Posts from February 2023

Popeye is continuing its UK expansion, announcing 5 new sites opening soon. The new UK locations include: The brand has also opened a further site in Norbury to keep up with the high demand in South London. With 17 locations now open and a total of 20 due to launch in 2023, Popeyes pace of openings in the UK are at a faster rate than its US competitors. Tom Crowley, CEO at Popeyes UK, said: “The sustained demand we’re seeing for Popeyes in the UK is incredible, but not unexpected – Popeyes is a cult brand with a huge following in the US and has supplied food for everything from celebrity weddings to the Met Gala.” The first restaurant due to open in 2023 will be Cambridge on 16th February followed closely by Reading on the 23rd.

News

Wingstop to open at Gallions Reach Retail Park

Wingstop UK is opening its first standalone retail unit at Gallions Reach Retail Park in Beckton. Lemon Pepper Holdings, the UK master franchisee and brand partner of Wingstop, has acquired the former Bella Italia site at Gallions Reach and plans to open in late March or early April. The US chicken wing chain opened 11 new sites across the UK in 2022, including space in London, Manchester, Birmingham and Edinburgh. Towards the end of last year, the company saw their weekly sales revenue exceed £1m and expects to see this continue as they open new locations in 2023. Co-Founder and director of Lemon Pepper Holdings, Tom Grogan, said: “Off the back of an extremely strong year of trade in 2022, we’re delighted to have started the year with another great acquisition. The location of the scheme and prominence of the unit is ideal. We have a young target catchment on our doorstep, with over 66% of catchment population under 40 and we can’t wait to start serving the local community our cooked to order flavours!”

Deals News

Cornish Bakery proves itself with record highs

Independent bakery chain Cornish Bakery has reported record highs across all elements of business performance in 2022. The company achieved an EBITDA profit of £4.2m for its full year to May 2022. Record sales were also achieved across the bakery’s tourism locations, with strong recovery seen in high street and factory outlet centres. In line with the company’s commitment to internal culture and a motivated team, Cornish Bakery’s Employee Net Promoter Score moved from ‘good’ to ‘great’, with the company’s lowest ever staff turnover currently being recorded. During 2022 new sites have been opened in Plymouth Barbican, Beverley, Stamford, Rye, Whitby and Caledonia Park, Scotland. The company is set to open six new branches in 2023. Cornish Bakery founder Stephen Grocutt says, “‘Aim Higher’ is one of Cornish Bakery’s core values, and we just keep going higher and higher. Winning beautifully is very important to us and I draw great satisfaction seeing many happy teams and customers. Bakery is without a doubt now THE new coffee shop and I’m delighted that Cornish Bakery is raising the quality bar across the sector.”

News

Castore joins the Trafford Centre

Manchester’s Trafford Centre has welcomed premium sportswear brand Castore. Castore has taken a 1,200 sq ft space in the centre’s Upper Regent Crescent to show off its range of menswear and womenswear, as well as the new Red Bull Replica Collection. Castore was founded in 2015 by brothers Tom and Phil Beahon with the aim of building a sportswear brand with a reputation for innovation and performance. Tom Beahon said: “We look forward to welcoming shoppers into the store and to becoming part of the Trafford community.” Russell Loveland, director of UK asset management at Pradera Lateral, asset manager of Trafford Centre, said: “We are building a diverse sports and athleisure offering at Trafford Centre, which appeals strongly to the centre’s core catchment. The city of Manchester has a strong affiliation for sport and it’s only right that its largest retail and leisure destination should reflect this. We have no doubt that Castore will prove to be a popular addition.”

Deals News

Redhill shopping centre sold to private investor

Belfry Shopping Centre has been sold to an investor for more than £17m. The scheme was put on the market in 2022. The sale was completed last week, negotiated by joint agents Knight Frank and Lambert Smith Hampton. Less than 30 minutes from London, the scheme is the heart of Redhill’s retail offering and an excellent investment opportunity according to representing agents. The sale also includes a total 16,125 sq. ft of office space across two blocks, as well as four residential units located on Station Road. Redhill is currently undergoing extensive regeneration to transform its retail and entertainment offering. The highly-anticipated Marketfield Way leisure development is nearing completion as well as several recently-completed residential developments in the town centre. Earlier this month town centre development, The Rise, announced it had reached three quarters of it’s letting capacity as has begun to transform the scheme’s entertainment space. The council-owned scheme will offer a six-screen cinema, a retro arcade, a nine-lane bowling arcade, mini-golf, and various other “surprise” leisure offerings. Keith Shiells, Director at LSH, Belfast, said: “The sale of Belfry Shopping Centre generated strong levels of interest and highlights that investor appetite remains positive for shopping centre assets, underpinned by strong...

Deals

JD Sports doubles up in Merthyr Tydfil

JD Sports is to upscale its presence in Wales with a new opening in Merthyr Tydfil. The 8,345 sq ft store will be double the size of JD’s existing shop in Cyfarthfa Shopping Park and will open on Saturday 25th February. The new store will offer a significant improvement in trading space for the sports fashion retailer, including improved store configuration and increased trading space. Plans for the new outlet include a larger street/fashion range. Brands sold within JD Sports include Hoodrich, Mercier, Fred Perry, Lacoste and Boss. James Air, head of group acquisitions at JD said: “We are confident that the new store will be one of the best of its type within the UK and we would like to thank our partners at Brookfield Properties for working so closely with us on the project.” Earlier this month, the retailer said it plans to spend over half of its capital expenditure in the next five years on opening between 250 and 350 new stores every year. This would see up to £360m per annum spent on its expansion plans.

Deals News

Knoops to open flagship Knightsbridge store as part of national expansion plan

Luxury hot chocolate shop Knoops is to open a new flagship store in Knightsbridge. The store is located at 130 Brompton Road on the corner of Montpelier Street and opposite upmarket department store Harrods. It will open on 24th February. Knoops is on the expansion trail and will also be opening its first northern store in Manchester this spring on the corner of Cross Street and South King Street. Plans also include a new café in Bath’s shopping area at 21 Old Bond Street on the corner of Quiet Street. The café chain believes it can grow the brand to 100 UK restaurants over the next five years. Knoops already has outlets across London in Covent Garden, Chelsea, Kensington High Street and Richmond, as well as further afield in Oxford, Brighton, Cambridge and Rye. Run by its German founder Jens Knoop, the hot chocolate maker’s USP is its tailormade and customisable chocolate percentage menu. It has more than 20 different varieties of hot chocolate and also offers milkshakes and coffee. The cafe has later opening times in London until 10.30pm which help attract a wider customer base. The first Knoops café opened in Rye, East Sussex in 2013.

Deals News

Manchester Council to approve Great Northern redevelopment

Manchester City Council’s planning committee will discuss the Great Northern Warehouse redevelopment, as well as a new 6 storey office in Didsbury Technology Park, this Thursday (16th). Trilogy Real Estate and Peterson Group’s submitted plans for the £213m mixed-use site as part of Manchester City Council’s 2017 Strategic Regeneration Framework (SRF). The development will see the six-acre site converted into eco-friendly offices, 746 homes and a new supermarket. The grade II listed Deansgate Terrace would also be refurbished to provide a further offices space on its upper floors, creating 150,000 sq. ft of total space. The ground floor will continue to hold retail and leisure space. A glass bridge would also be built between the warehouse and Deansgate terrace to connect the buildings. If planning permission is secured, Trilogy and Peterson would develop the project in phases, starting in June 2024, with completion due by June 2029. Phase A comprises the refurbishment and conversion of Great Northern Warehouse and the northern end of Deansgate Terrace, while Phases B and C will include the partial leisure box demolition, the building of the residential towers, and the refurbishment of the southern end of Deansgate Terrace. Trilogy Real Estate and Peterson Group are working...

News

Edinburgh retail park sold to Lothian Pension Funds for £16m

Hunter Real Estate Investment Management has sold Edinburgh‘s Corstorphine Retail Park for £16.3m to Lothian Pension Fund. The fund is the second-largest Local Government Pension Scheme in Scotland. The park has recently seen extensive refurbishment and welcomed new lettings to Lidl and The Gym Group, who split the 27,511sq ft unit previously let to PC World. It has also renegotiated leases to McDonalds, Pets at Home and Cancer Research, giving an average lease length of more than 18 years. Chris Macfarlane, director of Lismore, said: “Towards the end of 2022 and into this year we have seen retail warehousing yields soften, but those parks anchored by food stores and also with an element of drive-thru, located in strong urban catchments, remain robust and still offer good value.” Lothian Pension Fund was advised by Lismore Real Estate Advisors.

Deals

Subway exploring potential sale

Subway has informed stakeholders of a potential $10bn (£8.2bn) sale, according to The Wall Street Journal, after 58 years of family ownership. Although there are no confirmed plans, Subway has appointed JP Morgan to advise and explore options. As a privately owned company, Subway isn’t required to disclose any financials and the chain has confirmed that it “does not intend to make any further public comment regarding the process until it has been completed”. Earlier this year, Subway reported record sales for the second year running, with a 9.2% increase in sales in 2022, compared to 2021, and a 29.1% increase compared to 2020. The firm has been growing rapidly for years but is now facing soaring costs and increased competition, although it has not confirmed how much inflation has affected price increases.

Deals News

Dunelm on track for 2023 despite fall in profits

In the last six months of 2022 Dunelm reported a 5% increase in sales to £835m, 43% up from pre-pandemic profits. Despite this, pre-tax profit fell by 17% to £117.4m from £140.8m. However, Dunelm claimed to expect this as the result of inflation, sale timings and in contrast to the high demand they received post-pandemic. The retailer still expects to meet analysts’ expectations with a pre-tax profit of £176m in 2023 although consumers spending is ‘unpredictable’ in the wake of the cost-of-living crisis. Dunelm’s chief executive officer Nick Wilkinson, said: “Much like during the pandemic, our customers, colleagues and the communities we operate in will remember how businesses behaved when times were tough, and we are confident that our approach of offering outstanding value and choice for all will enable us to – once again – emerge from this challenging period stronger than ever.” Dunelm announced a 15p per share dividend and a special dividend of 40p. The retailer also said it had gained 160 basis points in market share to almost 7% of the £23m UK homeware sector.

News

Waitrose to cut prices with £100m investment

Waitrose will be investing £100m this year, reducing prices on hundreds of products to help consumers cope with the cost-of-living crisis. Over a quarter of the supermarkets own-brand products, including 250 of its budget ‘Essentials’ range, will be cut by over 20%. CEO of Waitrose, James Bailey, told The Grocer: “This all adds up to a more affordable, accessible Waitrose.” He explained that the retailers’ 5-year efficiency programme, launched in 2020 by parent company John Lewis, has made room for reinvestment in its pricing. “We’ve known for a while that we’d like to become more affordable, more accessible, but it’s about creating the headroom for that and then thinking long-term,” Bailey said. The announcement marks a significant change for Waitrose, which had been experiencing falling sales over the past year. Waitrose has resisted price cuts as a response to the cost-of-living crisis, instead focusing on its commitment to quality and sourcing credentials. However, Bailey insists that the new price cuts do not mean a compromise on Waitrose’s commitment to quality and sourcing as the company invested £56m in farmers last year.

News

Gaucho to debut in Cardiff

Argentinian steakhouse concept Gaucho is set to open its first restaurant in Cardiff after agreeing to sign at St David’s. Gaucho has signed with Landsec to open a 220-cover restaurant in a 8,000 sq ft unit on The Hayes, a retail and dining destination within St David’s. Sitting across two floors, Gaucho’s at St David’s will feature private dining rooms and a cocktail bar, with Landsec saying the site will run on 100% renewable energy. The first Gaucho restaurant opened in Piccadilly in 1994, with the chain now growing to sites in London, Leeds, Manchester, Birmingham, Edinburgh, Glasgow, and Liverpool, with a Newcastle site set to open in March 2023. Mark Warne, brand account director of F&B and leisure at Landsec, said: “We’re curating a premium offer at St David’s so that we can continue to provide guests with unique experiences which can’t be found elsewhere. With The Ivy, The Ivy Asia and Giggling Squid all making their regional debut on The Hayes, St David’s is fast becoming the premier destination for high end dining in Wales.” Perfume house Penhaligon also chose The Hayes in St David’s to make their Welsh debut at the end of 2022.

Deals

Amazon to “go big” on physical stores, while workers announce further strikes

Amazon plans to “go big” on physical, bricks-and-mortar stores, despite its recent announcement regarding growth plans being on hold. Chief executive Andy Jassy blamed a lack of “normalcy” during the pandemic for a series of stumbles. Speaking to the Financial Times, Amazon’s Jassy said: ““We have a history of doing a lot of experimentation and doing it quickly. And then, when we find something that we like, doubling down on it, which is what we intend to do.” “We’re just still in the early stages,” Jassy added: “We’re hopeful that in 2023, we have a format that we want to go big on, on the physical side.” Pulling back its expansion plans on grocery led to a $720m impairment in the last quarter of 2022, Amazon said this month, as some of its Amazon Fresh grocery store locations were closed and new openings paused. The company had announced plans to open more than 200 Fresh stores, but just several dozen have opened to date – including an Amazon Fresh store recently opening in Croydon, South London. Meanwhile, in Coventry, Amazon warehouse workers have announced a number of further strikes in a dispute over pay. They became the first Amazon workers...

News

Black Sheep Coffee set for Milton Keynes debut

Black Sheep Coffee is set to open its first Milton Keynes site after agreeing to open its latest café at centre:mk. The coffee chain has signed to a 1,637 sq ft unit on centre:mk’s Sunset Walk, with the new café expected to open in May. The store will also feature Black Sheep’s “Free Coffee Board” which allows customers to donate their loyalty rewards to pay for hot drinks for those who can’t afford them. The chain has also removed single use plastics from all of its sites. centre:mk say these initiatives reflect the social values of the scheme. Kevin Duffy, centre director at centre:mk, said: “The destination’s F&B offering continues to go from strength to strength with December sales up to 43% up versus 2021. We’re looking forward to welcoming Black Sheep Coffee come May, as it joins the likes of Cosy Club, Harrod’s Champagne Bar, Wagamama and the recently opened, itsu at the destination.” The co-founders of Black Sheep Coffee, Eirik Holth and Gabriel Shohet said that Milton Keynes had been a target location for the brand for some time. MMX Retail and CBRE acted for centre:mk for the deal.

Deals News

Five Guys served up in Bracknell

Burger brand Five Guys has continued its expansion across the UK with its latest restaurant at The Lexicon in Bracknell set to open in May. UK leisure and property agency Shelley Sandzer has secured a 58-cover, 3,000 sq ft site at the former Bill’s unit at the scheme. The American burger chain has had a long-standing relationship with Shelley Sandzer, who helped secure the restaurant’s first UK site in 2013, as well as its 100th site at St Pauls in 2019. With the chain currently at 150 UK sites, the latest addition will join the existing Berkshire Five Guys in Reading and Windsor. Nick Weir, joint managing partner at Shelley Sandzer, said: “They recognise the value of prime town centre sites, and how they can be a really important part of communities up and down the country, providing great food and creating jobs. The Lexicon is a great example of how they can achieve this, while matching their growth ambitions, and no doubt they will add a great offer to Bracknell later this year.” This follows a number of deals in 2022 for Shelley Sandzer, including the securing of Yakinuku Like’s first UK site and the completion of leasing at...

Deals News

Time Out Market appoints partner in global expansion drive

Curated food and cultural market Time Out Market has appointed Gillingham Bell International as a real estate partner as it looks to continue its international expansion. Founded in London in 1968, Time Out currently operates seven existing sites with eight more in the pipeline across mainland Europe, Canada, the Middle East, South Africa, and Japan, all expected to open between 2023 and 2027. Time Out Market is focusing on signing management agreements with landlords and developers, with Gillingham Bell will look for sites worldwide. Jay Coldren, Time Out Market co-CEO, said: “We have built a robust lineup of new Markets and interest from landlords and developers who want to make Time Out Market an anchor of their properties is stronger than ever – we are in advanced negotiations to grow our pipeline further and continue to be open to conversations.”

Deals

Majority of UK shops saw rental decline in December

The majority of UK shops saw a decline in rental growth of 1.7% in December 2022 compared to the same period a year prior, according to data from Avison Young. Retail parks were the only type of retail property to see any kind growth as a whole, although at low levels of only 1%. In 2023, Avison Young predicts that UK retail rents will decline compared to 2022, however only by a small margin before returning to growth in 2024. The data also revealed that retail investment volumes totalled £6.2bn in 2022, 19% lower than 2021 but almost on par with the five year average. Vacancy rates sat at 18.2% in shopping centres, 13.8% in high streets, and 4.35% in retail parks. The data said that retail sales values did rise in December by 3.3% compared to 2021, however when considering current rates of inflation, the volumes of sales saw a decrease of 6.1%, with online retailers seeing the biggest drop. Miles Marten, principal and managing director of retail at Avison Young, said: “2022 was another difficult year for the retail sector due to increasing costs and declining consumer confidence. However, towards the end of the year, there was some...

Insights News

Festival Place welcomed four new operators in January

Basingstoke’s Festival Place welcomed four new operators in January, with the arrival of Enterprise Rent-A-Car, Wenzel’s, Kushti Comics, and the relocation and upsizing of existing occupier Festival Street Kitchen. In January, revenue at the scheme increased by 8.2% on a like-for-like basis while footfall rose by 9.1%. Since the beginning of 2022, the scheme has seen 25 leases agreed or renewed, with MINISO, Ted Baker, Tapas Revolution and G Factory all joining Festival Place in the second half of 2022. Other recent leasing activity at Festival Place includes community initiatives such as the 6,113 sq ft NHS Health Hub and a delivery hub for Basingstoke-based charity Community Food Link. Simon Barrett, managing director and head of asset management at AEW, who manage Festival Place, said: “The arrival of these new operators adds further diversity and services to the scheme and is indicative of the ongoing evolution of Festival Place. Seeing existing operators relocate to new premises is equally encouraging and shows that our tailored strategic approach of retaining operators and attracting exciting new ones, alongside a number of local operators is proving successful.” Lunson Mitchenall and Cushman & Wakefield are joint agents for Festival Place, while CBRE is the managing...

Deals News

Mango arrival marks fruitful period for Touchwood