Posts from March 2023

Property giant M Core has acquired Chelmsley Wood Shopping Centre in Solihull as continues to invest in acquisitions. The 461,012 sq ft site is anchored by an Asda Superstore, and is home to a number of retailers including Wilko, Iceland, Home Bargains, New Look, Sports Direct, Poundland and Boots. The site also includes offices and leisure facilities, such as a library, community housing offices and an advice centre. A multi-storey and surface car park accommodates 583 vehicles, with the scheme boasting an annual footfall of some 7.5 million people, says M Core. Although M Core did not disclose the financial details of the purchase, it said it had invested more than £160m over the last 12 months in 25 retail centres. The group’s acquisitions include Cwmbran Centre, Cwmbran; The Galleries, Washington, Sunderland; Aviemore Retail Park, Aviemore; and Three Spires in Lichfield. The group added that it has £300m to invest in assets ranging from £0.5m to £30m and in portfolios up to £150m, and is currently seeking sites for acquisition. Danny O’Keefe, founding partner of M Core subsidiary Evolve Estates, said: “As we continue our acquisition drive, retail centres such as this form a central role as we seek to...

Deals

Next up at Gloucester Quays

Fashion retailer Next is set to return to Gloucester Quays with the opening of a new outlet store this spring, asset manager Peel L&P has announced. The retailer will open in a 10,441 sq ft unit opposite M&S Outlet and feature a range of men’s, women’s, and children’s fashion as well as footwear, homeware, and beauty products. Next, who operate over 700 stores worldwide, will open the outlet nearby its full-price store at the adjacent Gloucester Retail Park. The signing follows a record 2022 for Gloucester Quays, as well as recent news that footwear and lifestyle brand Timberland had opened its doors at the scheme. Paul Carter, asset director at Peel L&P, said: “We are proud of Gloucester Quays’ continued success across retail, F&B and community sectors. Next is an iconic British retailer, and its return is indicative of this continued upward momentum at the outlet.” Judi Bowers, area manager for Next, added: “Next is committed to evolving with the times and customer demand, and taking space in key outlet locations like Gloucester Quays, with its impressive selection of retail tenants, is central to this commitment.”

Deals

Hammerson upbeat over retail trends despite portfolio devaluation

Hammerson says it saw a number of positive retail trends in 2022, including a rise in footfall and an increase in leasing deals, despite the year seeing its portfolio fall in valuation. The real estate investment trust (REIT) saw footfall increase by 11% points over the course of the year, reaching 90% of 2019 levels. Sales, however, were ahead of pre-Pandemic levels. Hammerson said that positive footfall and sales trends have continued into the first few months of 2023. The REIT saw a total of 317 leasing deals concluded in 2022, with headline leasing 2% ahead of the previous year (excluding disposals). Headline rent also increased by 37%. Hammerson also said that it had a strong leasing pipeline in the works for 2023. Despite these positive trends, the REIT saw its portfolio fall in value by 5% to £5.1bn in 2022, compared to £5.4bn the prior year. Hammerson said that this was due to a revaluation deficit as well as disposals. Rita-Rose Gagné, Hammerson chief executive, said: “Our results are evidence of another year of significant strategic, operational and financial progress, against a volatile macroeconomic and market backdrop. We have focused on what we can control – sharper operations growing...

News

How to retain customers

If you’re a first-time business owner, its important you learn how to retain customers, not just attract new ones. Retaining customers not only ensures a steady stream of revenue but also helps build a loyal customer base that can act as advocates for your business. Here are our tips on how to retain your customers. Provide excellent customer service One fundamental aspect of how to retain customers is providing excellent customer service. Customers expect good service, and if they don’t get it, they’ll go elsewhere. Ensure your staff are accessible to customers and responsive to their needs. If a customer has a problem, address it quickly and efficiently. Don’t make them jump through hoops to get a resolution. Exceeding your customers’ expectations will also keep them coming back. This might mean delivering a product ahead of schedule, offering a surprise discount, or including a free sample with their order. Small gestures can go a long way in building loyalty. Offer a loyalty programme Loyalty programmes are an excellent way to reward your customers and make them feel valued. You can incentivise repeat purchases by using punch cards, offering a free product once their punch card is filled. Or you could...

Advice

JD Sports targeting retail parks as part of expansion plans

JD Sports is looking to open 10 retail park stores a year, as part of wider growth plans which would see the retailer launch hundreds of new stores annually. This follows a period of rapid expansion for JD, which opened seven retail park sites in 2022. Following an upsize at Fosse Park, Leicester, as well as openings at Aberdeen, Blackburn, Crewe, Handforth, Leeds, and Prestatyn in 2022, JD Sports now operates 98 out-of-town stores. This is in addition to its 305 stores on UK high streets. In 2023, JD Sports has already arranged contracts for seven new openings, and just last week opened at Cyfarthfa Shopping Park in Merthyr Tydfil, doubling the size of its existing store. The retailer is now targeting more out-of-town units in 2023, between 6,000 and 10,000 sq ft on the ground floor with 2,000 sq ft of mezzanine space considered. James Potter of Avison Young has been appointed by the retailer to find suitable spaces.

News

John Lewis under fire over Ealing residential scheme

The John Lewis Partnership has been accused of bullying by the leader of Ealing council over concerns surrounding its first build-to-rent scheme. The partnership plans to construct 430 flats in towers reaching 19 floors high above one of its Waitrose stores, however this is well behind schedule, residents say. The Labour Party’s Peter Mason said that as the new flats would be entering the private rental market, they would be unlikely to provide enough affordable housing, and thus would not be in line with the local council’s development plans. The planning guidance also recommends that the buildings be between 7 and 13 storeys high, and so the proposed developments would fail to meet these criteria. Speaking on twitter last week, Mason said: “At the moment it feels like a big institution are trying to twist arms & bully through a scheme, that could be far better, through a precarious planning process using the ever present threat of an appeal.” Last year, the partnership announced a joint venture with investment company abrdn to deliver around 1,000 new homes in a £500m deal. John Lewis property director told The Times that there was always some “argy-bargy” when it comes to developments of...

News

Former N Brown CFO appointed by Co-op

The Co-op group has announced the appointment of Rachel Izzard as chief financial officer, after she stepped down from the same position at N Brown in November. Having also held senior roles at IFA Cargo and Aer Lingus, Izzard will take over the role from interim Mike Hazell in June. Shirine Khoury-Haq, Co-op CEO, said: “We’re delighted that Rachel is joining us at such an exciting time for our Co-op. We are all looking forward to welcoming her in June and her wealth of experience will enable us to continue to deliver our vision as a commercially successful co-operative.” At the time of her departure, N Brown said Izzard would be leaving to undertake an opportunity outside of the online fashion and consumer credit industry, although it is unclear when her appointment at Co-op was made.

News

Avison Young announces MD promotion to lead London expansion

Real estate advisor Avison Young has appointed Dominic Amey as managing director as the firm looks to expand its London markets business. Promoted from the role of principal, Amey will be focused on driving growth in brand presence, revenue, and personnel, and look to strengthen client relationships. With 25 years experience in the Central London market, Amey has worked in both acquisition and disposal of commercial real estate within the West End and the City of London. Having previously worked for 18 years as a director at Colliers, he joined Avison Young in 2021 to grow its Central London investment business. Avison Young says it is targeting new hires for its London investment, leasing, occupier advisory, and flexible workspace teams. Dominic Amey said: “Building on our existing successes and comprehensive client base, I am excited to lead such a talented and ambitious team into a new period of growth, as we seek to expand our book of work across the capital.” Nick Walkley, principal and president UK at Avison Young, added: “Dominic’s approach combines experience, refreshingly straight-talking advice, and a passion for delivering exceptional service to clients, which aligns perfectly with our values as a challenger brand in this major...

News

The Restaurant Group to offload over 30 sites

The Restaurant Group says it is looking to either convert or dispose of around 35 loss-making leisure sites. The move could see the conversion of three sites into Wagamama restaurants within the next two years. The group, which operates a number of other restaurant brands including Franky & Benny’s, expects its leisure estate will shrink by around 30% from 116 sites to 75-85 sites by 2024. The Restaurant Group said that at least 13 sites will be exited through tenancy termination or lease expiry, while seven freehold sites are expected to be sold. In addition, a further 10-20 sites are being marketed for exit as part of an accelerated disposal programme. The group said the measures were in response to a tough macro-economic environment, and designed to further cash regeneration. The Restaurant Group’s leisure businesses saw flat like-for-like sales growth in 2022, 5% behind the rest of the market. The group said the leisure business is in a highly contested market segment, and therefore has been the most directly impacted by cost-of-living pressures. Despite this, the group said its Wagamamas, pubs, and concessions businesses’ like-for-like sales all outperformed their respective market benchmarks in 2022 (against 2019 comparatives).

News

TK Maxx hunting for new London sites

TK Maxx has begun the search for new stores as it looks to expand its presence in the Capital. The clothing retailer, which currently operates 58 London stores, has reportedly sent a potential list of locations to a number of retail property agents. TK Maxx is looking for sites between 10,000 and 30,000 sq ft. The retailer is considering opening smaller-format stores in areas of Central London such as Holborn and Notting Hill, and is looking at a number of other areas in the Capital including Archway, Barnet, Elephant and Castle, and Upminster, The Evening Standard has reported. Property consultancies McMullen Real Estate and KLM Real Estate have been appointed by TK Maxx to find suitable locations.

News

Hotel Chocolat sees profit fall as international sails plummet

Hotel Chocolat has seen a fall in profits of £15.2m for the first half of its 2023 financial year, as its international revenue fell by almost 70%. The chocolatier recorded a profit before tax of £10.2m, down from the £25.4m seen in the first half of 2022. Group revenue also fell, down from £142.9m in 2022 to £129.8m in 2023, with a decrease in online revenue as consumer preference for bricks and mortar shopping returned. While UK like-for-like sales increased by 7%, international revenue fell by 69%, which Hotel Chocolat said reflected an “adaptive approach”. Angus Thirwell, co-founder and chief executive of Hotel Chocolat, said: “Our adapted plan for international growth – to pursue the proven brand appeal with low risk-low capital expenditure operating models – is making sound progress.” Hotel Chocolat said it was taking 2023 to hone its operating model before its next planned stage of growth. The retailer also gave an update on its expansion plans: “We have announced the opening of a further 50 UK locations over the next 3-5 years, with the first wave planned this Autumn”, Thirwell added.

News

Study explores London’s female-owned independent businesses

Female owned independents dominate London’s food and beverage scene. A new study conducted by Barratt London has investigated London’s female-owned independent businesses. The study of 1,981 London independents found that 306 were female-owned, with Westminster being home to the highest population with a total of 52. Lambeth was a close second with 41 female-owned businesses, ahead of Hackney with 38. Rank Borough No. of female owned businesses 1 Westminster 52 2 Lambeth 41 3 Hackney 38 4 Camden 36 5 Greenwich 36 6 Southwark 27 7 Tower Hamlets 13 8 Waltham Forest 11 9 Kensington and Chelsea 9 10 Richmond upon Thames 9 11 Wandsworth 7 Barratt’s research also revealed that food and beverage was the most popular sector for female owners, who primarily set up shop in Southwark and Greenwich. Creative businesses, consisting of ceramics, art and craft shops also made up a substantial percentage with 42 shops across the city. The gifting sector followed closely behind with 38 shops. Unsurprisingly, Camden was named as the top borough for the sector with 9 shops being based in Camden Market. Read the full study here.

Insights

Ediit wants three flagship stores in expansion plans

Womenswear retailer Ediit is aiming to open three flagship stores, as it hunts for a second London location. The retailer is looking to open in small affluent high streets in the Capital. Founded in 2020, Ediit currently operates one store in Queens Park, and sells through online platforms such as Trouva. Following the COVID pandemic, Ediit was forced to close its doors within just weeks of opening, however maintained an online presence. Ediit says it is 100% carbon neutral and that it has welcomed over 50,000 customers to its store since its initial launch. In 2022, it was selected as an up-and-coming business in Vogue Loves. The retailer says it believes strongly in a physical presence, with sales at Ediit improving month-on-month following the reopening of its Queens Park location. Richard Wassell of twentyretail has been appointed to find suitable spaces. The retailer is looking for corner spaces in affluent areas of London, 500+ sq ft in size, and has a preference for units with the whole space available on the ground floor.

News

Greene King aims to place women in half of its senior roles

Pub and brewery chain Greene King is aiming to place women into 50% of its senior management roles by 2030. The announcement comes ahead of International Women’s Day on March 8th. The target was set by Greene King’s executive board as part of its wider diversity and inclusion strategy, and is being supported by Greene Sky, the group’s women’s-focused employee inclusion group. Greene Sky aim is to help more women become involved in shaping the future of the business, and advises on current issues faced by team members by encouraging female empowerment and inclusion across the company. Greene King says it is committing to further action, following on from existing measures such as reverse mentoring, female mentoring, inclusive leadership training, as well as the introduction of a new maternity policy, which came into effect last year. Clair Preston-Beer, managing director for Greene King pubs and executive board sponsor of Greene Sky, said: “We recognise that we’re on a journey to everyday inclusion, where all our people are embraced and valued for who they are so that they can reach their full potential and thrive. This pledge is the first step in the right direction to working towards delivering greater gender...

News

Gordon Ramsey set to reopen Shoreditch Pizza restaurant

Gordon Ramsey’s restaurant group is set to reopen its Pizza East restaurant in Shoreditch next week. The recently acquired restaurant will reopen on March 15, following its closure in February. Gordon Ramsey Restaurants purchased the brand from Soho House last month. Both of Pizza East’s sites in Shoreditch and Notting Hill closed at the end of last year, before the Shoreditch site opened briefly after Christmas. The former Pizza East site in Notting Hill is reportedly under offer. Andy Wenlock, chief executive of Gordon Ramsey restaurants, said: “Our restaurant group and the Soho House Group have always had a great relationship, as colleagues, friends, and leaders in hospitality. Pizza East is a brand that is and will continue to be, cherished for years to come, as well as sitting proudly in our portfolio offering great food and great service to all our guests.”

News

Wall Street giant swooping in for $10bn Subway sale

An arm of Wall Street’s Goldman Sachs is looking to take control of part of sandwich chain Subway, which has been put on the market for around $10bn (c.£8.34bn). According to Sky News, the asset management branch of the banking giant is one of several interested parties who have put forward offers within the last week. TDR Capital, who own Asda and petrol forecourts EG Group, is one of a number of potential investors, alongside Bain Capital and TPG. The size of the potential takeover would be difficult for the initial bidders to take on alone, so there is reason to believe that some may band together to purchase the chain. This comes after the family-owned business, founded in Connecticut in 1965, announced that it was exploring a sale. The sandwich chain said in a statement in February that there was no indication of timing or assurance that a sale would occur. Subway trades from over 2,000 sites in the UK.

News

Struggling In The Style sold for £1.2m

Online womenswear retailer In The Style has been purchased for £1.2m by private firm Baaj Capital. The move comes as the fashion brand looks to avoid administration, following a strategic review in December. The retailer said it had received a number of offers for the company, however none of these were deemed acceptable by the board. The offer from Baaj featured a pre-condition which sees In The Style founder Adam Frisby take an equity position within a newly-formed company formed for the purposes of the sale, as well as become chief executive officer of In The Style. The move will also see the cancellation of In The Style’s shares on the stock market, which tanked by over 77% on Tuesday morning. The sale price of £1.2m is a stark decrease from the £105m valuation the company saw when floated on the market in 2021. Tough trading at the beginning of 2023 has seen the group’s cash position fall from £3.2m at the end of 2022 to £900,000 by the end of February.

News

Greggs hungry for 4,500 stores including drive-thrus