Posts from March 2023

Plans for a £48m dual-branded hotel in Gateshead’s quayside have been approved by local councillors. An application for a nine storey, 344 room combined hotel was submitted by developers Ask:PATRIZIA and given the go-ahead by Gateshead Council earlier this week. Split between Novotel and ibis, the hotels will be located on a vacant 0.5 acre site at Baltic Quarter, and will feature a gym, restaurants, bars and meeting rooms. The property will be operated by Accor and managed by Vine Hotels. Gateshead Council estimates the hotel will see over 75 full jobs will be created, with the dual-branded hotel accommodating 210,000 visitor nights a year and contributing £13m to the local economy. Peter Udall, Strategic Director, Economy, Innovation and Growth at Gateshead Council said: “We are delighted to see the Novotel and ibis hotels receive planning permission as they are an essential part of the delivery of the Gateshead Quays developments.” “With the transformational impact on the visitor economy that these developments will bring, the region will need more accommodation to provide for the increased visitor numbers. This marks another milestone towards the delivery of these great regeneration schemes.”

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Highbury & Islington on top of London’s most resilient retail neighbourhoods

Highbury & Islington has been ranked as Greater London’s most resilient retail neighbourhood by real estate advisor Savills. Fellow North London neighbourhoods Kilburn and Holloway Road came a close second and third. The study utilised a number of metrics including vacancy rates, footfall, new openings, population growth, and household incomes to determine London’s top 40 markets from Zones 2-6. Highbury & Islington’s high ranking is thanks to its large population (64% higher than the study average), strong footfall figures and transport links, and a boost from the newly-renovated Angel Central shopping centre, Savills said. Josh Arnold, commercial research analyst at Savills, said: “Ongoing flexible working arrangements have led to an increase in localised spending as people spend more time in their local neighbourhoods. This is reflected in sales figures and new openings for a number of retailers, with many reporting an uplift in sales vs pre-pandemic for suburban areas, which in turn has influenced expansion plans.” After Kilburn and Holloway, the remainder of the top 10 is made up of a number of emerging London neighbourhoods, including Dalston, Walthamstow, Finsbury Park, Brixton and Tooting. The emerging neighbourhoods are supported by an emerging population, as well as a vibrant retail and...

Insights News

Wickes looks to fill the gaps with 20 new stores

Wickes says it is confident it will open 20 new sites in five years, at its property team explores “white space catchments”. The DIY and gardening retailer, which operates 230 stores in the UK, opened its first store for some time in October in Bolton, and says it is planning further openings in 2023. The retailer has continued to invest in its store estate, having completed 12 store refits in 2022, including the downsizing of its Maidstone store. Wickes said that despite an increase in building costs, store investments continue to deliver a strong return in sales, with DIFM (do-it-for-me) sales increasing by 50% and core sales jumping by 10%. The retailer said it would continue its refit programme in 2023. This comes as Wickes releases its full year results for 2022, which saw the retailer pull in a record £1.5bn of revenue. Wickes recorded a slight fall in adjusted profit to £75.4m, down from a record £85m in 2021, as demand in the home improvement sector has begun to fall following a Pandemic boom.

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Oxygen acquires Romford indoor trampoline park

Indoor family activity brand Oxygen has acquired Romford-based trampoline operator Jump Evolution, bringing its total portfolio to ten parks nationwide. The 27,500 sq ft trampoline park will become Oxygen’s fourth-largest site by revenue, and its second acquisition in six months, having snapped up RedKangaroo last November. Stephen Wilson, managing director at Oxygen, said: “The acquisition of Jump Evolution is another key moment in Oxygen’s growth. The park is an established and high-performing location with a great team in place who we look forward to working with to further improve the already fantastic customer experience. “This milestone comes at an exciting time for the group as we are soon to roll-out the next evolution of our customer experience in our Croydon park.” Along with the acquisition of Jump Evolution, Oxygen has also been investing in its portfolio, having spent over £1.23m to introduce its customer-led strategy at its Croydon location. First introduced at Oxygen’s parks in Wilmslow and Acton, the proposition includes enhanced facilities for parents, improved food and beverage services, and increased investment in technology. The redevelopment of the Croydon site will take six weeks with the park expected to reopen in time for Easter.

Deals News

Next agrees flagship deal at St Enoch

Next is set to join St Enoch shopping centre in Glasgow, the scheme’s asset manager Sovereign Centros has announced. Opening in October, the fashion and home retailer will take a 28,000 sq ft unit in the former Topshop store on a 10-year lease. A £40m repurposing of the scheme’s former BHS department store has allowed multiple retailers, restaurants, and leisure operators to trade under one roof, leading to a revival for the centre. Danish retailer Søstrene Grene and toy retailer The Entertainer have both recently opened at the scheme, while Jeweller Pandora is also set to open at St Enoch in time for Easter. Matt Elgey, senior asset manager at Sovereign Centros, said: “The arrival of Next boosts St Enoch’s position as the epicentre for retail and leisure within Glasgow city centre and will complement our exciting occupier line up.” EYCO and Savills advise Sovereign Centros.

Deals News

Jon Munnery: Is it the prime time for discounters?

Nearly a quarter of the UK grocery market is made up of discount retailers, such as German discount chains, Aldi and Lidl. Fast growing, discounters are taking up more real estate as consumer demand increases and shoppers turn to cheaper alternatives. As economic conditions toughen, more customers want their money to go further which is the core offering of discounters. According to global market researchers, Mintel, shoppers were expected to spend £32.4 billion in 2022 with discounters, an annual increase of 6.6%. This is on a steady rise as consumer appetite for cheaper options, such as Aldi and Lidl, increases as they cope with the cost of living crisis, inflation, interest rates, post-Brexit and Covid-19 uncertainty. Aldi took over fourth place in the grocery store ranking from Morrisons for the first time, according to Kantar’s research on grocery market share in Great Britain between 2017 and 2022. This shows that discount grocers are gradually overtaking the original big four that ruled the market over a decade ago; Tesco, Sainsbury’s, Asda and Morrisons. As shopper behaviour shifts, so do the perception of shopping at a discounter. Change in perception It’s no longer unheard of to shop at a discount store as...

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Coventry Cultural Gateway gets funding approval

Proposals for a multimillion pound development of a former IKEA store in Coventry have been given capital expenditure approval by councillors. Planning permission for the City Centre Cultural Gateway (CCCG) has now been submitted following public consultations in February. The developments will take place over three phases, with the first seeing part of the building become host to the collections of CV Life, Arts Council England, Arts Council Collection, and the British Council. Phase two will see Coventry University take the fifth and sixth floors to create a cultural hub. On these two floors, Coventry University will look to create a gallery, café, library and exhibition space, dance studio, conference area, artists’ studios, post-production filming facilities, and a shop for students to sell their artwork. The facilities will be available to hire and open to the public. The third phase of development will see the Council enclose and future-proof the internal car parks. Professor John Latham CBE, Coventry University vice-chancellor, said: “We hope this will be a truly transformative project for the city as a whole. “For our part, the cultural hub would bring great benefits to both students and the public by making cultural activities and experiences accessible to all. We...

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£2.5bn ‘Dartford Disneyland’ developer calls in administrators

The developers behind the London Resort, a proposed theme park on the Swanscombe Peninsula in Kent, has called in administrators, putting the future of the site in doubt. London Resort Company Holdings (LRCH) appointed administrators after racking up debts of £100m, KentOnline has reported. The group will now undergo restructuring under the conditions of a Company Voluntary Agreement (CVA). The development, affectionately dubbed the ‘Dartford Disneyland’, would have cost around £2.5bn. A LRCH spokesperson told KentOnline it had taken the “logical and sensible” decision to launch a CVA proposal. “We’ve spoken to many of our creditors who are very happy to support the initiative which would see their debts converted into shares,” they added. The group said that despite the CVA, the project would continue, although new significantly different proposals will be submitted later this year. Taking into account Natural England’s decision to designate Swanscombe Peninsula as a Site of Special Scientific Interest, the future proposals are expected to see a reduction in the amount of land used.

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Asda expands strategic partnership with Claire’s

Accessories retailer Claire’s will bring its product range to over 500 Asda locations, following a successful trial. Claire’s products will be available to purchase within Asda’s George sections, as well as its hair and beauty aisles and seasonal event areas. An initial pilot in 10 Asda stores began in October 2020 which then saw Claire’s presence within the supermarket continue to expand, with Asda citing a “positive customer response” to the trial. Alison Grainger, senior director for retail planning and proposition, general merchandise and George said: “By joining forces with exciting and beloved brands like Claire’s, customers who visit our stores are provided with not only convenience but also access to a greater product choice […] enabling them to complete more shopping missions in one location.” Ryan Vero, chief executive officer of Claire’s added: “Through our expanding consumer products partnerships, we are bringing Claire’s within reach of even more customers in even more locations where they live and shop. We have continued to see strong reception to our partnership with Asda”.

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Arcade seeks ‘real world Metaverse’ locations

AOE is looking to open ‘Arkades’ across major global cities, including London and Manchester, as it looks to bridge the gap between the real world and the Metaverse. AOE Arkades are designed to showcase the Metaverse through a new type of family entertainment centre with gaming, educational technology, and digital creation at its heart. The Metaverse is a catch-all term to describe the Internet within a 3D environment, accessed through the use of virtual or augmented-reality goggles. AOE, which stands for Area of Effect, is seeking flagship sites between 20,000 sq ft and 70,000 sq ft in size in prime city locations. Both high street and scheme units are being considered. Along with London and Manchester, global cities such as Dubai, Singapore, and Berlin are also on AOE’s radar. Savills has been appointed as AOE’s global property partner.

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Cumbernauld scheme owner falls into administration

The owner of the Antonine Shopping Centre in Cumbernauld has fallen into administration. Bridges Antonine has appointed accountancy firm Azets as administrators, but say that business will continue as usual until the mall is sold. The 200,000 sq ft scheme opened in 2007 and is home to 42 retail units and 1,100 car parking spaces. The mall is anchored by Tk Maxx, Next, and TJ Hughes. James Fennessey, restructuring partner with Azets, said: “The contribution of the Antonine Shopping Centre to the economy of central Scotland is significant and the centre is as much a social hub and focal point for the region as it is a retail centre. We would encourage interested parties to contact the administrators as soon as possible as we are keen to try and find a buyer promptly.”

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IKEA opens second Plan & Order Point

IKEA has opened a second Plan & Order Point in Stockport, Greater Manchester, following its debut launch in Aintree in December. The smaller-format 764 sq ft store is located in the Merseyway Shopping Centre, and is designed to offer customers inspiration for kitchen and bedroom planning. The launch is part of a wider strategy by the Swedish furniture retailer to become more sustainable and accessible for customers in the North West, which IKEA UK area manager Michael Parker described as a “key region”. Councillor Malcolm Allan, cabinet member for finance and resources at Stockport Council, said: “Whilst many high streets are in decline, businesses are seeing Stockport as a place that is growing and expanding, and a great place to be. That sort of recognition is something of an endorsement especially from an organisation of IKEA’s calibre and reputation. Our ambitious £1bn regeneration programme is attracting a diverse mix of businesses to the Town and they will be followed by a wide range of customers who have increasing reasons to visit Stockport.” Another IKEA Plan & Order store is set to open in Preston later in 2023.

Deals News

Authentic Mexican restaurant joins Gloucester Quays lineup

Authentic Mexican eatery El Mexicana has become the latest food and beverage operator to sign at Gloucester Quays. Taking a 600 sq ft unit, El Mexicana will arrive at the centre in the coming months. It will sit adjacent to The Real Greek, which joined the Gloucester scheme’s food and beverage lineup last Autumn. The eatery’s menu will offer classic Mexican dishes including burritos, quesadillas and nachos, as well as sweet treats in the form of churros. El Mexicana’s signing follows a strong year for Gloucester Quays, which saw record-breaking sales in 2022. Alongside MediaCity Salford, it is also one of the first retail destinations to achieve a ‘Net Zero Carbon – Operational Energy’ rating in line with the UK Green Building Council’s net zero carbon buildings framework. Paul Carter, asset director at scheme manager Peel L&P, said: “Providing new options at Gloucester Quays means we can truly appeal to all of our visitors, whether they live locally or further afield, and whether they want to grab a quick lunch or enjoy a meal as part of a full day out. El Mexicana delivers on all of these – their offer works for a number of visitation reasons, and they...

Deals News

A guide to renting a shop in West London

Considering renting a shop in West London? Here’s what you need to know. To the north west of the Thames, the exact confines of West London are sketchy, however, a 2011 publication by the Mayor of London defined West London as the boroughs of Brent, Harrow, Hammersmith and Fulham, Hillingdon, Hounslow, and Richmond upon Thames. Other areas such as Ealing, Brentford, and Kensington and Chelsea are considered West London, although the latter is covered in our Central London guide. Traditionally considered to be home to the city’s rich and famous, West London is a great place to rent a shop. Attractions West London brings in thousands of tourists who come to watch some of the big names in football. Premier League heavyweights Chelsea actually play their football in Fulham, just down the road from the borough’s namesake club. Brentford and Queens Park Rangers are just a couple of other clubs in a part of London that loves football. It’s not just football for sports fans in West London, though. It also hosts the home of English Rugby, Twickenham Stadium. Hampton Court Palace in the borough of Richmond upon Thames is a great option for history lovers, one of King Henry...

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Screwfix rescues online retailer for £3m

Screwfix has purchased Birmingham-based Connect Distribution Services out of administration for a cash consideration of £3m. Connect Distribution Services is a retailer of appliance spares, accessories and consumables to tradespeople and consumers via its digital and telephone channels. The business’ e-commerce platforms, stock, intellectual property, and product data will transfer over to the ownership of Screwfix, which will also see Connect Distribution Services’ 400 employees under its management. Screwfix says the retailer’s brands, which include sites such as eSpares, BuySpares, 4OurHouse, and the Connect Trade Portal, will operate as normal. Screwfix added that it will begin to explore opportunities to enable customers to click-and-collect orders through Screwfix’s nationwide store network. Screwfix CEO John Mewett said: “The business’ popular e-commerce platforms have significant growth potential and they play an important role in helping tradespeople and consumers keep products in use for longer, supporting our sustainability agenda.”

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Chelsea FC owner planning £2bn stadium redevelopment

Chelsea Football Club’s billionaire American owner Todd Boehly is reportedly considering demolishing the club’s iconic Stamford Bridge stadium in a £2bn redevelopment project. The stadium, which has been the home of Chelsea FC since 1905, has a capacity of 40,303, making it only the 11th-largest stadium in the UK. The newly-proposed stadium would have a capacity of 60,000. The proposed developments would not see the revamped stadium completed until 2030, meaning Chelsea may have to play their games at rival Fulham’s home Craven Cottage, although Twickenham and Wembley Stadium are also being touted as alternatives. Conversations about upgrading the stadium have been in the works since 2011, when previous owner Roman Abramovich looked to move the Premier League giants into a bigger home. The club was granted planning permission for a new site in 2017 with a target to finish construction by 2021, however the plans were put on hold.

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Developer appointed for Winchester redevelopment scheme

Winchester City Council has appointed Jigsaw Consortium, trading as Partnership & Places, to develop its Central Winchester regeneration project. The mixed-use development will take place over around four acres of space and will see the creation of food and drink offerings, public spaces, a hotel, and flexible working and creative spaces. The development will also deliver a number of new homes, with a mixture of tenures ranging from private sale, homes for rent, and affordable housing. Jigsaw Consortium is a partnerships between Genr8 Kajima Regeneration and PfP igloo, bringing together a team of architects, urban designers, engineers, landscape architects, and specialist archaeologists. The group will also look to utilise local expertise during the development process. The regeneration site will include Kings Walk, Friarsgate, and the bus station. Councillor Martin Todd, leader of Winchester City Council, said: “The Central Winchester project is our chance to transform this area – bringing homes for local families, jobs for local people, while sensitively reflecting its setting and our city’s heritage.”

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Screwfix tooling up for 60 new stores this year

Screwfix says it has 60 new stores in the pipeline ready to open by the end of the year. The retailer’s parent company Kingfisher said that last year saw a record 82 store openings in the UK and Ireland for Screwfix, bringing its total number of stores to 872. The group says it has a medium-term target to operate over 1,000 stores. Kingfisher, which owns B&Q, is also targeting further expansion globally, having opened its first five B&Q stores in France last year and targeting a further 25 in 2023. B&Q also opened its first two Middle Eastern stores in 2022. The group says it is looking to open more ‘compact’ format stores, with B&Q recently entering the convenience market. “We believe that compact stores will play an increasingly crucial role in addressing the consumer need for both speed and convenience. Through compact store expansion, our ambition is to grow market share, optimise our overall store footprint, and to grow sales densities and store profitability”, Kingfisher said. This comes despite the group seeing a drop in profits of over a third. In its financial results for the year ending January 31 2023, operating profit fell 36.7% against the previous year...

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H&M upsizes in Milton Keynes

H&M is set to relocate and upsize to centre:mk in Milton Keynes. The new store, set across two floors, will feature the fashion retailer’s H&M HOME concept, as well as new click-and-collect lockers and self-service checkouts. In line with the brand’s sustainability sustainability policy, the new store will also offer H&M’s garment collection and recycling service. The retailer will relocate from its current store in Midsummer Place, which will close at the end of March. Kevin Duffy, centre:mk’s centre director, said: “H&M’s decision to relocate to centre:mk while upsizing, demonstrates the centre’s alignment with H&M’s agenda and its ability to deliver significant performance. As a centre we consistently outperform national benchmarks due to the appeal of one of the strongest anchor line-ups in the UK.”

Deals News

Wetherspoon opens £2.9m pub at The O2