Posts from November 2022

Chris Jukes takes reins at Liverpool ONE

15th November 2022

Grosvenor has today announced the appointment of Chris Jukes as director of Liverpool ONE, succeeding Alison Clegg who is stepping down after 15 years. Jukes has worked at the property development and management company since 2005 and held various financial positions in Grosvenor Property UK and the wider Grosvenor business. Currently he is responsible for finance in the UK property business’ development and investment teams, including Liverpool ONE. He will be working closely with Iain Finlayson and Donna Howitt, Liverpool ONE’s estate director and place strategy director respectively. Opening in 2008, the 1.65m sq ft regeneration scheme is one of the most popular in the UK and attracts around 29 million visitors annually. It will celebrate its 15th anniversary in 2023. On his appointment, Jukes said: “Whilst the retail sector faces many challenges, well-managed and curated destinations will continue to perform. With Eurovision coming to Liverpool next year, as well as our own milestone, it is set to be an exciting time for the UK’s most sociable city.” Jukes will take up his new position on December 1, working alongside Alison Clegg until her retirement in March 2023.

News

Wilko balances the books with £48m distribution centre sale

14th November 2022

Retailer Wilko has sold its huge distribution centre in Nottinghamshire to logistics company DHL for £48m in an attempt to shore up its balance sheet. The company has leased the site back for 15 years. Wilko said the deal was the first in a series of transformative measures as the company, who just over a month ago drafted in advisory experts, looks to cut costs across the business. Wilko said that DHL will not affect the day-to-day running of the retailer’s business. Jerome Saint-Marc, CEO of Wilko, said: “It’s standard business practice to constantly review how we manage our finances. This property deal with DHL represents long-term stability for us and our team members and is the right response to the current market conditions and our priorities. “We’re making smart choices to trade a business and allow us to continue to invest in our long-term transformational strategy.”

Deals

AM Alpha to convert Rylands into mixed-use development site

14th November 2022

Global real-estate investment firm AM Alpha is set to redevelop the iconic Rylands building in Manchester into a mixed-use development site comprising retail, leisure and office space. The Grade II listed building on the corner of Market Street and High Street was originally built as a warehouse but later saw use as a department store, until the collapse of Debenhams in 2021 saw the building close. The refurbishment will include redevelopment of the existing business and conversion of the upper floors into high-quality office space. The ground floor will see the development of a shopping arcade. AM Alpha will also add a four-storey extension which will see the Rylands building become ten floors tall after the refurbishment. Enabling works for the transformation of the building have already begun, with main works expected to start in 2023 and completion expected in early 2025. The building is designed to achieve Net Zero Carbon status. Local company Russell WBHO will work as construction partner for the project, while local property companies OBI and Barker Proudlove have been appointed as letting agents. Will Lewis, founder of OBI, said: “The property is close to bustling areas such as Piccadilly Gardens and the Northern Quarter and...

News

Debenhams’ administrators make millions in fees

14th November 2022

Administrators for Debenhams have earned more than £7.2 million in fees since the group of department stores filed for bankruptcy in 2020. FRP Advisory oversaw the sale of the retailer’s name and website to fast-fashion giant Boohoo for £55 million in January 2021. Documents reveal that FRP Advisory received an additional £1.9 million between April and October of this year as a result of higher personnel rates. Debenhams first entered administration in 2019. This news comes as retail giants such as Made.com and Joules face a similar fate.

News

Joules nearing collapse as 1,600 jobs at risk

14th November 2022

British fashion retailer Joules has today announced that it intends to appoint administrators, in a move which sees nearly 1,600 jobs at risk. The company said that negotiations with strategic investors and conversations regarding a bridge financing proposal were unsuccessful. The retailer’s board said the decision to appoint administrators was made to protect the interests of its creditors. Joules has also suspended trading of its shares. Last week Joules said it was assessing its options including raising equity and a possible Company Voluntary Agreement (CVA) after its sales fell behind expectations, with shares in the company falling 24.9% last Monday morning. Joules was founded in 1989 when its founder Tom Joule began selling clothing at a Leicestershire country show. The retailer is famous for its wellies and waterproofs and owns 130 stores as well as operating online. The company cited milder weather and a challenging economic environment as reasons for its lower-than-expected sales. The Joules Group also operates the online-only Garden Trading Company. It becomes the latest retailer to suffer from the squeeze of the cost-of-living crisis, as last week online store Made.com was purchased by Next after it too went into administration. Meanwhile, Marks and Spencer warned of a...

News

Frasers group in bid for Savile Row tailors Gieves & Hawkes

14th November 2022

Mike Ashley’s Frasers Group is close to agreeing a deal to purchase struggling tailor Gieves & Hawkes, according to Sky News. The tailors was put up for sale earlier this year after its Hong Kong-based owner collapsed into liquidation. The value of the deal is unknown. Ashley remains the majority shareholder of the Frasers group, but is no longer a director, and has been contemplating an acquisition of Gieves & Hawkes since September. Savile Row, synonymous with high-quality menswear, has seen a reduced customer base since the pandemic as working habits have changed and the need for bespoke suits has fallen. Gieves and Hawkes was formed under its current name in 1974, but the origins of its tailoring labels go back to the late-eighteenth century. Gieves and Hawkes has held royal warrants for the late Queen Elizabeth II, King Charles III and the Duke of Edinburgh. It has also dressed some of the most important figures in British History, including Sir Winston Churchill and Lord Nelson. Frasers – formerly known as Sports Direct International – has in recent years acquired a number of High Street brands, including Jack Wills, Evans Cycles and Agent Provocateur. It bought online fashion retailer Missguided...

News

KFC vows a third of new hires will be from disadvantaged backgrounds

14th November 2022

Fast food chain KFC has said it aims to ensure one-third of its hires will be young people from disadvantaged backgrounds by 2030. The restaurant predicts that around 6,000 new jobs will be created with its new programme, called Hatch, in a time where the hospitality industry is struggling with staff shortages. KFC operates about 950 restaurants in the UK. The chain is working in conjunction with charity UK Youth who said the scheme aims to break cycles of inequality, disadvantage, and unemployment amongst young people. The charity said young people are facing a “tsunami of challenges”. KFC and UK Youth are calling for investment from businesses and government to give young people more opportunities to get into work and are calling for a “proper plan for young people”. This involves post-education and apprenticeship policy, a government funded Hatch scheme and tax incentives for businesses to invest in skills development for young employees. Meghan Farren, general manager at KFC UK and Ireland, said: “There are more job vacancies across Britain than unemployed people – a first since records began – but the need to foster young talent and invest in their skills and development over the long term continues to...

News

The Works sees online sales dip but total sales increase

11th November 2022

Arts and crafts retailer The Works has recorded a 16.9% decrease in its online sales, however these were still 50% above pre-pandemic levels, following a normalisation of shopping trends post-COVID. In its half-year trading update, the company saw a 2.1% increase in total sales, and a 3.5% increase for in-store trading. Sales were affected in all departments in May, The Works citing a cyber security incident in March which lead to operational issues. However, the retailer said it enjoyed a strong performance from June onwards, especially in the Summer when its outdoor play range performed well. The company’s sales were also buoyed by a strong ‘back-to-school’ season and an expansion of its book offers. In the six weeks since its previous trading update, The Works has seen solid growth, although it said that online sales continue to lag behind in-store trading. Gavin Peck, chief executive officer of The Works, said: “We have delivered a resilient performance in the first half with positive sales growth overall, demonstrating continued progress against out “better, not just bigger” strategy.” He added: “Although it is very difficult to predict what Christmas will look like this year […] The Works has proven itself to be a...

News

Dolce & Gabbana launches Covent Garden pop-up

11th November 2022

Italian luxury fashion retailer Dolce & Gabbana has launched a festive pop-up shop in Covent Garden for the run up to Christmas. D&G’s Holiday Market offers a range of gift ideas, ready-to-wear fashion, trainers and a special Covent Garden t-shirt featuring a London-themed print. The pop-up shop will also feature food and drink from Dolce and Gabbana partners Fiasconaro, Donnafugata, Pasta Di Martino, and Baci Perugina. Covent Garden’s Instagram famous swing has seen a festive Italian-style makeover by the fashion brand. Dolce and Gabbana join other brands in Christmas celebrations which has seen Covent Garden offer a festive display and a programme of events including a Winter Warmer Mulled Wine Festival and weekly evening shopping nights featuring a gospel choir.

News

Pentland Brands appoints Belinda Deery as chief HR officer

11th November 2022

Pentland Brands, which operates multiple sports and lifestyle brands, has appointed Belinda Deery as chief HR officer. Deery has held roles in HR leadership for various companies worldwide, including Clarks, New Look, House of Fraser and Debenhams. She will lead the HR services, recruitment, reward, employee engagement and internal communications team across the business globally. Deery will aim to help create a culture in which Pentland Brands will be a pioneering and positive place to work. Pentland Brands operates a number of brands including Berghaus, Mitre, Ellesse and Lacoste. Chirag Patel, Pentland Brands chief executive, said: “Belinda has a huge amount of industry and HR leadership experience and is an incredibly important addition to the Pentland family. Alongside her CHRO and exec responsibilities, Belinda will lead the new culture programme that will help us to attract and retain the best talent.”

News

Lakeside adds two fashion brands to its line-up

10th November 2022

Lakeside, one of the UK’s most popular shopping centres, owned and managed by Global Mutual, has announced that leading fashion retailers, Pull&Bear and Stradivarius, have joined its line-up. Both brands are owned by Inditex and will join sister brand Zara at the centre. The company now has three brands at the centre, attesting to its popularity among shoppers. Lakeside shopping centre is situated in Essex and covers 1.6m sq feet. The centre sees millions of shopper visits per year and is home to over 250 shops in total, with leading brands such as M&S and H&M. Steve Gray, head of european retail asset management at Global Mutual, said: “Pull&Bear and Stradivarius are much-loved by our visitors and will significantly bolster our offer. We’ve seen strong leasing activity over the last few months, as confidence in physical retail – more specifically in prime, catchment-dominant locations like our own – continues to grow. We have a number of other deals in the pipeline, which will help to keep our offer fresh and diverse for guests. We look forward to updating over the coming months.”

Deals

Abercrombie & Fitch to open first store in Scotland

10th November 2022

Abercrombie and Fitch is to make its Scottish debut on Edinburgh’s upmarket retail thoroughfare, George Street. The American fashion brand has signed a five-year lease on the 6,326 sq ft former Jack Wills unit, which comprises two floors. A rent rising to £171,000 per annum has been agreed. The unit at 65 George Street, was let by Savills on behalf of Patrizia. Stuart Moncur, head of national retail at Savills, said: “George Street continues to be one of Edinburgh’s premier retailing destinations providing Abercrombie & Fitch with an excellent location for its first store in Scotland. The attractive building is ideally suited to create a beautiful flagship store. “George Street is a long-standing go-to address for aspirational retailers and we are very pleased to welcome Abercrombie & Fitch which will fit in seamlessly with other nearby brands including Sweaty Betty, Lulu Lemon and All Saints.” Savills and Ewan Mackay Property Consultants advised Patrizia, while AFH Stores UK was advised by Cushman and Wakefield.

Deals

Wendy’s seeking high street and drive-through locations nationwide

10th November 2022

American burger chain Wendy’s is seeking locations across the UK to open new restaurants. Launched in 1969, the diner opened its first UK site in Reading in 2021, and since then the chain has opened a further nine sites this side of the pond. Wendy’s continues to look for locations in high traffic areas for both its high street as well as its “drive-thru” restaurants. Requirements Locations: Wendy’s development experts can help streamline a design type to fit any number of high-traffic locations, including: Size: Design type Size Number of seats Freestanding drive-through and dining 2,200 to 3,500 sq ft 45 to 100 seats Freestanding drive through only 1,300 to 1,500 sq ft N/A In-line (Street and malls) 2,000 to 3,000 sq ft 40 to 120 seats Food courts (w/ remote storage) 650 to 800 sq ft N/A Contact: Stuart Stares: 020 7299 3088 / SStares@savills.com Claire Lakie: 020 758 3896 / clakie@savills.com

Requirements

Trust more important than price for Gen Z shoppers

10th November 2022

A survey has shown that for customers of online fashion marketplace apps, trusting other users is considered more important than price, despite many customers having less money to spend. The study, published by Pasabi, asked 116 female consumers aged 18-44 and found that over half (52%) of customers had encountered fake reviews. 84% said trust and safety were more important than price. Nearly a third (29%) of users said products they had ordered didn’t match the listing, while 22% said they had placed orders where the product never arrived. Vinted was the most popular app used by the participants, with 86% of those surveyed as users. Depop was used by two-thirds of respondents while four in ten used Shpock. These platforms allow users to sell products to one another, usually second-hand, although some use the digital marketplaces to sell handcrafted products. Other issues described by the respondents included sellers asking them to write a positive review, despite having a negative experience; being given undeserved negative reviews; and being scammed out of money. Six in ten users described having a negative experience using the apps while one fifth had complained to their friends. 13% of respondents said they just deleted the...

Insights

Drive-thrus and retail parks could be banned in Scotland in effort to tackle climate change

10th November 2022

The Scottish government’s latest crackdown on environmental issues could see drive-thrus and retail parks banned, with the aim of reducing car usage. These restrictions would prohibit the future development of out-of-town shopping destinations. The idea is to reduce the use of cars, forcing shoppers to visit stores and services that are accessible by public transport. A byproduct of the proposal is that it will drive footfall back to town centres, helping revitalise the high street. Ministers published the fourth iteration of the National Planning Framework (NPF4) on Tuesday. These are the guidelines for evaluating planning applications over the next decade. Although local councils will still have the majority input on planning decisions, Scottish Government officials confirmed they would take more restrictive approaches against some developments, including out-of-town retail parks and drive-thrus. There are likely to be exceptions, such as for farm shops, craft shops and service stations. The framework comes as part of the government’s plan to secure their target of reducing the total amount of car kilometres travelled by 20% by 2030. “The window of opportunity to act to reduce emissions and adapt to already locked-in changes is narrowing. Our statutory and moral obligation to tackle climate change means...

News

WHSmith in “strongest ever position” as it returns to profit

10th November 2022

WHSmith has posted a significant recovery as it released its preliminary results for the financial year. The retailer has seen a huge turnaround in performance as its revenue reached £1.4bn, compared to £886m in 2021. Importantly, it has returned to profit after making losses in 2021, with high street trading profit reaching £33m, up £12m from 2021. The travel arm of WHSmith has also seen a considerable uptick in results as the economy recovers from the pandemic, with revenue in a 10-week period to 5 November 148% of the same time last year. The total WHSmith Travel profit was £89m, compared to a loss of £39m in 2021. The business confirmed it is now trading above 2019 levels. WHSmith has ambitions to expand on a global scale, with 150 stores to open including 70 in North America. Carl Cowling, group chief executive, said: “2022 has been a successful year for WHSmith as we enter the new financial year with the group in its strongest ever position as a global travel retailer with multiple growth opportunities across the world. “We have opened 98 new stores in the year and we have a pipeline of 150 new stores yet to open across...

News

B&M confident for the ‘Golden Quarter’ despite profit decline

10th November 2022

Despite an increase in sales, B&M’s profits fell by £40m during the most recent financial period. Pre-tax profits were £201m for the six months to the end of September, down from £241m for the same period in 2021, although B&M’s total revenue increased from £2.27bn to £2.3bn in the same timeframe. Sales increases in French B&M stores (18%) and Heron Foods (14.6%) more than offset a dip in UK sales. However, B&M is confident that it will overcome this fall in profit in the lead-up to Christmas. The company reported that during the first six weeks of its current ‘Golden Quarter,’ like-for-like sales increased by 2.5% in B&M’s UK locations, adding that this rise “represents a significant increase in total sales over pre-Covid levels, and is against a backdrop of rising interest rates, increased cost inflation and declining consumer confidence” CEO Alex Russo said: “Sales momentum is good as we enter a difficult period for the economy and for consumers. “We are well positioned as we trade through the Golden Quarter and our strategy remains unchanged – a relentless focus on price and product.”

News

M&S warns of “gathering storm” for retailers

9th November 2022

Marks and Spencer has warned retailers of a ‘gathering storm’ in the coming months, as economic uncertainty and the cost-of-living crisis increasingly puts a strain on consumer budgets. In their half year trading report, the retailer reported a fall in pre-tax profit of 24% from last year but insisted that it was trading well and expected to record an adjusted profit before tax for its main businesses in 2023. Group revenue rose by 8.5% to £5.5bn in the six months up to October but profits suffered from higher overheads. M&S also saw reduced online revenue through its Ocado partnership as more consumers head back to the high street. Many businesses are suffering from higher energy prices, wage bills and raw material costs. M&S said it had “slightly advantaged demographics” and as a result may suffer less than other businesses, citing a slightly older and wealthier customer base. Marks and Spencer said: “We expect market conditions to become more challenging in (fiscal year) 2024. The combined impacts of the cost-of-living squeeze and the most marked rise in the cost of doing business for many years are creating pressure on margins industry wide. “All parts of the retail sector will be affected,...

News

Sustainability still a priority for young shoppers this Christmas

9th November 2022

New research released by SAP has revealed that over half (52%) of customers aged 18-34 are actively looking to shop with retailers with strong sustainability credentials this Christmas, despite ongoing cost-of-living struggles. Although less than a third (30%) of all UK consumers are prioritising sustainability, almost two in five (39%) of 18-34 year olds are prepared to even pay more for a sustainable product or service. 40% of UK customers are prioritising food and drink when it comes to their Christmas spending this year, and 43% said they intend to source food for their Christmas dinner locally. This number rises to 54% in younger respondents. Locally sourced food was the favourite sustainability option amongst the respondents, with only 27% saying they would consider second-hand or up-cycled products as gifts. This number rose to 49% in young consumers however, compared to only 12% of over 55’s. Only a third of all consumers said they were willing to wait longer to obtain sustainable products or services. Again, this number was higher in younger groups, with over half (51%) of 18-34 year olds saying they were open to waiting longer for sustainable options. Compared to 28% of 35-54 year olds and 24% of...

Insights

Over 13,600 sq ft snapped up by retailers at Cribbs Mall

9th November 2022

Five new retailers have signed leases to join the Cribbs Mall shopping centre near Bristol, with the mall now nearly at full capacity. Amassing a combined area of 13,607 sq ft, toy store The Entertainer joins fashion brand Mango, arts and crafts supplier The Works, tailors Suit Direct, and beauty specialist Rituals in setting up shop in Cribbs Causeway. Jewellers F.Hind has also recommitted to the mall, signing a six-year lease renewal for its 1,449 sq ft unit. The announcements come off the back of over 30,000 sq ft of new occupational deals over the last 12 months. This includes an expanded fashion offering with the arrival of Kurt Geiger, Carvela, and Tommy Hilfiger. Meanwhile the opening of H Beauty has grown the centre’s beauty offer. During this period Cribbs also welcomed luxury watch makers Bremont, while ProCook and Ribble Cycles have also used Cribbs to grow their physical retail presence. Rituals will occupy an 1,802 sq ft unit on a 10-year lease, which will be its first store in the West Country; The Entertainer has taken a 3,788 sq ft unit on the upper level of the centre on a 10-year lease and will be trading in the run...

Deals

Filter by Categories