Posts from November 2022

DFS predicts growth after poorer summer

4th November 2022

Furniture retailer DFS has suggested that it expects improved sales after a Summer which saw furniture sales drop. In a statement released prior to the business’ Annual General Meeting later today, DFS noted a ‘positive trend’ in sales since September. In the retailer’s 2022 fiscal year report in September, DFS noted that the upholstery market had “softened markedly since April” and saw a “significant decline during July and August”. Since then, DFS has seen order volumes growing relative to the 2022 fiscal year and relative to the pre-pandemic 2019 fiscal year. The retailer also noted “continued evidence of positive market share gains”. DFS said: “Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, we remain focussed on executing our strategy to lead furniture retailing in the digital age. Our business has proven to be resilient, and given our inherent strengths, we are well positioned to maintain our trend of market share gains across the economic cycle.” Tim Stacey, Chief Executive of DFS Furniture PLC, commented: “We are pleased to report that since mid-September we have seen positive year-on-year order volume growth. While we continue to be watchful of the macroeconomic environment, we continue to take market share and...

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Cosy Club opens new location at Centre:MK

3rd November 2022

Cosy Club has officially opened its latest location at Centre:mk Milton Keynes, one of the top 10 retail destinations in the UK. Located at 3-5 Silbury Arcade, the 6,000 sq ft restaurant spans two floors and seats 180 covers. Designed in-house, Cosy Club Centre:mk delivers wow-factor, theatrical flair, and creates a sense of occasion. Inspired by classic Art Deco design of opulent, New York entrance lobbies, the space features fluted wood and glass panelling to replicate the nostalgia and charm of bygone days. Providing customers with relaxed dining and drinking in a special setting, Cosy Club Centre:mk offers all-day menus featuring fresh and modern classics, brunch, gluten free and vegan options, alongside an extensive range of cocktails and drinks. Cosy Club joins a dynamic F&B offering at the centre, opening alongside the likes of Wagamama, Byron, and YO! Sushi. Kevin Duffy, Centre:mk’s Centre Director, said: “As one of the top 10 retail destinations in the UK, centre:mk continues to thrive and welcome excellent brands, including our latest edition to the destination, Cosy Club. We are pleased to see Cosy Club open in time for the busy Christmas period, accommodating the centre’s high demand for premium brands and enriching the customer...

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Watch: The challenges facing the leisure sector

3rd November 2022

The energy crisis was a hot topic of conversation at the recent Completely Retail Marketplace 2022. We sat down with James Hamilton, Rona Kelly and Rachel Belam to discuss this and how the leisure market has recovered after the pandemic and how retailers are approaching new challenges. Commenting on how the energy crisis is affecting expansion plans, Rachel Belam, head of food, beverage and leisure leasing at Unibail-Rodamco-Westfield explained that the recent restaurant openings at Westfield locations in London and Stratford allowed them to avoid the struggles being faced by other retailers. “I’m not saying we won’t feel that in 2023 but we’ve been really busy, we’ve just opened a host of new restaurants with more to come this year. We’ve just opened Salt Yard, we’ve got Flat Iron opening and Sticks and Sushi just before Christmas.” Conversely, James Hamilton, property director at Costa, said: “Definitely! It’s definitely made the returns sharper, we use lots of data companies to help us accurately forecast because we want to make informed decisions and this gives us confidence to keep investing, so that certainty at the cost base, its not going to make it easy.” Rona Kelly, head of estates at The Gym Group...

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Sainsbury’s sees £151m profit fall but maintains position

3rd November 2022

Sainsbury’s has posted a dip in first-half profits after it committed to keeping lower prices during the cost-of-living crisis. In the 28 weeks up to the 17th of September, the supermarket retailer recorded a dip of 29% to £376m in statutory pre-tax profit, however group sales saw a 4.4% increase to £16.4bn. Sainsbury’s also saw a drop of 9% in its retail operating profit, although the supermarket said this reflected its investment in ‘value, reduced grocery and general merchandise volumes post-pandemic and higher operating costs’. General merchandise sales also dropped by 6.1% across the first half but saw an increase of 1.2% in the second quarter, this growth was driven by favourable summer weather and seasonal products. Simon Roberts, chief executive of J Sainsbury plc, said: “[Two years ago] we committed to improve shareholder returns by creating a simpler business and reducing costs to invest in lower prices, food innovation and maintaining colleague and customer satisfaction.” He added: “We really get how tough it is for millions of households right now. Customers are watching every penny and every pound and we know that they are relying on us to keep food prices as low as we can. We will have...

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Jamaica Blue makes Manchester debut at Arndale Centre

3rd November 2022

Jamaica Blue has secured a 10-year lease at Manchester Arndale which sees the coffee chain open its first location in the city. Opening on November 10th, the 4,206 sq ft unit will become Jamaica Blue’s 18th UK location and adds to a 130-strong global portfolio with cafes in 17 countries. Founded in Australia in 1992, the business’ name come from the Blue Mountains of Jamaica, one of the most renowned coffee producing areas in the world and home to its exclusive Jamaica Blue Mountain Coffee. Alongside coffee, Jamaica Blue offers various dishes including wraps, bagels, cakes, and all-day brunch options. Manchester Arndale is one of the UK’s largest shopping centres and sees over 42 million customers a year on average. Scott Linard, portfolio director at M&G Real Estate, said: “It is great to welcome such an innovative and fast-growing chain like Jamaica Blue to Manchester Arndale. We place great importance in providing a strong food and beverage offer at Manchester Arndale and we want to ensure we provide the best choices for our shoppers and visitors. It is also pleasing that this letting to Jamaica Blue comes off the back of several exciting new food and drink arrivals at the...

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Knight Frank appoints Oliver Green as Partner

3rd November 2022

Knight Frank has expanded its Central London Retail team with the appointment of Oliver Green as Partner. Green, who has over 15 years’ experience in the Central London retail sector, joins Knight Frank from Savills where he was a Director in the Retail team and advised on a number of leading retail and lifestyle destinations. Green has also advised a number of UK leisure and F&B brands on their London and UK portfolios, including Itsu and Le Pain Quotidien. The appointment continues the expansion of Knight Frank’s Central London Retail Agency team, following the arrival of Rob Hargreaves, specialist in brand representation, as Partner in 2021. Knight Frank Central London Retail team is working on some of London’s most exciting developments including the Old War Office, Knightsbridge Gate, due for completion in 2023. Josh Braid, Partner, Central London Retail, at Knight Frank said: “We are delighted to welcome Oliver to our growing Central London retail and Leisure team. He has a wealth of experience and impressive track record working with developers and investors on some of London’s most iconic retail properties. “With Central London retail constantly evolving our clients require us to be at the forefront of change in order...

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Tesco expands hybrid model trials with its newest GetGo store

2nd November 2022

Tesco has opened its newest GetGo store on Chiswell Street, Central London, the first of which opened in London’s High Holborn in October 2021. The new hybrid format allows customers to shop and pay without scanning a product or checking out, whilst also retaining the option of using a self-service or traditional attended checkout. According to Tesco, it takes the typical customer at the store three minutes to do their shopping using the GetGo option via the Tesco app. Through a collaboration with Trigo, cameras and weight sensors recognise the items that customers have picked up and charge them for the items as soon as they leave the store. New sites in London’s Fulham and at Aston University in Birmingham will follow over the next few months. The aim of the expansion is to test the new format in a number of different areas. Managing director for Tesco Convenience, Kevin Tindall, said: “We are excited to expand our trial of GetGo and to see what customers think about our new hybrid model, which offers them different options for seamless shopping. Whether customers choose the checkout-free option or prefer to use a checkout, we want to make the shopping trip as quick...

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Next reports improved sales

2nd November 2022

After full price sales in Q3 came in slightly ahead of projections, fashion giant Next has been able to maintain its annual profit guidance. The fashion and homeware company reported that full price sales increased 0.4% from last year in the 13 weeks leading up to October 29. Additionally, sales have climbed by 1.4% over the past five weeks thanks to a particularly strong week of business at the end of September, when cooler temperatures led to a rise in the purchase of cold-weather apparel. Sales in Next’s high street locations increased by 3.1% during the 13 weeks. However, online sales did not show the same improvement, decreasing by 1.9% in the same period. The performance has led Next to reaffirm its forecast for a full-year pre-tax profit of £840 million, a 2.1% rise over the previous year.

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Data shows £3.7 billion of space goes unused

2nd November 2022

Research by Real Business Rescue showing the most cost-effective places to rent retail space has revealed that UK vacancies remain above pre-Covid levels. According to the data, the UK currently has over 150 million square feet of unused retail space. At an average annual price of £24.48 per square foot, this leaves £3.7b of spare space. Perhaps unsurprisingly to many, London remains the most expensive place to rent at £49.64 (all prices are per sq ft. per year), with Kensington and Chelsea the most expensive borough at £86.15, higher than the national average by 252%. Interestingly, Blackpool is the cheapest place in the UK to rent retail space at £12.45, despite being second in its footfall recovery score. That is, how fast footfall in the area has recovered to pre-pandemic levels. Blackpool saw a record boom in visitors following the pandemic in 2021. Plymouth had the highest footfall recovery score, with an average rent price of £20.08 per sq ft. per year. London had the worst footfall recovery score, alongside being the most expensive place to rent. The report suggests that businesses in London may not be getting complete value for the premium prices they pay on rent. Shaun Barton,...

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Retailers still suffering since Covid, data shows

2nd November 2022

Data published by the Office for National Statistics (ONS) on Monday shows that the retail industry is still falling short of pre-Covid levels. “High contact” industries, such as shops and restaurants, have recovered at a slower rate than previously expected. It was previously estimated that these “high contact” industries would recover to pre-pandemic levels by the second quarter (April to June) 2022, however their output is still below the levels seen in the final quarter of 2019. The Coronavirus lockdowns seeing many businesses forced to close and restrictions when they could reopen had a huge impact on the sector. Household spending on “social consumption”, that is, spending on recreation and culture, restaurants and hotels, was also reduced, although the effect this has had was closer to what was expected. Other research by the ONS showed that while personal wellbeing rose in the year to March 2022, satisfaction levels were still lower than 2019 levels, which may contribute to consumer spending habits. The War in Ukraine and uncertainty surrounding the UK’s exit from the EU are other factors which have also had an effect on the economy within the last three years, suggesting that Coronavirus may not be the only factor...

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Peter de Savary, entrepreneur and hotelier, dies aged 78

2nd November 2022

Entrepreneur Peter de Savary passed away on Sunday (30 October), at the age of 78, following a remarkable career that spanned six decades and four continents. De Savary made his first fortune after establishing an import/export business in Nigeria and would go on to pursue a number of other enterprises before turning his hand to hospitality. He opened the first St James’s Club in London in 1979, noticing a gap in the market for small, personal hotels and built up the worldwide chain with venues in Antigua, Paris, Los Angeles, and New York. He sold the chain in the late 1980s for more than £56.6m and set about restoring Skibo Castle in Scotland. This became the first Carnegie Club property when it reopened in 1995 after a five-year revamp, and was sold eight years later to a group of members for £27m. De Savary was also responsible for the regeneration of industrial land in the US and UK. His vision created more than 60 hotels, resorts and hospitality projects, including seven championship golf courses and three world-class marinas. The Havana West portfolio of boutique hotels he created and ran with his wide Lana, include the Beachcroft hotel in Bognor Regis,...

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OutPost launches at Lendlease’s IQL Stratford

2nd November 2022

East London bar OutPost has launched at Lendlease’s International Quarter London (IQL), following the success of its sister site, White Post, in Hackney. The new OutPost location serves as a flexible, multi-purpose creative space. Following in the footsteps of its sister site, OutPost is a community-led bar, that also operates as a venue for meetings, pre and post-event gatherings and workshops. The bar serves an extensive range of local and international beers, a comprehensive wine and cocktail menu, and a selection of artisan stone baked pizzas. Guy Thomas, Head of Place Assets at Lendlease Europe, comments: “IQL is one of the most exciting hubs for forward-thinking businesses in the UK and has been designed as a destination for collaboration, creativity, and innovation. Adding to the local operators we have brought to the IQL estate and with its community-focused and multi-purpose approach, OutPost is a great asset for IQL and Stratford, reflecting post-pandemic consumer priorities of flexibility and connectivity delivering a bar that will be the enhance the social scene.” Dan Heath, found of Outpost, comments: “Unrivalled in connectivity and with community front of mind, IQL Stratford has so much to offer an independent business such as OutPost. We are excited...

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Jobs at risk as 132 “loss-making” McColl’s stores to close

2nd November 2022

Supermarket chain Morrisons has said it plans to close 132 McColl’s convenience stores, putting 1,300 jobs at risk. Morrisons said the stores set to close were “loss-making” and had “no realistic prospect” of recovering soon. The grocer purchased McColl’s out of administration in May. McColl’s currently has 1,164 stores, with 286 operating under the Morrisons Daily brand. The supermarket chain now plans to convert most of its remaining McColl’s shops into Morrisons Daily convenience stores. Redundant workers will be offered jobs elsewhere within the company, says Morrisons. Out of the closing stores, 55 have a Post Office counter. Morrisons said it would delay the closure of these stores until after Christmas “to allow the Post Office additional time to make alternative arrangements.” After competition regulators cleared Morrisons to buy McColl’s last week, Morrisons chief executive David Potts said the retailer “was now able to begin the urgent journey to transform McColl’s into a viable, well-invested and growing operation”. He added that there would be more than 1,000 Morrisons Daily stores trading within two years. Joseph Sutton, director of Morrisons wholesale, said: “We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step...

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Vertu Motors acquires two BMW outlets

1st November 2022

UK automotive retailer Vertu Motors has announced the acquisition of two BMW Motorrad outlets in Yorkshire. The two outlets in Rotherham and Shipley, near Bradford will become part of the retailer’s motorcycle division. BMW Motorrads is the motorcycle brand of BMW (‘Motorrad’ meaning ‘motorcycle’ in German), and the two shops will immediately trade under the Vertu Brand after being acquired from Saltaire Motor Company Ltd, which trades as Alan Jefferies. Established in 2006, Vertu Motors aims to ‘consolidate the UK motor retail sector’ and operates 160 sales outlets, including one Motorrad outlet in Sunderland which it acquired in 2020. Robert Forrester, CEO of Vertu Motors, said: “Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically to the Group. Vertu becomes the largest partner in the UK for BMW Motorrad.” Paulo Alves, Head of BMW Motorrad UK and Ireland, added: “We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu. The Jefferies family have built a fantastic operation and we are confident that the business will be in good hands. As a leading brand, our customers take priority and we share this...

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Made.com close to administration as shares suspended

1st November 2022

Online furniture retailer Made.com has filed a notice of intention to appoint administrators as the Financial Conduct Authority suspends the trading of sales in the company. This comes after the company announced that it had failed to find a buyer last week. The online retailer ceased taking new orders last Wednesday (26th October) after its stock prices plummeted. Made.com was founded in 2011 and describes itself as the ‘leading digitally native lifestyle brand in home, connecting designers and makers to customers through technology.’ The retailer saw 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. In a statement this morning, Made.com Design Ltd (MDL) said that it had ‘received proposals from interested parties to acquire certain of or substantially all of MDL’s trade, assets and brands’, however it added that at this point any sale at this stage would be ‘affected by administrators.’ It also added that the board expected the company to be ‘wound up’, that is, shutting down...

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Ocado enters South Korea through deal with Lotte Shopping

1st November 2022

Ocado has broken into the South Korean market by signing a deal with Lotte Shopping, part of Lotte Group, to develop their business using the Ocado Smart Platform. Ocado and Lotte will create a network of customer fulfilment centres (CFC) while Ocado rolls out its in-store fulfilment solutions across Lotte’s enterprise. Ocado says it plans to implement its in-store fulfilment solution in 2024, with the first of six CFCs due to go live in 2025. Lotte Group is one of the largest conglomerates in South Korea with an annual revenue of £45 billion. Lotte Shopping operates more than 1000 department stores, hypermarkets, supermarkets and ecommerce sites across the country, bringing in an annual revenue of £9.5 billion. Kim Sang-hyun, CEO of Lotte Shopping, commented: “This partnership with Ocado, one of the most innovative companies worldwide, will be a great opportunity for Lotte Shopping to provide our customers with a new online grocery shopping experience. “Also, I expect this will be the first step for us on the way not only to increasing our competitiveness and presence in the e-grocery market, but also to achieving the leading position in the overall grocery market in Korea.” The partnership will give Ocado another...

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