Loss of Profits – Expert Witness Evidence

The Task

Our client was a leading UK supermarket group which had recently leased a store in an established shopping centre but had yet to take occupancy.  Our client was being sued for loss of profits by another grocery tenant who objected to changes to centre configuration prompted by the arrival of our client.  The plaintiff claimed the changes amounted to interference with its easement rights which would negatively impact turnover & profitability.

What We Did

We conducted footfall counting and consumer interviews before the proposed changes were made to the shopping centre.  The research was designed to quantify the available market and to test attitudes & usage / potential usage of the respective offers of both the plaintiff and our client.  Using the resulting evidence we were able to demonstrate that the threat to the plaintiff in terms of lost sales & profits was very real.  However, the evidence proved conclusively that the threat arose from the overwhelming competitive strength of our client’s business proposition and not because of any theoretical interference with easements or footfall.

The Outcome

Our brief included scope to repeat the research after our client’s store opened in order to measure changes in performance.  However such was the clarity of the evidence from the pre-opening research that the plaintiff withdrew their claim against our client and the second research phase was not required.