Posts from January 2023

City Pub Group (CPG), which owns and operates 44 pubs nationwide, said it has “strict criteria” for new acquisitions, despite a period of solid trading. The group said that it had been offered a number of opportunities for new sites in the last few months, but turned them down as it expects pub prices to soften in the near future. This statement came alongside a trading update in which CPG announced a turnover of £57.6m for 2022, an increase from £35.4m the year before. Compared to pre-Pandemic levels in 2019, trading in the fourth quarter saw a like-for-like sales increase of 7.8%, which the group said was a result of improved planning to maximise revenues from events such as the World Cup and Christmas. CPG added that these numbers would be higher if not for rail strikes, which it estimates cost the business around £0.75m in revenue. Rival firm Fuller Smith and Turner on Monday also said that industrial action had cost the pub group sales over the Christmas period. CPG said the increase in turnover was mostly due to a mostly normalised trading environment and a largely restriction free year. Christmas 2021 was also a comparatively difficult period for...

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THG makes number of directorate changes

Consumer brands group THG has announced that Damian Sanders has been appointed as chief financial officer, taking over from John Gallemore, who has been appointed as chief operating officer. Sanders has been a member of the THG board for the last two years, joining as a non-executive director in November 2020, before being appointed audit committee chair and chair of the divisional reorganisation committee. Prior to joining THG, Sanders worked at Deloitte, where he was a senior audit partner for 20 years and a member of its North West leadership team, having also held several other senior management roles. He has also acted as an audit partner and advisor to a number of FTSE boards for over 20 years and more recently as an independent non-executive director. THG says his appointment will enable Gallemore, who has previously been covering both finance and operations functions, to focus solely on the role of chief operating officer. He will continue as an executive board director. Matthew Moulding, chief executive officer of THG, said: “Damian has played a key role since joining the group and board, chairing to great effect numerous important projects over the past two years, not least the recently delivered divisional...

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Primark sees record run up to Christmas

Primark has recorded strong festive trading, and saw record sales in the week running up to Christmas. In the 16 weeks to January 7, UK sales at the clothing retailer were ahead by 15% against the previous year, nearly all of which was like-for-like growth. The retailer’s parent group, Associated British Foods (ABF), said this was due to higher unit volumes, higher average selling prices, and normalised levels of markdown. It also cited comparatively lower levels of footfall in 2021 as a result of the Omicron variant of COVID-19 affecting consumer habits. ABF also said that retail trading space had increased by 700,000 sq ft to 17.7m sq ft year-on-year and that all new stores were performing well. According to ABF’s trading update, Primark’s share in the UK clothing market increased from the previous year by half a percent to 7%, and was very close to record trading when stores reopened in June 2021 after a prolonged lockdown. The retailer also enjoyed a strong performance worldwide, with European sales up 16% and US sales growing by 4%. Primark added that its online performance had also improved, with its website traffic in the UK increasing some 85% over the year. It’s...

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£4.25m investment lines up ten openings for emerging chocolatier

London-based chocolatier Love Cocoa is looking to open 10 stores over the next three years after raising a £4.25m investment. Founded by James Cadbury, a descendant of the famous John Cadbury, Love Cocoa currently operates through its online store, but it hopes that the injection of cash will help fund the opening of bricks and mortar stores. The investment, funded by entrepreneur and author Richard Koch, is also expected to contribute to further distributing Cadbury’s H!P Chocolate oat milk brand, as well as help deliver growth of its senior management team through the appointment of a new finance director and head of marketing. James Cadbury said: “Retail is moving to an omnichannel approach, and we see the opportunity to innovate with our new stores offering unique, experiential moments,” he added. “Alongside that, consumers are wanting to come back to the high street and that gives us the opportunity to deliver sensory chocolate experiences that simply can’t be achieved shopping online. We see this as a real game-changer for the business.” Rival chocolatier Hotel Chocolat recently expressed its ambition to open 50 new UK stores.

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Knight Frank strike deal with American firm

Property consultancy Knight Frank has formed an alliance with American commercial real estate firm Berkadia, as it looks to provide services to multi-market clients on a global scale. Berkadia is a joint venture between Berkshire Hathaway and Jefferies Financial Group, and the new agreement sees London-headquartered Knight Frank establish their third partnership with a US-based firm, having already formed deals with Cresa and Douglas Elliman. Knight Frank says the alliance will establish a global capital markets platform, providing clients with access to cross-border investors, international institutions, banks and sovereign wealth funds. It added that the platform spans all major capital hubs, including across the US, Asia Pacific, Europe, the UK, and Middle East. Collectively, both firms offer a global network comprising over 22,750 people across 558 offices in 57 territories, Knight Frank said. The two firms said they are committed to the partnership for the long term, and will be guided by an ‘Alliance Management Board’ that meets quarterly, consisting of senior executives from both organisations. Knight Frank and Berkadia will both establish an on-the-ground presence across the Atlantic through secondments at each other’s respective offices. William Beardmore-Gray, senior partner and group chair at Knight Frank, said: “This is the beginning...

News

Townhouse signs at the King’s Road

Sloane Stanley has announced the signing of nailcare brand Townhouse to 261 King’s Road, which will occupy a two-storey 1,317 sq ft unit in the heart of Chelsea. Opening at the end of the month, the King’s Road Townhouse will join the brand’s other stores in Kensington, The Yards in Covent Garden, Liverpool Street, Knightsbridge, Fitzrovia, Notting Hill, Cribbs Causeway and Milton Keynes. Hannah Grievson, property director at Sloane Stanley, said: “This year, we are looking to evolve and diversify our line-up by enhancing our beauty and fitness offering on the King’s Road to appeal to visitors and residents alike. Townhouse delivers a stunning concept in both its look and product and will complement our existing offer.” The news follows the recent launch of running apparel brand Acid Running at 340 King’s Road for a two-week pop-up, which launched on January 18. Sloane Stanley have also announced the opening of personal training business Ultimate Performance at 293 Fulham Road. The 5,095 sq ft space is set to launch early this year and will form the brand’s flagship location. Miles Commercial and Savills act on behalf of the Sloane Stanley Estate. Raven and Rose represented Townhouse, whilst Acid Running dealt direct.

Deals

Firefighter critically injured after fire breaks out at iconic Jenners building

Five firefighters have been taken to hospital and one has been critically injured attending to a fire which broke out at the former Jenners department store building in Edinburgh. A Scottish Fire and Rescue Service spokesperson said it was alerted at 11.29am on Monday morning to reports of a commercial building fire at Rose Street. 22 fire engines were dispatched at the scene of the incident. The area was sealed off by a large police cordon. Founded in 1838, the Jenners building was one of the oldest department stores in the world. The building is currently being redeveloped as a hotel after winning planning consent last summer. The restoration was due to take four years. Ian Whelan, partner at Edinburgh-based surveyors EYCO, said: “It’s too early to say what the impact on the building or the redevelopment plans will be. No doubt more information will filter out over the next few days. “Unless there has been major structural damage, I expect that the impact will be on the timescale/programme rather than on the end product. “The location and fundamentals of the site are still exceptional from a letting perspective and we wish the owners well in terms of recovering from this...

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Indian fashion house expands into Birmingham jewellery quarter

India-based fashion designer Frontier Raas is set to open its second UK location after expanding into Birmingham’s Jewellery Quarter. Headquartered in Delhi, India, Frontier Raas opened its first UK store in Southall, London in 2019. The letting of 3,000 sq ft store at 90 Great Hampton Street was arranged by commercial property agent Siddall Jones. Tushar Batra, a director of Frontier Raas, said: “There’s a big Asian market in Birmingham, which is why we have chosen the city as our second location in the UK. “It is not just about the Indians but Pakistanis, Bangladeshis and Sri Lankans who all love wearing ethic Indian outfit for special occasions.” A private landlord received legal advice from Wolferstans, while Kidd Rapinet acted for Frontier Raas.

Deals

Green & Partners appoint new associate partner in trio of signings

Green & Partners has appointed Nicole de Blaquiere as associate partner and recruited two new graduates to its retail team. De Blaquiere joins after six years at Cushman & Wakefield, having acted for a number of landlords including TfL, Romulus, British Land, Landsec, Shaftesbury and URW. With 11 years experience in client facing roles, De Blaquiere will be working alongside the Green & Partners agency team on existing shopping centre and high street assets as well as providing retailer consultancy advice. Also joining the retail team are Will Civil and Ben Sykes, who join from Nottingham Trent University and Henley Business School respectively, and will be working with clients across the agency, lease advisory and investment teams. Adam Bindman, partner at Green & Partners, said: “We have a long track record of developing team members that join the business as graduates, with three of the current equity Partners having taken this route, so we have great expectations for Will and Ben. Nicole’s experience and creative approach will be invaluable to our retail clients in the changeable retail landscape and will support the busy agency team with their growth of high street and shopping centre instructions.”

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Everyman cinemas set to open five new sites in 2023

Cinema chain Everyman has said it is committed to expansion as it plans to open five more sites by the end of the year. Everyman is expected to open a site in Durham in February, with further openings lined up in Salisbury, Northallerton, Plymouth, and Marlow in 2023. The group revealed a revenue of £79.7m in 2022, an increase of 62.5% on 2021’s levels of £49m. In 2022, Everyman opened two new venues, in Edinburgh and Egham, bringing its total number of sites to 38 venues. The group said its performance in the new financial year has been encouraging. Despite COVID affecting the amount of film content available in 2022, Everyman expects both the volume and quality of new releases to increase significantly in 2023. It added that despite a difficult macro-economic environment and consumer backdrop, the company’s directors continue to have significant confidence in the future.

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Sosandar reaches third party agreement with Sainsbury’s

Women’s fashion retailer Sosandar has reached an agreement to sell a curated collection of its products through Sainsbury’s supermarkets. The wholesale agreement will initially see the womenswear sold only through the supermarket’s website, with a number of selected stores selling the products later on in 2023. The deal with Sainsbury’s adds another distributor to the list of Sosandar’s online partnerships, with the supermarket retailer joining John Lewis, Marks and Spencer, Next, The Very Group, and JD Williams. Sosandar says that sales from these partnerships have been extremely strong, with a record quarter delivered through third parties in the third quarter of its 2023 financial year (Q3 FY23). Revenue for the fashion brand Q3 FY23 was £11.6m, up 30% on a year-on-year basis, marking a fifth consecutive quarter of profitability for the group. Ali Hall and Julie Lavington, co-CEO’s, said: “This new relationship comes off the back off a record period of trading with our existing third parties and is testament to the strength of our brand and product range as it continues to resonate with customers.” “We believe that being an omnichannel business enhances our brand equity, will accelerate growth in our market share and brand awareness, whilst also providing...

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Hammerson welcomes Sandbox VR to Birmingham

Hammerson has announced the signing of virtual reality experience Sandbox VR to Grand Central, Birmingham. The 13,000 sq ft unit is set to open this summer and is the brand’s third in Europe and largest to date. The destination will be Sandbox’s second in the UK and Hammerson says the signing supports the brand’s plans to expand across the UK and Ireland. Sandbox VR aims to create an immersive experience through the use of group virtual reality gameplay and competitive socialising. Sandbox is powered by motion capture cameras, full-body trackers, custom hardware, and haptic feedback suits. The virtual reality experience joins a line-up of leisure operators within Bullring and Grand Central, including Treetop Adventure Golf and two concepts due to open later this summer, bowling brand Lane7 and interactive football experience TOCA Social. Hammerson is also planning to create a new mixed-use destination within the former John Lewis site, featuring offices and social and entertainment areas. Toby Tait, director of asset management, Hammerson, said: “The signing of Sandbox VR is another big leap forward in the diversification and repositioning of our Birmingham estate. This is going to be a transformative year for Bullring & Grand Central with experiential brands and...

Deals News

Fuller’s blames industrial action for drop in sales

Pub and hotel group Fuller Smith and Turner estimates that industrial action cost the group £4m in sales over Christmas. Sales for the four-week Christmas and New Year period increased by 38% against a comparatively poor 2021 hampered by the Omicron variant, although sales fell by 5% compared to pre-Pandemic levels. However, sales for the year as a whole continued to grow, up 20% for the 43 weeks to January 2023 against the previous year. In comparison to pre-pandemic levels, like-for-like sales for the same period were at 97% against the 2020 financial year. Simon Emeny, chief executive, said: “We are encouraged by our underlying sales performance. While it is frustrating that the train strikes have set back our reported sales and earnings, it is reassuring that we are achieving our anticipated sales trajectory in periods unaffected by strikes. While ongoing strike action will dampen sales, demand from customers remains good and we are optimistic that 2023 will deliver further sales growth through a busy calendar of events, and as office workers and tourists continue to return to the capital. “We are operating in a high inflation environment, and that continues to impact our operating costs and margins. While some...

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Gail’s debuts in Manchester

Gail’s bakery is set to open its first Manchester city centre site after signing a 10-year lease for 16-18 King Street. The 3,847 sq ft site extends over ground, lower floor and basement spaces and will offer a large seating area with an open kitchen. Gail’s recently announced the launched its first northern location, planning to open a site in Wilmslow in early 2023. The Manchester bakery is set to open in the spring. The unit is currently occupied by clothing brand White Stuff which will be moving to a new unit on King Street under the ownership of DTZ Investors. Gail’s will join a number of food and beverage offerings on the street including El Gato Negro, TAST, Franco Manca and The Parlour, which will open later this year. Tom Royston, from DTZ Investors, said: “Attracting world-class brands has been a crucial part of the strategy since we took over as majority landlords at King Street. “Gail’s choosing King Street to launch their first Manchester site is testament to the calibre of brands the district is able to attract.” Lyon Thompson Letts and Orme acted as leasing agents on the deal. Gareth Storer of Four & Co acted for...

Deals

The Works praises strong Christmas trading

Value retailer The Works has praised a period of strong trading in the run up to Christmas, and enjoyed ‘resilient’ performance in the first half of its 2023 financial year. In the 11 weeks to January 15, The Works, who sell books, arts and crafts, stationery, and toys and games, saw like-for-like sales growth of 5.7%, with in-store like-for-like sales up by 9.7%. However, online sales saw a fall of 14%. The Works said it was encouraged by strong in-store sales performance, which was expected to strengthen after a relatively weak period in the run up to Christmas 2021, which was marred by the Omicron variant of COVID-19 which drove many away from high street shopping. It added that store sales were particularly strong in the week immediately before Christmas, perhaps suggesting that many consumers chose to shop later this year in an attempt to seek value when shopping for gifts. The Works described its poorer online sales as ‘disappointing’, citing lower consumer confidence in online retailers as postal strikes delayed deliveries for many. The retailer added that solid trading continued into its January sale period, and that it anticipates ending the financial year in a strong position. Gavin Peck,...

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Landsec to welcome new chair

Real estate investment trust Landsec have announced the appointment of Sir Ian Cheshire as an independent non-executive director and chair designate. Cheshire will join the board and on March 23 and succeed Cressida Hogg as chair in May, who is retiring after nine years on the board and five as chair. Cheshire is currently chair of Channel 4, Spire Healthcare Group, UK investment trust Menhaden Resource Efficiency and serves as a non-executive director at BT. He will be stepping down as chair from Menhaden in May but will remain a non-executive director, and retire from BT in July. He also chairs the Prince of Wales’ charitable fund and the corporate climate change coalition We Mean Business. Cheshire’s executive career was spent mostly in retail, having worked in senior leadership and commercial roles, including as group chief executive of Kingfisher from 2008 to 2015. He has also held non-executive roles at Barclays and at Whitbread, where he was senior independent director. He was also lead non-executive director at the UK Cabinet Office and Department for Work and Pensions. Outgoing chair Cressida Hogg said: “On behalf of the Board, I am pleased to be welcoming someone of Sir Ian Cheshire’s calibre as...

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Argos to pull out of Republic of Ireland

Argos has announced that it will be closing all of its stores in the Republic of Ireland by the end of June. The retailer said that customers in Ireland would no longer be able to purchase products online after March 22. The most recent accounts for Argos’ Irish operation revealed a pre-tax loss of €13m (£11.4m) in 2022. In a statement, Argos said it recognised that the news would be unsettling for many of its colleagues, but insisted that it was committed to supporting them and was talking to 580 colleagues in stores about their options. Argos, who is owned by Sainsbury’s, operate a different model in the Republic of Ireland, whereas its UK stores trade entirely out of its owner’s supermarkets. The retailer said its UK stores continued to trade well, and in December Sainsbury’s praised Argos’ role in contributing to a record Christmas for the retailer. Irish trade union Mandate said it was disappointed at Argos’ decision to pull out of the country. Mandate official, Michael Meegan, said the trade union was engaging with with the retailer to get the best deal for the workers who are being made redundant: “Today is a difficult one for Argos’s staff...

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UK consumer confidence falls again after sales dipped at Christmas

Consumer confidence dropped to near historic lows in January after a small resurgence in the last quarter of 2022, following a greater than anticipated fall in Christmas sales. This follows a small but consistent increase seen between September and December 2022. GfK’s monthly Consumer Confidence survey was down three points in January to -45, with four of the recorded measures down and one up, compared to December. The measures include personal financial situation and the general economic situation for both the last 12 months, and the next 12 months, as well as the major purchase index, which is a measure of how confident consumers feel about making larger purchases. The only measure which had improved was consumer confidence in their personal financial situation for the next 12 months, although an improvement of two points only brought this score to -27, 25 points worse off than the same time last year. The savings index, which is also measured but not incorporated into the overall index score, also fell by six points to 14. This fall in confidence may not come as a surprise, as Office for National Statistics figures released on Friday revealed that retail sales are estimated to have fallen...

Insights News

Solstice park welcomes two new retailers and EV charging hub

RO Real Estate has announced the opening of Taco Bell, Greggs, and GRIDSERVE at Solstice Park in Amesbury. They join a number of international and national food and beverage retailers and trade counter operators at the site including Home Bargains, Screwfix, Howdens, McDonald’s and Costa Coffee. GRIDSERVE has opened an ‘Electric Super Hub’ at the retail park, providing electric vehicle users on the A303 with a convenient place to park and charge their cars, with eight high power chargers available. RO says the EV chargers are capable of providing 100 miles of energy in five minutes and are powered by net zero carbon energy. RO said it has enjoyed tremendous success at the 160-acre mixed use scheme, located in central southern England on the A303 trunk road. David Kershaw, group real estate director, the RO, said: “This green initiative from GRIDSERVE fits in well alongside the wider stable of environmentally focused assets in our larger group. “We are also pleased that Greggs and Taco Bell, two popular food chains, are now open for business at Solstice Park, where they have joined an already impressive array of other well known national and international brands at the site.”

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Colliers: New business rates will provide relief for retailers