Posts from November 2022

Lidl is planning to open a new store at a Bournemouth retail park, but this could see the existing occupiers demolished. Westover Retail Park is currently home to Pizza Hut, Pets at Home and a Cotswold camping store. Lidl’s proposed development plans would see these existing stores removed. A spokeswoman for Lidl said this would only happen once the existing retail units’ leases expire. In a planning statement, Lidl said: “The site is ideally located to serve the surrounding residential areas and is already in retail use, being an existing retail park. “The proposals would replace the existing non-food retail units with a modern Lidl foodstore, built to our latest specifications.” The supermarket retailer also said the 1,210 sq ft area would include a its bakery, longer style tills and customer toilets. The space includes an 81-space car park with disabled and parent and child spaces, along with EV charging ports.

News

AO sees greater losses as cost-of-living crisis hurts sales

Online electrical retailer AO has posted its interim results revealing an operating loss of £9m, over three times as much as this time last year. The results, which encompass the six months up to September 2022, exposed the impact the cost-of-living crisis is having on consumer spending power. Revenue was down £115m from 2021, while loss before tax saw an increase of 168% to £12m. AO cited a reduction in the electrical market, as well as actions taken to remove loss-making sales and non-core channels, as reasons behind a year-on-year revenue decline of 17%. The retailer is planning to end its operations in Germany, although it now expects this process will cost the company “around zero”, down from its previous estimation of £15m. John Roberts, AO’s founder and chief executive, highlighted an “extraordinarily difficult macro-economic state”. However, AO was pleased to state that it had welcomed over 410,000 new customers, and saw an increase in repeat customer purchase rates. It also said that its customer satisfaction scores remained outstanding, with over 370,000 Trustpilot reviews averaging over 4.6 out of 5 stars. AO has an 18% market share in major domestic appliances and holds a 34% overall market share. Roberts added:...

News

Former East Midlands theme park to undergo £65m redevelopment

A public consultation has begun on the £65m redevelopment project of Cleethorpes’ Pleasure Island amusement park. Lidl lead a consortium of developers aiming to transform the 54-acre site off the Kings Road into a holiday and tourism hotspot. The development would include 272 1950s-style holiday homes, a 148-room hotel, and a conference centre. Various retail and leisure units, including a Lidl supermarket, are also planned. A family-oriented indoor gaming arcade is also being proposed, featuring a new fishing lake, cycle hire facilities, and food and beverage outlets. The scheme would repurpose a site that has been unoccupied since 2016, creating more than 200 jobs during the initial building phase. This is in addition to the 440 full-time positions that will be filled once development is finished and taken on by operator. An impact evaluation predicts the site to generate around £17m per year once it is operational. Working on behalf of the developers, planning and development consultant Lichfields is now conducting an online consultation to gather feedback from local residents and stakeholders on the ideas. Jonathan Wallace, senior director at Lichfields, said: “This is a comprehensive redevelopment proposal that will bring an important and well-known local site back into use, allowing several leisure, retail and tourism operators to work closely together across...

Deals News

East Kilbride Shopping Centre enters adminstration

Scotland’s largest undercover shopping centre has gone into administration. East Kilbride Shopping Centre said administrators have been appointed after the collapse of owner Sapphire. Blair Nimmo and Alistair McAlinden of Interpath Advisory were appointed as joint administrators to “consider the appropriate time” to bring the centre to market. They added that the day-to-day operations of the shopping centre would “continue unaffected”. McAlinden, who is head of Interpath Advisory in Scotland, said: “As we enter the important festive trading period, our priority is to consider the most appropriate strategy to preserve value in this important retail venue.” Scoop AM has been appointed as asset manager with Reith Lambert continuing to act as property manager for the venue. The shopping destination contains over 150 shops, several restaurants, a cinema and an ice rink.

News

Seven Dials welcomes four new flagship stores

Shaftesbury has announced the opening of four new stores on Seven Dial’s Neal Street, in London’s West End. Joining the lineup are lifestyle brand Rockett St George with a 1,000 sq ft flagship store. Fashion brand Absence of Colour has taken a 650 sq ft unit which is being fitted out space in its signature style. Alongside them, Neal Street welcomes independent watchmakers Mr Jones and creative community empowerment organisation My Runway Group also open in Seven Dials, taking 364 sq ft and 964 sq ft spaces respectively. This news follows a busy year for Seven Dials, welcoming both art gallery The Hook and fashion brand The Ragged Priest to Neal Street, while Monmouth Street saw the opening of lifestyle brand Adorn the Common and women’s performance wear brand Dai. Shaftesbury owns and manages a 16-acre portfolio in London’s West End, with all its properties within a 10-minute walk of the two West End transport hubs for the Elizabeth Line. Samantha Bain-Mollinson, retail director at Shaftesbury, said: “Seven Dials is a hub for aspirational and creative brands, and the recent openings of Absence of Colour, Rockett St George, Mr Jones Watches and My Runway Group are exciting editions that reflect...

Deals

Lunson Mitchenall appoints joint managing directors

Longstanding equity directors, Neil Hockin and John Griffin, have been appointed joint managing directors as part of Lunson Mitchnall’s new leadership structure. Together they have approximately 60 years of combined retail property expertise, with Hockin focussing on leasing and tenant engagement and Griffin on investment. The duo will concentrate on business development and growing their team in order to cement the company’s position as the top niche retail and leisure advisor in the UK. Griffin stressed the importance of growing the team in order to achieve this. “We are all deal-facing, providing tailored, considered advice and work closely together to give clients a 360 degree view based on the latest transactional trends. If we wish to maintain our hard-earned reputation for bespoke and nimble consultancy and further expand our diverse client base of landlord, occupier and investor clients, we need to shape the firm accordingly and grant our team the time and space to do so.” Although this appointment aims to propels Lunson Mitchnall’s growth, Hockin assured that the new structure wouldn’t affect the company’s client base. “The firm’s extensive traditional retail client base will continue to be core to our business direction. Destination retail and mixed-use centres remain a bedrock of the...

News

Wilko in talks over £30m emergency loan

Wilko is considering a £30 million emergency loan to get through the Christmas shopping season, according to The Times. The announcement comes just weeks after the company was reported to be exploring a variety of cost-cutting measures due to “soaring inflation and supply delays.” The business is thought to be exploring other lenders after failing to gain an extension to its revolving credit arrangement. Despite this, Wilko CEO Jerome Saint-Marc stated that the company’s relationship with its present lenders remains strong. He said: “Our relationship with our lending partners is solid. The recent sale and leaseback of our distribution centre to DHL earlier this week unlocked £48m which has enabled us to repay our revolving credit facility in full. “We’re taking this opportunity, now that the deal is done, to review how we manage our ongoing financing to best trade through the current retail environment while continuing to invest in our future.” Wilko completed the £48 million sale and leaseback of its Worksop distribution centre a little more than a week ago. The purchase was the company’s first in a series of “transformational efficiencies. Saint-Marc said at the time there was “no denying the way people shop with us and where...

News

Rapid grocery delivery firms struggle as cost-of-living crisis escalates

Rapid delivery start-ups received heavy investment in 2021, but 12 months on it appears their days are numbered, with consumer use declining, according to NTT DATA. NTT DATA surveyed 2,000 grocery shoppers in the UK, focusing on inner city areas where rapid delivery is available. The study found that just under a third of residents use rapid delivery services. Of this proportion, more than half (59%) are now decreasing their use as cost becomes more important than convenience. 92% of consumers state cost is one of the biggest decisions for where and when to purchase their groceries, followed by quality at 77%. Delivery firms have invested in larger marketing campaigns and discounted delivery to keep customers coming – however the outlook still looks bleak as the cost-of-living crisis continues. Geoff Lloyd, Director of Retail at NTT DATA UK&I, comments: “As a result of food inflation and the current cost-of-living crisis, consumers are becoming more cost conscious with their purchases and are prioritising this over convenience.” “As a result, fewer consumers are now willing to accept the higher cost that comes with the Q-commerce model, whether it is through higher pricing of products, or additional costs they need to pay for...

Insights

Caddick Construction completes Tawd Valley Centre

Caddick Construction has completed the £8.2m Tawd Valley Centre retail outlet in Skelmersdale, West Lancashire, as part of the wider regeneration plans for the town centre. Lidl, B&M, and Poundstretcher have begun trading on the scheme, and the surrounding area has been upgraded to include a new play area in Tawd Valley Park. A new high street has also been provided to connect West Lancashire College to the rest of the town centre. The public areas outside Skelmersdale Library are also being improved to make them more appealing to locals. Ian Threadgold, North West Managing Director of Caddick Construction said: “Caddick is delighted to have completed on this important scheme that is already having a transformative effect on Skelmersdale town centre and the local communities. “Investment and vision are important if we want to see local town centres revitalised and attract new retailers in with the right location and premises. It’s great to see Tawd Valley Centre is already delivering for Skelmersdale.” The town centre renovation project is a collaboration between the Borough Council and developer St. Modwen and backed by the Lancashire Local Enterprise Partnership and Growth Deal funding.

News

A guide to renting a shop in Central London

Considering renting a shop in Central London? Here is what you need to know. Defined as the innermost region of the capital, Central London covers the boroughs of Camden, Hammersmith and Fulham, Kensington and Chelsea, Lambeth, Southwark, Tower Hamlets and Westminster. The retail industry today currently accounts for about 40% of all money spent in London and 9% of all employment in the metropolitan area. Moreover, in recent years the city has become much more accessible for small businesses and start-ups. Check out shops to rent in London on Completely Retail Attractions As well as being the central base for government offices, embassies, and the business and financial district, Central London has much to offer tourists, who visit in their millions every year. In Central London, you can find the city’s most iconic sights, such as Big Ben, the London Eye, Buckingham Palace and Westminster Abbey, as well as an array of museums and galleries including the British Museum, Tate Modern and the Natural History Museum. Central London is even home to some beautiful and busy green spaces. Hyde Park, Kensington Gardens, and St. James’ park are among London’s Royal Parks. Demographics Central London’s population is 1.6 million, which is over...

Insights

Brits prefer to save than spend this Black Friday

Consumer research platform Attest has today revealed that over half (58%) of Britons will cut back on spending habits this Black Friday, as the cost-of-living crisis puts a squeeze on consumer budgets. The reasons behind this include saving money in case they need it due to economic uncertainty, prioritising money to cover day-to-day expenses, paying for home energy bills, and other worries including mortgage payments and concerns about job security. However, most (74%) consumers said they intend to spend at least something this Black Friday. The research revealed that most were uncertain on how much money they would spend. Last year, Attest found that Brits spent an average of £100-200 (at 30%) on Black Friday, yet this year people were most likely to say that they were unsure how much they’ll spend (24%), followed by £51-£100 (at 20%). The uncertainty also extends to what people will buy, with 34% saying they were unsure of what they would buy. High Street sales may also take a hit, as the majority (63%) of participants will solely make purchases online, with Amazon the most popular retailer of choice. Meanwhile, 77% of Brits will change their spending habits this festive season, by giving fewer...

Insights News

Marks & Spencer appoints interim chief financial officer

Marks and Spencer Group plc has announced the arrival of Jeremy Townsend as chief financial officer. Townsend will take the role on November 22 and replace Eoin Tonge, who will leave the business on January 19. He has held senior financial and non-executive roles across several public roles. Most recently he was group chief financial officer at Rentokil Initial plc. Stuart Machin, M&S CEO, said: “Over the last three years we have built a strong finance team, and Jeremy will be an excellent addition, bringing with him a wealth of financial leadership experience, as we accelerate our plans to reshape M&S for growth.”

News

Queensgate tees up 20,000 sq ft minigolf expansion

Queensgate has announce the opening of a Puttstars indoor minigolf course, the 20,000 sq ft space becoming the first concept within the Peterborough shopping centre’s £60m leisure extension. The centre contains three nine-hole golf courses, a selection of food and drink, and a variety of arcade games. A 10-screen Empire cinema is set to join Puttstars minigolf course in the leisure extension’s lineup in 2023. Ed Ginn, director of investment management at Invesco Real Estate, said: “Queensgate’s leisure extension brings so much potential, for brands and our visitors alike. Puttstars delivers an entertaining, well-rounded offer, which appeals to such a broad demographic.” Laurence Keen, chief financial officer of Puttstars parent group Hollywood Bowl Group, added: “Not only are we positioned in the heart of the city centre, but we are the first in this major leisure expansion project, highlighting the value that we bring to this destination.” Puttstars Peterborough is the fifth mini-golf centre to open across the UK from Hollywood Bowl Group. Queensgate Shopping Centre is owned by Invesco Real Estate, and is managed by Cushman & Wakefield.

Deals News

Retail sales see boost but remain below pre-pandemic levels

Shop sales increased in October, but still fell short of pre-pandemic levels, according to official figures. Data released by the Office For National Statistics (ONS) showed an increase in retail sales of 0.6% in October, following a fall of 1.5% in September. These increases were seen in all of the main sectors except for food stores, where sales volumes fell 1.0%, 4.1% lower than their pre-coronavirus levels in February 2020. However, sales volumes fell by 2.4% in the three months up to October, in line with a downward trend seen since summer 2021. Non-store (predominantly online) retailers have continued to show increased performance since the pandemic. They saw a rise in sales of 1.8% in October following a fall of 2.5% in September, with sales volumes 21.2% above February 2020 levels. The proportion of retail sales taking place online was 26.1%, broadly in line with levels seen since May. September’s sales were affected by the bank holiday for Her Majesty Queen Elizabeth II’s funeral, which saw some businesses closing or operating differently. Various factors have affected consumers’ spending power: Higher energy prices, rising levels of inflation and huge amounts of unemployment have all contributed to an ongoing cost-of-living crisis which...

Insights

Chancellor throws High Street a lifeline says CBRE