Posts from December 2022

ICG Real Estate has today announced its acquisition of seven Morrisons logistics centres. In a deal reportedly worth £220m, each property will be leased back to the supermarket retailer for a term of up to 25 years. Morrisons has cut back on its property portfolio this year to save costs, having put five stores on sale in October and announcing the closure of 132 of its McColl’s convenience stores last month. Despite the sale, Jo Goff, chief financial officer of Morrisons, was optimistic about the business’s future: “The acquisition of McColl’s earlier this year gave us a leading position in the UK convenience market and next year we plan to open a further five supermarkets across the UK, and to invest further in our manufacturing operations.” Chris Nichols, managing director and portfolio manager at ICG Sale and Leaseback, added: “This transaction is an excellent example of how Sale and Leaseback investing can serve as an alternate form of financing.” ICG was advised on the transaction by CBRE, Ashurst & Hogan Lovells. Morrisons was advised by Knight Frank and Eversheds.

Deals News

InPost is looking for locations to deliver new self-service lockers

InPost is currently looking for new destinations to locate its self-service out of home parcel lockers. The lockers allow shoppers to pick up and drop off parcels in seconds when it suits them. By offering a convenient service you can attract additional footfall and increase spending to your businesses. Parcel lockers are a footfall magnet, bringing new and different types of customers to local amenities. InPost works with many nationally recognised brands and marketplaces such as Vinted, JD Group, BooHoo Group, eBay and Missguided. The services extend to all types of destination where consumers shop, play, live and work. Requirements The ideal site will need to have: Prime locations: Contact: Diane Whalley: dwhalley@inpost.co.uk

Requirements

Primark lines up ten openings by Christmas

Primark says it will open ten new stores by Christmas, as it aims to hit its target of opening 27 new stores this financial year. The fashion retailer today opened a new shop in Angers, France. In its parent group’s trading update, Associated British Foods (ABF) said its outlook for the full year is unchanged. ABF chairman Michael McLintock said the group expects further significant input cost inflation, however the volatility of its input costs has diminished. He added that ABF expects the aggregate profit of its food businesses to be ahead of the last financial year. While ABF expects a growth in sales, McLintock added that it anticipates a lower adjusted operating profit for the financial year.

News

European automotive giant pulls out of UK takeover

Swedish automotive retail group Hedin has today announced it is pulling out of a £400m deal to take over the UK-based Pendragon. Pendragon, who trade through 160 sites in the UK and represent 21 different vehicle manufacturers, said in September that they had received an unsolicited offer from Hedin to purchase their entire share capital. Today however, the Swedish group said in a statement: “Given the challenging market conditions and uncertain economic outlook, Hedin confirms that it does not intend to make an offer for Pendragon.” In response, Pendragon said it remained confident about its long-term prospects: “This process has highlighted the value of Pendragon and the Board will continue to explore opportunities to maximise value for its shareholders.” “The economic backdrop remains challenging, however the Board continues to expect to deliver group underlying profit before tax in line with expectations for the current financial year”, it added. Following Hedin’s announcement, Pendragon says it is now no longer in an offer period.

News

Tessuti makes Northern Ireland debut

Tessuti has launched its first store in Ireland at Victoria Square in Belfast. Part of the JD Sports Group, the fashion retailer has launched a 12,900 sq ft unit in the William Street entrance to Victoria Square. The store will feature designer brands including POLO Ralph Lauren, Billionaire Boys Club, Parajumpers, Versace Jeans Couture, Moose Knuckles, Sandbanks, and Emporio Armani. The news follows a solid third quarter at the 694,000 sq ft Victoria Square, with sales up 20% against the same period in 2019. The destination has secured over 85,000 sq ft of signings, openings and regears within the last six months. Victoria Square is home to over 80 UK and international retail brands including Frasers, Apple, Superdry, Michael Kors, Mango, H&M, Urban Outfitters, Hollister, Pull & Bear and Tommy Hilfiger. Chris Rowan, director of brand & customer connection at Tessuti, said: “The destination has provided us with a prime central location in the heart of Belfast, and it is great to have launched in time for the festive period.” Lambert Smith Hampton and Savills are joint agents for Victoria Square. Victoria Square is managed by the Lambert Smith Hampton’s Belfast office. Harrods Estates represented Tessuti on the deal.

Deals

Frasers Group poised to buy retail park

Frasers Group is poised to purchase the Almondvale West Retail Park in Livingston, Completely Retail News has learned. No financial details have been released, however the 111,000 sq ft retail park was put on the market in May, with a price tag of £19m. The retail park is located in Livingston’s town centre with easy access from the M8 and M9 motorways, and features a 50,000 sq ft Next and 30,000 sq ft TK Maxx Homesense. The site has open Class 1 non-food planning consent with 444 on site parking spaces and close accessibility to 7,000 town centre spaces. The news follows a busy 2022 for Frasers Group, whose string of acquisitions have seen the company record a boost in profits for the first half of the year. Frasers Group have been contacted for comment.

News

Naked Wolfe makes physical debut

Footwear retailer Naked Wolfe has opened its first store on New Bond Street. This is the business’s first foray into physical retail, having already had its footwear stocked by the likes of Selfridges, Harrods, and Browns, amongst others. The Naked Wolfe Concept was originally developed in Hong Kong before opening offices in London and Los Angeles. The retailer is famous for its “Spice” platform boots and has amassed over 1.2 million followers in the last five years. It was recently in the spotlight as its platform sneakers were worn by the title character in Netflix’s Wednesday. Creative director Bronte Mance said: “We saw an opportunity to offer a new aesthetic to designer footwear that differed from traditional fashion houses. This retail space marks a huge moment in Naked Wolfe’s history.”

Deals

Over a third of consumers have no money left at the end of the month

Data from auditing and consulting service RSM has revealed that 37% of consumers have no money to spend at the end of the month. Customers’ budgets are taking a direct hit this Christmastime, with average spending down 16% from £554 last year to £463. The survey revealed that half of the 1,000 people surveyed would spend less on socialising this festive period. Within the last three months, 45% of those surveyed said they had cut back on energy usage, 41% said they had eaten out less, and 34% had reduced the amount of takeaways they ordered. 83% said they were ‘very’ or ‘quite concerned’ about the cost-of-living crisis. 49% expected to spend less on clothing during the festive period, while toys, presents and stocking fillers will also take a hit with consumers planning to reduce their spending on them by 43%, 42% and 40% respectively. Paul Newman, head of leisure and hospitality at RSM UK, said: “The festive trading period is when most hospitality businesses make the majority of their profits for the whole calendar year. With last year’s festivities severely impacted by Omicron, 2022 needs to deliver if the sector is to avoid a grim start to 2023 with a...

Insights

Vertu Motors acquires another dealership

Automotive retail group Vertu has announced the acquisition of Helston Garages for £120.1m, subject to approval. Vertu has acquired 28 outlets from Helston Garages, adding to their current portfolio of 160 franchised sales outlets. Vertu acquired two BMW Motorrad outlets in November. Helston Garages was founded in 1960 and operates 40 dealerships throughout Cornwall, Devon, Dorset, and Somerset. Vertu says the deal will help strengthen existing relationships with manufacturers such as BMW, MINI, Stellantis and Jaguar Land Rover, and will also see the group welcome Ferrari and Volvo to their manufacturers portfolio. Vertu says that Heltson Garages has a freehold rich and well invested property portfolio. It added that the acquisition of Helston is a continuation of its long-term strategy to drive scale, expand into new and attractive regions and introduce new Manufacturer Partners. Following the acquisition, Vertu will have 32 sales outlets in the South West, up from four. Robert Forrester, chief executive officer of Vertu Motors, said: “The acquisition will be both financially and strategically accretive for Vertu Motors, delivering long term value creation for our shareholders. We now have 32 dealerships in the South West, which becomes a core region.” “While there is uncertainty in the UK economy...

Deals News

M&S sparks deal with electric charging business

Electric charging company bp pulse has struck a deal to bring electric vehicle (EV) charging points to 70 M&S stores. M&S is already piloting the system at two stores in Maidstone and Southgate, with an ambition to install up to 900 EV charging points, providing up to 40,000 kWhs of charging capacity, within the next two years. bp pulse, a subsidiary of British Petroleum, says it plans to invest up to £1bn in UK EV charging infrastructure by 2030. bp originally began its EV charging venture with the acquisition of Chargemaster in 2018, which was rebranded to bp pulse. A combination of ultra-fast (≥150kW) and rapid (≥50kW) charging points will be installed during the roll-out. bp and M&S’ relationship goes back to 2005, when they first introduced M&S Food stores at bp retail sites. Over 250 bp pulse charge points are available at over 60 bp-operated forecourts which also offer M&S Food. Sacha Berendiji, director of operations at M&S, said: “EV charging is the latest feature to ensure we have a store estate fit for the future, to help our customers live lower carbon lives. We know that services like EV charging are in demand from our customers”.

News

Frasers Group boosted by acquisitions

Frasers Group has announced a profit after tax of £219.6m for the first half of the 2022 financial year, an increase from £143.7m from the year before. Frasers group saw an increase in revenue from £2.6bn, up from the £2.3bn it saw in the first half of 2021. In its interim results, the group accredited much of its success to the acquisitions it has made this year. A busy 2022 for the group, who operate House of Fraser, Sports Direct and GAME, has seen them take control of Missguided, I saw It First, Amara, and Gieves & Hawkes, amongst other acquisitions. The group also acquired the Coventry Building Society Arena for £17m. Increased sports retail revenue, the opening of new FLANNELS stores, and increased international sales were other factors in the group’s success. Fraser’s group is targeting between £450m and £500m profit before tax for this financial year. David Daly, non-executive chair of Frasers Group, said: “We have delivered a strong performance during the period, despite the challenging backdrop of heightened economic uncertainty in the UK, soaring energy costs, rapidly rising inflation, a widespread cost of living crisis and continued geopolitical instability. Whilst post pandemic issues with the global supply...

News

Christmas train strikes to knock retail footfall

Retail footfall is expected to take a substantial hit over Christmas due to train strikes. The news has been described an “enormous blow to the West End” by retailers who will now miss out on one of the busiest shopping periods. RMT union strikes led by Mick Lynch are scheduled from 6pm on Christmas Eve until 6am on 27 December. Strikes are also scheduled for the 16 and 17 December. New West End Company CEO, Dee Corsi said: “to cause such disruption during the single busiest trading period for the high street will be a crushing disappointment not only to the business owners looking to continue their recovery, but also those working in retail and hospitality who will now struggle to get to work.” Springboard recently reported that footfall was down 11.2% in November compared to pre-pandemic levels and were concerned about how a ‘muted’ Christmas period would affect retailers still in recovery.

Insights News

Plans unveiled for Dublin mixed-use campus

Irish Prime Minister Michaél Martin has unveiled proposals for the Sport Ireland Campus, which will feature athlete accommodation, workplaces, cultural buildings and new sports facilities. The site is located to the north west of Dublin in Abbotstown and is currently home to 23 governing bodies of sport in Ireland, as well as the Sport Ireland Institute, Football Association of Ireland, Gaelic Athletic Association Development Centre, and the Irish Sports headquarters. The development of the campus is expected to begin in the third quarter of 2023 costing an estimated €60m (£51m), funding will be delivered on an annual basis through sports capital and budgetary funding. The submission of plans for the National Velodrome and Badminton Arena mark the first steps in the development of the campus. The development will be 19.6m tall at its highest point and feature Ireland’s first indoor velodrome track and 12 badminton courts. In addition, changing rooms, medical and emergency rooms, office areas, and a further section dedicated to strength and conditioning will be constructed. A plaza section will be constructed outside the scheme and parking will be available on site.

News

The Fragrance Shop targeting 30 new stores in 2023

The Fragrance Shop says it is targeting 30 new stores in 2023, as it announced the relocation of its headquarters. The perfume retailer are relocating to a new 200,000 sq ft logistics centre and offices in Trafford Park, Manchester in January. The new centre will feature robotic packing facilities to aid the retailer’s online business which now offers a subscription service. This follows the opening of new store in The Trafford Centre, as well as other openings in Chester, York, and Salisbury.

News

The Body Shop global retail boss steps down

Global retail director Lisa Campbell has stepped down from her position at The Body Shop. It is believed that Campbell stepped down in November despite being promoted to her role as retail director in January, Retail Week reported. Campbell joined the beauty retailer as retail director in 2014 and became managing director for the UK and Ireland in 2017. Before her time at The Body Shop, she was commercial director at Planet Organic for four years and retail director at Space NK. The Body Shop has struggled to recover since its sales fell during the pandemic. Management is applying measures to generate demand and will be rolling out a new Workshop store format to drive sales.

News

BOSS upsizes at Liverpool ONE

Grosvenor has announced that German fashion brand BOSS will be relocating to a larger store at Liverpool ONE. The new 13,500 sq ft space on Paradise Street marks a 130% upsize in trading area for the retailer. The upsized space is set to open in early 2023, alongside Tessuti’s new flagship on Paradise Street. The new Liverpool ONE store will stock BOSS’ menswear and womenswear collections and the announcement follows the retailer’s record-breaking quarter and subsequent raising of its full-year outlook. Liverpool ONE has had a busy year for retail brands, with Tessuti, Russell & Bromley, and beauty brand Charlotte Tilbury all joining the destination. Rob Deacon, senior asset manager at Grosvenor, said: “Securing the relocation and upsize of BOSS at Liverpool ONE is a key moment for us, particularly as it evidences yet more commitment to the destination from a premium, international brand.” Liverpool ONE is a 1.65m sq ft open-air destination in the city centre managed by Grosvenor, whose activities include urban property, food and agriculture technology, rural estate management and support for philanthropic activities.

Deals News

Waypoint snaps up Whitehaven retail park

Real estate management firm Waypoint Essential Stores (WESLP) has completed the purchase of Bridges Retail Park in Whitehaven. The 43,000 sq ft unit is located next to a Morrisons supermarket and petrol station in close proximity to the other retail warehouse provision in the town. The retail park is currently let to B&M, McDonald’s, Carpetright, Shoe Zone and Greggs. WESLP were advised by Mason Partners, while Avison Young advised the vendor Columbia Threadneedle.

Deals News

Fenwick sells Bond Street store after 130 years

Department store Fenwick has sold its home on New Bond Street after over 130 years. The group confirmed that it had sold the property to Lazari Investments for an undisclosed fee. Agents believe the dealt to be worth about £430m. The store will remain open until early 2024. Fenwick is a family-owned business which trades from nine department stores. The New Bond Street store which makes fewer than half the sales of the chain’s larger outlets in Newcastle, Brent Cross and Kingston-upon-Thames. New Bond Street was recently named as the UK’s most expensive street for retailers to rent in the UK.

News

Profits up at Mitchells & Butlers

Restaurant and pub operator Mitchells & Butlers has announced its full year results for 2022, revealing an operating profit of £124m, up from £81m in 2021. Profit before tax saw a jump to £8m, a recovery from a £42m loss last year. Revenue also saw an increase, from £1.07bn to £2.21bn. Mitchells & Butlers’s adjusted operating profit saw a huge rise from £29m in 2021 to £240m. The business cited a return to office working, the strengthening of city centres, and increased confidence in the hospitality sector as reasons for the company’s marked improvements. Mitchells & Butlers said it was cautiously optimistic about the future, however were aware of the potential impact the cost-of-living crisis could have on consumer confidence. The group said that, excluding the circa £70m increase in utility costs, profits would have been close to 2019, pre-pandemic levels. This is despite inflationary pressures and the problems caused by the Omicron variant. Phil Urban, chief executive, said: “The trading environment remains highly challenging, with cost inflation continuing to put pressure on margins and we are ever mindful of the pressures that the UK consumer is facing. However, we are encouraged by the strength of sales growth at the...

News

Naked Wines confident of strategy despite losses, appoints CFO