Posts from April 2023

Prezzo is to close over a third of its restaurants, citing the rising costs of food and energy. The Italian restaurant chain will close 46 loss-making sites, putting the jobs of 810 members of staff at risk. Prezzo said the cost of its utility bills had more than doubled during the past year, while the prices of dough balls, pizza sauce, mozzarella, and spaghetti had also spiked. “The post-COVID recovery has proved harder than we had hoped”, it added. Prezzo previously went into administration in late 2020 before being purchased by private equity firm Cain International. The chain will keep its restaurants open in busier shopping areas. Dean Challenger, chief executive of Prezzo, said: “The last three years have been some of the hardest times I have ever seen for the High Street”. “The reality is that the cost-of-living crisis, the changing face of the high street and soaring inflation has made it impossible to keep all our restaurants operating profitably,” he added.

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Barker Proudlove: “Hidden costs” put off retailers from launching pop-ups

Retailers wanting to launch in pop-up spaces are made nervous by “hidden costs,” according to retail and leisure specialist Barker Proudlove. Jessica Swain, retail and leisure surveyor for Contemporary, the agency’s short-term lettings initiative, describes the scheme as a stepping stone for smaller businesses between starting and long-term leases. “A lot of people like the idea of having a physical space and seeing the potential of their product on the high street. But there’s understandably that nervousness of committing with the ‘what ifs’ playing in the back of the mind”, she told Completely Retail News. Swain believes retailers are put off by some pop-up providers whose services require hidden costs. She added that retailers can be reluctant to contact agents about launching pop-ups. When Barker Proudlove launched its initiative, it had to be proactive and approach retailers: “There’s no denying that we had to really push and promote.” However as Contemporary has grown, so has its reputation. Retailers now come to them: “Now when we open our calendars we tend to find that we’re already fully booked months in advance”, Swain said. As a result, Barker Proudlove is looking outside of its usual sites in the North West to launch...

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Brighton Pier Group enjoys increased post-COVID performance

The Brighton Pier Group has recorded an increase in revenue and profit for the 18 months to 25 December 2022, after changing its financial year end to reflect a more “meaningful comparison” going forward. The change of year end from June to December means the group’s results represent its first uninterrupted trading period post-Pandemic, and consolidates the busy Summer trading months into one period. As well as Brighton Palace Pier, the group operates eight bars nationwide, eight indoor minigolf sites, and Lightwater Valley Family Adventure Park. Group revenue for the 2022 financial year reached £58.9m, up from £13.5m in 2021, although the earlier period was six months shorter. Profit before tax rose from £4.2m to £7.6m, with the group saying that the improved performance enabled it to repay £9.1m of its debt. Anne Ackord, chief executive officer, said: “Like many in our industry, we have had to absorb higher costs relating to wages, energy prices and other inputs. Nevertheless, our businesses remain profitable, well managed and backed by a strong balance sheet and asset base. “We are confident in the ability of our management teams to operate successfully in our markets, but we remain mindful of the continuing pressures from the...

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ESTAMA appoints asset manager

ESTAMA UK has appointed James Taylor as the latest member of its asset management team, as the asset and property management agency looks to continue its UK expansion. ESTAMA say Taylor’s appointment will support its drive to maximise the full potential of clients’ properties. He joins from Abellio Transport Holdings, where he was a member of their portfolio management team, and has previously worked as a portfolio surveyor for Network Rail, working on the development of retail and leisure elements of London Bridge, Waterloo, Clapham, and Guildford train stations. Eoin Conway, managing director at ESTAMA UK, said: “We are delighted to welcome James to the team, where he will play a key role in strengthening our asset management team. His experience will help us to continue delivering a best-in-class service for our clients and grow our portfolio throughout the UK.”

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Supermarket Income REIT acquires £38.3m Tesco

Supermarket Income REIT (real estate investment trust) has acquired a Tesco supermarket in Worcester for £38.3m. The retailer has been operating at the 6.5 acre site, which comprises a 47,297 sq ft supermarket, a petrol station, and a 515-space car park, for over 30 years. The site is also an online hub for the grocer and operates nine home delivery vans and a click-and-collect facility. The store has been acquired from British Steel Pension Fund, with an unexpired lease term of 12 years. Funding for the acquisition came from the first tranche of sales proceeds following the REIT’s disposal of its stake in the Sainsbury’s Reversion Portfolio.

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Agents appointed as Gravity seeks new sites

Gravity has appointed leisure and real estate advisory firm Stärka to secure new sites to expand its current domestic portfolio of 17 locations. The active entertainment and leisure company is seeking sites of between 50,000 sq ft and 100,000 sq ft in prime UK cities, particularly in dominant shopping centres and large mixed-use schemes. The leisure operator is also seeking sites internationally, having recently opened two franchise sites in Mauritius and Saudi Arabia. Gravity is predominantly looking to focus on the expansion of its Gravity Max concept, which includes electric go-karting, bowling, urban golf, and a food and beverage offering bolstered by a bar and live entertainment. The concept was launched in Wandsworth, London, in August 2020, with Liverpool ONE and Westfield Stratford sites set to open later in 2023. Gravity’s expansion plans have been bolstered by a £30m investment from Sculptor Real Estate, the property division of New York Stock Exchange-listed Sculptor Capital Management. David Bell, co-founder of Stärka, said: “The opportunity in the UK and internationally is significant, with Gravity’s longevity, creativity and adaptability the perfect concept for cities globally.” Over the past 12 months, Stärka has been involved in a number of transactions and re-gears totalling over...

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Consumer confidence up on all fronts in April

The long-standing GfK Consumer Confidence Index rose in every metric in April, reaching its highest level since the start of Russia’s invasion of Ukraine in February 2022. The overall score rose six points to -30 in February, the third month in a row the score has increased. The index is measured in five surveyed measures: Personal financial situation over the last 12 months rose five points to -21, while personal financial situation for the next 12 months rose eight points to -13. Consumer opinions on the general economic situation over the last 12 months rose seven points to -55, while feelings about the next 12 months rose six points to -34. The major purchase index, which measures consumer likelihood to make larger, discretionary purchases, increased five points to -28. The savings index, which does not factor in to the overall score, was the only metric to see a dip, falling two points to 19. Joe Staton, client strategy director at GfK, said: “As food and energy prices continue to rise, and inflation eats into wages, the cost-of-living crisis is a painful day-to-day reality for many. But are all consumers buckling under the pressure? On the evidence of April’s confidence figures, the...

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Coffee chain Bob & Berts plans further expansion as 30th store set to open

Independent coffee brand Bob & Berts is set to open six new stores this year, bringing the chain’s total number of sites to over 30. The coffee chain operates 15 stores in its home country Northern Ireland, six in Scotland, and five in England, in premises ranging from 2,500 sq ft to 4,000 sq ft in size. The chain will be opening in Glasgow and Blackpool, and has identified four more sites in the North West of England and Yorkshire, which are all due to open by the end of the year. The plans for expansion follow a record year for Bob & Berts, which recorded a turnover of £17.8m and operating profits of £1.3m. David Ferguson, director of Bob & Berts, said: “We recorded excellent results last year after coming out of the Covid pandemic strongly, having adapted our business model to include delivery and strengthening our traditional sit in offering. “Like every business in hospitality we are impacted by the challenges facing the economy from food and drink inflation and rising energy costs, but we have strong relationships with our suppliers and we are well placed to manage these cost increases and continue our expansion plans.”

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Knees-up in aisle four? Tesco opening first pub to celebrate Coronation

Getting a round in at Tesco will soon be possible as the supermarket retailer is set to open its first pub. The King in the Castle will open in Farringdon, London, from May 4-5 to celebrate the Coronation of King Charles III. Items from Tesco’s Coronation food range will be on the menu, including Camilla’s king prawn curry, the Prince’s crust pie, and a trifle-inspired Bellini. £250,000 of the proceeds from the Coronation food range and all proceeds from the pub will be donated to Tesco’s charity partner, The Prince’s Trust. The grocer says that 15% of UK adults cite ‘going to the pub’ as their favourite way to spend time with friends and family, rising to a fifth of Londoners and 25–34-year-olds. Tesco chief customer officer Alessandra Bellini said: “The Coronation is a historic moment and we want to help our customers celebrate it,” “As one of the most enduring parts of British culture, pubs have traditionally been an important part of local communities and so a pub felt like the perfect way to bring people together to mark this special occasion”.

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Hammerson in talks with Westfield owner over sale of Croydon project stake

Hammerson is in talks over the sale of its stake in a joint venture with Unibail-Rodamco-Westfield (URW) to redevelop The Whitgift shopping centre in Croydon, according to reports from Sky News. This comes as the real estate investment trust (REIT) faces continuing pressure from its biggest shareholder to speed up asset sales and resume dividend payments. Investment vehicle Lighthouse, which owns nearly 23% of the REIT, has tabled resolutions to appoint two new board members due to its discontent with Hammerson’s current strategy. Two of Hammerson’s investors, Legal and General Investment Management (LGIM) and Schroders, backed the REIT’s calls to reject Lighthouse’s proposals along with its second largest shareholder APG. If a deal with Westfield owner URW goes through, the cash raised would bring Hammerson closer to a £500m disposals target for the end of the year. The REIT has so far raised £340m through asset sales in the UK and Europe.

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Social enterprise partners with Liverpool ONE to deliver art studios

Liverpool ONE has partnered with local social enterprise and arts organisation, dot-art, to provide flexible art studios. Scheme manager Grosvenor say the new space provides a vital hub for local artists and supports the community of creatives within the Liverpool region. 3,500 sq ft of former office space on Lord Street has been transformed into the new studios and workspaces. The project is dot-art’s largest to date and will accommodate up to 20 artists. Founded in Liverpool in 2006, dot-art works with artists to provide customers with a stream of locally-sourced artwork through its gallery, located on Queen Avenue, a stone’s throw from Liverpool ONE. Chris Jukes, director of Liverpool ONE, said: “Hosting affordable artist studios within Liverpool ONE reinforces our sustained commitment to supporting local businesses and ensures a diverse tenant mix across the destination.” This news follows Grosvenor’s recent announcement that Liverpool ONE will play host to the official Eurovision Song Contest pop-up store from May 1 – May 14.

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Sales at The O2 rival pre-Pandemic levels

London’s The O2 has enjoyed a period of strong trading during its first quarter and throughout Easter half term, with sales surpassing levels reached in 2019. The scheme has welcomed a number of new openings across its retail, leisure, and food and beverage offerings and has played host to a number of events, including Country to Country Festival, as well as Ed Sheeran and Elton John concerts. The O2 says it is on track to experience one of its most successful years to date. 2023 highlights for the scheme include an increase in like-for-like outlet sales, food and beverage sales, and total footfall against the first quarter of 2019 (up 44%, 26%, and 20% respectively). Easter half term also saw a boost in like-for-like sales and footfall of 56% and 11% respectively against 2019. The entertainment district also enjoyed a strong half term, bolstered by the openings of JD Wetherspoon’s The Stargazer, a London debut for indoor skydiving experience iFLY, and the Farewell Elton at The O2 store, which popped up from April 2-17. These results coincide with ongoing development at the scheme, with recent announcements including next month’s opening of Āatma Aesthetics. The destination has also welcomed WHSmith, which...

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Poundland owner prepares for “acceleration of openings”

The parent group of Poundland says it is preparing for an “acceleration of openings” in the second half of 2023. Pepco Group delivered 166 net new stores in the six months to March 31, a decrease from 235 the prior year. The group has seen an increase in revenue against 2022, rising 22.8% to €2.8bn (£2.5bn), while Poundland’s revenue grew by 6.3% to €1.1bn (£970m). Pepco now operates 4,127 stores across its UK and Europe store estate. The group said that trading had continued to be positive against a “challenging environment”. Trevor Masters, CEO of Pepco Group, said: “Demand for our products remains strong, and double digit like-for-like revenue growth demonstrates solid progress for the group. We have continued to deliver against our strategic priorities, including the successful store refit strategy and profitable store expansion programme – our biggest source of value creation.” The group has also welcomed Neil Galloway as chief financial officer. He joins from flexible workspace provider IWG, where he served as executive vice-president.

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Revo appoints property management committee co-chairs

Revo has announced the appointment of two new co-chairs of its property management committee. Jeremy Lees, director at Savills, and George Grimes, head of property management at ESTAMA, will join the retail and real estate forum. The pair will take over from PM+U managing director Carl Foreman, who steps down after five years. Revo say the committee will continue to focus on delivering commentary, guidance and best practice for its members as well as encourage the continual debate around how retail spaces are managed. Jeremy Lees said: “Revo’s exceptional work in nurturing industry-leading discussions through customised research, educational programs, awards, and events is invaluable. I am thrilled to work closely with the Property Management Committee to drive positive change.” George Grimes added: “With the retail property market in a state of flux, this is an exciting time to be at the forefront of property management. As members of the Revo Property Management Committee, we have a unique opportunity to provide much-needed support to the market.”

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Dunelm posts increase in revenue despite “unpredictable” outlook

Dunelm has posted a rise in revenue for its financial year to date, despite maintaining a cautious outlook. The home furnishings retailer has seen a 5% increase in year-on-year revenue to £1.2bn, while third quarter sales revenue has risen by 6% to £423m. Dunelm said its customers had responded well to its proposition with growth across all its categories, including during its Winter Sale. It added that its new stores in both larger and smaller formats are continuing to perform ahead of its expectations. The retailer’s expectations for the 2023 financial year are unchanged, with profit before tax expected to be in line with its current predictions. Nick Wilkinson, Dunelm CEO, said: “As we continue to seize the many opportunities we see, we are investing for the long term and making good progress against our plans, which include the ongoing development and extension of our product ranges, building our customer data platform and optimising our marketing channels. These plans give us good confidence for ongoing success.”

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Krispy Kreme continues expansion with Manchester Arndale launch

Krispy Kreme has opened at Manchester Arndale, joining a number of other food and beverage operators who have recently signed at the scheme. Taking a 3,700 sq ft unit on a 15-year lease, the doughnut and coffee chain will also feature a click-and-collect service. The new store continues the brand’s UK expansion with Krispy Kreme now operating 1,200 stores and outlets nationwide. Food and beverage retailers the Manchester scheme has recently welcomed include Slim Chickens, Kokoro, Tim Hortons, and Pizza Luxe. The shopping centre has also welcomed retailers such as Sports Direct, Tommy Hilfiger, and Kick Game, as well as leisure operators Urban Playground and Roxy Ballroom. Colin Flinn, spokesperson for Manchester Arndale, said: “Experiential retail is becoming increasingly important for centres like Manchester Arndale as retailers introduce new approaches aimed at encouraging shoppers to visit in-store as opposed to shopping online. “Two of our key retailers, Sports Direct and Superdrug, have recently opened larger spaces within the centre to upgrade their offers and create innovative and immersive environments which appeal to those who enjoy the hybrid approach of online and experiential in-store retail.” Metis Real Estate and Time Retail Partners are the retained letting agents for Manchester Arndale.

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Black Sheep Coffee brews up Basingstoke opening