Posts from April 2023

Liverpool City Centre is set to receive a £5m investment after business voted in favour of the Retail & Leisure BID (business improvement district). The investment will go towards animation and marketing, street cleaning and maintenance of the public realm, as well as networking and business events. It will be the city centre’s fifth term as a BID, with the scheme running until 2028. The BID area previously stretched from Lord Street to Bold Street, Renshaw Street, Williamson Square and the Cavern Quarter. It will now extend to Hope Street. Liverpool BID is a not-for-profit organisation funded by an annual levy paid by eligible businesses in designated areas of the city. Established in 2005, there are now 1,000 businesses in the city centre which are part of the Liverpool BID. The budget will see a spend of £850k in the first year, followed by £900k+ in the next three years and finally £1m+ in the fifth and final year. Bill Addy, CEO of Liverpool BID Company, said: “To be a destination for visitors and investors, Liverpool has to be a place that works for everyone. Our rich mixed economy, in culture, retail, leisure, hospitality and commerce helps us to be...

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Investors back Hammerson in Lighthouse standoff

Two of Hammerson’s investors, Legal and General Investment Management (LGIM) and Schroders, have backed the real estate investment trust (REIT) in an internal dispute with its biggest shareholder, Sky News has reported. Investment vehicle Lighthouse has tabled resolutions to appoint two new board members due to its discontent with Hammerson’s current strategy. It is headed by former Hammerson director Desmond de Beer and controls nearly 23% of the REIT. Lighthouse wants Hammerson to speed up asset sales and resume dividend payments. In a letter published in the REIT’s annual report, it said it did “not have confidence in the Hammerson board as currently constituted, having regard to the operational and strategic weaknesses reflected in Hammerson”. De Beers left the board last October and expressed discontent with Hammerson’s record of reducing administration costs. However LGIM and Schroders, which own over 6% of the REIT between them, are joined by Hammerson’s second-largest investor APG, which owns a 20% stake and also opposes Lighthouse’s proposals. Speaking to Sky News, a Schroders spokesperson said: “As a long-term active investor in Hammerson, our aim is to use our influence to engage constructively and thoughtfully with the companies in which we invest. “We support the board’s...

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AO again increases profit guidance for third time in 2023

AO has upped its profit guidance for the third time this year, following on from increases in January and February. The online electrical retailer said it has continued to see positive traction from its initiatives to reduce costs and improve its margins. It added that adverse effects arising from trading risks, continuing macroeconomic uncertainty, and a tough consumer environment, have not materialised to the extent it anticipated in its February statement. The retailer is now anticipating its UK revenues for the year to 31 March to reach £1.13bn, in line with its plans. Its February statement estimated an EBITDA in the range of £37.5m to £45m for the financial year. The company has also renewed its £80m revolving credit facility with HSBC, NatWest, and Barclays, extending to April 2026. John Roberts, CEO and Founder, commented: “We are encouraged by the work undertaken to pivot the business during the financial year 2023. AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance of 5% adjusted EBITDA. We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will...

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Home Bargains seeking sites for “aggressive expansion strategy”

Home Bargains is looking for more sites to build on its “ongoing success”. Currently trading from over 595 UK outlets, the discount retailer has an “aggressive expansion strategy”. The retailer said it has already secured sites for this year and the next, but says more are required. Agents from bennett., SMART4, Biggart & Company, and Dylan Jones Retail have been appointed to find ideal spaces for the retailer. Home Bargains is looking for development sites in excess of two acres with Open A1 planning consent across the UK, in cities, towns, and suburbs with a catchment of no less than 30,000. Ideal sites for the retailer will have a ground floor slab of 25,000-40,000 sq ft with direct rear servicing for 16.5m long articulated vehicles. Home Bargains is considering freehold, leasehold, and development opportunities.

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Plans submitted to transform Manchester railway arches into retail and leisure spaces

The Arch Company has submitted plans to Manchester City Council which could see the transformation of ten derelict railway arches on Corporate Street into retail, leisure, and hospitality spaces. The £4m development will see new glazed frontages, services and drainage, as well as internal lining to keep the accommodation dry. The arches, most of which have been derelict for 10 years, were predominantly used for industrial purposes but have since fell out of use. The Arch Company say the development will help the units realise their potential and create a vibrant environment for locals. The investment falls under The Arch Company’s Project 1000 – a £200m development plan designed to bring a thousand empty or derelict spaces across England and Wales into use by 2030. Its other developments in Manchester include the development of arches on Temperance Street and Bennett Street. Rob Roddy, portfolio asset manager at The Arch Company, said: “Corporation Street is a fantastic location for leisure and retail businesses to make their own – we see incredible potential in these railway arches. As part of our development plan, Project 1000, we’re committed to investing in 1,000 spaces by 2030 and hope these arches in Manchester will form part...

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Superdry withdraws profit guidance amid slow growth

Superdry has withdrawn its full year profit guidance of “broadly breakeven” for its 2023 financial year after a slower period of growth than anticipated. The fashion retailer said that sales in February and March had not met its expectations despite significant year-on-year like-for-like growth, which it added was not helped by external factors such as the cost-of-living crisis and poor weather. The group’s wholesale division has also continued to “lag behind”, although Superdry said that it is making progress with its partners to support recovery. The retailer now expects its full year revenue to be between £615m to £635m (FY22: £609m). Superdry says it has identified initial cost savings in excess of £35m which have been externally validated. It says these will be achieved through estate optimisation, logistics and distribution savings, better procurement, and continued range reduction. Julian Dunkerton, founder and chief executive officer of Superdry, said: “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale. As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business...

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Peel L&P to submit updated Liverpool Waters masterplan

Peel L&P is set to revise its current Liverpool Waters plan, 10 years after being awarded outline planning consent by councillors. The developer said “how we all live, work and socialised has changed” since Liverpool City Council granted consent in 2013. The £5.5bn thirty-year development is due to finish in 2043. Currently, the planning permission will see the redevelopment of almost 150 acres of former dockland space into 500,000 sq ft of food and beverage space, 570,000 sq ft of hotels, 3.3m sq ft of business space, 9,000 homes, and up to 4.4m sq ft of parking space. Peel L&P has put forward a number of proposals it is planning to implement, including the creation of a new heritage space in the Clarence Dock neighbourhood, a more diverse mixture of homes, and a 2.3km riverside walk from Everton’s new stadium to Pier Head. The developer is inviting stakeholders and members of the public to put forward their views. Two public consultations will take place on the 17th and 18th of April.

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Bristol’s historic Hangar 16U green-lit for community hub conversion

A historic Grade II listed hangar in North Bristol is set to become a hub for the local community after a planning application was approved by South Gloucestershire Council. Constructed in 1917 and once home to WWII-era aircraft including the iconic Hawker Hurricane, Hangar 16U now sits between The Hangar District, the first phase of a residential project at Brabazon, and the 15-acre Brabazon Park. The proposals will see the development of a café, a library, study spaces, a large hall, activity rooms, and a wellness centre. Work is due to begin before the end of 2024. YTL Developments, who put forward the proposals, say the Hangar 16U development will become the “beating heart of the new community” at Brabazon. To the development’s east will sit a public square with room for pop-up stalls and public events, while Brabazon Park will be located to its west. Earlier in April, YTL Developments also launched a multi-year partnership with Southern Brooks to fund community development work across North Bristol and South Gloucestershire. Sebastian Loyn, planning and development director at YTL Developments said: “Hangar 16U has an incredible history and we can’t wait to bring this building into public use. “As an early aircraft...

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M&S to close three stores

Marks & Spencer is set to permanently shut three of its stores in the coming days. Its branches in Linthorpe Road, Middlesbrough, and Deansgate, Bolton, will close on April 15, with a further closure in Castleford, West Yorkshire, set to go ahead on the 22nd. Two further closures are planned later in the year in Cardiff and Wrexham. The retailer has recently closed a number of branches, including in London and Edinburgh. In November, M&S warned of a “gathering storm” for retailers, with economic uncertainty and a cost-of-living crisis putting a strain on consumer budgets. The retailer has said it plans to close 67 stores within the next five years, although M&S said it plans to open 104 larger units. The new store pipeline includes 8 stores in key city locations including a new 97,000 sq ft store in Leeds White Rose and a 70,000 sq ft store at Liverpool ONE, both due to open in Summer 2023. Later in the year, other major stores are set to open, including a 65,000 sq ft store in Birmingham Bullring, a 96,000 sq ft store in Manchester’s Trafford Centre, and a 98,000 sq ft store in Lakeside Thurrock.

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Economy falls flat in February but retail trade sees biggest growth in months

The UK economy saw no growth in February as strikes from public sector workers offset a rise in gross domestic product (GDP) in the construction sector. However, output in consumer-facing services saw an increase of 0.4%, with retail trade (excluding motor vehicles and motorcycles) growing by 1.2%, the largest increase since October 2022. Food and beverage services also saw growth of 0.4%. Broadly, GDP saw growth of 0.1% in the three months to February 2023 compared to the three months to November 2022. Services grew by 0.1% in the three months to February 2023, while production fell by 0.1% and construction grew by 0.9%. Compared to the same month last year, February 2023 saw an increase in GDP of 0.5%. The Chancellor has said that the results show that the UK will avoid a recession. However the opposition have criticised the Government, with Labour saying that the UK was “lagging behind on the global stage”.

Insights News

£4m price tag for North Shields shopping centre after receivers appointed

Royal Quays Outlet Centre in North Shields has been put on the market for £4m following the appointment of recievers. Daniel Hardy and Peter Loveday of commercial property consultancy Sanderson Weatherall have been appointed to manage the centre and its lettings, a spokesperson said. The 137,500 sq ft property has 55 units and over 600 car parking spaces, with anchor tenants including Costa, Next, Poundland, Clarks, Mountain Warehouse, and Trespass. Sanderson Weatherall are jointly marketing the scheme with Knight Frank, which says the property represents a “significant repositioning opportunity through an active letting strategy and potential forfurther development opportunities on the existing site”. Marketing material for the centre says the site has an annual net income of £464,024 and a net estimated rental value of £957,686. The site, constructed in 1996, was acquired in 2006 by WD Limited and US investors for an undisclosed sum. Under this management, the scheme was positioned as a “unique outlet centre” with the aim of attracting a new and younger consumer demographic.

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OG Kicks to make London debut

Independent footwear retailer OG Kicks is set to make its London debut in the capital’s Carnaby District. Signing with Shaftesbury Capital for a 1,564 sq ft unit at Foubert’s Place, OG Kicks’ store will span over two floors and offer a collection of limited edition and sold out sneakers. Founded by Ryan Jackson in 2016, the brand started out on social e-commerce site Depop before launching its first physical store in Brighton just before the start of the Pandemic. Despite the challenges of COVID-19, the brand continued to grow within the footwear community through its social media presence and word-of-mouth. Andrew Price, executive director at Shaftesbury Capital, said: “The new store will be a great fit alongside the existing streetwear line up on Foubert’s Place, which includes Adidas Originals, NBA and the forthcoming Hollister store.” Shaftesbury Capital were advised by Hanover Green alongside joint agents Nash Bond and Cushman & Wakefield.

Deals News

Tesco continues to target growth despite fall in profits

Tesco’s chief executive Ken Murphy has said that the supermarket group is continuing to target growth, despite an “incredibly tough year” for customers which saw profits fall. The group hailed the opening of 91 stores over the course of its 2023 financial year, including its 2,000th Tesco Express store and 1,000th One Stop. Tesco also praised the performance of wholesalers group Bookers, acquired in 2017, which delivered its “strongest year ever”. The supermarket group also acquired nine Joyce’s stores in the Republic of Ireland and the intellectual property of now-closed retailer Paperchase. Tesco’s adjusted operating retail profit fell 6.1% to £2.49bn during the financial year, driven by the impact of lower year-on-year sales volumes and an “ongoing investment” in its customer offer, Tesco said, as it has reduced prices to remain competitive with value retailers. However, retail like-for-like sales increased by 5.1%, with sales volumes holding up “relatively well” amid cost-of-living pressures. Ken Murphy said: “The resilience and agility that we have developed over the last few years has created a sustainable competitive advantage that leaves us well-placed to deal with any challenges that may arise. It has enabled us to deliver another strong performance across the group, whilst continuing to...

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Womenswear sales boom drives Footasylum expansion plans

Fashion streetwear and sportswear retailer, Footasylum, has ramped up its UK expansion plans for 2023, following a notable increase in demand for womenswear. Footasylum has revealed its plans for a series of new store openings and upsizings across the UK. The first new store will be in Watford, Hertfordshire and will open in Q3 2023. The 6,000 sq ft shop will be located in the Atria shopping centre and will bring Footasylum’s total number of stores to 60. Other store openings are to be announced, but will include a new high-profile site in Central London. Existing stores being upsized include those in Westfield Stratford, Leeds White Rose and Lakeside Shopping Centre in Essex. When completed, these stores will be significantly bigger in size. The new plans follow the opening of a new Footasylum store in Cheshunt, Hertfordshire last December, the first new opening under the ownership of Aurelius Group, which acquired Footasylum in August 2022. The retailer was acquired for £37.5m after the Competitions and Markets Authority (CMA) ordered previous owner JD Sports to sell it amid competition concerns. JD had purchased the chain in 2019 for £90m. According to Footasylum’s most recent annual revenue (year ending 29 January 2022)...

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Sosandar reports ‘milestone’ first time full year profits

Women’s fashion retailer Sosandar has reported its first full year of profitability. In the 12 months to 31 March, the retailer posted a pre-tax profit of £1.6m compared to a loss of £600,000 in the prior year. Sosander’s tie-ups with third party retailers including John Lewis, M&S, Next, Very, JD Williams and latterly Sainsbury’s, have helped strengthen its order book. Latest figures show that revenue was up 44% to £42.5m in the period, after the retailer benefited from respective increases of 22% and 8% in its number of orders and average order value. It also grew its number of active customers which rose by 19% to 264,832. Ali Hall and Julie Lavington, co-chief executives of Sosandar, said: “We are delighted to be reporting a milestone year. Sosandar has grown from a true start-up business just six years ago to a brand which is delivering multi-million-pound revenue and is profitable. “We are incredibly proud to have Sosandar clothes now being sold in the UK’s biggest retailers, and we have now built the infrastructure to start serving our target customers internationally. Hall and Lavington plan to continue expanding the business, adding: “We see a number of opportunities for further growth both on...

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Āatma Aesthetics makes O2 debut

Āatma Aesthetics, a medical aesthetic and skin clinic, has announced its debut opening at The O2 in May 2023. The new beauty clinic will be taking a 343 sq. ft space on Icon Outlet’s upper level and will further diversify The O2’s health and beauty offering. Founded by Dr Shaan Patel, Āatma Aesthetics will offer treatments such as facials, LED light therapy and micro-needling alongside medical grade skincare products. Louisa Dalgleish, Leasing Director at Icon Outlet at The O2 said: “We’re constantly looking at how we can elevate the customer experience at The O2, and we’re confident that Dr Shaan Patel’s Āatma Aesthetics delivers something truly innovative and unique for our customers. The debut signing of Āatma Aesthetics plays a pivotal role in expanding our health and well-being offering, alongside a range of already well-known brands such as Clarins and Holland & Barrett. This latest signing news follows the recent opening of iFLY London, at The O2, marking the brands first London location.

Deals News

Schuh Kids pair up at Merry Hill

Schuh Kids, the kidswear-focused branch of footwear retailer Schuh, has struck a deal for a new store at Sovereign Centros’ Merry Hill shopping centre in Dudley, West Midlands. The retailer has taken a 4,000 sq ft unit at the scheme, adjacent to its parent brand, which expands the existing Merry Hill offer from Schuh. The new letting follows the recent opening of womenswear retailer Vanilla at Merry Hill, with the brand having just launched its 4,500 sq ft store located on the Upper Mall. Other recent lettings at the 1.5m sq ft shopping mall include Nike Unite launching a 10,165 sq ft space on Merry Hill’s lower level later this year, for its community-focused concept. Commenting on this latest letting, Alistair Winning, asset manager at Sovereign Centros, said: “The signing of Schuh Kids, which builds on the existing offer of Schuh, is testament to our efforts to create long-lasting and successful partnerships with leading retailers.” Neil Partington, retail director at schuh, added: “Adapting to changes in the market, the store will move away from traditional gendered categorisation and present each collection by brand, as part of our new 2020 store design concept.” JLL and Time Retail Partners are joint letting...

Deals News

Haven to invest £170m in UK staycation market

Holiday Park Operator Haven and a Blackstone portfolio company, are set to invest more than £170m across multiple sites in the UK in 2023. The expansion follows the continued growth in demand for staycations and includes new activity across its 41 parks. Haven is one of the UK’s most popular family holiday and holiday home ownership brands. The investment includes a staff recruitment drive, upgrading existing parks and opening new sites across the country in 2023, including Allhallows, in Kent, Thorpe Park, in Lincolnshire and Skegness, in Lincolnshire, both of which are due to open this summer. Haven managing director Simon Palethorpe said the investment would bring “greater employment opportunities and significant economic benefit to the local communities”. The move takes Haven and Blackstone’s total investment in the business to more than £400m.

Deals News

Former Durham M&S store to be transformed into leisure hub