Posts from November 2022

John Lewis Partnership chief operating officer Andrew Murphy is to step down after more than 30 years at the company. Murphy colourfully described a “WTAF” (“what the actual f***”) moment after turning 50 which contributed to his stepping down. Speaking on LinkedIn, Murphy described how his 50th birthday affected him like no milestone ever had. “Tick tock…” he wrote. During his time at JLP, Murphy said he had taken on 17 different roles, including being a selling assistant and a number of operating board and executive team positions. Dame Sharon White, chair of John Lewis Partnership, said: “It is with a great deal of sadness that I am announcing today that Andrew Murphy will leave the partnership in Summer 2023”. She added: “From his pivotal role in establishing John Lewis as the UK’s pre-eminent omni-channel retailer, as John Lewis retail director, to his leadership of the Partnership as group COO, navigating us successfully through the pandemic, we owe him a huge debt of gratitude.” Between now and next summer, Murphy will focus on supporting his teams to ensure both Waitrose and John Lewis achieve as much as they possibly can from the upcoming “golden quarter” in UK retail.

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Primark to halt price hikes as cost of living soars

Fashion retailer Primark will not raise any more of its prices before next autumn, its owner has said. Its parent company Associated British Foods (ABF) said it plans to “stand by [it’s] customers” as inflation continues to rise. According to the company’s annual results released on Tuesday morning, Primark enjoyed healthy sales of £7.7bn, 43% ahead of last year, it said like-for-like sales and market shares were now broadly in line with pre-COVID levels. Unlike many of its rivals, Primark has not completely embraced online shopping, but has recently launched a click-and-collect service. It has launched 25 new stores within the last year. George Weston, chief executive of ABF, said: “Looking ahead, substantial and volatile input cost inflation will be the most significant challenge in the new financial year, and our businesses will continue to seek to recover these higher costs in the most appropriate way.” ABF’s chairman, Michael McLintock, described “the most challenging economic conditions for many years”. The company spoke of a “volatile backdrop”, citing the weakness of the pound, rising energy costs and reduced consumer income. As a result, ABF said it would not implement further price increases on this year’s autumn/winter and spring/summer ranges beyond those...

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Nerf Action Xperience to make UK debut in Manchester

Rocafella Leisure has secured an investment to launch the first Nerf Action Xperience (NAX) in the UK, after securing a licensing agreement with entertainment company HASBRO. The family entertainment centre (FEC) will make its UK debut at Peel L&P’s recently rebranded Trafford Palazzo centre, in Manchester. The 35,000 sq ft FEC will operate on a 20-year lease and will provide customers with a variety of Nerf related indoor activities, featuring three different zones for ‘competition, sports and training.’ Nerf is a toy brand which mostly consists of toy weapons which shoot foam darts. Rocafella Leisure’ and Peel’s vision is to create a unique blend of intellectual property (IP)-led entertainment within the shopping centre, which adjoins one of Europe’s largest retail centres, the Trafford Centre. The NAX centre will join the Palazzo’s existing tenant line-up, including; Primark, the LEGOLAND Discovery Centre, SEA LIFE, Silentnight, Homesense, Natuzzi, as well as the newly opened Italian restaurant Matarello. American-inspired diner Archie’s, will be the food and drink operator within the NAX family entertainment centre. Mark Whittaker, executive director for property investment and management for PEEL L&P said: “Over the past year, we have focused on developing an activations and events strategy within our mall...

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How much does it cost to open a shop?

Have you ever dreamt of opening your own shop, showcasing your products to the world, and building a thriving business? It’s an exciting prospect, but before turning that dream into reality, a crucial question arises: How much does it cost to open a shop? Understanding the financials of a retail business is essential for success. This comprehensive guide will give you a clear picture of the financial commitments and empower to answer the question “How much does it cost to open a shop?” with confidence and prepare your business for a prosperous future. Rent and business rates Whether you’re renting or buying, prices will differ wherever you go. Make sure to check out how much you’ll be paying in the town or city you plan on opening. Big cities such as London or Glasgow will often be pricey but are likely to see more footfall. An alternative is to set up in smaller, up-and-coming cities. Here it may save you some money, allowing you to establish your business earlier as a local favourite while costs are lower. The most expensive places to rent in the UK The least expensive places to rent in the UK Town/City Average Price* London £49.64...

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Offers from ex-CEO of Made.com “rejected”

The founder and former CEO of struggling online furniture retailer Made.com says that three offers to purchase the struggling company have been rebuffed. Speaking in an open letter to Made.com employees, Ning Li described his “sleepless nights” over the company being on its “last legs”. This comes after news that Made.com is expected to go into administration today or tomorrow. The online furniture retailer had its shares suspended after failing to find a buyer for the company. In October, Made.com stopped taking any more orders. Made.com enjoyed a boom in sales during the COVID-19 pandemic as more people shopped from home and saw a valuation of £775m on the London Stock Exchange in June 2021. Since then, the company has suffered weaker sales as consumer spending habits see more customers heading back to the high street. Speaking on LinkedIn, Li described how he “wanted the brand to live on and live well.” He continued: “Last Friday, I submitted my 3rd and final proposal to buy the company back to the board of directors and PwC. […] Unfortunately, my proposal wasn’t accepted. Apparently, it would be preferable to break the company up and sell it in pieces to generate a little...

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Guler joins RivingtonHark at firm’s pivotal point in growth

London based property manager RivingtonHark has announced the appointment of Handan Guler as senior asset manager. Guler had previously worked at Landsec for five years and was involved in directing the asset management of regional flagship and neighbourhood shopping centres. Guler was also involved in the repurposing of the previous Debenhams store at Southside, Wandsworth into gravity leisure hub. Prior to that, she worked in the Capital Markets team at Cushman and Wakefield, focusing on cross border designer and factory outlet centre investment. Mark Williamson, executive director at RivingtonHark, said: “Handan has joined at a pivotal point in the growth of our business. Her extensive sector specific expertise and prior experience managing flagship and neighbourhood shopping centres at Landsec, makes her the ideal fit for the Redical Holdings portfolio. Handan will join an experienced team who play an integral role in supporting our partners, as we work with them on some truly transformational projects across the UK.”

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Joules exploring CVA options after poor trading sees share price dip

British fashion retailer Joules is assessing its options including raising equity and a possible Company Voluntary Arrangement (CVA) after poor trading has seen sales fall “behind expectations”. Share prices in the retailer saw a dip of 24.9% on Monday morning after the company released a business update regarding its turnaround plan. Shares in the firm were around 8.2p today, down from 200p last November. Joules, famous for its wellies and waterproofs, believes the current challenging UK economic environment is a factor in the poorer sales. It currently has 130 stores and operates online. However, the business believes that good progress has been made in defining and delivering its turnaround plan. Joules said that key initiatives including a new “leaner, simpler organisation and leadership structure” and “revised trading, promotion and buying execution approach” were underway. The retailer also said that its exit from EU and US territories was near completion. The fashion retailer believes that consumer perception of the brand, has remained strong and noted that store sales have been slightly ahead of expectations. Since a previous announcement in which Joules announced its plans to assess its ongoing financial situation, the company has since had advanced discussions with investors. The retailer...

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60% of Britons will spend less this Christmas, Deloitte survey shows

Six in ten Britons believe they will have less money to spend on Christmas this year, according to a survey published by Deloitte on Monday. The survey found that 38% plan to switch to cheaper brands or stores to find their gifts, and 35% plan to use a discount supermarket for at least part of their Christmas dinner. It found that over one in 10 intend to buy gifts second hand, while 8% said they intend to buy no gifts at all. Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Consumers are entering the festive season with budgets under more pressure this year, and it is not surprising that almost all are considering affordability and adapting their typical Christmas spending habits in one way or another”. According to the data, 54% of customers intend to do their Christmas shopping in November, including the Black Friday discount day on November 25. Last week supermarket Sainsburys commented on the struggles many were facing saying that customers were ‘watching every penny’, while department store John Lewis launched its Black Friday event on November 4, in a bid to help customers spread the cost of Christmas.

Insights News

Loungers launches Brightside restaurant as it looks to reinvigorate roadside dining

Café-bar and restaurant operator Loungers has announced the launch of a new roadside restaurant brand called Brightside. The first location will open on the A38, south of Exeter, in February 2023, with a further two locations to open in the spring, on the A303 near Honiton and on the A38 near Saltash. Brightside will sit alongside Loungers’ two existing brands, Lounge and Cosy Club, as the restaurant operator looks to “reinvigorate roadside dining in the UK”. Loungers said it “believes there is scope to develop a truly national brand” and has expressed an ambition to expand the Brightside brand to all parts of the UK in the next few years. Loungers aims to open its sites predominantly on A-roads and will “focus on bringing genuine hospitality back to a sector that is dominated by drive-thru and QSR (quick-service restaurants) concepts in recent years.” Brightside will offer a menu of “classic, comfort food-style dishes”, including a brunch menu, burgers, pizzas and a kid’s menu. Loungers hopes the restaurants will appeal to a wide range of customers including families, locals, and UK holidaymakers. Alex Reilley, Founder Chairman of Loungers, said: “We’ve had the itch for a while now to create a roadside...

News

John Lewis launches Black Friday Sale early

John Lewis has launched its Black Friday event on the 4th of November, starting earlier than previous years in a bid “to help shoppers spread the cost of Christmas.” Many of the retailer’s Black Friday offers will run up to and include 1 December 2022, although specific offers may vary. In addition to the extended Black Friday savings, customers can receive free delivery on orders over £50, or benefit from the ease of collecting their John Lewis parcels from one of many click-and-collect points, including Booths, Co-op, Shell as well as Waitrose and John Lewis shops. Customers will also have the option of paying monthly interest-free instalments for selected items over £500, when they order in-store, online or via the app. Kathleen Mitchell, commercial director for John Lewis, said: “We’re launching Black Friday earlier than ever this year, with hundreds of fantastic deals to support customers looking to save money and start their Christmas shopping early. “We know that, despite the rising cost of living, our customers still want to celebrate Christmas, so our teams and suppliers have worked incredibly hard to make sure we can offer our customers great value deals on the products they love. With new deals...

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A guide to renting a shop in Leeds

Looking for shops to rent in Leeds? Here is what you need to know. With the pandemic intensifying the problems that many retailers were already dealing with, businesses have re-evaluated what works for them and their customers. For many the soaring rents of London aren’t sustainable, which gives smaller cities such as Leeds the opportunity to house growing businesses. Leeds has developed to become one of the country’s most prominent regional capitals in recent years. Once at the core of the UK’s industrial machine in the 19th century, Leeds has risen again as a vital industrial base. Leeds is the third-largest city in the UK with a population of over three million people and booming shopping districts. Leeds has a wide choice of retail shops to rent, from major centres like Trinity Leeds and Kirkgate Market to smaller independent quarters like The Electric Pass. Attractions The Royal Armouries is arguably the best attraction in Leeds. With five floors crammed full of relics, trinkets and treasures from the National Collection of Arms and Armour, it brings the history of warfare and combat to life. The site is also free to enter, making it the ideal rainy-day activity. For those wanting to see more contemporary culture, the...

Insights

Shaftesbury launches The Theatre Café Diner in Seven Dials

Property managers Shaftesbury has today announced the opening of a musical theatre inspired dining concept, The Theatre Café Diner, in Seven Dials. The diner-themed restaurant spans 2,455 sq. ft. over two floors and customers can expect a singing waiting team and American-style diner food. The staff will perform popular musical theatre numbers while serving customers, and both floors of the restaurant feature a ‘Yellow Brick Road’ stage, with multiple areas themed to popular West End productions, including Cats and Joseph and the Technicolor Dreamcoat. Customers may also book one of the restaurants exclusive booths, designed around hit productions Six and Heathers the Musical. The food on offer is also named with a musical theme, including You Make Me Feel Like a Nacho-ral Woman, I’m Getting Calamari-ed in the Morning, and La Vegan Boheme! Also available is a selection of hot and cold drinks, with names such as Don’t Purple Rain on My Parade, Starlight Espresso Martini and Long Island Iced Tea-nage Dream cocktails. Julia Wilkinson, Restaurant Director at Shaftesbury, said: “The Theatre Café Diner is a fun addition to the eclectic and vibrant collection of restaurants within Seven Dials and we are delighted to welcome it to our diverse community....

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Cornish Bakery opens at Caledonia Park

Caledonia Park, Scotland’s designer village managed by Railpen, has welcomed the arrival of Cornish Bakery. The addition of the 2,500 sq ft independent operator is the first addition to Caledonia Parks developing F&B offering, with negotiations underway with several other F&B brands to join the line-up. The focus on F&B will provide greater variety for visitors while also complementing Caledonia Park’s retail mix, which includes Polo Ralph Lauren, Nike, adidas, BOSS and Crew Clothing. Maria Averkina, Asset and Development Manager at Railpen, said: “It is great to welcome Cornish Bakery to Caledonia Park, as this marks a key moment in our enhancement of the F&B offer. Our priority is delivering the very best F&B concepts that match the strength of our retail line-up to provide visitors, whether they are regular locals or those travelling from much further afield, with the best choice and variety in the region. We are looking forward to announcing more operators joining Caledonia Park in the coming year as we continue to implement our strategy of constant evolution of the destination.” Caledonia Park’s Cornish Bakery joins the brand’s seven strong UK-wide portfolio, with the independently owned company set to continue its expansion in the coming year....

Deals

Scottish shopping centres could be ‘winners’ in next year’s rates revaluations, says EYCO

Craig Wilson, partner at Edinburgh-based EYCO Chartered Surveyors, confirmed he has been working with assessors on a number of Scottish shopping centres, trying to find their 2023 rateable values, which will determine rates bills next year. “So far, the results have been very encouraging. Welcome news at a time when other occupational costs are increasing,” he said. “To date, I have been confident enough to report an estimated £18.5m cumulative rateable value reduction across 6 centres, with a number of other centres still under discussion. These results typically exclude the still to be resolved issue of ex-Debenhams and/or BHS stores.” Wilson explained that the £18.5m represents a 47% cumulative reduction, and added: “I have had discussions on 12 shopping centres in Scotland. The adjustments we can expect to see will not be uniform, but I would anticipate that those enclosed centres of highest value will see the largest percentage decline in rateable value. Adjustments of -40% to -50% would not be unusual, perhaps more in some locations. “The second tier, lower value enclosed centres already experienced something of a correction at the last rates revaluation in 2017 and, as they are currently at a lower base and typically have smaller...

Insights News

Worlds ‘rudest restaurant’ Karen’s Diner seeks UK locations

Australian restaurant chain Karen’s Diner is seeking new locations to open multiple UK restaurants. The diner specialises in delivering an interactive experience for customers with the unique selling point of very rude staff! Founded only in 2021, Karen’s Diner already operates 10 locations worldwide with restaurants recently opening in Sheffield, Birmingham, and Manchester. The restaurant offers a variety of food including burgers, hot dogs, and chicken wings. Vegetarian, vegan and gluten free options are also available. Requirements Locations: Size: Circa 2000 sq. ft. on ground floor with room for 70+ covers Ideally fitted units with an open kitchen at ground floor with extraction and a premises licence in place Contact: James Commercial: 020 7127 8781 / info@jamescommercial.co.uk

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The Boulevard to see four new tenants in time for Christmas

The Boulevard outlet mall in Banbridge, Northern Ireland, will welcome four brands including Yankee Candle and department store Houstons by Christmas. The candle brand will open their 1,733 sq. ft. store in the coming weeks before being joined by fashion brands James Lakeland and AKAWear with 2,163 sq. ft. and 1,136 sq. ft. stores respectively. Fashion store Houstons will also join the outlet mall, with the four new brands expected to create 20 local jobs in the festive period. The retail park already hosts the likes of Nike, M&S, Kurt Geiger, Dune London, and Timberland. Chris Nelmes, Retail Director at the Boulevard, said: “With Christmas just six weeks away, we’re delighted to welcome our new tenants offering our customers an exciting mix of quality products and fantastic deals. “Despite the economic climate, we’re optimistic about continued growth both in terms of footfall and sales, and even more so now that we’ve added to the portfolio of brands here on site. “The Boulevard […] has always welcomed traffic from both sides of the border but we are seeing more licence plates from the south of Ireland at the moment, due to the weak pound, which is offering the shopper a lot...

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Watch: Neelofar Khan discusses what can be done to support independent businesses