Posts from December 2022

Sales in the run-up to Christmas saw an unexpected rise, but this momentum is not expected to continue in the new year. The latest Distributive Sales Study from the Confederation of British Industry (CBI) reported that sales balance rose to +11 in December, well above predicted readings of -24. The sales balance is the weighted difference between the percentage of retailers who report an increase against those who report a decrease. However, the CBI said that this increase is unlikely to last. Martin Sartorius, principal economist at the CBI, said: “It’s encouraging to see retail sales surprise by growing this month, but any festive cheer is expected to be short-lived. Retailers are bracing themselves for the chill winds that will blow through the sector this winter, with consumer spending set to be hit hard by high inflation in 2023. “The decision by the UK Government to freeze business rates from April provides some welcome relief to the retail sector. However, retailers also need to see long-term sustainable growth measures from the Government to encourage investment and address ongoing labour shortages.”

News

River Island boss makes comeback after 12 years

Fashion retailer River Island has announced the return of Richard Bradbury as chief executive. Bradbury will succeed Will Kernan in January, who stepped down in November after three years at the retailer. He returns after leaving the company in 2012, having worked 20 years at River Island. He was the first person the run the business outside of the founding Lewis family. Clive Lewis, who is stepping down as chair, notified staff today: “I am pleased to announce that, with effect from January 1, Richard Bradbury will rejoin the business as executive chair with full responsibilities for leadership of the business. “I will continue as a non-executive director and will work closely with Richard as will the rest of the board”

News

UK economy shrinks more than predicted

The UK economy has shrunk at a rate higher than expected, according to figures from the Office for National Statistics. UK GDP is estimated to have fallen by 0.3% in the third quarter (July to September) of 2022, revised from an initial downward estimate of 0.2%. ONS figures also revealed a level of GDP in the third quarter estimated to be 0.8% below pre-Pandemic levels, downwardly revised from the previous figure of 0.4% below. Real households’ disposable income (RHDI) fell by 0.5% this quarter, a fourth consecutive period of negative growth. The economy has been hard-hit by rising inflation and soaring energy bills, partly as a result from the war in Ukraine, leading to lower consumer spending and reduced amounts of borrowing. As a result, lower consumer confidence has led to poor sales periods for many businesses. While the services sector grew by 0.1%, the production and construction sectors saw falls of 2.5% and 0.2% respectively.

Insights News

Gymfinity Kids seeking new locations

Founded by the team who started PureGym, Gymfinity Kids offers weekly gymnastics and Ninja classes for children – and is now looking for new locations. The kids’ activity club also offers holiday camps, birthday parties, and classes for children of pre-school ages. Gymfinity Kids already trades from eight units with one under development in Walton-on-Thames. The group is looking for immediate and pipeline timing and will pay 10% of the first year’s rent upon completion. Requirements The ideal site will need to have: Locations: Contact: Will Roberts: will@gymfinitykids.com / 07949 029613Selina Shackleton: selina@gymfinitykids.com / 01677 479199

Requirements

ASOS appoints Google executive director

Online fashion retailer ASOS has announced the appointment of Marie Gulin-Merle as a non-executive director. Gulin-Merle has over 20 years marketing and digital transformation experience, working in beauty, technology and fashion, and will join the board in February serving on the remuneration committee, amongst others. She is currently employed as Google’s global vice president of ads marketing in New York, leading all marketing for Google’s advertising business. Gulin-Merle has previously held roles including chief marketing officer of Calvin Klein, chief digital officer of PVH and group chief marketing officer of L’Oreal USA. Jørgen Lindemann, ASOS chairman, said: “Marie joins us with a depth of relevant industry knowledge across international ecommerce, marketing, beauty and brands. The Board will greatly benefit from Marie’s expertise”. This comes a week after ASOS appointed Wei Gao in a similar role.

News

Made.com poised for liquidation

The board of online Made.com has recommended that the struggling fashion retailer be placed into voluntary liquidation. MADE was purchased by Next in November after falling into administration. Members Voluntary Liquidation is a process in which a solvent company can choose to wind up its assets, in contrast to insolvent liquidations which leave debts unpaid. The retailer’s board said that the process will enable liquidators to realise the company’s remaining assets and to save any ongoing costs with any residual value distributed to shareholders. 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. The retailer fell into administration after failing to find a buyer, and

News

Plans submitted for regeneration of Reading scheme

Hammerson has submitted a planning application for the regeneration of The Oracle in Reading. The proposal includes plans for 449 rental apartments and 94,000 sq ft of retail, entertainment, and working space. The plans would transform the eastern quarter of the mixed-use scheme as owner Hammerson looks to “evolve and future-proof” The Oracle. Hammerson worked with local stakeholders and Reading Borough Council, and the application follows a public consultation with detailed feedback from over 100 respondents incorporated into the proposal. Hammerson said the development will offer a range of much needed new homes to rent for Reading’s growing population, as well as flexible workspace, entertainment, and leisure spaces including a new cinema. Harry Badham, chief development & asset repositioning officer at Hammerson, said: “These proposals are designed to reinvigorate and reposition The Oracle by introducing sustainable new homes for rent, as well as incorporating new typologies and configurations of commercial space that will provide opportunities for new styles and types of retail, hospitality, services and amenities to enhance the customer experience.”

News

Watch: Predictions for the retail market in 2023

As the year draws to a close, many retailers are occupied with the busy festive period, and with businesses and consumers under immense pressures this year, some will be looking forward to the new year already. With less than half of Brits feeling positive heading into 2023, we spoke to Georgie Brooks, Matt McCue, Rachel Belam, Matt Illingworth, Ronald Nyakairu, and Robert Wingrave at Completely Retail Marketplace to ask them their predictions for the next year. Matt McCue, director at Savills, said that any changes in the New Year would “be an evolution, rather than a short, sharp shock”. “When you look at the market at the moment, I think we started the year at a vacancy rate of 6.1%, we’re down to 5.5%, and Savills research are talking about a vacancy rate of 4.4% by the end of the year, which is an all time low”, he added. Georgie Brooks, director at Curson Sowerby Partners, observed that the blending of uses in retail parks was becoming increasingly widespread, with more drive-throughs opening, as well as leisure units such as gyms joining retail parks and expects to see this continue. When asked about the brands to look out for in...

Insights News

Goldsmiths expands in Solihull

Luxury watch and jewellery retailer Goldsmiths has upsized its presence at Touchwood Shopping Centre in Solihull. Leaving behind its older unit, Goldsmiths has opened a new 3,550 sq ft store on a 10-year lease within the scheme. The retailer’s parent group, The Watches of Switzerland Group, is also behind the opening of a TAG Heuer store at Touchwood earlier this year. Goldsmith’s expansion comes after a period of strong trading at the shopping centre, with the move in line with the scheme’s wider strategy. Touchwood owner Ardent, alongside asset manager Sovereign Centros, has developed the strategy which aims to diversify the scheme’s offer and attract premium brands, with other recent arrivals including Polestar and Miele. In the first year after Ardent acquired the scheme in summer 2021, some 75,500 sq ft of new lettings and lease renewals were signed, pushing the occupancy rate up to 96.32%, compared to 91.2% at acquisition. Simon Phipps, asset manager at Sovereign Centros, said: “It is always pleasing to see an existing retailer choose to expand its footprint, as Goldsmiths has done, as it both reflects the store’s trading success to date and vindicates the wider strategy being pursued.”

Deals News

Pubs cutting opening hours to stay afloat

Some pubs across the country are closing early in an attempt to stay ahead of rising bills. In a survey from the British Beer and Pub association (BBPA), seen by the BBC, it was revealed that the majority of pubs are thinking of cutting down trading hours in the winter. Energy bills and staff shortages are the biggest problems facing pub landlords this festive season. In November the Office for National Statistics found that a fifth of hospitality businesses had reduced their opening hours, The Barn Pub, in Rugby, has been forced to reduce its hours, despite having closed from April to September due to staff shortages. Energy bills at the family-ran pub have risen from £2,000 to £8,000 per month. Other costs such as food have also risen. 86% of UK pubs are considering cutting opening hours over the winter, a survey of nearly 4,500 pubs by the BBPA found. The survey suggested that a similar number (85%) are thinking of closing for one or two days a week. BBC analysis found that 331 food service firms announced that they were insolvent in November. Since 2020, 6,293 hospitality firms have started insolvency proceedings.

News

Boxing Day launch for Colchester Furniture Village

Furniture Village is set to open a new store in Colchester on Boxing Day. The 17,800 sq ft store at Stane Retail Park will be the retailer’s 55th in the UK. Customers will be able to explore furniture and accessory ranges for every room while exclusive pieces from Harrison Spinks, Ercol, and Parker Knoll. Charlie Harrison, commercial director at Furniture Village, said: “Colchester’s Stane Retail Park is a fantastic shopping destination and the perfect choice for our 55th store.” “We’ve created nine new jobs within the sales consultant’s team and can’t wait to welcome customers, new and old, to the new store”, he added. Other retailers at Stane Retail Park include M&S, Mountain Warehouse, Superdrug, Cook, Aldi and B&Q.

Deals

Pets at Home appoints ex-Asda boss to board

Pets at Home has appointed Roger Burnley CBE as an independent non-executive director, effective from February 2023. Burnley will be appointed as a member of the Audit and Risk Committee, Remuneration Committee, Nomination and Corporate Governance Committee and the ESG Committee. He has previously worked as an executive director at Sainsbury’s for 10 years before moving to Asda as Chief Operating Officer in 2016. Burnley was then appointed as CEO in 2017 before leaving the supermarket retailer in 2021. In 2022, Burnley took the position of non-executive chairman at Irish food manufacturer Finnbrogue Artisan. Ian Burke, chairman at Pets at Home, said: “Roger has deep knowledge of the retail sector and food supply chains and his experience will be of great value to Pets at Home as it embarks on the next stage of its ambitious strategic plan.” In other changes at Pets at Home, the current chair of the Remuneration Committee Sharon Flood and non-executive director Stanislas Laurent have notified the board of their intention to step down. Meanwhile, Dennis Millard, who has served as senior independent director for nine years, will stand down but will remain as a director for a further year. Zarin Patel will be appointed...

News

Majority of Brits think supporting independents is important this Christmas

Nearly three quarters of Brits believe it is important to support independent retailers in the run up to Christmas, according to findings from Direct Line business insurance. As the cost-of-living crisis has squeezed budgets this last year, over two thirds (67%) said it was particularly important to support local businesses. Over half (57%) of the 2,000 adults surveyed said they will shop at independent stores because they believe they offer less generic and more unique items than major chains, while 46% said the quality of goods on offer from independents is higher. Over two-thirds (68%) said shopping independently was important to boosting local employment while 60% said they offered better customer service. However, people will continue to purchase presents from a variety of stores: On average, purchases at independent retailers will only make up around a quarter (27%) of people’s Christmas shopping, and the average spend at independent retailers is expected to be around £164. Overall, the cost-of-living crisis is having a wide impact on peoples’ festive spending habits as a whole. A third (33%) of people are buying fewer gifts this year, while 27% said they were buying for fewer people. Nearly a quarter (23%) looked to spread the...

Insights News

Matalan founder John Hargreaves in last-ditch attempt to retain control

Matalan founder John Hargreaves is among four bidders who have placed a bid to take control of the fashion retailer, after the business was put up for sale in September. Hargreaves, who recently stepped down from the board, has teamed up with private equity firm Elliott Advisors in a 50-50 bid for the retailer, The Sunday Times reported. Hargreaves, who founded Matalan in 1985, would see his bid inject capital into the business, which employs 13,000 people across 230 stores in the UK. Other interested parties are reported to be Matalan’s lenders, as well as Alteri and OpCapita. The lenders that forced the sale process and are now bidding to take control of the chain includes Invesco, Tresidor Investment Management and Man GLG, part of investment firm Man Group. Matalan has faced debts of over £500m and has faced pressure in recent months after credit insurers gradually removed cover for suppliers to the retailer. The company has said that it expects to make underlying earnings of £30m this year, reaching £114m by 2026.

News

Skechers goes up a size at Caledonia Park

Railpen has announced that footwear brand Skechers has upsized by 1000 sq ft at Caledonia Park, Gretna. Skechers’ larger, 3,300 sq ft store will feature a larger and more diversified product lineup, with apparel and accessories on sale as well as footwear. The footwear brand will sit alongside a number of household names following Caledonia Park’s £10m refurbishment, including POLO Ralph Lauren, Nike, adidas, BOSS, Kate Spade New York, Radley, Superdry and Levi’s. This news follows the recent signings of Starbucks and Burger King to Caledonia Park, set to open in early 2023, as well as the arrival of Cornish Bakery in September. Maria Averkina, asset and development manager at Railpen, said: “The upsize of Skechers demonstrates that leading names in the industry are enjoying continual success at Caledonia Park, and are choosing to be bigger and better, while understanding the significance of outlets to consumers who are seeking the ideal combination of variety, value and experience.” Johnstone Property Consultants and Time Retail Partners acted for Caledonia Park. Eastman Surveyors acted for Skechers.

Deals News

M&S to take old Debenhams unit at Liverpool ONE

Grosvenor has announced the signing of Marks and Spencer to Liverpool ONE, anchoring South John Street in two floors of the former Debenhams unit. The 100,000 sq ft store is set to open in mid-2023 and will see the retailer relocate from Church Street in Liverpool. M&S’s Liverpool ONE investment is part of the retailer’s national store rotation programme, as it says it is aiming to create an M&S store estate fit for the future with high quality space across the UK. The new M&S will feature a food hall, clothing, and home departments, as well as a café, dedicated coffee-to-go section, in-store bakery, food-to-go aisle, and a selection of fresh fruit and vegetables. This news sees the remainder of the former Debenhams unit now in use, following the announcement that Gravity Active Entertainment will be creating a £10m entertainment experience on the remaining 100,000 sq ft in the upper two floors. Alison Clegg, managing director, asset management, Grosvenor, commented: “The signing of M&S at Liverpool ONE is a great reflection of Grosvenor’s strategy of marrying the needs and wants of consumers to those of leading brands. M&S is seeking modern space that allows it to deliver an enhanced experience...

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Lane7 strikes deal at the Bullring