Posts from May 2023

Retail sales volumes are estimated to have risen by 0.5% in April after a revised fall of 1.2% in March, the Office for National Statistics (ONS) has reported. Sales volumes (how much people are buying) increased by 0.8% in the three months to April compared to the previous quarter, the highest rate since August 2021 (1.3%). Non-food store sales volumes rose 1.0% in April, following a 1.8% fall in March, a month which was affected by poor weather. Food store sales volumes also increased, up 0.7% compared to a 0.8% dip in March. Sales volumes remained 2.7% lower than their pre-Pandemic (February 2020) levels. Retail sale values and volumes continue to drift apart Despite increases in sales volumes across the board, the disparity with sales values is clearly evident. Sales values in April were 1.1% higher than in March, and 16.5% higher than in February 2020, reflecting the ongoing impact high inflation is having on the retail market. The chief executive of the British Retail Consortium, Helen Dickinson, said: “Despite households still feeling the squeeze from the high cost of living, sales growth improved in April. Nonetheless, consumers continued to adjust their spending patterns, looking for lower price alternatives on...

Insights News

Asos raises £75m as it eyes return to growth

Asos has successfully raised proceeds of around £75m through the issuing of new shares. The online fashion retailer said the newly-raised cash was in support of its ‘Driving Change’ agenda, as it looks to return the business to sustained profitability and cash generation. The retailer has been struggling in recent times, reporting an adjusted loss before tax of £87.4m in the six months to February 28. However, Asos said it was confident it would bounce back, staiting it was on track to deliver its full year targets. Nearly 18 million additional shares were placed by JP Morgan, Numis, and Berenberg at an issue price of 418.1p per share. A further £37.4m has been raised by “substantial” shareholders in the company. The retailer’s CEO, José Antonio Ramos Calamonte, said earlier this month that he was “pleased with the strategic and rapid operational progress the business has made in the first half of the financial year”, despite a difficult trading environment.

News

Asda and EG Group owners on verge of merger announcement

The owners of Asda and petrol forecourts giant EG Group are set to announce the completion of a £10bn merger of their UK operations. The billionaire Issa brothers and TDR Capital are expected to announce the merger on Friday (26th), Sky News has reported. If completed, the deal would see the combined group operate nearly 600 supermarkets, 700 petrol forecourts, and 100 convenience stores. The merger is expected to accelerate Asda’s drive into the convenience market, as it falls behind industry competitors Sainsbury’s and Tesco. Barclays and HSBC are believed to be financing the deal, with the former providing financial advice along with Rothschild. Discussions regarding the merger of Asda and EG Group have been in the works for over six months. The deal has been closely monitored by watchdogs such as the Competition and Markets Authority, which also stepped in after Asda acquired 132 Co-Op sites in October.

News

Fashion brands suit up at Caledonia Park

Caledonia Park in Gretna has signed Tommy Hilfiger and Calvin Klein, following a record-breaking quarter for the designer outlet village. Tommy Hilfiger will take a 5,000 sq ft unit while Calvin Klein is set to open a 4,100 sq ft store. Opening later this year, they will join a number of premium fashion brands at the destination such as BOSS, Polo by Ralph Lauren, and Kate Spade New York. The news comes as asset manager Railpen announces a record-breaking first quarter for Caledonia Park, with sales up 28.1% year-on-year, the centre’s best results since its opening in 1999. Sales and footfall in April increased 24.5% and 4.9% respectively compared to 2022. Maria Averkina, asset and development manager at Railpen, said: “We have a critical mass of aspirational brands in the destination and, following the extensive refurbishment, we are continuing to see the results of our investment materialise with global retailers such as Tommy Hilfiger and Calvin Klein choosing to position themselves here, as well as a number of other brands in the pipeline.

Deals News

Pho on the menu at Centre:mk

Pho is set to join the food and beverage offering at Milton Keynes’ Centre:mk. The Vietnamese street food chain will take a 4,133 sq ft unit with space for around 100 customers, and looks to offer an option for relaxed and informal diners at the scheme. Founded in 2005, Pho offers a 98% gluten free menu with vegan options also making up 40% of the food on offer. Pho’s signing follows a strong first half of the year for the Milton Keynes scheme, with sales and footfall at Centre:mk rising 5.7% and 10.7% respectively, compared to 2022. April was a particularly strong month, with an increase in footfall of 11.2% compared to last year. Kevin Duffy, centre director for Centre:mk, said: “Consistently outperforming UK and regional benchmarks, our footfall and sales figures are just two of the many reasons that brands select centre:mk as locations in their portfolios, and Pho’s decision to open with us cements centre:mk as one of the UK’s top 10 retail and leisure destinations.” The news follows the recent announcement that Black Sheep Coffee has signed for a 1,637 sq ft unit at Centre:mk, with both the coffee chain and Pho opening in Milton Keynes later...

Deals News

Young’s ensuring “steady pipeline” of new openings

Young’s is ensuring it has a “steady pipeline of new openings”, as the pub chain enjoys a strong year of trading. In the 53 weeks ending April 3, the group added six new pubs to its estate, and invested £34.4m into its existing estate with notable projects in Streatham, East Sheen, Bow, and Notting Hill. The chain said it is also making use of underutilised space in some of its pubs, for example at Hort’s Townhouse in Bristol, where 19 bedrooms were added, and the addition of a new roof terrace at the Marquess of Anglesey in Covent Garden, which is due to open next month. In the second half of the year, Young’s transferred two tenanted pubs into its managed estate, in Bishopsgate and Clapham. The group added that “exciting” projects are set to get underway at The Constitution in Camden, and the old bank site in Farnham, Surrey. This comes off the back of solid results for the chain, which saw a year-on-year revenue increase of 19.4% from £309m in 2022 to £368.9m. Adjusted operating profit also grew by 1.9% from £51.4m to £52.4m. Young’s net debt decreased 4.9% from £173.8m to £165.2m. The group said that sales...

News

Pets at Home to invest in store estate

Pets at Home has said it plans to invest in expanding its estate of 457 pet care centres. The retailer said it is focusing on attractive catchments, particularly in urban areas, as it looks to deliver clinical services, tailored product ranges, and innovation across its range of food and accessories. This comes as the pet care retailer announced record sales for the last financial year. In the 12 months to March 30, total group revenue reached £1.4bn, up 6.6% against the 2022 financial year. Retail revenue rose by 5.9% with like-for-like growth of 7.5%. Pets at Home’s statutory profit before tax was £122.7m, down 17.7% with 2022’s figures benefitting from the sale of a specialist group. The retailer also incurred costs relating to its new delivery centre in 2023. The group’s chief executive, Lyssa McGowan, also announced Pets at Home’s strategic ambition to “build the world’s best pet care platform”. The retailer aims to achieve this through a blend of products, services, and advice through omnichannel platforms to create a cusomer-centric experience.

News

Manchester City champions new store at Arndale

Manchester City has opened its latest store at Manchester Arndale following a hat-trick of title wins for the club. The six-time Premier League champions will be moving in to the former Pink unit, nearby to popular sporting retailers including Footlocker and JD Sports, as well as Sports Direct which has recently opened a flagship store in the former BHS unit. The new store will offer a range of merchandise including team kits, training apparel, hats, scarfs, and memorabilia. Over the weekend (26-28th May), the Premier League trophy will be also on display. The club’s arrival at the scheme follows a flurry of new lettings at the Manchester scheme, including MINISO, Gilly Hicks, Clarks, and Flying Tiger. The centre has also recently welcomed food and beverage operators Slim Chickens, Kokoro and Jamaica Blue. Steve Gray, head of European retail asset management at Global Mutual, said: “With such a significant name joining the centre it’s clear there is continued demand for well-placed retail units, and we are delighted to see confidence in Manchester Arndale’s long-term performance.” M&G Real Estate and Global Mutual act as joint asset managers of Manchester Arndale. Metis Real Estate and Time Retail Partners are the scheme’s retained letting...

Deals News

Cineworld predicts July bankruptcy exit

Struggling cinema chain Cineworld has said it expects to exit bankruptcy proceedings in July, some nine months after filing for protection in a US court. The chain had been struggling with dwindling customer numbers and around £3bn of debt. Cineworld’s shares have taken a drastic tumble over the last few years, falling from 222.6p in December 2019 to just 0.93p on Thursday morning. After securing new funding in April, Cineworld subsequently dropped its sales process after failing to find a buyer. The additional lenders have agreed to amended and restated versions of restructuring agreements filed with a United States Bankruptcy Court on April 2. As a result, the restructuring agreement now has the support of lenders controlling 99% of Cineworld’s rolling credit facilities, and 69% of its outstanding debts. However, Cineworld said that the proposed agreements do not provide any recovery for its existing shareholders. The chain said that it will continue business “as usual”. Cineworld operates cinemas in the United Kingdom, Ireland, the United States, Poland, Czechia, Slovakia, Hungary, Bulgaria, Romania, and Israel.

News

Game on for Leveltap at Liverpool ONE

Competitive-socialising Esports concept Leveltap has launched its debut bricks-and-mortar site at Liverpool ONE. Opening in a 6,500 sq ft unit on Hanover Street, Leveltap brings a standalone Esports leisure concept to Liverpool for the first time. The venue’s ground floor hosts a lounge area with a bar and dining space, as well as a 100-person seating area. A mezzanine space will enable Esports teams and streamers to broadcast their gameplay to viewers around the venue. Leveltap will aim to cater to a variety of gamers, hosting titles from a number of genres. The venue is home to 10 custom-built console stations, two racing simulators, and 20 PCs. Rob Deacon, senior asset manager at Grosvenor, said: “Leveltap’s debut venue is yet another unique opening at Liverpool ONE that provides further reasons to visit or extend a trip to the destination. Bringing a standalone Esports venue to the city for the first time, the launch of leveltap reaffirms Liverpool ONE’s position as the UK’s leading retail and entertainment destination”. Leveltap’s arrival follows a number of new openings at the Liverpool scheme, including independent coffee company Bean Coffee Roasters, which recently relocated and upsized its store.

Deals News

Sainsbury's petrol station in Biggleswade with Greggs branding

Greggs and Sainsbury’s eye more concessions after debut launch

Greggs has opened its first concession in a Sainsbury’s petrol station forecourt in Biggleswade, with the two retailers expected to make more collaborations later in the year. The new store will open from 6am to 9pm daily, and will allow refuelling customers to choose from Sainsbury’s convenience range as well as Greggs’ menu of baked goods. Tony Rowson, Greggs property director, said the bakery chain is diversifying its retail estate as part of its “ambitious” property strategy. Rhian Bartlett, food commercial director at Sainsbury’s, added that the supermarket giant was looking to transform its takeaway offer with “top brands”. The two retailers are also looking to reduce food waste, with both chains connected to food donation networks with hundreds of local charities, enabling surplus food from stores to find its way to those in need. Greggs has said that it has a “strong” openings pipeline for 2023, and has worked with brands such as Primark to deliver new concepts with other retailers.

Deals News

Tesco Property joins Real Estate Balance

Tesco’s property arm has joined Real Estate Balance, a membership organisation which campaigns to improve equality, diversity, and inclusion (EDI) within the property industry. Real Estate Balance said a real estate operator of Tesco Property’s calibre joining the organisation “sends a powerful signal to the industry” about the importance of EDI. Tesco will join other member organisations of Real Estate Balance including some prominent names such as British Land, CBRE, and The Crown Estate. Sue Brown, managing director of Real Estate Balance, said: “Having one of the UK’s most prominent property operators within our membership sets an excellent example to others and will help us make faster progress and achieve much greater reach.” Steve Rigby, director of Tesco Property, said: “We have created some fantastic momentum in the last two years that support the great work we are doing across this agenda and are now looking forward to learning from the external property real estate market and contributing to the valuable conversations at various events across the year to further shape our actions and plans”.

News

Deichmann kicks off in Salisbury

Deichmann has opened at Railpen’s Old George Mall in Salisbury, with the brand investing over half a million pounds into the new store. The European footwear giant has launched in a two-storey 6,000 sq ft unit adjacent to H&M and the soon-to-arrive Primark, which is set to open a 29,700 sq ft store later this year.. The new store offers the retailer’s latest concept, which is designed to offer a more spacious, lighter, and enhanced shopping experience. Alex Luker, asset manager at Railpen, said: “As Europe’s largest shoe retailer, Deichmann is a strong addition to our retail line-up at Old George Mall. Our focus is to continue to bring leading high street brands to the centre, which will be rounded off by Primark’s arrival later this year.” Deichmann joins other retailers at the scheme including FatFace, Jigsaw, The Body Shop, and Costa. The news follows the recent signing of Deichmann to The Ashley Centre in Epsom, which is due to open later in the year.

Deals News

What is experiential marketing?

Experiential marketing creates an experience for the customer rather than attracting them through traditional marketing methods. This can be done through live events, social media, or even in-store displays. The goal of experiential marketing is to create a memorable and engaging experience that will make the customer more likely to remember your brand and want to do business with you again. Why is experiential marketing useful? There are a number of reasons why experiential marketing is a useful tool for businesses. Most importantly it can help to create brand awareness. When potential customers are more aware of your brand and have a positive experience, they are more likely to remember it when they’re ready to make a purchase. Experiential marketing can also help you to build relationships with your customers. When you can effectively connect with your target audience and provide them with an enjoyable experience, it can also allow them to see the benefits of a product, and help to build trust and rapport. This can lead to increased loyalty and repeat business. Loyal customers are also more likely to talk abour your brand or products to others. Word-of-mouth advertising is highly effective, especially when driven by a loyal...

Advice

Leading hospitality groups see strong April offset by inflation

Britain’s biggest managed pub, bar, and restaurant groups saw a strong period of trading in April, however growth still fell short of the current rate of inflation. Leading hospitality groups enjoyed like-for-like and year-on-year sales increases of 6.4%, the latest Coffer CGA Business Tracker revealed. The tracker is produced by CGA by NIQ in partnership with The Coffer Group and RSM UK. This was the seventh month of positive growth for the sector, and considerably higher than the figure of 1.4% recorded in March. However, this was still lower than the rate of inflation, which currently sits at 7.8%. April trading was boosted by public holidays including Easter and the beginning of the May bank holiday weekend. Good weather drew punters to pubs, which saw a like-for-like sales increase of 8.1% compared to the same period last year. Growth in restaurants was close behind, at 7.6%. However, bars continued to struggle, with sales down 9.1%. Managed hospitality groups are seeing their strongest results in the Capital, with April sales increasing 10.4% year-on-year in London, ahead of inflation. Growth in the rest of the country reached 5.8%. Paul Newman, head of leisure and hospitality at RSM UK, said: “A full month without...

Insights News

Gail’s to further North West expansion

Artisanal bakery chain Gail’s is set to continue its expansion into the North West with the opening of two sites in June. Gail’s will open in the former White Stuff store on Manchester’s King Street on the 7th, as well as in a former HSBC site in Didsbury on the 21st. Earlier this year, the rapidly-growing chain opened its first sites in the region in Wilmslow and Altrincham. Gail’s opened its first branch in Hampstead High Street in 2005, and operates over 100 locations, primarily in the South East. The chain is currently on an expansion drive, looking to open in locations where it is not currently represented. Recently, Gail’s has signed to open at the Brentford Project and Epsom’s Ashley Centre.

Deals

LondonMetric set to acquire property trust for £198.6m

LondonMetric has reached an agreement to acquire the entire issued share capital of CT Property Trust (CTPT). The real estate investment trust is set to acquire the Columbia Threadneedle-managed property trust for approximately £198.6m, with the deal coming into effect in early July. LondonMetric said it believes the acquisition will create a combined portfolio with a value of £3.3bn with a total annual rental income of £163.4m The portfolio will consist mainly of industrial and distribution assets, however both LondonMetric and CTPT manage a number of retail assets, particularly out-of-town solus units. As of March 31, CTPT’s assets consisted of 34 properties valued at around £288.3m. This consists partly of 21.9% retail warehousing and 6.4% high street assets. The trust also had approximately £30.8m cash at this point. Davina Walter, chair of CTPT, said: “This acquisition by LondonMetric allows our shareholders to benefit from being exposed to an enlarged UK-REIT with an approximately £3 billion property portfolio, continuously growing dividends and an outstanding track record of shareholder value creation. The acquisition also represents a compelling premium to the CTPT Share Price. We therefore recommend the acquisition to shareholders.” Patrick Vaughan, chairman of LondonMetric, said: “The acquisition grows the combined group’s...

News

Söderberg eyes further London sites following East Dulwich opening

Söderberg is looking to open further sites in the Capital after opening its second London café and bakery in East Dulwich. The Swedish brand, which made its debut in London in 2019, opened its latest site in the former Terroirs site on Lordship Lane. The bakery chain, which has a store in Soho, is looking at opportunities in more London ‘villages’. Söderberg also operates a bakery, three cafés, and four bakery shops in Edinburgh. Davis Coffer Lyons acted for the landlord on the East Dulwich site. Appleton Craig acted for Söderberg.

Deals

Cupp targeting 50 stores by Christmas

Cupp is aiming for 50 stores by Christmas, with the Bubble Tea brand recently reaching the 30-site landmark. Cupp, which currently operates 31 sites, is preparing to open bubble tea stores in Aberdeen, Nottingham, and High Wycombe next month. Another site is due to open in Sevenoaks in July, with two London stores in Kingsbury and Twickenham to launch later in the year. Cupp, which was founded in Bristol in 2012, is yet to make its overseas debut despite having a number of international masters agreements. The chain operates a franchise system and is actively seeking a master franchise deal in Northern Ireland, as well as a number of international locations.

Requirements

Coast & Country places 18 hotels up for sale