Posts from November 2022

The shopping centre sector has long seen levels of vacancy above those of high streets and retail parks. With their elevated level of exposure to major chain brands affected by CVAs and administrations, shopping centre vacancy peaked over the pandemic period. According to our recent analyses, shopping centre vacancy rates have begun a slow yet significant recovery following their all-time high in H1 2020. Our latest report reveals that, in the year to H1 2022, percentage net change in shopping centre units fell from -3.3% to -0.3%. Although vacancies remain, openings are picking up in line with growing market sentiment as investment and development plans continue to materialise. We compared 11 new schemes* across Britain to understand how they are responding to pandemic-influenced trends in consumer behaviour as part of the sector’s revival. Above-average leisure provision Over 50% of the 11 new schemes have an above-average percentage of leisure units compared to the GB shopping centre average of 23%. The drive for a higher proportion of leisure tenants speaks to the more experiential focus of today’s shopping destinations. F&B tenants, along with other leisure occupiers such as mini-golf and bowling brands, are prized for their ability to increase dwell time...

Insights

H&M to cut 1,500 jobs in restructuring programme

The H&M group has announced that it will let 1,500 positions go as part of what it calls a ‘restructuring charge’. This comes after news that H&M closed one in five of its stores across the UK. The Swedish retail group, who also own COS, Weekday, and Monki, as well as the H&M HOME brand, said the plans were part of an initiative to reduce costs and improve efficiency in the business. H&M estimates that the programme, which also relates to administrative and overhead costs, will provide annual savings of SEK 2 billion (Swedish Krona, about £158.2m), expected to become visible in the second half of 2023. The retail group expects that the programme will result in a restructuring charge of just over SEK 800m (£63.2m) in the fourth quarter of 2022. Helena Helmersson, CEO of the H&M group, said: “The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this. We will support our colleagues in finding the best possible solution for their next step.”

News

World’s third largest pizza chain coming to the UK

American pizza chain Little Caesars will be unveiling two sites in London as well as restaurants in Derby and Liverpool, as it tries to tap into the £2.5bn UK pizza market. The London-based outlets will be operated on a franchise basis. The chain owns 4,000 sites worldwide and has an annual turnover of around $4bn. The Detroit-based firm was launched in 1959 by husband and wife duo Marian and Michael Ilitch, using their $10,000 life savings to open their first restaurant. According to the Bloomberg Billionaire’s Index, Marian Ilitch, 89, has a net worth of $4.6bn and a $2.5bn stake in Little Caesars. She also owns the Detroit Tigers baseball team and the Detroit Red Wings ice hockey team, thought to be worth a combined $2.3bn. Little Caesar’s London menu will feature the firm’s signature “Hot N Ready” pizzas with Pepperoni and Margherita toppings. Other options include the Mushroom Deluxe, the Three Meat Treat, Italian Sausage and Bacon, “Veggie Crazy Puffs”, and “Crazy Bread.” The chain is also pursuing European expansion, as it looks to open sites in France and Germany.

News

Mulberry swings into the red

Luxury fashion brand Mulberry has reported a loss of £3.8m in its half year results, down from a profit of £10.2m seen in the same period last year. Revenue also saw a 1% decline to to £64.9m, with growth of 7% in the first quarter offset by a decline in sales in the second quarter, Mulberry citing the more challenging macro-economic environment. Mulberry also saw a drop in UK digital sales of 24%, as more customers returned to stores. The retailer benefited in 2021 from lower operating expenses, a £2m business rates relief, and a one-off profit of £5.7m from the early termination and exit of a lease in Paris. Mulberry has also spent more this year on marketing, £2.7m up from 2021, and expended £1.1m on acquiring assets in Sweden and Australia. However, the fashion brand still posted an underlying loss of £2.8m, compared to an underlying profit of £4.5m in 2021. Thierry Andretta, chief executive officer of Mulberry, said: “Looking ahead, we are confident in our ability to execute our strategy and to continue to invest across the Group for our future growth, in spite of the challenging economic and geopolitical backdrop. We are well placed for the...

News

Loungers sees profits fall but eyes roadside roll out

Loungers has posted its interim report for the 24 weeks ending October 2, revealing a fall in profits. However the restaurant, bar and café operator remains determined to continue its expansion, having acquired four new roadside sites for its Brightside chain, scheduled to debut in 2023. The operator, which currently manages the Lounge and Cosy Club venues, posted a fall in profit of just under £10m compared to the same period in 2021. However Loungers saw a growth in revenue to over £122m, 53.2% higher than the first half of FY2020, the most recent period unaffected by COVID. This reflected a three-year like for like sales growth of 17% and the addition of 50 new sites in that period. The leisure operator also said it is well placed to deal with a recessionary environment, citing good value for money, a broad customer demographic, and a strong balance sheet. The business is still operating at a profit of £2.8m, which while less than the £12.8m seen last year, is an improvement on the operating loss of nearly £2.5m seen in the same period in 2019. Nick Collins, chief executive officer of Loungers, said: “We aren’t immune to the inflationary pressures impacting...

News

Camden Market partners with online retailer

The owner of Camden Market, LabTech, has announced a partnership with online grocery retailer Good Sixty. Forty of the market’s traders and retailers have already signed up to the partnership, representing Good Sixty’s first retail-only platform. This news follows the opening of independent taproom The 3 Locks Brewing Company at Camden Market Hawley Wharf. The deal enables Camden Market’s traders to sell online in a way they could not independently. Launching in time for Christmas, LabTech said it is seeking to bring Camden Market’s independent traders to an audience which might not be able to experience the destination in person. This will be the first time shoppers will be able to have products from Camden Market delivered to their homes. Good Sixty was founded in 2017, partnering with markets including London’s Borough Market, and independent brands in cities across the UK. Maggie Milosavljevic, commercial director of LabTech said: “[The partnership] opens the Camden Market offer to a nationwide audience; while it is a destination that creates such a unique experience, we can see the value that an omni-channel offer adds for our independent retailers and customers.” Chris Edwards, founder and CEO of Good Sixty, added: “We believe Camden Market Online...

Deals

N Brown Group CFO to step down

Clothing, footwear and homeware retailer N Brown Group has today announced the stepping down of chief financial officer Rachel Izzard. The group said Izzard would be leaving to undertake an opportunity outside of the online fashion and consumer credit industry. Izzard will be working a 12 month notice period whilst a successor is identified and the group said a further announcement will be made in due course. Headquartered in Manchester, N Brown’s retail brands include JD Williams, Simply Be and Jacamo.

News

Selfridges sweetens its offering with Miss Macaroon deal

Selfridges’ Birmingham store has signed a deal with high street retailer Miss Macaroon. Miss Macaroon, who has made nearly three million macaroons for brands, celebrities, and even royalty, is now being sold in the department store. The firm now sells gift boxes of ten to 20 macaroons in a variety of flavours. Part of the retailer’s appeal is the Macaroons that make a Difference (MacsMAD) programme, an initiative which helps people who are low in confidence, have mental health issues or have been unemployed for some time to train alongside professional chefs in a bid to get them back into work. While helping train skills in catering, retail, and marketing, the MacsMAD programme aids in supporting personal development through mentoring and access to a psychotherapist and counsellor. More than 130 graduates have so far completed the Macaroons that make a Difference programme, with 27 currently employed at the Birmingham business. Company founder and CEO Rosie Ginday said: “This mainstream retail exposure helps us grow our brand and, importantly, tell our unique story to a much bigger audience, leveraging much-needed funding in the process.” “We’re expecting to train another 80 young people over the next twelve months, but that’s just the...

Deals

Go Outdoors opens new Blackpool store

Outdoor clothing and equipment store Go Outdoors has announced the launch of its new store at Houndshill Shopping Centre, Blackpool. This is part of a wider campaign by the retailer which sees them open 13 ‘express-style’ stores in the North West and North Wales. The smaller, high street style stores will offer hiking and mountaineering supplies, along with camping, fishing and equestrian equipment from brands such as Rab, Berghaus and HiGear. John Hinde, retail director, said: “We have had a brilliant couple of years, as more and more people are reaping the benefits of the outdoors for their physical and mental well-being, and this expansion is the outcome of that success.” The store will replace the outgoing Millets outlet and will open alongside a shop in Altrincham, Greater Manchester. The Blackpool store will become the third to open in Lancashire, joining the Blackburn and Preston outlets.

News

Poundland set to open eight new stores in ‘super Saturday’

Discount retailer Poundland is to open eight new stores on Saturday December 10, adding 100,000 sq ft of real estate to its portfolio before Christmas. In what it calls its “super Saturday” push, the discounter’s plans include the opening of five new stores, three relocations and the completion of an extension of its existing Denton store in Greater Manchester, which will become an 18,000 sq ft branch split over two floors. The stores, the smallest of which will be 3,800 sq ft, will all offer groceries, drinks and snacks, health and beauty ranges, and general merchandise. Larger stores will offer a choice more in line with larger grocers, including frozen and chilled food, and clothing. Poundland is looking to take customers away from larger supermarkets in the cost-of-living crisis, having announced plans to double the number of its stores offering chilled and frozen food to over 600 within a year, according to The Grocer. The five new stores are in Rainham, Swindon, Aylesbury, Tipton and Craigavon in Northern Ireland. The relocations are in Llandudno and Peterborough – where another 18,000 sq ft store will be opened.

News

Merry Hill launches refurbished H&M store

Sovereign Centros has announced the relaunching of fashion store H&M at Merry Hill Shopping Centre. The 26,000 sq ft refurbished store has allowed H&M to expand their offer with new services. This comes after H&M relaunched their Regent Street location, despite some closures nationwide. The launch of new H&M store comes off the back of a busy year for the West Midlands shopping centre, which has seen over 170,000 sq ft of deals in 2022. This includes Hollywood Bowl’s signing of a 36,000 sq ft unit and new openings for Beaverbrooks, Ted Baker, HMV, and Kurt Geiger. The refurbishment, which began in April this year, saw H&M move to a temporary location within Merry Hill. Alistair Winning, asset manager at Sovereign Centros, said: “Merry Hill has seen some significant investment this year, and it is a sign of strength that a brand of H&M’s calibre has chosen to recommit to the destination with this brilliant and extensive refurbishment”. The store will feature a range of womenswear, menswear, and childrenswear, alongside an updated interior design. New services on offer include click-and-collect lockers and self-service checkouts.

Deals News

Camden Market’s Hawley Wharf welcomes new taproom in time for the World Cup

LabTech, the owner of Camden Market, has announced that The 3 Locks Brewing Company has opened a 5,300 sq ft bar at Hawley Wharf. The 3 Locks will be built within the destination’s historic railway arches and includes canalside outdoor seating. Opening as a taproom in time for the World Cup, the venue will introduce its microbrewery element within the coming weeks, selling beers brewed on site. Maggie Milosavljevic, commercial director at LabTech said: “Microbreweries are providing great impetus for the drinking and socialising industry; the craft has such a local community feel, and gives our patrons even more choice. Opening as a taproom for the World Cup will really help build that sense of community at Hawley Wharf.” This news follows the recent opening of Camden Coffee Roastery at Hawley Wharf, a café where coffee drinkers can sign up for guided tasting sessions. LabTech runs a portfolio which includes retail and food & beverage. The company manages the majority of its 2 million sq ft of real estate across Camden and Holborn.

Deals

West End resurgence sees Shaftesbury back in the black

Real estate investment trust Shaftesbury has released its full year results for 2022, revealing that the business’s West End portfolio has returned a strong profit after making losses last year. Recovering from a 2021 which saw the investment trust make a loss of £194.9m, a rebound in the West End economy has seen Shaftesbury return a profit of £119.1m in 2022. The report, for the year ending 30 September, also said that a post-pandemic recovery in confidence and activity is driving footfall and spending ahead of 2019 levels, with occupiers reporting an increase in sales, 6% ahead of pre-pandemic levels. It also said that occupancy levels and rental values have returned to pre-COVID levels, with a strong demand for space seeing Shaftesbury enjoy 59 new hospitality and retail lettings. The report said that prospects for London and the West End remain bright, despite ongoing macroeconomic challenges. Brian Bickell, chief executive, said: “The year has seen a rapid rebound in the West End economy as Covid-related disruption receded and patterns of everyday activity returned to pre-pandemic normality. The sustained recovery in footfall and trading since the early months of 2022 has been matched by the strength of occupier demand”. “Although London...

News

Boohoo ups stake in struggling Revolution beauty brand

Fashion eCommerce brand boohoo has more than doubled its stake in the struggling make up and beauty brand Revolution. The investment sees boohoo control 26.47% of Revolution’s share capital. boohoo already sells Revolution Beauty products through the Group’s direct to consumer websites and its digital department store, Debenhams. boohoo said it intends to be a supportive stakeholder and long-term partner of the makeup brand. Last month, Revolution chief executive Adam Minto and chairman Tom Allsworth stepped away from the business following an investigation by auditors after the business twice failed to post its annual report. Bob Holt has been appointed as CEO of Revolution, it was announced yesterday. boohoo’s investment extends the online retailer’s fashion offering, having already acquired PrettyLittleThing, Nasty Gal, MissPap, Karen Millen, Coast, Warehouse, and Oasis. In February 2021 it acquired the intellectual property assets of UK brands Dorothy Perkins, Wallis, and Burton. The investigation into Revolution, by Forensic Risk Alliance and Macfarlanes, has drawn no conclusions so far.

News

MAPIC 2022: Sustainability at centre stage in Cannes

People, Planet, Profit: Navigating retail towards a more “human” world That’s the tagline for this year’s MAPIC event in Cannes, where retail, property, food and leisure businesses gather to network, show exhibitions, and give conferences. This year’s event will focus on the main changes taking place in the industry, and aims to guide market players in choosing effective solutions and partners in a changing retail world. Founded in 1995, the event will gather 1,500 occupiers from 80 countries, with half of the exhibition area dedicated to the new retail mix. MAPIC expects to welcome 6,000 participants to the event this year. Apple, Adidas, and Aldi are some of the heavyweight brands attending this year’s conference. Developers, brokers, and agents will also be in attendance alongside the retailers, including Cushman & Wakefield, Carmila, and Indigo. Also in attendance are various local and public authorities, investors, franchise partners, business service companies, and travel retail operators. This year’s key themes include sustainability, the rise of mixed use property, new retail, leisure, food, and innovation. MAPIC 2022 will run from November 29 – December 1.

News

Paignton shopping centre to undergo regeneration work

Regeneration work has begun on the derelict Crossways shopping centre in Paignton. Torbay Council sent in contractors on Monday to erect 160 meters of hoarding around the site before they begin to safely remove the asbestos. This is the first stage of demolition for the building, which included a supermarket, gym, nightclub, and various retail outlets in the 1960s. The council plans for the demolition to begin early next year and expects work to take around seven months. Planning permission has been granted for around 90 extra care, affordable housing units to be made available to local residents. This will be accompanied by commercial space on the ground floor.

News

Barkby group may cut nine pubs as it focuses on roadside property

The Barkby Group, a diversified business who operate in real estate and hospitality, has announced that it aims to dispose of its “non-core” businesses, including Barkby Pub Co, who operate in nine venues nationwide. In a trading and strategy update, the group said its main focus was on building and scaling a portfolio of roadside real estate investments. Barkby Real Estate is in the process of constructing two commercial schemes at Wellingborough and Malden, and said a revised planning application had been submitted for a 27,000 sq ft scheme at Swindon. Barkby Real Estate said it aims to increase their ongoing roadside property pipeline to £200m. Revenue was down 3% year-on-year from the first quarter of 2021 for Barkby Pub Co, although the business said this was broadly in line with the overall sector. Despite continuing to grow the pub portfolio, including the acquisition of a ninth site, the Barkby Group said it does not expect its pub division to be a part of the group in the future. Barkby Pub Co would join other subsidiaries of the group in Verso Biosense, who were sold in August, Workshop Coffee, for whom a sales process was launched in September, and Centurian...

News

UK shoppers undeterred on Black Friday

Despite the ongoing cost-of-living crisis, customers splurged on deals this Black Friday. Data from Barclaycard, who process £1 in every £3 spent in the UK, saw an increase of 3.2% in the volume of payments by 17:00 on Friday, compared to the same time last year. Research from Sensormatic IQ reported footfall on was higher this Black Friday, with an increase of 3.7% against a year ago, and a huge 32.9% week-on-week increase. Although high streets saw an increase in footfall of 13.9%, physical retail is still not seeing the levels it enjoyed prior to the pandemic, with Black Friday footfall down 21.3% compared to pre-COVID levels. Festival Place in Basingstoke saw an increase of 0.4% in footfall compared to last year, and a 10.2% increase from the week before. The World Cup was expected by many to hinder Black Friday sales, however the data from Barclaycard and Sensormatic IQ suggested it helped boost retail sales in England, with shopper traffic count up 5.7% year-on-year. Marc Pettican, head of Barclaycard Payments, said on Friday: “We’re now able to look at the majority of Black Friday sales data, and we can see that the number of transactions has increased when compared...

News

Flannels set to move to Lister Gate

Flannels’ move to Nottingham city centre could be back on track after being delayed since last February. The fashion retailer has submitted plans for the former River Island store at 11-13 Lister Gate. It’s unclear if Flannels will keep the branch at Bridlesmith Gate in Nottingham once the new site is open. The news has been welcomed by locals as many retailers, including Marks & Spencer Home, Boots, Shoe Zone, and WH Smith shut during the pandemic. Lister Gate suffered further as the Broadmarsh shopping centre was closed and partially demolished. Retail expert Nelson Blackley said: “The news that Flannels, the UK luxury retailer of men’s and women’s designer clothing and accessories, is opening a store in Lister Gate is great news for Nottingham and a real boost for a part of the city centre that has really suffered with store closures and declining shopper footfall over the past few years.

Deals News

Revolution appoints CEO as accounts probe continues