities 5 out of 5, our data shows that this leads to an uplift in time that a person stays at the destination by 16%, which accounts for 12 additional minutes per customer. But how does this additional dwell time translate into spend? Customers that give toilets a top rating record a 26% uplift on their average retail spend, an increase of approximately £21.34 per customer.

Retail is not the only category affected. In fact, catering conversion experiences an uplift of 5 percentage points and the average spend on catering increases by 19%. There is therefore direct value to unlock by maintaining and improving these facilities, even if that means you have to spend a few pennies to do so.

How to attract more family groups from further afield 

Family groups can be a hard group to target, but once at the destination, they are likely to come for ‘Big Day Out’ trips which are associated with a higher average spend. For many destinations, this group tends to live further afield, such as in the suburbs of a city.

When family facilities are rated higher, there is an uplift in their drivetime by 23%, an increase in their dwell time by 17% along with an uplift of 25% in associated retail spend. Showing that better family facilities draw in these high-spending visitors from further away

How do car park experiences & perceptions impact interactions with the rest of the shopping centre?

One of the most interesting findings we came across when looking into the impact of ratings was with overall parking experience. This is another topic that consumers are passionate about; ever hard-to-please, the consumer wants it to be cheaper, with more spaces and of a better quality.

But do better perceptions really lead to stronger key performance metrics? In short, the answer is a resounding “yes”. Those who rate the overall parking experience 5 out of 5 see an uplift in dwell, retail and catering average spend and conversion. The greatest uplifts are in dwell time and average retail spend.

On average, dwell time will see an uplift of 17% (14 minutes) while average retail spend will see an uplift of 30%, leading to an average increase in spend of just over £25.

Key takeaway: higher perceptions equal higher spend

Overall, our data shows that the higher the perceptions, the more people will spend and the longer they will stay. This is the case when we look at the ratings for overall shopping experience, cleanliness, overall parking experience, family facilities, customer services, signage, architecture and toilet facilities.

While it might not be glamourous, strong perceptions of parking experience and toilet facilities do lead to an increase in key performance indicators, proving that there is value to be unlocked by investing in these facilities.

How can CACI help?

At CACI, we understand the impact that driving improved perceptions of facilities within a retail destination can have on consumers’ behaviours, such as which amenities encourage people to visit from further away, stay longer or spend more on their trip.

To gain a better understanding of how consumers interact with places, reach out to us to discuss how we can help you measure your performance and identify growth opportunities. 

Most substantial challenges for healthcare organisations to address in 2024

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Tackling health inequalities is a tremendous challenge.  It requires healthcare organisations to understand the demographics, lifestyles, behaviours, needs, and external pressures that individuals across the country face daily with greater accuracy. Access to accurate and detailed data significantly impacts an organisation’s ability to develop a robust response to inequalities and determine which services will meet local needs.  

In our recent webinar for NHS England on “Tackling Health Inequalities with Effective Data & Insight”, we explored the impact of our datasets and insights on NHS England’s ability to tackle current health inequalities and devise strategies to improve future outcomes.  

So, what have the findings from our various datasets and our Voice of the Nation (VOTN) Q1 2024 survey shown regarding the behaviours and health concerns of different demographic and affluence groups across the UK? How can healthcare organisations apply these findings to improve outcomes for their local communities? 

Half of the survey respondents are concerned about their personal wellbeing and mental health

Personal wellbeing and mental health are incredibly important considerations for the NHS. According to our survey results, these have been hugely concerning for people of various ages across the UK, with 50% of our VOTN Q1 2024 survey respondents claiming to be concerned about both. This is the highest number of respondents for these sentiments that CACI has ever seen in the four years of this survey being conducted, demonstrating the need for healthcare organisations to review their current offering of personal wellbeing and mental health services avoiding a ‘one size fits all’ approach that targets all ages.  

Millennials are the most concerned of all age groups about their health

While the traditional assumption may be that younger generations are more carefree and less preoccupied with the concerns of the world, our survey results have shown the opposite. Millennials were the most concerned of all age groups (from Boomers to Gen Z) for their personal wellbeing and mental health, with more than two-thirds feeling this way. This further reiterates the necessity of ensuring that all age groups—particularly Millennials—are offered relevant personal wellbeing and mental health services. 

Affluence does not shield from health concerns

Our survey results indicated that personal wellbeing and mental health concerns have been affecting individuals across all affluence levels. While one might assume that higher-affluence individuals experience fewer wellbeing and mental health concerns, our findings revealed that as many as half of the respondents from the higher-affluence Acorn categories of Luxury Lifestyles and Established Affluence expressed concern about these aspects of their lives. Respondents from the Low Income Living Acorn category expressed the highest level of concern for both areas.  

These insights provide concrete evidence for healthcare organisations to tailor their services based on the specific needs of different affluence groups, rather than relying on open data or assumptions. These results demonstrate the right healthcare services must be accessible across all affluence levels.  

How can CACI help?

CACI can help healthcare organisations tackle health inequalities, supporting a range of clinical areas of health inequalities from severe mental illness (SMI) to maternity and chronic respiratory disease (CPD) to early cancer diagnosis, hypertension case-finding and more. Our partnership with NHS England provides all 42 integrated care boards (ICBs) with free access to a variety of datasets that are being used to tackle health inequalities.

Contact us today to learn more about our partnership with NHS England or to find out how our datasets can improve outcomes for your healthcare organisation. 

 

Most impactful food-to-go transaction trends into 2024

With the continuing trend of hybrid work within worker hubs, consumers’ food-to-go spending in quick service restaurants (QSRs) remains concentrated on some days and displaced on others. Consumers’ wallets also continue to face an ongoing squeeze, resulting in pressures on day-to-day convenience spend.  

So, what transactional trends are being observed across different demographic groups, geographies and price-points as these trends continue? What impact do these trends have on operators’ future openings strategies and overall performance? 

Food & beverage have become increasingly prominent on High Streets 

Over the course of 2019 to 2023, most retail centres in all asset classes have grown their share of food and beverage (F&B) outlets, noting an increase in over 90% of centres in the top four classes— City Centres, Regional Malls, Major Town Centres and Satellite Centres. Despite F&B having become increasingly prominent in shopping and retail parks, there has been a mixture of increases and decreases observed in towns, transport hubs and leisure parks, raising the question of whether oversaturation has had a role to play in some locations.

Centres are polarising

Over the same time period, city centres, regional malls, major towns centres and satellite centres have dropped in their overall level of consumer attractiveness in line with consumers’ changing behaviours. So much so, that the four largest asset classes have seen declines in over 90% of their centres. The picture is a bit more mixed as the retail hierarchy descends into towns, transport hubs and leisure parks, however, with an average of 40% of centres in these asset classes seeing a decline. The ever-increasing proportion of consumer spend moving online has undoubtedly prompted these downward trends.

Given the vast differences in changes at an asset class level, and with many exceptions at a centre level, having access to detailed data on the changing attractiveness and demographics at centre level is vital. 

Customer behaviours towards QSRs continue to change

Many may think that post-Covid QSR demand is just about Tuesday to Thursday, driven by changes in working behaviour, but this is an over-simplification. CACI’s local centre mobile app data analysis within our Location Dynamics suite shows that while areas like Fleet Street/St. Paul’s in the City of London now do have a pronounced Tuesday to Thursday peak, it’s far from the universal norm. As shown by the dark-shaded time segments in the graphs below, places like Barkers Pool in central Sheffield have a very pronounced Friday and Saturday night economy. This further contrasts with central Eastbourne, which has maintained a more traditional Monday to Sunday 9 a.m. to 4 p.m. custom and a strong weekend daytime custom.  

Ultimately, locations are different, and successful operators must understand the different ‘missions’ their customers will be on to ensure they meet their customers’ needs and ensure that they staff their outlets to provide the right level of services at times demanded by their customers.

For food-to-go retailers to engage with consumers at the right time and in the right place, it will be critical for them to consider:  

  • The F&B offers in local areas 
  • Changing consumer behaviours as a reflection of new and embedded worker patterns, 
  • Centre attractiveness 
  • Overarching market shifts that impact footfall on specific days and times.  

How CACI can help?

With these trends in mind, it is critical for food-to-go retailers to have a detailed understanding of who their customers are, where they are located and what times of the week they are most likely to interact with your chain or restaurant. It is equally important to understand your place in terms of its attractiveness to customers and the effect of its location on driving footfall.  

Data is key to maintaining a competitive edge amidst evolving trends, an area where CACI excels in providing support. Find out how we can keep you and your team ahead of the curve by reaching out to us today.

Most impactful holiday and air travel trends for 2024

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If the last few years of pandemic uncertainty and budget constraints amidst the ongoing cost of living crisis have shown us anything, it’s that travellers have become increasingly conscious of the cost of travel. As a result, they’ve placed increased value on having an optimal travel experience to justify its cost.  

We examined the current driving factors behind optimised travel experiences in our Voice of the Nation Q1 2024 survey, where we asked 2,000 respondents how they felt about an array of travel changes and how the cost of living, airline loyalty and more have impacted their travel choices into 2024. 

So, what shared values and needs do travellers of all ages and affluence levels seem to have in common this year? How have these forthcoming trends been affecting the wider travel industry?

Travel spend will increase in 2024 despite decreases in most other sectors

When asked whether their anticipated spending will decrease, increase or stay the same this year compared to last, holidays actually rank third among areas people expect to increase spend in 2024– with groceries and commuting costs coming in first and second– despite an overall expected decrease in spend in other areas this year.  

Plans to holiday abroad skew significantly on affluence lines 

From Boomers to Gen Z, more than half of respondents from every age group plan to holiday in some capacity– both in the UK or abroad– in 2024.  

When it comes to taking holidays abroad, 38% of respondents are making plans and budget room to do so this year. Of these respondents, as much as 50% come from the higher affluence Acorn categories of Established Affluence and Thriving Neighbourhoods. Approximately one in three of the lower affluence categories of Steadfast Communities, Stretched Society and Low Income Living share the same sentiment.  

A quarter of all respondents have no intention of travelling this year, and 22% plan to visit another part of the UK, which would appear to be in an effort to save on travel spending. In reality, no matter where you go for your next holiday, the same proportion of respondents agree that cost will be the biggest determinant behind their destination. 36% of those staying in the UK say that they will go on holiday within the UK because they prefer it to going abroad, showing that while cutting travel costs is a major driver, it is not necessarily the only one.  

Half of respondents claim no loyalty to an airline

When asked what the contributing factors towards airline loyalty are, half responded that they have no loyalty to any airlines.  

Roughly one-third (31%) of those who are loyal towards an airline felt that their loyalty is driven by more than one factor, such as convenience, discounts and luggage/check-in benefits. In comparison, 18% felt there was only a singular driving factor behind their airline loyalty, showing that where loyalty is in play, it is usually multi-factorial. 

Convenience is the most significant driver behind airline choices

Apart from price, respondents’ most significant contributing factors towards airline choices when booking trips came down to flight times and route, both of which are also the only factors heavily skewed by affluence. Nearly 60% of the Established Affluence and Thriving Neighbourhoods category respondents reported this to be significant, compared to just 35% among Low Income Living.

Gen Z, however, scored this even lower, with just 32% finding this to be significant and instead placing more emphasis on the ease of booking at 37%. 

Families are much more affected by cost this year

In terms of holiday planning this year, one-third of respondents said that they wanted to keep their holiday costs as low as possible to maximise value for money and felt that costs would be the greatest determinant of where they holiday in 2024.

Among those with children, 40% said that cost is the biggest determinant of where they go on holiday. 

Sustainable transport options appeal much more to Gen Z

Of all demographics, Gen Z appear to be the most motivated by sustainability when planning their holidays, both in terms of those taking immediate action but also those who would like to travel but feel unable to presently.

In fact, 18% of Gen Z respondents said that they will be cutting down on air travel in 2024 due to their growing environmental concerns, compared to just 8% among the rest of the population. 

How CACI can help?  

As the travel industry evolves with travellers’ changing sentiments, holiday and air travel operators must be equipped with the necessary understanding of who their customers are, what their motivations for travel are, what they seek from their travel experiences and how to deliver optimal experiences that will drive loyalty. Data is integral to this, which is where CACI excels in providing support.  

To find out how we can keep you and your team amidst turbulent times, get in touch with us today.

Impact of turnover vs. footfall for shopping destinations in 2024

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Footfall has historically been the go-to method for measuring a shopping destination’s performance, conducted through pressure sensor mats, light sensors tracking shoppers’ entry and exit movements, advanced camera systems and more. Although ubiquitous across the retail industry, only measuring the number of people entering and exiting a store misses important aspects of true store performance.  The current pace of change in consumer behaviors demands that commercial landlords and occupiers know more about their performance drivers if they are going to thrive.

So, why is this the case? What do commercial landlords need to know about turnover and footfall to stay afloat?

How consumers’ changing behaviours towards shopping locations affect footfall

Since 2019, vendors across the UK have experienced an overall 11.5% drop in footfall. While this may sound like catastrophic news for retail destinations, the truth behind the headline footfall figures is perhaps surprising– an overall rise in consumer spending. Although a shift in consumers’ shopping behaviours is undeniably present, its impact may not be as profound as it seems.

Frequency has been a major driver of this, dropping by 31% over the last five years, meaning that consumers have been visiting shopping places much less often. However, the amount being spent by consumers when visiting shopping locations has climbed 29% over the last five years, counteracting declining footfall. 

This increase in trip spending is not just an inflationary rise – the fundamental reason to visit and our behaviours on visits have changed as a result. Successful locations are those that are adapting to the new shopper landscape.

How consumers’ changing spending habits, values & “missions” affect footfall

What consumers are spending any disposable income on has also been changing. While retail conversion has remained relatively unchanged, there have been evident increases in Catering and Leisure conversions on the same trips, meaning consumers are increasingly combining a shopping trip with food/drink or a leisure activity. It is this combination of shopping, browsing, eating/drinking and leisure that has led to the overall increase in spending per trip.  

These comparisons can be illustrated through what we at CACI call “missions” from our Shopper Dimensions dataset, which illustrate the trip someone is on at a given time, and attribute “missions” to the tangible actions someone takes once at the shopping destination, such as browsing, spending, time spent, etc., to assign a “mission” to each trip.  

According to our findings, consumers are relinquishing their less engaged “missions” but concentrating trips around the “Big Day Out” trip. This is illustrated in the shifting profile of the top three missions in Shopping Destinations, which explains why a decline in footfall does not necessarily equate to declining spend. At a glance:

  • “Big day out” missions are our more engaged trips. They may be less frequent, but they are ones where multiple retail stores are often combined with Catering and Leisure, resulting in a trip spend 2.4x the average mission. Since 2019, these missions have grown to 23% of all shopping missions. 
  • 37% of “spending time” missions have no purchasing associated with them. While they may contribute to footfall figures, they do not directly contribute to sales-through-tills. Having dropped off post-Covid-19, these trips are now holding flat at a lower shelf. 
  • “Routine top-up” trips are quick, functional and emotionally disengaged trips that a spend of just 47% of an average trip. These trips are dropping out of our repertoire and can be substituted online.

We can therefore see that looking in greater detail at the changing nature of the trips made provides a clearer understanding of commercial asset performance than simply tracking the overall volume of trips.

Key levers to conclude turnover & application methods to target growth outcomes

To make a meaningful impact in asset performance, commercial landlords must move beyond measuring just the number of visits and start reporting the different levers of shopping location spend.  
 
While there are nuances behind the headlines that apply individually to each location, all spend at a shopping location can ultimately be boiled down to three key levers:

  1. The volume (number) of unique shoppers they have 
  2. The frequency of consumers’ visits to a shopping destination 
  3. The value that each shopper spends per trip.

Commercial landlords should consider applying the following methods to each lever to effectively target growth outcomes:

  1. Volume: Convert footfall (visits) into ‘spenders’ and target engagement strategies at driving scheme trial; measured by the percentage of the catchment population currently shopping with you (penetration). 
  2. Frequency: Embrace the different role that your asset plays for different cohorts, diversifying the occupier offering to give shoppers more reasons to return on different missions. 
  3. Value: Determine the highest spending shopper groups to target, segment customers and tailor offers to them to increase cross-shopping opportunities and drive value.

What does good look like?

Now is the time for commercial landlords to leave pre-pandemic comparisons behind. Footfall may be down overall, but the evolution of consumers’ shopping destination behaviour serves as a reminder that relying on the past as an indication of how assets should behave will not lead to longer-term success. If anything, these behaviours have demonstrated that the types of trips people continue to use shopping locations for are more engaged and valuable than ever before.  

Our unique view into how and where consumers are spending has been made possible with the help of datasets like Shopper Dimensions, which enable KPI benchmarking of assets against similar locations across the UK and leverage transactional and data spend insights to enhance decision-making. We can help you calculate the impact of each shopper metric and the headroom compared to peers and catchment.  

To find out more about what Shopper Dimensions can do for you and your business, speak to one of our experts today.

How local authorities can use route optimisation for Home to School Transport (HTST)

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At a time when budgets are under so much pressure, facilitating Home to School Transport (HTST) efficiently has never been more important. Millions of pounds are being unnecessarily spent on passenger transportation, with limited efficiencies or cost-cutting initiatives in place through a lack of supporting technology or tools.

With spiralling costs, tightened budgets and limited capacity, local authorities are struggling to delivery their statutory obligations. So, what can be done to save costs while optimising HTST capabilities?

Most substantial challenges local authorities face with Home to School Transport (HTST)

  • SEND costs are set to triple to £1.125 billion over the course of a decade, according to the Isos Partnership for the County Council’s Network 
  • Havering Council is spending £6.5m per annum on transporting 420 pupils, resulting in £2,500 per pupil 
  • Birmingham City Council is currently spending £19.4 million on transporting vulnerable children to school  
  • Norfolk County Council is spending £40m to arrange buses/taxis for 4,100 children with extra requirements, or more than £9,700 per child. 

Local governments must find ways to:  

  • Efficiently plan routes buses to minimise contracts and private taxis
  • Deliver safe and reliable service to pupils
  • Ensure safeguards are in place to protect vulnerable pupils
  • Establish communication with parents, schools and councils
  • Offset increasing council deficits through efficiency savings.

What CACI technology solutions can help local authorities overcome these challenges?

Pin Routes: Route planning & optimisation

As a next-generation route planning and optimisation software, Pin Routes helps local authorities plan and optimise routes for school transport. It is cloud-based, scalable software that features advanced algorithms and a state-of-the-art user interface, with functions including strategic analysis and static (periodic) and dynamic (daily) planning.

Pin Routes considers the individual needs of each child, special school requirements, vehicle capabilities, provider capacities and driver skillsets to help achieve lower costs and carbon emissions.

Pin Live: Live route management

This live route management software ensures all parties stay informed in real-time, giving parents and schools peace of mind with up-to-date information, keeping local authorities in control and simplifying the process for drivers and service providers.

Acorn: Consumer segmentation

CACI’s consumer segmentation tool, Acorn provides demographic, lifestyle and behavioural insights of pupils. Acorn unlocks detailed insights about families’ financial backgrounds which can be used to determine those pupil households who could contribute towards transportation costs.

Access to this data equips local authorities with additional capabilities to better assess pupils’ eligibility for school transport while at the same helping the Council to meet with its statutory obligations.

Longer-term benefits local authorities will enjoy with CACI’s data and technology solutions

Saving operational costs:

  • Councils will have more time to effectively plan at a strategic level
  • Vehicles can complete more tasks
  • Pin Routes will ensure councils can undertake ‘what if’ analyses for future scenarios to uncover and implement strategic efficiencies
  • Inputs can be scaled up and higher volumes of transport can be supported each year.

Improve efficiencies: 

  • Planners and schedulers can prioritise journeys quickly, effectively and on a regular basis
  • Transport providers can take the most effective routes between homes and schools to save on fuel, mileage and drivers’ hours
  • New tasks can be imported as they are booked and teams can pick these up as part of their existing plans, ensuring the right tasks will be prioritised.

Improve ESG and resident-centric operations: 

  • Councils can be confident in delivering a consistent service to residents
  • Journeys will be made efficiently, reducing the spend on fuel and vehicle maintenance. Monthly cuts in CO2 emissions will also be recognised.
  • Enhanced scheduling and routing will increase driver and resident satisfaction as journeys are prioritised and optimised.

CACI is already a trusted data partner to the public sector and has a proven track record of delivering cost-effective, sustainable logistics solutions to organisations within the private sector.

Whether through our innovative software and communication technology like Pin Routes, Pin Live and Acorn, our expert consulting services or our innate public sector knowledge and experience, we are committed to supporting your organisation in achieving its goals.

For further information on how CACI can help transform your route optimisation operations, please register here.

Why Taunton is a perfectly balanced place to live

This final blog in our series on balanced locations brings us to Taunton, an idyllic town near the southwest England countryside with a captivating history, landscapes and arts and culture scene that have earned the town its spot on our list of perfectly balanced places to live per our report, “Six Pillars of Success: Building Resilient Places”. 

If you have yet to read our blog that introduces these pillars, we consider a ‘perfectly balanced’ place to be:   

  • One that houses a suitable mix of chain and independent retailers at optimal sizes  
  • Supplies unique offline experiences that meet the community’s needs  
  • Provides community infrastructure that supports daily living  
  • Offers adequate residential properties for the community  
  • Offers employment opportunities and flexible working spaces  
  • Encourages time spent outdoors in green spaces

So, what exactly are the driving factors behind Taunton being a perfectly balanced place to live?

Pillar 1: Representation & proper sizing of independent & chain retailers  

Taunton’s town centre benefits from a mix of well-known brands like Primark, TK Maxx, Sports Direct and Marks & Spencer, while also being home to thriving independent and specialist retailers. In fact, independent retailers in Taunton comprise ~50% more of the retail mix than benchmark locations.

Bath Place stands out as a particular hub for independent retailers. Dating back to the 18th century, this historic street is lined with an array of independent businesses and services that can be reached on foot by pedestrians. Many of the shop fronts feature their original detailing to truly transport passers by into the Georgian era.  

Pillar 2: Uniquely tailored offline experiences

To get in on the sports, music and leisure scene in Taunton, Somerset County Cricket Club has something for every type of enthusiast. Founded in 1875, this renowned sports club situated close to the town centre represents the county of Somerset. To this day, it serves as a spot for watching cricket, attending concerts, catching a film at its open-air cinema and much more.

For those looking for a community social hub that doubles as a performing arts centre, look no further than Taunton Brewhouse. As the region’s principal arts centre, its programme of high-quality dance, musical and theatre shows along with workshops and pop-up shops create a diverse and all-encompassing environment that appeals to one and all.

There is also no shortage of cafes, restaurants and bars to satisfy locals day or night. 

Pillar 3: Engaging community infrastructure 

Taunton’s centre is brimming with museums, galleries, a library and numerous services to meet locals’ varying needs and interests.  

A visit to Taunton Castle, a Grade I Listed Scheduled Ancient Monument, can be paired with the Museum of Somerset, also situated within the 12th century castle walls, housing prehistoric artifacts to modern galleries. The Somerset Military Museum is also housed within the Museum of Somerset. A historic almshouse saved by the Taunton Heritage Trust can also be found on the Museum grounds.  

At the heart of the town lies Taunton Library, a public library that offers internet access and printing services. Civic services such as the Somerset Registration Service, Jobseekers Recruitment Services, Taunton JobCentre and the Somerset Council offices can also be found here.  

A modern and affordable Nuffield Health gym boasts plenty of equipment and classes, encouraging locals’ maintenance of fitness and wellbeing. 

Pillar 4: Support social cohesion through optimised residential design 

Situated close to the picturesque countryside while also having well-connected transport links, inhabitants of all ages and demographics can appreciate what this town has to offer. Taunton’s housing market appeals to a variety of renters and homebuyers, with a broad range of housing available from charming cottages to contemporary flats. Average house prices in Taunton are lower than seen across the southwest. At just £786, monthly rental payments sit at 22% of local income levels (below national averages of 25%).  

Pillar 5: Sufficient & accessible work opportunities for the local population

Taunton is a major regional employment hub. The town is accessible via the M5 and has good train links including a direct service to London in under two hours, making it an appealing place to live for commuters. Only 1.61% of Taunton’s population is considered to be “Economically Active: Unemployed”.

Pillar 6: Appealing open spaces for the community to dwell in 

When in need of a break from city life, locals and visitors can escape into one of Taunton’s many parks and nature oases.  

Vivary Park is a popular choice that is just a few minutes away from the town centre. With its namesake inherited from its medieval usage as a fish farm or vivarium for the priory and castle, the park features a mini golf course, tennis courts, playground and model railway. In just a short drive from Taunton, Blackdown Hills National Landscape, considered an Area of Outstanding Natural Beauty, can be found, offering visitors breathtaking landscapes and opportunities to hike, cycle and spot wildlife.

To learn how our six property pillars can help ensure you are creating resilient places, please speak to one of our Placemaking and Property experts.

Why St Neots is a perfectly balanced place to live

In this Article

This next blog in our series on balanced locations transports us to St Neots, a rapidly growing Cambridgeshire town with mediaeval heritage that is nestled along the River Great Ouse banks. With an intriguing blend of old-world and modern-day sights and amenities, a strong sense of a community and a picturesque atmosphere, St Neots was an undisputed pick as part of our list of perfectly balanced places to live per our report, “Six Pillars of Success: Building Resilient Places”.

If you have yet to read our blog that introduces these pillars, we consider a ‘perfectly balanced’ place to be:  

  • One that houses a suitable mix of chain and independent retailers at optimal sizes 
  • Supplies unique offline experiences that meet the community’s needs 
  • Provides community infrastructure that supports daily living 
  • Offers adequate residential properties for the community 
  • Offers employment opportunities and flexible working spaces 
  • Encourages time spent outdoors in green spaces.  

So, what exactly are the driving factors behind St Neots being a perfectly balanced place to live? 

Pillar 1: Representation & proper sizing of independent & chain retailers

St Neots features a strong provision of amenities and services. The town centre forms a well-balanced array of High Street brands like Fat Face and Argos and independent retailers accounting for 38% more of the retail offer than comparable locations, creating a strong sense of identity and place.  

For those looking for independently run wine, beer and spirits retailers, look no further than The Smiling Grape Company, an award-winning, family-owned wine merchant, or Shumë Bottle Emporium, a craft beer shop and bottle emporium carrying beers from around the world. Opting to put your creative skills to the test in an all-ages, all-skill levels pottery and craft studio? The Crafty Monkey Pottery Shop has something for everyone. 

The town’s market square is also one of the largest and most ancient in England, dating back to the 12th century. Every Thursday since its foundation, the Charter Market takes place here through the daytime, with stalls offering fresh produce, clothing and artisanal finds. There’s also a bi-weekly Saturday Farm and Craft Market featuring local traders and crafts makers offering meats and produce, baked goods, flowers and plants and handmade crafts. 

For special occasions, or even to spruce up an everyday space, the County Fayre Florist has been a prime choice for locals for over three decades. A Hotel Chocolat factory and cafe outlet is also popular among locals in search of high-quality chocolate at lower prices than on the High Street, or for an ice cream or hot chocolate treat at the cafe.

Pillar 2: Uniquely tailored offline experiences

St Neots’ strong catering offer is mainly independently led, with many multi-function restaurants and cafes for visitors to enjoy.  

Roberto’s Deli is one of these—part-deli and part-pizza restaurant, this authentic Italian deli offers artisanal produce alongside dine-in options, making it a hit with visitors. For an all-encompassing cafe, art gallery and creative hub experience, Art & Soul encourages visitors to savour moments of tranquility by viewing art, checking out a gig, getting some work done or catching up with friends over a coffee all in one place. The Pig n Falcon is also a popular watering hole among locals for its live music and warm, traditional pub atmosphere.  

While Pizza Express is the town centre’s only chain restaurant, a Cineworld is in its vicinity, making for a great evening on the town. In contrast, its independent restaurant selection (including Il Girasole) and pubs like The River Mill offer quality food and pet-friendly atmospheres. 

Locals and visitors will also find a bowling alley, library and museum in the town’s centre. A broad range of bars, restaurants and cafes also cater to a variety of food groups and preferences (Ferro Lounge, a vegan dog-friendly cafe, being one of them), along with a few small tearooms for vegan and gluten free visitors. 

Pillar 3: Engaging community infrastructure

Lining the town’s streets are large chain supermarkets like Waitrose and Marks & Spencer along with independent alteration, shoes, arts & crafts shops and beauty salons and health and community services, meeting locals’ various needs.

Overlooking the town is also the alluring (and unmissable) 130-foot tower of St Neots Parish Church. Originating in the 12th century and rebuilt in the 15th, it serves as a community hub for gatherings and for relishing the centuries of craftsmanship visible in both its interior and exterior. 

The town is also easily commutable from the neighbouring towns of Cambridge, Milton Keynes, Peterborough and more, with fast and direct train links to both London and Peterborough available. 

Pillar 4: Support social cohesion through optimised residential design

Housing in St Neots indulges a range of preferences and budgets, from Victorian and Edwardian homes and cottages to more modern developments. A combination of high earnings (£48,007 on average) and relatively low house prices (£306,497) contribute to the town’s affordability. Houses in the area are 6.4x the average salary (compared with a UK national average of 7.4x), and monthly average private rent payments of £877 account for 22% of earnings (against a UK town average of 26%).  

Terraced and detached properties have been increasingly sought after, along with semi-detached properties. The town’s proximity to larger cities like London, Cambridge and Peterborough has also appealed to many renters and homebuyers.  

Pillar 5: Sufficient & accessible work opportunities for the local population

Job opportunities are available in many sectors in St Neots, notably in healthcare, manufacturing and retail. A half-hour drive or hour-long public transportation commute to Cambridge opens plenty of additional working opportunities for St Neots locals, especially in technology and innovation. Nearly half (48%) of the adult population is employed full-time (against a UK average of 42%).  

There is also a community Facebook group, St Neots Referrals & Recommendations, where locals share recommendations and insights for new job listings.  

Pillar 6: Appealing open spaces for the community to dwell in

St. Neots is home to many parks and green spaces for locals and visitors to enjoy. With the River Great Ouse flowing through the town and parks just steps away from the town centre, breathtaking scenery can easily be found.  

Riverside Park, for example, is a popular destination for both locals and visitors, offering 72 acres of greenery that holds enormous weeping willow trees, picnic areas, children’s play areas and walking and cycling paths galore. Every Saturday, locals can partake in a free 5K parkrun, or can spend a lively Sunday attending one of the concerts held throughout the summer. Sports club events like the Dragon Boat Festival and St Neots Rowing Regatta are held in Riverside Park, making the most of the River Ouse. 

There’s also the historic Georgian era Priory Park, which now serves as an open space for leisurely activities like picnics and dog walking to sponsored events like runs and activity clubs for children in the summer. Sports enthusiasts can also make use of the park’s five football pitches and several mini soccer pitches.

For glimpses of some of the area’s richest wildlife habitats, a trip to Paxton Pits Nature Reserve, packed with 78 hectares of lakes, meadows, woodlands and more, promises sightings of nightingales, cormorants and several other varieties of birds and mammals

In the next and final blog of this series, we’ll share one more pick for a ‘perfectly balanced’ place to live.  
 
To learn how our six property pillars can help ensure you are creating resilient places, please speak to one of our Placemaking and Property experts.

Why Worcester is a perfectly balanced place to live

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In this fourth blog of our series looking at balanced locations, we’re travelling to Worcester, a captivating city in the heart of the West Midlands known for its storied history and architecture, triumphant sports and social culture and vibrant community gatherings.  

Worcester is packed with hidden gems and old haunts, medieval heritage sites and palatable dining options. These are a few of the many driving factors behind Worcester earning its place on our list of perfectly balanced places to live per our report, Six Pillars of Success: Building Resilient Places”.

If you have yet to read our blog that introduces these pillars, we consider a ‘perfectly balanced’ place to be:  

  • One that houses a suitable mix of chain and independent retailers at optimal sizes
  • Supplies unique offline experiences that meet the community’s needs
  • Provides community infrastructure that supports daily living
  • Offers adequate residential properties for the community
  • Offers employment opportunities and flexible working spaces
  • Encourages time spent outdoors in green spaces

So, what exactly are the driving factors behind Worcester being a perfectly balanced place to live?

Pillar 1: Representation & proper sizing of independent & chain retailers

While many larger chain retailers like Primark, New Look, The Body Shop and Boots can be found in Crowngate Shopping Centre, plenty of independent retailers are situated in the heart of Worcester, especially on Friar Street. From clothing shops and bridal studios like You Boutique and Perfections Bridal Studio to pet shops and toy shops like Paw & Co and The Entertainer, there is no shortage of retailers catering to the community’s unique needs.

Pillar 2: Uniquely tailored offline experiences

Events are a big deal in Worcester– from open-air concerts to community festivals, there is always something happening to engage and entertain visitors of all interests.

The Victorian Christmas Fayre is one of such examples. A beloved annual event that captures the essence of Victorian England by transforming the streets of Worcester into a scene reminiscent of the era of Queen Victoria, the Fayre fills the city streets with market stalls that offer traditional festive treats and crafts. Several historic buildings throughout the city also take part in the celebration, opening their doors to guests to awe at the Victorian era’s opulence. 

In the summer, locals and horse racing enthusiasts flock to Pitchcroft Park (otherwise known as Worcester Racecourse), a renowned thoroughbred horse racing venue. The annual Worcester Fringe Festival also brings theatre and arts aficionados to the city in the summer to revel in over 60 events dedicated to theatre, music and comedy at various venues. The musical fun doesn’t stop there— Worcester Fake Festival is returning to Pitchcroft Park this summer to deliver a tribute-based music event to local music lovers.  

Throughout the year, historical events paying tribute to Worcester’s rich history such as the Civil War Soldier School at The Commandery also offer children an opportunity to follow in the footsteps of Civil War soldiers.  

Football and cricket also form important parts of the city’s sports culture. Football is one of the most widely followed and played sports in the city, and cricket becomes particularly popular during the summer months. 

The High Street, Friar Street and New Street are also brimming with cafes and coffee shops (both independent and chains), pubs and restaurants. In fact, a recent initiative to renovate the Worcester Foregate Street railway station arches, The Arches, has brought together a new cluster of trendy restaurants, coffee shops, breweries and even axe throwing.  

Friar Street and New Street are also home to two of the city’s oldest, most historic pubs. The Cardinal’s Hat Inn on Friar Street is the oldest in the city, dating back to the fourteenth century. The King Charles House on New Street has a special tie to British history, as the home that King Charles II fled after defeat at the Battle of Worcester in 1651, aided by New Street’s residents holding the Cromwell army back for the King’s successful escape. 

Pillar 3: Engaging community infrastructure

In terms of amenities and services, Worcester’s High Street features large chain supermarkets like Tesco, banks like Barclays and NatWest, pharmacies like Boots and a Post Office. Neighbouring Friar Street and New Street house a number of barbers and hairdressers, as well as beauty salons.  

Worcester Cathedral in the heart of the city dates to the 12th century, showcasing the grandeur of English Gothic style. It not only serves as a place of worship, but as a cultural hub that hosts many events throughout the year. 

The Hive, a modern, high-tech library with rooms to hire and a cultural programme that sits alongside more traditional library resources, is also a thriving community resource accessible by university students and the public.  

Pillar 4: Support social cohesion through optimised residential design

At £44,246 per annum, household incomes in Worcester are in line with the UK average. Housing costs align with average earnings, with a range of affordable options from historic city centre properties to more modern developments beyond the centre available. With the average price of a home being £254,728 (5.8x the average earnings) and private rentals hovering around £701 PCM (19% of average earnings), Worcester’s affordability compared to most places of its size is evident. 

Pillar 5: Sufficient & accessible work opportunities for the local population

With 9.6% of Worcester’s adult population being full time students (above the national average, and likely a result of the University of Worcester’s presence), both educational and working opportunities are easily within reach.

The city’s prominent manufacturing scene has created many job opportunities in sectors like engineering and logistics. Full and part-time employment rates (at 45% and 14% respectively) sit above the national average. 2.3% of the population is unemployed but looking for work, a rate slightly below the national average.

This year, the Worcestershire Skills Show will also be taking place, exposing Year 7 to 10 students to an array of industries to help them understand what businesses are looking for in future employees and determine the necessary skills and qualifications to pursue their future career goals.  

Pillar 6: Appealing open spaces for the community to dwell in

Worcester’s green open spaces provide an escape from city life while also encouraging gatherings.  

For those interested in exploring the city on foot, daily walking tours are offered by guides from Discover History, Worcester Walks and Faithful CityWalk. For the adventurers, self-guided tours and trails of the City’s Guildhall, the Worcester Heritage Walk and more are available.

Britain’s longest river, the River Severn, runs through the city and offers walkways along the water with plenty of surrounding open spaces to spend time in. In the warmer seasons, boating enthusiasts can be seen rowing boats or canoes, and anglers can be found on the riverbanks. Those opting for a leisurely stroll or vigorous jog can utilise the pathways.

For a serene escape just a stone’s throw from the city centre, locals and visitors will find Gheluvelt Park, offering expansive green space and captivating landscapes, opportunities to hire paddleboats or row boats on Barbourne Brook, or play tennis. The park holds more significance than just its beauty— it memorialises the Battle of Gheluvelt, a defining moment in World War I that helped secure victory for the Allies.

Stay tuned for our next pick of a ‘perfectly balanced’ place to live in our upcoming blog.

To learn how our six property pillars can help ensure you are creating resilient places, please speak to one of our Placemaking and Property experts.

New Year, New me? Reset, face out to the market, connect, and engage

In this Article

There has been a lot written in the past 18 months about how the pandemic realigned the way we were living. A moment in time that stretched into a phase that was different for literally everyone, affecting us all in different ways; young and old, key workers through to shop staff, blue collar workers and office employees. Just think for a moment about how different life is now, how you think it might have affected the above groups and how such a seismic shift defines who we are today, what we want from our lives, our relationships, our jobs and our future.

Key reflections in the new year

As we move into a New Year, even if we don’t make wholesale changes, I always find it to be a good time to reflect on where you are at, force a change – even a small one – and move into the New Year in a new gear.

In the last few years, those changes for me have been about reflecting on how we are conducting ourselves on a day-to-day basis and resetting into what is needed in the year ahead rather than drifting along with an adopted behaviour that you inherited post-Covid. I have been very keen to try to get colleagues to do the same.

Go out and see clients face to face, walk around the places we work on and have delivery meetings on client sites rather than on the dreaded Teams. While I’m fully aware of the benefits in time and travel that Teams has brought, I think it is incumbent on us all to ensure we use the channel in the right way, not just because it is the easiest thing to do. There will always be instances where face to face does make a lot more sense – think about it and make the effort!

Understanding the impact of consumers’ changing values and priorities

Working in consumer understanding at CACI, I’ve found myself reflecting a lot over the past 18 months, not just about the behavioural changes the pandemic has instilled in us, but how it has altered our values. In general, we have become much more particular about what we choose to do with our time away from home. Some groups, because of what home is to them (singles in smaller shared accommodation versus families in larger, out-of-town homes for instance), will have wildly different values based on that home set up, their life stage, affluence, etc. which maybe, or may not, be like their pre pandemic selves. However, how they value their time, effort and disposable income has definitely shifted.

The impact of the Cost of Living crisis has further evolved everyone’s position, with disturbing situations becoming everyday concerns. Simple things such as keeping warm, having a hot shower, or saving on electricity bills are driving the younger cohorts back to the office now more than the Boomer generation. That, and the realisation that without real face time with their peers and seniors, their careers may be stunted.

CACI Cost of Living tracker 2023
Gen Z Millennial Boomer office stats

Applying these learnings in real time: Revo takeaways

Beyond this change in ourselves, we have seen huge changes in the businesses and organisations we work with.

In this last year, I became a board member of the industry body, Revo – an organisation that has gone through wholesale change, not because of Covid per se, but because of what the market needs out of such industry groups. In the past, it was famed for a large-scale conference, held over three days in a regional city, overlapping with many other similar events and organisations. Today, it is very much reset as a not-for-profit organisation, run by the members, for the members.

It is focused on providing a community platform to connect next generation Revo Hub members with those who have a few years under their belts. Instead of a huge annual conference, we now provide smaller events, including the very recent Revo Awards ceremony at Control Room A in Battersea Power Station. On this night, we celebrated the achievements of the best in the business across marketing, asset management, regeneration and leasing. As Revo evolves, those members who contribute will do the same, with a focus on getting out into the market to explore and learn from these winning best practice examples.

Predictions for the future of our working world

So, thinking about the future changes; in our work world, 2023 was centered around the birth of generative AI, albeit over thirty years after the business world started using all forms of AI (under a different name). I no longer struggle to answer the question ‘What do you do for a living?’. While our world at CACI isn’t as straightforward as saying you work in Finance or Retail, with Generative AI for the masses now, I can (relatively) easily explain that I work in consumer data to support businesses like banks, using natural language in AI to categorise large volumes of calls data to better direct enquiries. Or, using AI on satellite imagery to create spatial wealth distribution indices for far flung places. Or, put more simply, use behavioural data (like GAI can) to enable better actions and interactions with customers and prospects.

My biggest goal moving into 2024, and one I would encourage colleagues and friends alike to adopt, is to just get out there and see places again. Make sure you are putting a value on that travel and time, but also make a concerted effort to get away from your screen (office or home), force a new experience, and share that. In a world where AI will take away the mundane tasks, it is even more important to enjoy the new experiences that these new repurposed places bring.

Uncovering consumers’ leisure priorities in the festive period

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The latest findings from our Cost of Living consumer survey are in, and we’re taking a look at the insights through the lens of the leisure industry. 

With over 2,000 respondents surveyed in November, we asked consumers about their thoughts and priorities in the lead up to Christmas to help brands understand how their customers may be behaving. For companies in the leisure space, being able to predict the movements, intentions and spending patterns of customers is key at this time of year, especially in the current economic climate. 

So, what did we find? 

Nearly half of consumers still want to socialise and spend despite the impact of the Cost of Living

With 46% of respondents agreeing that the increased Cost of Living will not impact their intended Christmas social plans (up from 40% in 2022), leisure brands can expect to benefit from people wanting to attend and spend on events out of the home this year. 

While this is reflected in general financial fears dropping since the late summer, there seems to be a generational divide with Gen X, Millennials and Boomers feeling more confident. Gen Z, on the other hand, reached a new peak of concern at over 50%. 

Their concerns relate to their personal finances as opposed to family finances or the national/global economy, which could affect brands reliant on young adults to boost their seasonal profits. 

Energy fears remain high as the cold moves in, leading to potential cost-cutting in other areas for some groups

With energy costs becoming more of a focus as temperatures drop, some demographic groups are having to cut down on other costs to keep warm this winter – with one in three among the Low Income Living Acorn category expecting to have to do so. 

The impact decreases as we climb the affluence scale but remains fairly significant, with over 20% of the Established Affluence category also considering cost cutting for this reason. 

Spending on food and drink at home remains a priority, but the importance of entertainment and leisure at Christmas is growing

With a significant 79% of people considering spending on food and drink at home to be important this festive period, there is further optimism for the leisure industry as our latest survey has also detected a shift back towards entertainment and leisure as a source of importance. 

While consumers report that most other areas of spending are reducing in importance, entertainment and leisure is trending in the other direction, with 59% of consumers surveyed classifying entertainment and leisure as either somewhat or very important to them this year, which is up from 53% in 2022. This is supported by 47% of respondents identifying that socialising outside of their homes this year is important, which is a slight increase from 2022. 

Overall, the social planning picture is a lot less negative than last year

When we consider the contrast between pre-pandemic and Cost of Living crisis behaviours versus consumer attitudes now, it’s fair to say that people continue to exert caution in the lead up to Christmas. Nonetheless, we’re seeing less negativity year-on-year, which shows that there’s opportunity for leisure brands in the coming weeks. 

Brands may still want to consider how different demographic groups are going to drive success this Christmas, as levels of concern and caution seem to be directly related to affluence. The findings show that the Established Affluence category appear to place the most importance on maintaining their food and beverage spending and socialising this year. 

When taking age into account, we found that a surprisingly large pocket of younger respondents actually prefer New Year’s Eve to Christmas Day as a celebration. So, this could be something to consider when rolling out engagement strategies post-Christmas. 

Apply these insights to your consumers and stay in the loop as you strategise

We work with a range of market-leading brands in the leisure industry, helping them to identify, understand and locate their customer base to drive value for their businesses and inform successful estate optimisation and growth. If any of our demographic or location-focused data is of interest to you, or if you’d like to dive deeper into our survey results, please get in touch to discuss this with us. 

Impact of consumers’ changing Christmas spending on Grocery retailers

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Findings from our latest Cost of Living survey show that while this may be the most wonderful time of the year for some, this sentiment remains aspirational for others in the current climate. 

With Christmas spending behaviours changing across all demographic groups, where are consumers opting to shop during this festive period? Which retailers are appealing to which age ranges, and which are benefitting the most from the resurgence of consuming food and drinks at home during the festive period? 

Christmas grocery shopping behaviours breakdown

Despite a gradual decline in the perceived impact of the cost of living on households over the last 18 months, 63% of all respondents surveyed remain “somewhat concerned” or “very concerned” about the increased cost of food and drink this Christmas. The most concerned groups are those in the lower affluence Acorn categories, comprising 66-68% of respondents. On the other hand, the higher affluence Acorn categories of Established Affluence and Luxury Lifestyles are among those marginally less concerned about these increased costs, at 52% and 63% respectively.  

So, where are these shoppers turning to for their groceries? How much of an impact does ‘value for money’ messaging and promotional activity have on consumers’ purchasing decisions ahead of the festive season?  

Where are consumers shopping this holiday season?

When asked about their preferred Grocery retailer for their main Christmas shop this year, there was an uptick in consumers’ preference for Sainsbury’s (16% in 2023 versus 11% in 2022), and a pronounced drop in consumers’ interest in shopping at Aldi from 19% in 2022 to 13% in 2023.  

Sainsbury’s was the favourable choice for 20% of Boomers and older generations, while only 7% of Gen Z respondents said that their Christmas grocery shop takes place here, turning to Grocery retailers like Asda (19%) and Aldi (17%) instead. Tesco came out on top at 25% and was the most popular choice across all generations and Acorn categories. 

Differences between where those who are/aren’t concerned will shop

Among those concerned about the cost of F&B, there’s a nearly three-way tie for the second most popular retailer between Sainsbury’s, Asda and Aldi for main grocery shop at 16% for Asda, 15% for Sainsbury’s and 14% for Aldi. For those who are reportedly unconcerned, however, the split shifts to 17% for Sainsbury’s, 13% for Asda and just 9% for Aldi. 

With heightening concerns around the cost of food and drink, Grocery retailers looking to attract price-conscious customers in the run up to Christmas should focus on creating effective ‘value for money’ messaging and promotional offers. The fight to retain customer loyalty is in full swing, with the holiday season being a key period for major Grocery retailers to retain and gain customers.

Therefore, retailers that promote competitive pricing and supply exclusive Christmas deals and limited time offers will attract consumers who are on the hunt for the best deals during the holiday season and retain their loyalty. 

Resurgence of socialising and consuming food & drinks at home

When asked how important various social activities this Christmas were, 79% of respondents surveyed considered the most important to be ‘food and drink at home’. Gen Z and millennial respondents placed the most importance on this festive social activity at 84%, along with families with children at home at 87%. On the other hand, only 75% of baby boomers and older generations felt this way.  

In terms of Acorn categories, each category ranked this social activity as ‘most important’, with ‘gifting’ coming in second place. 

As the younger generations and families with children are often the demographics attending or hosting holiday festivities in their homes during this time of year, there is an evident increase in the purchasing of food and drinks to cater to the increase in home visitors. Hosts are likelier to opt into buying higher-quality foods and alcoholic beverages to ensure their guests have a memorable dining experience, which further contributes to the uptick in spending at various Grocery retailers during this time of year. 

How can CACI help?

As the cost of living continues to impact consumers and contribute to changes in spending behaviours ahead of the holidays, CACI can help you determine the impact that these changes may have on your business’ performance both in terms of its online halo and physical store network, how to navigate the changing behaviours of various Acorn groups and devise strategies for success at each of your store locations.  

To learn more about how you can futureproof your business through data-backed insights, please contact us today.  

Why Skipton is a perfectly balanced place to live

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In this third blog of our series looking at balanced locations, we shift our focus to Skipton, a picturesque market town in North Yorkshire known for its rich history and breath taking countryside known as “the Gateway to the Dales”.

With its 900-year-old medieval castle forming a centrepiece that overlooks the town and its charming, cobbled streets, traditional shops and vibrant markets, Skipton has retained its historic character while also providing modern amenities and a welcoming atmosphere for residents and visitors alike. These key contributing factors have earned Skipton its place on our list of perfectly balanced places to live per our report, “Six Pillars of Success: Building Resilient Places”.  

If you have yet to read our blog that introduces these pillars, we consider a ‘perfectly balanced’ place to be:  

  • One that houses a suitable mix of chain and independent retailers at optimal sizes 
  • Supplies unique offline experiences that meet the community’s needs 
  • Provides community infrastructure that supports daily living
  • Offers adequate residential properties for the community 
  • Offers employment opportunities and flexible working spaces 
  • Encourages time spent outdoors in green spaces.  

So, what exactly are the driving factors behind Skipton being a perfectly balanced place to live? 

Pillar 1: Representation & proper sizing of independent & chain retailers

Skipton’s historic High Street is home to an array of independent shops, boutiques and local businesses, which are complemented by national retailers such as M&S and WHSmith, clothing retailers like Next and Phase Eight, and health and beauty retailers like The Body Shop and Boots.  

On the cusp of Yorkshire Dales National Park with hiking and cycling trails galore, the High Street of this historic market town also offers an array of outdoor clothing and equipment specialist retailers such as Chevin Cycles, Trespass, Regatta Great Outdoors and Mountain Warehouse.

Pillar 2: Uniquely tailored offline experiences

One of Skipton’s standout features is its weekly farmers and crafts market that offers a variety of locally sourced, traditional produce and handmade goods. All the stalls are run by local Yorkshire businesses, which generates a lively community atmosphere in and around the town. On Saturdays, locals can stroll through Skipton Market lining both sides of the High Street, establishing itself as a vital player in the town’s overall shopping experience and offerings.  

History aficionados can also visit Skipton Castle, a remarkably preserved medieval castle where the Fattorini family— jewellers and creators of the Football Association Challenge Cup— continue to live to this day. Plaza Cinema is also popular with cinemagoers—a century-old, art deco, single-screen cinema that is the sole survivor of the town’s cinemas. 

Skipton is also home to many small cafes and coffee shops (both independent and chains), pubs and restaurants. 

Pillar 3: Engaging community infrastructure

In terms of amenities and services, Skipton houses nearly everything that would be expected from a town of its size, including both small and large supermarkets like Grape Tree Skipton and M&S, banks like Barclays and NatWest, dry cleaners, furniture shops, charity shops and estate agents.  

Skipton’s town hall is also situated near the castle, with a museum and gallery, a library and a small music amphitheatre just off the High Street.  

Skipton Station is also a major force in the town’s infrastructure, with regularly scheduled direct commuter trains travelling to both Leeds and Bradford, and several London-bound trains daily. 

Pillar 4: Support social cohesion through optimised residential design

Skipton features a wide variety of properties that are suitable for several types of people, ranging from large, detached houses to converted mill apartments, with terraced houses being especially prominent in the town. Families with children will find excellent educational opportunities available in the area, with several prestigious schools such as boys’ and girls’ grammar schools in the vicinity. 

Pillar 5: Sufficient & accessible work opportunities for the local population

Although the Skipton Building Society is currently the largest employer in the area, the town’s largest industry is likely to be tourism. Train line connections to Leeds and Bradford have opened many additional job opportunities as well.  

Pillar 6: Appealing open spaces for the community to dwell in

Being the gateway to the Dales, Skipton is home to plenty of green spaces. From inviting woodlands and walking paths situated behind Skipton Castle to impressive views accessible within a half-hour drive, Skipton and its vicinity has something for outdoor enthusiasts.  

In the heart of the town is Aireville Park, a large open space packed with sporting facilities suited for football, tennis, netball and basketball, a wheel park catering to BMX, skateboarding and rollerblading, children’s play areas, a treetop high ropes course and a café. The park is also home to Skipton’s weekly parkrun and annual triathlon, Yorkshire and Humberside’s largest pool-based triathlon. 

Fans of the Harry Potter film franchise will be pleased to know that scenes from “The Deathly Hallows” were shot at the top of Malham Cove, a short drive from Skipton, showing views across Malhamdale, down to Malham Village and Kirkby Malham. Scenes from the 1992 version film adaptation of Emily Brontë’s “Wuthering Heights” were also shot in Malham Cove.  

In the opposite direction and of similar driving distance, the renowned Brontë sisters’ home in Haworth can be found. It is now one of the oldest literary societies worldwide and was converted into the Brontë Parsonage Museum in memory of the celebrated authors of classic literature. 

Saltaire, a UNESCO World Heritage Site built in the mid-19th century as a model Victorian village depicting life for workers in Sir Titus Salt’s textile mill, can also be reached from Skipton within half an hour’s drive. Visitors will find ornate and well-preserved houses, a church and public buildings surrounding a park to stroll through, with the namesake mill, Salt’s Mill, at the epicentre of the site.

Stay tuned for our next pick of a ‘perfectly balanced’ place to live in our upcoming blog.  
 
To learn how our six property pillars can help ensure you are creating resilient places, please speak to one of our Placemaking and Property experts

Celebrating World GIS Day with insight on the personal grooming habits of the UK population

In this Article

Happy GIS Day, where we take a fresh look into the history of the Gillette disposable safety razor blade, appreciate the facial movement of Movember and explore the cutting-edge stats on hairdressers across the UK. 

On 15th November 1904, the disposable safety razor blade patent was granted to King C. Gillette. To understand the grooming habits of the UK population, GIS can be employed to analyse regional expenditures on razor blades. By mapping consumer spending patterns, businesses and policymakers gain razor sharp insights into grooming preferences, allowing for targeted marketing strategies and resource allocation. This data-driven approach enhances our understanding of cultural and economic factors that influence grooming choices. 

Map shows the South East Region has the highest annual expenditure on razors

Fast forward to the 21st century, and we find ourselves in the midst of the Movember movement. This annual event encourages men to grow a moustache during the month of November to raise awareness about men’s health issues, particularly prostate cancer, testicular cancer and mental health challenges. GIS plays a crucial role in tracking the global impact of Movember, helping organisers analyse and visualise participation, identify cutting-edge trends and target areas for increased awareness campaigns.

Shifting our focus from shaving to hairstyling. According to the NHBF there has been a 21% increase in the number of hair salons since 2019. 19 million people, almost a third of the population, now live within a mile of a hairdressers in the UK. GIS provides a powerful tool for mapping the distribution of salons and barbershops, helping identify areas with high concentrations of hairdressing establishments.

Map shows postcode walking accessibility to a hairdressers

Ready to groom your business strategy with GIS? From mapping trends to uncovering hidden opportunities, contact us to explore the cutting-edge possibilities InSite and CACI data can offer your business. Sharpen your strategy, shape up your success!

Why Reigate & Fleet are ‘perfectly balanced’ places to live

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In this second blog of our series looking at balanced locations, we focus on Reigate and Fleet.

These two enchanting towns are brimming with rich history and exceptional greenery. A blend of nostalgia, tranquillity and friendliness, they are south of central London in Surrey and Hampshire counties, making them the closest to London on our list of balanced locations outlined in our report, “Six Pillars of Success: Building Resilient Places”.

While inhabitants of both towns are proud to call them home, the criteria they achieved in our report reiterate the reasons why we consider them wonderful places to live.  

If you have yet to read our blog that introduces these pillars, we consider a ‘perfectly balanced’ place to meet the following criteria: 

  • House an appropriate mix of chain and independent retailers at optimal sizes 
  • Supply unique offline experiences that address the needs of the community 
  • Provide community infrastructure that supports day-to-day life 
  • Offers residential properties that meet the community’s needs 
  • Offers employment opportunities and flexible working spaces 
  • Encourage time spent outdoors in green spaces

Pillar 1: Representation & proper sizing of independent & chain retailers 

Reigate and Fleet both feature a myriad of national chains and independent retailers that take part in annual local activities and events.

In Reigate, national retailers like M&S and Boots are complemented by a range of independent retailers like The Vineking, a wine tasting and dining experience independent merchant, Art of Living, a family-run cook shop and showroom, and a handful of boutique gift shops like The Lemon Tree. Day-to-day convenience shopping is also supported by a large high-street Morrisons, which offers free parking. 

Just under an hour from central London, you will find the town of Fleet, an ideal travel connection town for those who regularly commute into the city. Fleet Road, the town’s high street, features an array of independent shops and a mix of both independent and chain restaurants. Hart Shopping Centre houses several known brands and independent retailers. It hosts monthly craft markets that bring the community together to support local, independent businesses.  

Pillar 2: Uniquely tailored offline experiences

Reigate has more restaurants than any market of its size, all of which are successful staples in the area. Just off Reigate High Street, you can find the Pilgrim Brewery, an independent retailer that is actively involved in our community’s sports teams and events, and is known among locals as a wonderful spot to gather and socialise.  

Pan Asian chain restaurant, Banana Tree, recently opened its door to the Reigate community, joining the likes of Bills, Nando’s and Wagamama on the High Street to further enhance Reigate’s food and beverage offerings. Monte Forte also took up a fixed residency on Reigate High Street after trading from a pizza van that visited the town. After a cozy dinner or a day spent shopping on the High Street, locals can also catch a film at the local Everyman Cinema. With several independent pubs and even a couple of late-night venues catering to the night owls, Reigate’s independent retailers have something for everyone.

Reigate High Street is also involved in several national events throughout the year, from artisan, food and street markets to Pillage the Village around Halloween, an annual Christmas Fayre on Church Street, and most recently, Tom Kerridge’s Pub in the Park, which featured food stalls, live musicians and renowned chefs from around the country. 

Popular cuisine in Fleet tends to be Italian and Indian, with several restaurants a notable hit with locals. For vegetarian options, The Greenhouse Fleet is an independent vegetarian cafe/restaurant with a strong environmental emphasis and diverse selection of palatable meals.  

Zinc & Popworld and a variety of local pubs form Fleet’s leisure scene. For a cozy lakeside view and nautical atmosphere, locals can visit the Heron on the Lake pub. The recently redeveloped Hart Leisure Centre now offers a sports facility that doubles as a community gathering spot. For the town’s younger population, a recently opened  virtual gaming experience arcade, Chimera VR, has quickly gained popularity.

Pillar 3: Engaging community infrastructure

Reigate’s array of yoga and Pilates studios along with a centrally located gym appeal to locals looking to stay in shape. Many companies or large groups also make use of Priory Park for outdoor fitness classes. To cover local essentials, Reigate houses a Royal Mail delivery office to the north of the High Street, a couple of dry cleaners and a key cutting shop, all of which cover local essentials. A launderette is also situated south of the High Street within a small parade of separate shops, and a Busy Bees nursery can also be found in this vicinity. 

For a town of its size, Fleet’s array of amenities and services cater well to the needs of all ages of the local population. It’s home to a large leisure centre that comes with a pool, spaces for squash and indoor sports and a gym. Many of its eco shops like Fleet Scoop, a ‘Zero Waste’ community spirited and environmentally conscious shop along with other local gems that opened just before the Covid-19 pandemic have been warmly embraced by the community and have continued to perform well post-pandemic. There are also plenty of smaller rows of shops outside of the High Street, along with a number of hairdressers and nail salons catering to its residents’ beauty needs. 

Pillar 4: Support social cohesion through optimised residential design

Housing in Reigate and Fleet is affordable for those that live in the area, as the higher than national average prices are reflected by respectively higher-than-average earnings. With plenty of private rentals to choose from and hundreds of newly built homes going up in the last few years.  

At £1,147 per calendar month, private rentals in Reigate are 24% of average earnings, a smidge below the national average of 25%. Private rentals in Fleet equate to £1,095 per calendar month (or 21% of average earnings), also below the national average of 25%. Fleet has also seen 815 new homes built in the last five years– a growth rate of 4.8% which sits above the national average of 3.8% in the same period. 

 Fleet has experienced organic growth and periodic development in its housing market. Approximately every 20 years, a new housing development has emerged, including the likes of Ancells Farm Nature Reserve, Zebon Copse, Church Crookham, Elvetham Heath, and the currently under construction Edenbrook. Each estate has brought new retail and food & beverage opportunities with it, such as pubs, community centres, supermarkets, parks and cafes. 

Pillar 5: Sufficient & accessible work opportunities for the local population

Reigate and Fleet’s economies are both active, with only 1.7% of the population in both towns being unemployed (below the national average of 2.5%). Fleet Services also employs many locals and acts as a stopover for those travelling from London and the East. 

Fleet is home to many managers, directors and senior officials, with over 50% of the population in managerial, administrative and professional occupations. While it has historically been home to many commuters to London, it now houses several business parks, primarily occupied by Information Technology (IT) companies.

In Reigate, 46% of the population are in professional and technical occupations, with a higher-than-average 17% in service industries. There are thousands of companies and hundreds of medium-large-sized businesses that locals can work for, including the UK and European head offices of Willis Towers Watson, Kimberly-Clark and Pfizer. While most local employers operate in the private sector, there are public sector opportunities available in the local Council and NHS Trust.  

Pillar 6: Appealing open spaces for the community to dwell in

Reigate’s Priory Park just off the High Street offers a great open space to tire the kids out either at the skate park, playground or by strolling along the lake or through the woods. The park hosts many events, including a free park run every Saturday morning that draws in upwards of 200 locals each weekend. It also hosts sporting events like local kids’ football teams, bringing together the community to the town centre.

Fleet’s lush greenery similarly draws in locals– at the heart of the town lies Fleet Pond, connecting various parts of Fleet. The town’s younger population is also catered to through open spaces such as a skatepark in the local park, The Views. 

To learn how our six property pillars can help ensure you are creating resilient places, please speak to one of our Placemaking and Property experts.

Travel spend behaviours that will redefine your customer strategies

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In our previous blog, we explored some of the most common challenges that have arisen in the travel sector in 2023 and how you can leverage digital marketing and personalisation to tackle them. 

In an era where the Cost of Living is placing pressure on consumers’ budgets, the significance of precise, targeted marketing and aligned messaging cannot be overstated. Moving towards the end of the year and the holiday-booking surge that happens in January, marketers will need to be aware of timely shifts in behaviour and expectations to capitalise on customer intent at the right times. 

Through our recent Cost of Living consumer survey, we have identified important shifts in travel spending habits that will influence the January booking window, and have pinpointed the demographic groups experiencing the most significant adjustments:

  • Travellers are more frugal than they were, but still want the best experience they can afford 
  • Travellers will spend more time than usual researching to try and find the best the value options
  • Travellers may be more sceptical about convenient booking options and package deals still offering the best available value 
  • Solo travellers, travellers without children and families are all being hit differently, and will therefore have different needs and expectations when it comes to researching and booking.

Despite these shifts, there are still plenty of opportunities for travel businesses to keep customers interested in going away. Below we have detailed some of the tactics that can help:

Consumers’ travel spending will continue—with exceptions

Many travellers may have set expectations in their minds around what a ‘good trip’ looks like, such as having to be a certain distance away or for a minimum number of days. Our findings concluded that despite the ongoing Cost of Living crisis, holidays remain a priority for consumers of all ages, and they are determined to find ways to make them happen.  

In fact, 57% of consumers surveyed have or will be making changes to their holiday habits to save money and get more for their money. 

Respondents expect to cut their expenditure on their next holiday, with 45% saying they will either find a cheaper destination, travel option, accommodation, do fewer activities or simply reduce their trip length. Which means that they will most likely spend more time researching their holidays and trips. Equally, this may affect the package holiday market as consumers compose their own holidays by booking their own flights, hotels and transfers.

The most affluent Acorn demographic groups expect to cut their holiday expenditure in this way more than other groups, as do millennials and Gen Z respondents. 22% of respondents are also taking fewer breaks compared to previous years.  

To continue to encourage travellers to go away, travel businesses will need to shift the focus from larger packages and holidays and instead start spotlighting the benefits of closer destinations and shorter trips or weekend getaways. Their focus language will need to be around ‘doing more with less’ to ensure travellers continue to see the value in getting away no matter the length of holiday. Travel businesses can promote this throughout the year as well, as shorter breaks are far more flexible and can happen at any time.

Gen Z are spending the least on travel this year

Younger holidaymakers—particularly Gen Z— appear to want to spend as little as possible to keep travelling this year.  

When it comes to cheaper destinations and accommodation, more than 1 in 5 respondents of younger age groups have opted for these. Younger men surveyed are particularly determined to continue to take breaks as they have before. Just 14% of Gen Z men expect to take fewer breaks compared with previous years, yet that rate more than doubles among Gen Z women, 29% of whom reported that expectation.  

To combat this, travel businesses that speak directly to traveller concerns around value will build their trust in the options they’re being presented with. For travellers that are wary of costs and will expect to be researching for longer periods of time to seek the best value, curated options and direct, value-based messaging will help to make their concerns feel acknowledged and will offer a faster and more convenient option for them to browse.

Family holidays are being cut…

Respondents that have children appear to be affected to a greater extent than those without. The appeal of cheaper destinations rises from 14% among those without children to 24% among those with under 18s in their household. Bearing this in mind, more price-sensitive families can be a stronger focus for value-based messaging and cheaper travel options from travel businesses.

…while solo travellers are on the rise

The results show that independently living, single travellers are taking the most advantage of getting away on holiday this year. In fact, rates of those cutting back on holiday expenditure are nearly 1/3 lower among those who live alone. This includes reducing spend in other areas to make room for travel and shortening the length of trips compared to previous years. To maintain interest across all pricing options, travel businesses should target more expensive and premium options towards solo and non-children couples.  

How can CACI help?

As a trusted partner to major brands within the travel industry, our team is highly experienced in supporting strategic targeting by leveraging the necessary data and technology to understand customers and their behaviours as innately as possible and being able to design marketing strategies to target these groups. 

CACI partners with global brands to harness and enhance customer data, enabling them to identify and prioritise the most valuable customers. Insights are then activated through strategic CRM initiatives and acquisition strategies, ensuring targeting is precise and relevant. This approach is pivotal for brands seeking to align their products with consumer needs and foster long-lasting brand loyalty, repeat bookings and maximising share of wallet. 

To find out how we can support your business strategies or operations by enhancing your customer understanding, or to find out more about the products and services we offer, please get in touch

Read blog 1 from our travel series: Travel sector hurdles and the promise of digital marketing and personalisation

Leveraging data to underpin your Sustainability strategy

In this Article

Ever since helping an automotive client launch their first all-electric vehicle into the UK a few years ago, I’ve had a growing interest in sustainability and the environment. Now, as part of CACI’s internal working group on Climate Change and Decarbonisation, I’m involved in several exciting initiatives where CACI is using data to drive sustainability.  

Everyone has a role to play

Climate change and what governments, brands and individuals are doing about it has become a constant in the news cycle and data is proving to be a powerful asset in identifying and meeting key sustainability targets. 

Governments need to support their communities

At a local level, governments must understand their communities and provide support via adequate infrastructure. For example, councils are already working with a wide range of data to understand demand and develop strategies for residential EV charging points. Working with CACI means that council-held data can be enhanced through consumer and geospatial data to further define community needs for EV infrastructure or even green space development. 

Strong brands are those taking environmental responsibility

The last five to ten years has seen the rise of new, innovative brands that are disrupting their industries. Among my favourites are a company using flexible solar cells to create solar powered remote controls and headphones, and a packaging company being recognised by Prince William and the Earthshot Prize for using seaweed to replace plastics in food takeaways and hospitality. 

In more traditional industries, environmental responsibility is arguably even more important if we are to have a sustainable future. B-Corp certification is a widely recognised way of measuring a company’s social and environmental impact, and being certified tells consumers a company is serious about their commitments. The CDP (Carbon Disclosure Project) is a not-for-profit charity that enables companies to disclose and take accountability for their environmental impacts – a key first step in positive action – something many of our clients are signed up to.  

Away from these more well-known programmes, we’re working with clients who have clearly stated environmental goals of their own and who understand that all departments have a responsibility. This includes Facilities Management assessing how to cut energy consumption, Logistics optimising their routing to reduce CO2 emissions, and Marketing implementing paperless processes and better segmentation to make communications more efficient. 

Individuals support net zero goals

A survey by CACI at the beginning of September shows that 84% of consumers support the government’s goal of achieving net zero by 2050. Consumers are actively looking for brands that have strong environmental policies, with half of respondents seeking brands that set their own, earlier net zero targets.

Support for Net Zero goals from CACI State of the Nation Update consumer survey

Fig. 1 Support for Net Zero goals from CACI State of the Nation Update consumer survey (September 2023) 

How CACI is making a difference

Data is at the heart of everything we do at CACI, and we’re encouraged to think of innovative ways to use it. One example is Ocean, a database of the UK population containing over 600 attributes across demographic, digital and attitudinal characteristics. Our Green Lifestyle attributes include attitudes to recycling, reducing energy use and dietary choices, and can be used to profile and understand your customers’ attitudes to inform targeting audiences and messaging. 

Further evolving this, we’ve developed an ESG score, that drills deeper into Environmental, Social and Governance issues and can help brands gauge which customers are likely to pay a premium for sustainable products and services.

Example Environmental Score pen portrait

Fig. 2 Example Environmental Score pen portrait 

IIn addition to these attitudinal variables, we’ve been looking at carbon emissions and developing innovative ideas and solutions that include: 

  • Carbon footprint of Household and Travel: Identifying and measuring the impact of consumer behavioural choices on carbon emission. This will help consumers understand their impact (based on property, travel and consumption) and improve local governments’ understanding of their communities. 
  • Carbon footprint of Fulfilment: Helping commercial property owners and retailers assess the carbon impact of acquiring customers and fulfilling orders. This could be used to inform parking, EV charging infrastructure and determine whether click & collect is better than delivery. 
  • Carbon footprint of Logistics: Evolving CACI’s Pin Routes route optimisation software to support the electrification of fleet and distribution services. Our algorithms help reduce mileage, vehicle count and CO2 emissions, cutting valuable costs and reducing your carbon footprint. 
  • Carbon footprint of Marketing: Measuring the carbon emissions from different marketing campaigns and channels to enhance businesses’ understanding of their environmental impact. This enables marketing teams to balance sustainability with sales and optimise campaign strategies to improve both. 

CACI is registered to the Social Value Portal and is actively working towards achieving social and environmental goals aligned to the National TOMs framework.  

We’re passionate about using data and technology to create more sustainable businesses, so if you’d like to discuss how we can help you, please get in touch.

Travel sector hurdles and the promise of digital marketing and personalisation

In this Article

The travel sector has faced turbulence over the past few years. From the devastating impact of the COVID-19 pandemic, to the cost of living crisis and ever-changing travel norms, the sector finds itself navigating a host of challenges.  

A holiday purchase is often one of the largest purchases that a family will make in a year, with an average UK family spending roughly £4,000 per annum. With ever-inflating costs and even higher customer expectations, providing an exceptional customer experience is critical to your long-term success. 

In this blog series for the travel sector, we will be exploring how you can harness the power of data and modern marketing technology capabilities to overcome and even exploit these challenges. 

What are the most common issues in the travel sector in 2023?

Changed travel behaviour

The aftermath of the COVID-19 pandemic and the cost of living crisis have left their mark on the travel sector. Travellers are more cautious, often opting for cheaper domestic or localised trips over international adventures. Health and safety have become paramount, leading to a new set of expectations from travel providers.  

In fact, 25–34-year-olds were reluctant to make holiday plans this year, instead waiting to see how the cost of living crisis evolved. 

Moreover, ¼ of those aged 55+ made no plans to travel this year

With different demographic groups approaching their holiday planning in different ways, applying the right segmentation techniques to target those who are most likely to travel is crucial. 

Environmental concerns

There’s also a growing call for sustainable travel. Tourists and travellers are more eco-conscious than ever, wanting to reduce their carbon footprint and seeking eco-friendly options. The consideration of travelling sustainably is especially a factor for 18–24-year-olds, where 22% say this is important to them. 

Over-tourism

Popular destinations from Venice to Bali faced issues of over-tourism, where local ecosystems and infrastructures have become overwhelmed. 

Complex travel policies

With countries having their own quarantine measures, vaccine mandates and travel advisories, there’s an increasing complexity in international travel logistics. 

Trust deficit

After numerous flight cancellations (UK flight cancellations are up 39% in 2023!), changing regulations, strike disruptions and refund issues during peak pandemic times, travellers are more sceptical about committing to bookings.

How can digital marketing & personalisation save the travel sector?

Digital marketing and personalisation have emerged as two tools that can address several of these issues: 

Tailored travel options

Through advanced AI and lifestyle and behavioural data analytics, travel companies can now provide tailored packages and ancillaries for individuals. If a user has shown interest in eco-friendly destinations or prefers secluded spots, personalisation and decisioning tools can offer suggestions accordingly. This not only enhances user experience, but can also divert traffic from over-crowded tourist spots. 

Building trust throughBuilding trust through transparency

Customer Experience Platforms (CEPs) like Adobe Journey Optimiser and Braze can provide customers with real-time updates on disruption, travel policies, health and safety measures and reviews. An informed traveller is a happier traveller. That happiness will lead to greater trust, and an increased likelihood of future bookings. 

  • Educative marketing:  Digital and content-rich campaigns focused on educating tourists about the importance of sustainable travel can be instrumental. From tips on how to be a responsible traveller to highlighting the less-explored destinations, digital content can shape travel behaviours. It’s worth noting that according to our recent Cost of Living consumer survey, 17% of people believe that they will do most of their travel via sustainable methods by 2030.
  • Feedback mechanisms: Personalised feedback options and rapid data ingestion help companies understand the unique needs of each traveller, leading to improved offerings around ancillaries, personalised and targeted to the right customers via mobile channels, making holiday purchases easier. 
  • Loyalty programmes & retargeting: CDPs and data-driven marketing allows travel companies to launch personalised loyalty programmes. With retargeting strategies, companies can re-engage potential customers, offering them custom deals based on their search and booking history. 

Despite the many challenges faced by the travel sector in 2023, the digital and data tech revolution offers an array of solutions. By adopting well-planned digital marketing and data-driven personalisation, the sector can not only provide enhanced customer experiences, but also address broader issues such as over-tourism and environmental concerns. It’s a transformative era, and travel companies at the forefront of these digital innovations are poised to chart a smoother course ahead. 

How can CACI help?

CACI is already a trusted partner to major brands within the travel industry, developing strategic customer journeys to increase frequency of bookings and ancillaries’ revenue through the effective use of data, technology and targeted marketing. 

If you would like to discuss your needs in any of these areas, or to find out more about the products and services we offer, please get in touch.

 

Read blog 2 from our travel series: Travel spend behaviours that will redefine your customer strategies

How the Cost of Living will further squeeze the least affluent

In this Article

In our latest Cost of Living Podcast, we examine how expectations around missing payments are doubled among the least affluent demographic category in the coming months, with concerns around paying utility bills affecting nearly one in five households within the Low-Income Living category. 

How we drew these conclusions using our Cost of Living survey

CACI’s recurrent Cost of Living survey has revealed particular concern among this group, who cite their likelihood to miss payments on rent, council tax and utility bills as impacts of the rising cost of living. Where 11% of the UK population fear missing payments on utility bills in the coming months, that figure rises to 18% among those households with the lowest incomes. Unlike other demographic groups, this figure outranks their expectations of going overdrawn or using credit cards to fund or defer payments. 

Every three months, we ask a nationally representative sample of 2,000 UK adults a series of themed questions around the Cost of Living, their challenges, plans, behaviours and expectations. CACI has been conducting this research since the height of the Covid pandemic, establishing a series of trackers that monitor feelings towards the Cost of Living, the impacts this is having and how their activities are changing. At CACI, we utilise the power of our demographic segmentation, Acorn, to inform brands about how these changes will influence the way consumers are behaving. 

Cost of Living Podcast – Part One: How consumers are reacting & adapting to living costs

of our special two-part podcast focuses on the latest changes in sentiment around living costs, the rising use of foodbanks and how Gen Z have been able to avoid cost-cutting measures on the scale as the older generations. Our hosts, Paul Langston and Hannah Smith, react to the findings, including how housing situations may develop as tenants in particular become priced out of their current rentals.

Cost of Living Podcast – Part Two: Impact of living costs on mental health, travel & brand orientation

moves on to consider the knock-on impacts of the continued strain on mental health, changes to the way that we are taking holidays and how consumers are turning to brands to lead on Net Zero goals. 

If you’d like to find out more or subscribe to our monthly podcast and receive all of our Cost of Living analysis as it’s published, you can sign-up here

Defining ‘perfectly balanced’ places to live through Six Pillars of Success

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What makes a place ‘perfectly balanced’?  

Interestingly, only 1 in 20 regional towns in the UK are balanced. This demonstrates that despite achieving perfect balance in some places, there is still a lot that can be done for places to enhance their community engagement. 

In this blog series, we’ll uncover the defining criteria for ‘perfectly balanced’ places and find out how these communities’ tactics can be applied to other locations across the UK.

Pillar 1: Representation & proper sizing of independent & chain retailers

Having retailers that ensure a return on investment for occupiers and effectively appeal to locals’ needs along with proper leasing of a retailer in terms of its tenant line-up are critical to an area’s success. A ‘perfectly balanced’ place achieves a balance between chain retailers to boutique shops and independent retailers by understanding the core of their community’s personalities and values and reflecting that in the area’s retailers.  

Pillar 2: Uniquely tailored offline experiences

Unique offline experiences are ones that are only available in person and cannot be replicated at home. A place that is ‘perfectly balanced’ will host things to see and do for customers to do in person that come with halo benefits and contribute to the overall liveliness of the area and can only be experienced in person. The results will be achieved through an uptake of dwell time, varied footfall patterns, greater customer spending and more.  

Pillar 3: Engaging community infrastructure

The types of amenities and services offered in an area can play a vital role in enhancing social value and community engagement. A ‘perfectly balanced’ place has optimised its relationship between supply and demand across amenities to help commercial landlords plug gaps within the community and reinforce social value.  

Pillar 4: Support social cohesion through optimised residential design

A lack of suitable housing can be damaging for an area. ‘Perfectly balanced’ places optimise their residential design to positively influence the community and create long-term value, income and footfall for developers. These places typically feature residential units that closely align with the needs of the community and offer the right types, tenures, sizes and price points to fill supply gaps

Pillar 5: Sufficient & accessible work opportunities for the local population

Communities need job opportunities for those looking for employment. Acute un- and under-employment can be damaging on both an individual and community-wide basis. In our post-pandemic world, 29% of the UK population work in hybrid roles, allowing them the option of splitting their work week between the office and home. A ‘perfectly balanced’ place offers working opportunities that reflect the demand levels of the area and increasingly include collaborative, co-working spaces.  

Pillar 6: Appealing open spaces for the community to dwell in

To drive footfall to a location, a ‘perfectly balanced’ place draws people into spending their leisure time there. It will be conveniently located, offer appealing services and amenities and encourage dwelling and exploring. With an increased interest in greening urban environments and finding pockets of greenery in even the most unexpected spots, ‘perfectly balanced’ places will offer luscious open spaces that are built sustainably and encourage biodiversity and carbon capture. 

Stay tuned for our upcoming blog featuring the first two of our top five ‘perfectly balanced’ places to live. 

To learn how our six property pillars can help ensure you are creating resilient places, please speak to one of our Placemaking and Property experts.

How CACI can help housing associations navigate the Social Housing Regulation Act

In this Article

On 20 July, the Social Housing Regulation Act received Royal Assent to become law. This places the social housing sector under increased scrutiny and introduces wide-ranging implications for how housing associations operate. The Act will: 

  • Hold social housing providers responsible for new consumer standards, empowering tenants to provide the regulator stronger powers to hold landlords accountable.  
  • Offer powers to the regulator to issue unlimited fines to rogue social landlords, creating a new risk for housing associations to manage customer engagement.  
  • Enforce a closer working relationship between the ombudsman and the regulator. The ombudsman has emphasised the need for improved knowledge and information management across the sector and can enforce its recommendations more effectively through significant fines.

What transformational changes will housing associations need to consider implementing?

Housing Associations have several operational touchpoints with customers, ranging from complaints, repairs, arrears teams and beyond. This means that data and information are siloed across housing associations, prohibiting organisations from effectively engaging with customers or meeting their needs and falling foul to the new laws. 

Housing associations will need to improve data quality across customers and assets to meet these new standards set by the regulator and avoid fines. A complete, up-to-date and actionable view of customers will be essential to effectively engage with them.   

How can CACI help?

CACI can support on these key first steps for housing associations. Our work with housing associations has revealed that they are experiencing issues across the board with siloed data, gaps in customer data and complications with data foundations. 

CACI can drive value for housing associations and help them become compliant with new regulations through various methods of support, including:

  • Assessing risks, reviewing and transforming data management in line with Knowledge and Information Management: We provide the data foundations in line with new regulations and recommendations to reduce your data risks and conduct thorough data quality and architecture assessments to do so. 
  • Recommending technology and data roadmaps: We offer insight into the best platforms, the processes needed to adapt to support data quality initiatives for your housing association to manage data and drive value across the organisation. This will help you achieve a single, unified view of residents in the community. 
  • Understanding customers and assets: Our wealth of consumer and asset data supplies deeper insight into customers’ demographic, vulnerability and lifestyle variables, while asset and place-based data enhance your understanding of your homes and community. 
  • Activating actionable and accurate insights: Tailor your propositions and engagement by building a profile of customers according to key organisational issues such as complaints and arrears. Our trusted asset and consumer insights will help you offer the right services to the right people, reducing cost and resources while supporting your customers.
  • Driving value to improve customer satisfaction: An embedded data strategy that will improve outcomes for your customers by harnessing the power of analyses and spatial platforms.

What’s next? 

CACI will be leading roundtables for housing associations to discuss approaches and best practices for data quality and insights. These sessions will offer a platform to share challenges and resources on meeting the new standards to ensure that housing associations deliver more value and improved outcomes for customers.  

Please reach out for further information. 

How Consumer Duty compliance is changing client communications

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How is Consumer Duty compliance affecting client communications?

Consumer Duty is rapidly changing the way Financial Services businesses communicate with clients. It is also causing consumers to re-evaluate the value of advice they receive from financial service advisers, and how financial institutions segment clients and offer relevant products and services.

On 30 April 2023, the UK adopted the new Consumer Duty obligations, and financial service providers and firms concluded their review of their existing open products. The changes that Consumer Duty brings impacts the way financial service providers interact with new and existing clients. Therefore, it is now more important than ever to ensure that you and your business are equipped with rich, actionable insights into your customers, to help you understand where to focus your Consumer Duty activities to ensure compliance.

What are the most impactful challenges currently resulting from Consumer Duty compliance?

  • Solidifying customer communications. You must show that the essential steps to understand customers’ needs and improve communications are being taken to remain compliant.
  • Identifying and supporting vulnerable customers. Vulnerability indicators change over time, therefore, without adequate customer knowledge, determining the diverse needs of your customers will be difficult.
  • Lack of strategy for maintaining and nurturing customer relationships over their policy, resulting from limitations of technical debt and data capabilities.
  • Inability to provide relevant offers or leverage existing customers to attract new customers when you do not know who your customers are.
  • Future proofing your business becomes compromised without the insights to initiate transformational change. Your brand will need to remain relevant for customers and adhere to their customer experience expectations.

The steps CACI takes to make a difference for your business

We support Consumer Duty compliance across several key requirements, including:

  • Supplying support beyond the strategy – understanding customers and improving communications.
  • Developing a testing process to help you understand your customers and find areas for improvement.
  • Accelerating Consumer Duty delivery and showing progress through an innate understanding of your customers’ diverse needs.
  • Providing a comprehensive view of all customer communications, assessed for suitability against Consumer Duty and amended as needed.
  • Scoring and evaluating your performance against key Consumer Duty metrics.
  • Bringing in all channels to support customers.

Our process guarantees that you will be solving Consumer Duty compliance issues as they arise to secure a successful future for your business. We break this down into four steps:

1. Audit:

We work with you to gain an understanding of your existing communications, technical capabilities and data available, for communications improvements to be made effectively.

2. Campaign strategy, testing & delivery:

We then identify initial tests to show iterative improvement and implementation of the defined methods of communication that will meet Consumer Duty standards.

3. Customer strategy:

We create robust segmentation to define where there is headroom opportunity and who your priority audiences are. We also define the customer journey to activate your segmentation and strategy accordingly.

4. Contact strategies & use cases:

Finally, we develop detailed contact strategies for the execution of your customer journey, and identify technology and data use cases that will inform your future architecture and technology roadmaps.

How CACI ensures your business meets Consumer Duty compliance: real-time example

When one business with a range of financial products that fall under Consumer Duty recognised that they did not have an established amount of internal experience, they approached CACI to ensure that Consumer Duty compliance was addressed with each of their products, tailored to the customer audiences they served.

We highlighted several opportunities that the business could leverage through our capabilities, including:

  • Understanding the business’ customer base and identifying headroom opportunities to drive growth.
  • Creating engagement strategies that would protect and support their customers throughout their relationship.
  • Rapidly improving insight led capability by enriching, leveraging and harnessing their potential of customer data.
  • Demonstrating the power that a 360° view of the business’ customers and market would have by blending their data with our own to analyse customers, identify opportunities and learn how they could serve customers more compliantly and effectively.

Why you can count on us to support your Consumer Duty compliance initiatives

Our extensive experience with Consumer Duty paired with our unique data capabilities allows us to define market opportunities and key audiences that will deliver immediate growth and engage audiences of the future. We translate rich, quantified insights into actionable strategies to deliver targeted, personalised and omnichannel programmes that will guarantee success.

Contact us today to find out how we can support you and your business ahead of the upcoming Consumer Duty deadline.