Posts from January 2023

Gloucester Quays enjoys record sales

20th January 2023

Property developer Peel L&P has announced that south west outlet and dining destination Gloucester Quays reported record sales in 2022. Sales at the Gloucester scheme last year surpassed both 2021 and 2019 by 6% and 9% respectively. The figures, which covered the period from March 28 to December 31 2022, showed growth at the destination across all sectors. Against the same period in 2019, retail sales saw an increase of 8% while food and beverage sales jumped by 10.5%, both supplemented by leasing in 2022, which saw an upsize at fashion retailer Levi’s and the opening of Mediterranean eatery The Real Greek. In December, Gloucester Quays welcomed bath, body, and beauty retailer Molton Brown, topping off a 2022 which saw over 15,000 sq ft of new lettings arrive at the scheme. Peel L&P added that its Christmas results were also positive, despite a shift in consumer habits to start festive shopping early which saw footfall considerably up in November. Despite this, December sales were up 14% versus 2019, and 18% higher than 2021. Gloucester Quays’ Christmas market returned in 2022, opening only at weekends as a response to customer demand. The destination saw footfall increase by 8% and sales rise...

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CBRE makes appointment to newly created role

19th January 2023

Real estate group CBRE has announced the appointment of Antonio Tarroc in a brand-new role. Tarroc will take the reigns as retail property platform lead for Europe, the Middle East and Asia (EMEA). CBRE said the new appointment will help deliver on its ambition to create a market-leading retail operator platform for EMEA. Tarroc has worked at CBRE Investment Management for nearly six years and will continue in his current role as head of retail asset management Iberia. With over 13 years experience in real estate, he has specialised in property, asset, and investment management in the retail sector. The appointment completes CBRE’s EMEA operating model evolution with regards to property platform leads, with each sector now having a dedicated lead for retail, logistics, offices, and residential. Eric Decouvelaere, EMEA head of retail operator division, at CBRE Investment Management, said: “Antonio’s promotion to retail property platform lead EMEA completes our roster of property platform leads and to have filled this role internally exemplifies the depth and breadth of talent across our team. Antonio will be crucial in delivering consistent standards that meet the highest requirements across our market-leading retail operator platform, and we are delighted to have appointed someone of...

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Dunelm credits customer offer for soaring sales

19th January 2023

Homeware retailer Dunelm has recorded a strong second quarter which has seen revenue skyrocket. Total sales for the second quarter (13 weeks to December 31 2022) of its 2023 financial year (FY) rose 18% year-on-year to £478m, a 48% increase against pre-pandemic levels. Revenue for the first half of FY23 reached £835m, a year-on-year increase of 5% and 43% higher than pre-COVID levels. Dunelm said it had seen strong growth both in stores and its online division, which now represents 35% of the retailer’s total sales. Its full year guidance remains unchanged from its preliminary results in September, and that its profit guidance remains ahead of market expectations. The strong performance reflects a quarter in which its Autumn and Winter ranges proved popular with customers, the retailer said. It added that it had seen broad based growth across all categories and good sales amongst its Christmas offering. “We are pleased with recent trading and our focus remains on continuing to offer outstanding choice and value across our broad range of categories. Consumers are still adapting to the inflationary environment and our product offering, which includes many everyday essential items, is resonating with new and existing customers”, the retailer said in...

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SCC: Increasing concerns for Scottish businesses

19th January 2023

The Scottish Chambers of Commerce (SCC) have highlighted a number of key concerns which are facing Scottish businesses, including price rises, labour costs, inflation and a decline in consumer confidence. As a result of these hardships, cashflow and profits are falling, investment decisions have paused, and firms are raising prices and struggling to recruit and retain staff, the SCC have said. The SCC’s report said that 82% of all firms indicated that they intend to raise their prices over the next quarter, a record high for the survey. The retail and tourism sectors had the highest proportion of firms indicating a future price rise at 77% and 76% respectively. The report said that labour has now overtaken energy as the top cost pressure for businesses, with concern over the former halving since the last quarter as a result of the Government’s energy bill relief scheme. Over seven in ten firms (72%) said that labour costs were now the biggest cost pressure for businesses. Concern remains over the cost of fuel and raw materials, both cited by six in ten firms. Concern for inflation has fallen for a second successive quarter, but is still cited by 8 in 10 businesses and...

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Hotel Chocolat looking to open 50 new stores

19th January 2023

Hotel Chocolat plans to open 50 new shops in the UK after enjoying its best ever Christmas. The chocolatier said it was considering a return to the US after an increase in sales of 10%. The retailer withdrew from the US last year following heavy losses. The luxury brand was founded in 2004 as an online only retailer. It now has 125 outlets in the UK and plans to open 50 new stores in the next three to five years. UK and Ireland stores posted a like-for-like sales increase of 10% for the 9 weeks ending Christmas Day 2022. For the half-year (26 weeks to December 25), like-for-like sales were up by 7%. This number was 25% higher than pre-Covid levels. The retailer did note that online revenues were lower year-on-year due to more customers beginning to revisit high street stores and a deliberately lower marketing spend. The upmarket chocolate brand also said it was showing encouraging progress on its strategic plan, which involves an inventory reduction and a management of overhead costs, demonstrated by strong cash generation and an improving sales trend following record temperatures in the UK hitting consumer demands. It added that its new store format and...

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£3.5bn Silvertown regeneration plan submitted

19th January 2023

A planning application for the Silvertown site in Newham has been submitted by The Silvertown Partnership, a joint venture between Lendlease and Starwood Capital. The £3.5bn plan would aim to develop Silvertown as a cultural hub for the Royal Docks, with arts and leisure facilities, cafés, restaurants, and bars. New public squares would host cultural events and access to green spaces would aim to provide access to nature and encourage walking. The newly opened Custom House Station on the Elizabeth Line would also provide access to the development, just 15 minutes from central London. The plans also accommodate for 6,500 new homes with a 50% affordable housing target. The designs for the 50-acre site feature a restoration of the iconic Millennium Mills building, which has been left derelict and mostly unused for 40 years. Situated within the Capital’s only Enterprise Zone, the London Plan identifies the Silvertown site as one of London’s largest regeneration opportunities with the development expected to contribute between £76-£90m annually to the city’s economy. The proposals also reveal plans to make Silvertown an industrial hub, featuring over 780,000 sq ft of next generation work and creative spaces in the refurbished Millenium Mills buildings and surrounding employment...

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NewRiver praises strong tenant trading as occupancy increases

19th January 2023

Real estate investment trust (REIT) NewRiver has credited the strength of its portfolio as its tenants continued to trade well into the Christmas period. The REIT also cited its retail occupancy rate as a reason to be confident, increasing to 96.5% from 96.3% in September 2022 and 95.6% in March 2022. Leading retailers in NewRiver’s portfolio include B&M, Sainsbury’s, M&S, JD Sports, and Poundland. NewRiver said that above-expected Christmas trading for multi-channel retailers reflected the importance of a physical store network and suggested that the UK consumer is perhaps more resilient than expected. The REIT also said that it had agreed 673,300 sq ft of new lettings and renewals for its 2023 financial year (FY23), including the appointment by M&G Real Estate to manage a retail portfolio including 16 retail parks and one shopping centre in the UK. The agreement with M&G is for a term of three years and will bring the total number of retail parks under NewRiver’s management to 31. NewRiver added that 180,100 sq ft of new lettings had been agreed in the third quarter of FY23. Allan Lockhart, NewRiver chief executive, said: “Our focus on resilient retail, alongside our best-in-class operating platform and the strength...

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John Lewis continues real estate venture with Bromley proposal

19th January 2023

The John Lewis partnership is looking to invest further into real estate projects, having unveiled plans for its latest scheme in Bromley. The proposals detail improvements to the existing Waitrose shop, as well as the creation of a public piazza, café and green spaces. The plans also include the construction of around 350 homes. In December, John Lewis announced a joint venture with global investment firm abrdn which looks to deliver 1,000 new homes in a £500m deal. John Lewis said that although it has unveiled the design for Bromley, it will continue to evolve the plans as the consultation process involving residents and community groups continues. The site is located next to Bromley South Rail Station in the centre of the South London town. John Lewis said it had tested various designs to determine how the buildings would integrate with the site’s surroundings. The newly constructed properties would be owned, developed, and managed by John Lewis, who says it is aiming to deliver 10,000 homes in the next 10 years, half of which would be built within schemes within its own portfolio. The group is aiming for 40% of its profits to come from non-retail income by 2030.

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Boohoo sees sales slip after strong 2021

19th January 2023

Online fashion retailer boohoo saw a slump in sales in the latter months of 2022, citing a strong end to the previous year and a focus on cost reduction. In the four months to December 31, boohoo recorded a UK revenue of £400.8m, a fall of 11% £451m in 2021. This however was 57% higher than in 2019, the last Christmas period unaffected by COVID-19. boohoo cited a strong 2021 as a reason for the fall in revenue. Concerns about the Omicron variant towards the end of 2021 meant many customers looked towards online retailers as they stayed away from the high street. boohoo said it had seen improvements in its cash generation through tighter inventory management, cost control, and an improved working capital cycle. The retailer also noted the launch of its distribution centre in Sheffield, which it said will lead to improvements in efficiency in the coming months. On the international front, boohoo saw a fall in revenue in all regions, which it said was affected by extended delivery times. boohoo expects its 2023 financial year (ending February 28) revenues to decline by 12% for the full twelve months. The retailer said it continues to optimise its operations...

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SouthGate makes two retail signings

19th January 2023

British Land and Aviva have announced the signing of ZARA and Goldsmiths to Bath shopping destination SouthGate. Fashion retailer ZARA will take a 32,000 sq ft unit spanning over two floors, the brand’s first outlet in the city. They join jewellery retailer Goldsmiths, which has agreed to take a 5,000 sq ft space. The lettings build on what was a strong first half of the year for British Land, which saw 1m sq ft of retail deals being signed across its portfolio. Both stores are set to open in the Autumn, joining brands such as Apple, Lululemon, Tommy Hilfiger and Levi’s. Kate Lea, head of shopping centre leasing at British Land, said: “ZARA’s decision to choose SouthGate for its first store in the city is a testament to the popularity of the destination, and the work we’ve done to make the centre as attractive and engaging for customers as possible.” British Land and Aviva Investors were advised by Cushman & Wakefield.

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Currys cuts costs to keep profits on target

18th January 2023

Currys says its on course to hit its profit targets despite a dip in total sales. Although its international profits were below forecast, Currys said that resilient trading in the UK and Ireland delivered higher profits than anticipated. Citing cost saving measures and gross margin increases, the electronics retailer was remaining confident in its outlook, despite a fall in peak (10 weeks to January 7 2023) like-for-like UK&I revenue of 5%. Currys said its sales were strong in domestic appliances and mobile, but were offset by weaker consumer electronics and computing sales. The retailer noted that physical stores were outcompeting online sales. It said its current year guidance is unchanged, and is expecting to deliver a profit before tax of between £100-125m, despite the deterioration of its international business. The retailer is also aiming to finish the year with less than £100m net debt. Alex Baldock, Currys group chief cxecutive, said: We’ve delivered a strong Peak performance in the UK&I, growing profits again through resilient sales, increasing gross margins and strong cost discipline. Our transformation is visibly succeeding. Internationally, it remains tough and we continue to face into intense, but temporary, market pressures. We’re not simply waiting for the external...

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Yum! Brands recruits manager for Taco Bell UK & Europe

18th January 2023

Yum! Brands, the operator of brands such as KFC, Pizza Hut, and The Habit Burger Grill, has appointed Ian Cranna as general manager for its Taco Bell brand in the UK and Europe. Cranna has spent 25 years working for major retail and food and beverage brands, joining from Compass Group where he spent two and a half years as chief marketing officer. He also worked at Starbucks for 16 years, working as vice-president of reserve and roastery, and vice-president of marketing and category. Cranna replaces the Gino Casciani, who has been promoted to vice-president of international operations after three years in the general manager role. Elsewhere at the company, Charles Saksik has been appointed as development and finance director for Taco Bell Europe, after three years at KFC, where he recently worked as strategy director.

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Birmingham mixed-use development given go-ahead

18th January 2023

Birmingham City Council has approved an outline planning application which would see the construction of 5,500 new homes as part of a mixed-use development. Known as the Langley Sustainable Urban Development, the plans were submitted by Savills on behalf of a client consortium 12 months ago and unanimously approved by members of the planning committee in December, subject to a Section 106 agreement. The site for the proposed development, near Sutton Coldfield, was released from the Green Belt by Birmingham City Council in 2017 and a subsequent planning document was adopted in 2019. In addition to the 5,500 new homes, the Langley Sustainable Urban Development would accommodate for the adoption of shops, leisure facilities, community facilities, open spaces and schools in the development, amassing a total size of over 32m sq ft. Barry Gaffney, associate director in urban design at Savills, said: “Our approach throughout has been to respond favourably to the local context and natural setting, with a view to maximising the socio-economic value.”

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Tortilla set to open first Northern Ireland restaurant

18th January 2023

British Mexican-inspired restaurant Tortilla is lining up its first restaurant in Northern Ireland, as it prepares to open in Belfast. Taking a 1,486 sq ft unit at 9 Arthur Street, Tortilla looks to establish a 50-cover restaurant and hopes to create around 20 jobs. The former retail unit, marketed by Cushman & Wakefield, was last used as a pop-up unit but has been vacant since October 2020. Belfast Live say that Tortilla confirmed their pursuit of the city centre premises, but require the local authority to grant planning permission. Tortilla operates more than 50 restaurants nationwide, while also trading out of 10 Middle Eastern locations in Dubai and Saudi Arabia. New sites set to open soon include Derby and Greenwich, with Tortilla saying they have further openings planned for later in the year.

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Hospitality sees best year in three but lags behind pre-Pandemic levels

18th January 2023

Pubs, bars, and restaurants celebrated their best December trading in three years, data from the Coffer CGA Business Tracker has revealed, but sales in real terms remain below pre-COVID levels. The data revealed that like-for-like (LfL) sales in December 2022 were 15% ahead of 2021 levels, when trading was hampered by the widespread omicron variant of COVID-19. Despite this, sales were only 2% higher than 2019 levels, and when adjusted for double-digit inflation, trading was significantly behind pre-Pandemic rates. Christmas was a particularly strong period of trading for pubs, which saw an increase in LFL sales of 19% compared to 2021, as concerns about COVID reduced and the World Cup drew more people into their locals. Restaurants saw a more modest rise, at 9.1%, while sales in bars were up 11.9%. London saw a more dramatic increase in hospitality sales, with the capital seeing an increase of 22.8% compared to 12.9% in the rest of the country. The data is produced by CGA by NielsenIQ in partnership with The Coffer Group and RSM UK. Karl Chessell, director of hospitality operators and food, EMEA at CGA by NielsenIQ, said: “After two bleak Decembers, solid Christmas trading helped many pub, bar and restaurant groups to end 2022 on...

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Richard Walker succeeds father as Iceland executive chair

18th January 2023

Iceland managing director Richard Walker has been named as executive chair of the supermarket retailer, succeeding his father, Sir Malcom. Sir Malcolm, who founded Iceland in 1970, will remain a member of the board. Richard Walker began his career in asset management at Jones Lang LaSalle, before co-founding property development company Bywater in 2006, where he remains as chair. He joined Iceland after his father regained control of the company in 2012, working on the shop floor and in store management before taking on the role of managing director. Speaking on LinkedIn, Richard said: “After 11 years at Iceland, starting on the shop floor, getting involved with nearly every aspect of the business at head office, and spending the last five years as Managing Director, I am really looking forward to presiding over the Executive Board while continuing to fulfil my direct responsibilities for our Property and HR functions”.

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Enterprise pulls up at Festival Place

18th January 2023

Festival Place has announced the opening of Enterprise Rent-A-Car at Basingtoke’s Festival Place. The new location will be the vehicle rental business’s first in a UK shopping centre. The unit has been adapted to include a washing bay and collection/return points. The deal follows a busy year of leasing activity at Festival Place, having welcomed MINISO, Ted Baker, Tapas Revolution and local dessert operator G Factory all within the last 12 months. Other recent leasing activity at the scheme includes community initiatives such as a 6,113 sq ft NHS Health Hub, as well as the offering of free space to local charity, the Community Food Link, to operate a delivery hub. Speaking on Enterprise’s arrival, Neil Churchill, centre director at Festival Place, said: “This is a pioneering move for a UK shopping centre and reflects our strategic leasing policy which has delivered a range of key services alongside a diverse mix of retail and leisure operators.” Festival Place was launched in October 2002 and was acquired by AEW in 2015. The 1.1m sq ft retail and leisure centre features brands such as Apple, H&M, M&S, Next, Waterstones and Five Guys alongside other amenities including a swimming pool and gym, a...

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WHSmith continues global push as travel revenue continues to grow

18th January 2023

WHSmith says it has 130 stores in the pipeline globally as its travel stores continue to perform well. In the 20 weeks to 14 January, WHSmith saw a group revenue increase of 41% compared to the same period in 2022. This number was 70% higher in its UK stores, 31% higher in the United States, and nearly a 200% increase in the rest of the world. Group revenue was 20% higher than in 2019, prior to the Pandemic. However, high street revenue was down by 2% and 14% against 2022 and 2019 respectively, although much of WHSmiths focus is now on its travel stores. WHSmith said it is continuing to see improving passenger numbers across UK airports, strong trading in hospitals, and its rail division performing well. The retailer said it is on track to open 15 stores in the UK within the next year. Internationally, WHSmith said it has 60 new stores won in the US, including at Reagan National Airport in Washington and Palm Springs airport, California. It also said it had seen notable improvements in Australia and Asia, with Europe being the best performing area in the most recent period. Carl Cowling, group chief executive, said: “Our...

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2023 business rates revaluation explained

18th January 2023

The draft 2023 rating list has now been published, showing that the 2023 business rates revaluation looks set to reduce retail rateable values nationally by 10%, which will be welcomed by owners and occupiers of retail properties. The extent to which occupiers of retail premises will benefit from a decrease in rateable value depends very much on location; some are certainly going to benefit more than others. Find your current and future rateable value here. To arrive at the 2023 rateable values, the Valuation Office Agency (VOA) have estimated the rental value of properties on what is known as an antecedent valuation date (AVD). This estimate of the rental value of a property becomes known as the property’s rateable value; a multiplier is then applied to this to generate your annual business rates liability. Your annual liability can increase, depending upon where the multipliers are set. Even if your rateable value is set to decrease, it is nonetheless important to ensure your business rates liability is based upon correct and fair information. Action can be taken now to ensure you are paying only what you should, now and in the future. The VOA assess the rental value of retail properties...

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Manchester Arndale serves up Lazy Sundae

18th January 2023

Manchester Arndale has announced that local dessert shop, Lazy Sundae, will be opening its second location in the city at the scheme. The ice cream parlour has agreed to take a 1,305 sq ft unit on a 10-year lease, joining other food and beverage offerings at the shopping centre including Creams, Slim Chickens, Kokoro, Jamaica Blue, Tim Hortons, and Pizza Luxe. Lazy Sundae opened its first outlet in Manchester’s Northern Quarter and offers customers a menu including bubble tea, soufflé pancakes and ice creams. Scott Linard, portfolio director at M&G Real Estate, said: “With such exciting leasing activity taking place, including recent retail lettings to MINISO, Gilly Hicks and Clarks, its clear operators across the board have long-term confidence in the centre. As we move into the new year, we hope to continue this bumper run”. A spokesperson for Lazy Sundae added that the site will form the flagship store for the brand as part of its nationwide expansion plans. Metis Real Estate and Time Retail Partners are Manchester Arndale’s retained letting agents.

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