Posts from December 2022

82 out-of-town stores open in the North West

2nd December 2022

North West retail parks have seen 82 new shop openings this year, with more still expected before the new year. Savills has reported that the increasing open rate ‘demonstrates the ongoing resilience of the out-of-town retail market.’ The sector is on track to surpass last year’s number of 99. Watch: The landscape of out-of-town retail Savills highlighted that a more diverse retail mix is taking up space. Altrincham Retail Park welcomed a new Homesense store in September and has approved plans for Lidl and a refresh of current Homebase. Stockport Retail Park had a wave of new leases taken up by Smyths Toys, Bensons for Bens, Sofology and Tim Hortons. New Look has also expressed an interest in the scheme. This activity has helped drive vacancy rates down, with the rate for the North West now standing at 4.9%. Andy Hall, out of town retail director at Savills Manchester, said “The North West is seeing an ever increasing mix of retailers taking new stores in the region this year. With the supply of available units remaining low, we expect to see a continued good level of demand for vacant units as retailers look to capitalise on the ongoing resilience of...

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Cost-of-living woes continue as November footfall dips

2nd December 2022

Data from BRC-Sensormatic IQ revealed that UK footfall declined in November by 13.3% compared to pre-pandemic levels. This fall was 1.5 percentage levels below October and worse than the three-month average decline of 11.5%. High Street footfall fell by 13.6% compared to pre-COVID levels, while retail parks and shopping centres saw a fall of 4.2% and 23.2% respectively. Northern Ireland saw the shallowest footfall decline of all regions, at 7%, while Wales was the most affected, seeing a dip of 16.2% compared to pre-pandemic levels. Interestingly, Belfast was the only UK city to see an uptick in footfall compared to 2019 levels, with an increase of 5.7%. This is a huge jump from the second best performer, Manchester, who saw a decrease of 7.6%. Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “Footfall took another stumble as the cost of living crisis put off some consumers from visiting the shops in November. Others opted to stay home due to the scattering of rail strikes, or chose the World Cup over shopping visits. Many big cities were particularly hard hit.” “Rising inflation and low consumer confidence continue to dampen spending expectations in the run up to Christmas”, she...

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Frasers Group snaps up Amara Living

2nd December 2022

Homeware retailer Amara Living has become the latest company to be absorbed by Mike Ashley’s Frasers Group. The group, which owns House of Fraser, Sports Direct, and FLANNELS, has not disclosed any financial details of the deal. Founded in 2005, Amara houses over 300 home brands, including Ralph Lauren and Versace. They follow luxury tailors Gieves & Hawkes, Missguided, and I Saw It First as recent acquisitions of Frasers Group, who are also favourites for the takeover of Australian retailer MySale. Speaking on LinkedIn, group CEO Michael Murray said: “his acquisition will build on our ambitions to create a credible homeware destination for FLANNELS”.

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M&S to invest £28m in ‘bigger and better’ northern stores

2nd December 2022

M&S has pledged to invest £28.5m into its northern stores in 2023 on top of the £20m that has already been invested this year. This investment will include the opening of two flagship stores, at the former Debenhams at White Rose in Leeds and in Liverpool. These plans are all part of a wider goal for M&S to ‘create an M&S store estate fit for the future’. Already the developments have created more than 200 jobs across Northern England. Earlier this week the company opened a new store in Chesterfield, a new Foodhall in Macclesfield and extended the site in Harrogate. M&S informed its stakeholders that also plans to open 100 more Simply Food branches and close ‘lower productivity full line stores’, to be replaced with 180 ‘high quality larger stores’. Sacha Berendji, M&S retail operations director, said that the company is committed to having a great physical presence, despite many stores going online. “Whilst other retailers go online, or sadly disappear, we are committed to having great shops. That means having the right store, in the right place, with the right space to serve our customers the way they want to shop today.” “These new and upgraded stores will...

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Hunt for ASOS CFO continues as interim steps down

2nd December 2022

Online fashion retailer ASOS has announced that its interim chief financial officer (CFO) is to step down. Katy Mecklenburgh will leave the role in May 2023 to become CFO at IT company Softcat. ASOS will continue to search for a long-term CFO after the departure of Matt Dunn in October. Prior to joining ASOS, Mecklenburgh has held roles at services group Inchcape, Amazon, Serco, and Procter & Gamble. The news comes after the business revealed last month it would be cutting 100 head office jobs, as part of a cost-saving plan. This followed news that the company had made a £10m operating loss for the year leading up to August 31.

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John Lewis diversifies with £500m residential venture

2nd December 2022

The John Lewis Partnership has announced a joint venture with global investment company abrdn to deliver around 1,000 new homes. The £500m deal will see buy-to-rent properties constructed in three communities, as John Lewis looks to build 10,000 homes over the next decade. The deal will see additional development of John Lewis Partnership sites, including the redevelopment of a vacant warehouse in Reading and of Waitrose stores in Bromley and West Ealing. The deal includes commitments to affordable housing and sustainability in line with the partnership’s 2035 net-zero pledge, and looks to create homes which will help provide a stable income for the group, John Lewis said. According to Savills research, the build-to-rent property market is expected to double with 30k homes completed annually by 2026. A shortfall in rental homes is set to increase with the ending of the Government’s help to buy scheme ending. London alone has a shortfall of 75,000 rental properties, according to John Lewis. Nina Bhatia, executive director for strategy and commercial development at the John Lewis Partnership, said: “Our partnership with abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities.” “The move underlines our commitment to build...

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ScS announces directorate change

2nd December 2022

ScS has announced that Chris Muir will be stepping down as chief financial officer. The furniture and flooring retailer said the process to find a successor will begin immediately and that Muir will continue at the business for a 12 month notice period to facilitate a smooth handover. Muir had previous experience as group finance director for Northgate. ScS currently trades in 98 stores.

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Carter Jonas appoints new head of sustainability

1st December 2022

Property partnership Carter Jonas has appointed Tom Roundell Greene as head of sustainability as it looks to further the business’s environmental, social, and governance (ESG) strategy. Roundell Greene has nearly two decades of experience in ESG and sustainability at national and international levels. He joins from JLL where he helped implement its sustainability strategy and lead developments of the firm’s efforts to address climate change. He also helped create JLL’s award-winning annual Global Sustainability Report. Roundell Greene also sat on the Science Based Target’s initiatives advisory board on carbon reduction, and was also a member of the International Integrated Reporting Council’s Framework Panel. Prior to these positions, he also held roles in civil service and oversaw the development of the cabinet office’s sustainability strategy. Iain Mulvey, head of business development, Carter Jonas, said: “[Roundell Greene’s] track record, pioneering sustainability initiatives in the private and public sector, complements our activity and will be invaluable as we strengthen our sustainability credentials and expertise across all asset classes and client areas.” Roundell Greene added: “Addressing the challenges of sustainability requires innovative thinking, bold action and new ways of doing things. Bringing this approach to how we operate ensures that we are living up to...

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Joules rescued by Next

1st December 2022

Next has announced that it has struck a £34m deal with struggling fashion retailer Joules, rescuing them out of administration. Next will own 74% of the retailer’s equity, with the remainder under the control of founder Tom Joule, who stepped back into a non-executive role in 2019. However, he recently moved back into an executive position as product director. Joules was founded in 1989 when 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. Next said that Joules will retain is managerial authority and creative independence. In addition, the business will have its own board of directors and continue to be headquartered in Market Harborough. The retail giant also said that the majority of Joules staff will remain with the business, amid concerns that 1,600 jobs were at risk. The deal also sees Next take control of the Joules head office, for an additional £7m cash. Interpath Advisory were appointed as administrators to Joules in November after the brand failed to secure emergency investment. Joules’s online presence will be operated through Next’s Total Platform, which will also provide warehousing and distribution...

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Unbound group appoints new director

1st December 2022

Unbound, the owner of the Hotter fashion brand, has announced the appointment of Alastair Miller as an independent non-executive director. Miller has experience in various retail businesses, having worked for Superdry, New Look, and NewRiver. He will be appointed as chair of the company’s Audit and Risk Committee and join the business’s Remuneration Committee and Nominations Committee. This news follows the stepping-down independent non-executive directors Paul Goodson and Suki Thompson, as Gavin Manson transitions to the role of chief financial officer. Neil Johnson, chair of the board, said : “[Miller’s] recent and relevant expertise and proven abilities will further strengthen governance and will add significant strategic value to the Board and the Group.” “The Board restructure and streamlining forms part of our wider focus on costs across the business”, he added.

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Mulberry boss latest voice to call for tax free shopping

1st December 2022

The chief executive of luxury fashion brand Mulberry has said that the Government’s decision to end tax-free shopping in January last year is having a negative effect on trading in its stores in London. Thierry Andretta has called for a reinstatement of the policy as a means to attract wealthy tourists to shop in London, who have shunned the capital in favour of Paris and Milan. This comes as the retailer revealed that it had slipped into a £3.8m loss. This is a stark contrast to last year’s figures, when the group posted a £10.2m profit. “The wealthy are still buying but they’re not choosing to buy in London”, said Andretta. He added: “[VAT-free shopping] is something we would like the Government to reinstate.” A decision to reinstate tax-free shopping was made by previous Chancellor Kwasi Kwarteng in his now infamous mini-budget, however this was reversed by Jeremy Hunt in his Autumn Statement. Mulberry’s boss becomes the latest in a long list of retailers calling for the reintroduction of the policy, with the Association for International Retail (AIR) asking the Chancellor to do so earlier in the month. AIR said tax-free shopping would be worth £3.1bn of foreign visitor spending...

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114 branches to close as HSBC says online banking the norm

1st December 2022

HSBC has announced that it will close 114 of its branches nationwide, as the banking giant says footfall levels show no sign of recovery. HSBC will join a number of banks in recent years who have closed branches as more people bank online. About 100 staff members will lose their jobs. Jackie Uhi, managing director of UK distribution at HSBC, said footfall was at an all-time low with no sign of returning. “Banking remotely is becoming the norm for the vast majority of us”, she added. HSBC said they would be investing in “post-closure” measures such as providing free tablet devices to customers to enable them to bank digitally. The bank said in March that it planned to shut 69 branches by the Autumn, adding that footfall in three quarters of the earmarked branches had halved over the last five years, a trend accelerated by COVID. Unite, a union group, slammed the move, with national officer Dominic Hook stating that HSBC were walking away from customers and communities. He added: “While this Government is happy to stand aside and allow banks to pay their city bankers astronomical bonuses, there is no political will to challenge the banks on their actions...

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Creightons profits slip as overhead costs soar

1st December 2022

Consumer goods manufacturer and online retailer Creightons has posted a fall in operating profits of £2.3m. In its half year report, the personal care and beauty distributer revealed a profit of £0.3m, down from £2.6m for the same period in 2021. The retailer saw an increase in branded sales from £8.8m to £10.8m, however private label and contract sales saw a fall of £1.9m and £0.4m respectively. The business cited an increase in distribution costs of 17.4% to £2.0m, while underlying costs associated with warehouse outsourcing have increased in line with domestic supply pressures. Creightons also said that administration costs have shot up 14.2% to £9.8m, including expenditures relating to the company’s acquisition of the Emma Hardie brand. Pressures in supply chains and inflation have manifested themselves in delayed deliveries from suppliers, as well as higher input and energy costs, Creightons said. As a result, the business has tried to mitigate these setbacks through price recovery, product engineering, and alternative sourcing. The manufacturer has also seen redundancy costs of £0.15m, as it reduced its work force and working hours.

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Hotel Chocolat posts strong uptick in sales

1st December 2022

Chocolatier Hotel Chocolat has revealed a 37% increase in revenue for the 2022 financial year. In its preliminary results for the year, the chocolate maker posted a revenue of £226.1m, an increase from £164.6m in 2021. Despite making an statutory loss after tax of £9.4m, down from a profit of £3.7m last year, the confectionary retailer saw a rise in underlying profit to £21.7m, up from £9.6m. Hotel Chocolat said its statutory reported loss contains a number of items arising from decisions to prioritise the best prospects for financial returns. This included decisions to to exit a number of smaller product categories, pulling out of direct-to-consumer operations in the USA, and impairment of loans to the now insolvent Japan Joint Venture. The group said it is committed to retain its long-term ambitions for international growth but will focus in the near term on low capital-expenditure and lower risk approaches. The chocolatier also announced the departure of two board members, chairman Andrew Gerrie and CFO Matt Pritchard, in 2023. Angus Thirlwell, co-founder and CEO of Hotel Chocolat, said: “It goes without saying that the current environment is challenging on multiple fronts. Over the last few months we have taken decisive steps...

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