Posts from May 2023

Clothing out, food in for M&S

24th May 2023

Marks & Spencer has said it is accelerating its store rotation and renewal programme which will see the creation of around 180 full-line and 400 food stores. The retailer expects the changes will see its clothing and home selling space reduce by around 20% while increasing food space by between 10% and 15% over the next five years. In M&S’ final results for the year ending April 1, the retailer revealed that its full-line estate had reduced by three stores in 2022/23, while its ‘Simply Food’ estate increased by five. M&S said that in some cases, it is on track to double sales and pay back the capital it has invested within 3-4 years, including the cost of closures for relocations. The retailer plans to open eight full-line and 10 food stores stores this financial year, while closing around 20, of which 10 will be shut for relocation. This include’s five new flagship stores in Liverpool, Leeds, Manchester, Birmingham, and Thurrock. M&S added that over 80 stores are now in its new ‘renewal’ format, including a full-line store in Stevenage. This comes as the retailer revealed an increase in sales for the 22/23 financial year, increasing 9.9% from the previous...

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LCP snaps up Southport retail park

24th May 2023

London & Cambridge Properties (LCP) has acquired the Central 12 retail park on the outskirts of Southport for an undisclosed fee. Anchored by Asda, the 162,143 sq ft scheme’s 13 units are occupied by tenants including The Range, Poundland, Boots, and Next. The retail park on Derby Road is close to Southport Railway Station is also home to a 600-space car park. Discount retailer B&M will become the scheme’s first new tenant since LCP, which is part of M Core, acquired the site a few weeks ago. The retailer has signed a five-year lease for a 23,309 sq ft store, set to open this summer. James Buchanan, group managing director at LCP, said: “We have invested more than £115 million in retail assets this year, demonstrating our determination and commitment to investing in the UK retail sector. Acquisitions such as this form an important part of our programme of investment as we seek to consolidate our portfolio and add value to it.” Barry Flint, LCP director and site asset manager, added: “We’re speaking to new national retailers and local management about how we can continue to improve the shopping experience for visitors, and are committed to working with the local...

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“Ambitious” London wine merchant toasts tenth location

24th May 2023

Wine merchant Jeroboams has signed for its tenth London location at 336 King’s Road in Chelsea, as it looks to deliver on “ambitious” growth plans. Opening at a 1,298 sq ft unit in June, the two-storey store will incorporate an events space on the basement level for weekly in-store tastings, monthly wine clubs, and local events. Jeroboams currently operates stores in Notting Hill, Hampstead, Kensington, Holland Park, Muswell Hill, Knightsbridge and Wimbledon, and two in Belgravia. Hannah Grievson, property director at King’s Road estate manager Sloane Stanley, said: “The store will present an array of opportunity for the community, putting the local element at the forefront, echoing the ethos of Sloane Stanley and the Estate as a whole, and we look forward to having them as part of our evolving portfolio in June.” The news follows the recent return of Birdie Fortescue’s at the King’s Road, following its pop-up last year. The furnishings and artwork retailer opened in a 1,728 sq ft store in May, and will remain open until January. Miles Commercial, Levy Real Estate and Savills act on behalf of the Sloane Stanley Estate. Jackson Criss acted for Jeroboams.

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Grocery inflation falls but still at third highest level since records began

23rd May 2023

The price of groceries has fallen for the second consecutive month, but inflation still remains at the third-highest level since records began in 2008. According to grocery price inflation data from Kantar, food inflation fell to 17.2% in the four weeks to May 14. This rate of inflation could add £833 to the average household’s annual grocery bill. Many shoppers are choosing to cut costs by choosing own-brand products, with sales of these products rising 15.2% in the latest period, compared to the 8.3% increase seen in branded products. Despite pressure on people’s wallets, consumers took to spending an extra £218m over the Coronation weekend, up 16% for the week on a year-on-year basis. Sales of sparkling and still water rose by 129% and 33% respectively, despite wine inflation sitting at only 1%.

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New openings for Gaucho as owner sees record turnover

23rd May 2023

Gaucho’s estate will reach 20 sites with the launch of a Covent Garden restaurant in June and an opening in Cardiff later in the year. This comes as the Argentinian steak restaurant’s parent group, Rare Restaurants, reported a record-breaking turnover of £73.5m in 2022. Last year, Gaucho opened two restaurants, in Glasgow and Liverpool, and opened its latest site in Newcastle in March. The Martin Williams-led Rare Restaurants, which also manages the M restaurant and The Crane Tap businesses, saw its turnover increase 38% from 2021 and 29% against pre-Pandemic, 2019 levels. Group like-for-like sales were also up by over 30% compared to the previous year. These results came despite work-from-home guidance in early 2022 and industrial action over the Christmas period, the group said, adding that strong trading had continued into 2023. Martin Williams said: “Based on the first quarter’s trading and our focus on expansion, with two new Gaucho openings in the coming months, we are confident that 2023 will be a hugely successful year for the group.”

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Topps Tiles sees record period of sales

23rd May 2023

Topps Tiles has praised its store coverage and omni-channel capability as it hails a record six-month period of sales. In the 26 weeks to April 1, the tiling retailer recorded sales of £130.3m, an increase of 9.3% year-on-year. Average sales per store were up 30% compared to 2019, the last pre-Pandemic period. However, the group’s profit before tax during the period fell 38%, from £7.1m in the first half of the 2022 financial year to £4.4m, with Topps Tiles citing adverse exchange rate movements and the impact of inflation on operating expenses. Topps Tiles also said it had a “robust” balance sheet, with £19.9m net cash and £49.9m headroom within its committed borrowing facilities. Headwinds in inflation, supply chain, and recruitment are now easing, the retailer said, adding that its confidence in its gross margin and second half trading outlook had strengthened. Rob Parker, Topps Tiles chief executive, said: “As expected, our first half profitability reflects the impact of inflation year on year, including significantly increased energy costs, and a number of other one offs. These effects are now reducing or will reverse in full in the second half, underpinning our confidence in a much stronger profit performance in the...

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Nobody’s Child London pop-ups mark “significant growth into physical retail”

23rd May 2023

Nobody’s Child is set to open three pop-up stores in London this summer, as the retailer looks to expand further into physical retail. The online womenswear retailer will launch stores in Covent Garden, King’s Road, and Spitalfields. Nobody’s Child currently operates a flagship store on Carnaby Street. This follows a large injection of funding from high street giant Marks & Spencer in April, which was intended to aid the brand in its UK and international expansion. M&S also struck a deal which welcomed the brand to 30 of its stores in 400 sq ft concessions. The brand said it is expecting further growth during the summer months. Jody Plows, chief executive of Nobody’s Child, said: “Opening more retail space allows our community to access the brand like never before. At Nobody’s Child, we continue to strive to make an impact via our responsible collections which are accessible to all women. “There is plenty to come for Nobody’s Child growth for the rest of 2023 both in the UK and Internationally, so we are thrilled to announce these 3 pop-ups today as part of that journey.”

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Landlords optimistic despite 94% experiencing problems with tenants

23rd May 2023

New research has shown that 94% percent of landlords are experiencing problems with their tenants in the current economic climate. Research conducted by Handelsbanken found that most (60%) landlords are receiving requests for rental deferments or contract negotiations, over half (54%) are seeing increased voids compared to previous years, and many (41%) are experiencing overdue or late payments. Only 6% said they were not experiencing any stresses of these kinds. The data was gathered from 200 professional landlords across the UK, with respondents having an average portfolio size of 29 properties with a market value of £14m. However, despite the economic uncertainty, landlords remain confident about the market, with the majority (59%) planning to acquire at least one new asset in the coming year. Nearly half (49%) of those surveyed expect demand for commercial property to increase significantly over the next 12 months. Of those surveyed, 39% expect the value of their portfolio to increase significantly over the next year, however 45% said they were “bullish” about the market. Three fifths of respondents said they would be looking to diversify geographically, with London (27%) still the most attractive spot for investors. This was followed closely by the South East (26%)...

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Costa Coffee opens three stores in London stations

23rd May 2023

Costa Coffee has opened three new stores in two major London stations. At London St. Pancras, the coffee chain has launched a shop on the station’s Upper Grand Terrace as well as a kiosk next to platforms 11 to 13. The third store sits by the London Underground entrance at Liverpool Street Station. The stores include feature walls with designs by Charlotte Jade, with patterns which aim to celebrate the coffee-growing regions that the coffee chain sources its beans from. Costa also operates in other major London stations, with Victoria and Paddington also home to branches of the coffee brand.

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Victorian Plumbing sees strong first half trading

23rd May 2023

Victorian Plumbing has hailed a period of strong trading, recording an increase in profits and revenue in the first half of the 2023 financial year. In the six months to March 31, the online bathroom retailer’s gross profit increased by 14%, up from £58.5m in 2022 to £66.8m. Revenue rose 10% to £146.8m, an increase on £133.9m. The retailer’s adjusted earnings (EBITDA) reached £9.9m in the first half of the year, up from £6.7m in 2022. Victorian Plumbing’s total order numbers increased to 482,000, reflecting a 6% increase on the first half of last year, and a 13% increase on the second half. It said it became the UK’s number one bathroom retailer in 2022. The retailer has also signed a 20-year lease for a 544,000 sq ft purpose-built distribution centre in Lancashire, which is on track to open in the second half of the year. Victorian plumbing said the new site will support its strategic expansion. “We remain mindful that our customers still face a series of inflation related headwinds, however, with our resilient trading and market-leading proposition we remain confident in delivering expectations for the full year”, the retailer said.

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Wilko considers CVA as it struggles with rent

22nd May 2023

Wilko is considering a company voluntary arrangement (CVA) as it looks to renegotiate rents and potentially close a number of its stores. The discount retailer has approached advisers at PricewaterhouseCoopers (PwC) to explore a number of options, Bloomberg has reported. The retailer has looked to cut costs in recent months, having let go of over 400 jobs at the beginning of the year. In January, Wilko received £40m in funding from Homebase owner Hilco after falling into a £36.8m loss over the last financial year. The retailer said it could run out of funds by the end of the year if trading conditions failed to improve. Wilko chief executive Mark Jackson told Bloomberg: “We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.”

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Nike Unite to join Bournemouth’s Castlepoint

22nd May 2023

Castlepoint in Bournemouth has secured its third lease in recent weeks as it prepares to welcome Nike Unite. The sportswear brand has signed for a 12,533 sq ft unit, with the news following the arrival of Holland & Barrett and the recent upsizing of Mountain Warehouse to its largest UK store at the Bournemouth scheme. Castlepoint was acquired last autumn by the combined funds of Columbia Threadneedle and Delancy as part of a joint venture. A spokesperson on behalf of the joint venture owners of Castlepoint said: “Occupier interest in Castlepoint remains high and we are now carefully curating the tenant mix and working alongside our brands to maximise the offer and better meet consumer demand. It is clear operators have confidence in the scheme and we’re looking forward to exploring further opportunities as we move through the 2023 and beyond.” Morgan Williams and Curson Sowerby Partners LLP act as joint agents for Castlepoint.

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“Worst is over” for Boohoo, say analysts

22nd May 2023

The “worst is over” for Boohoo, say analysts, who have encouraged trader to reinvest in the struggling fashion retailer. Boohoo has struggled with rising costs and supply chain issues, and recently posted a pre-tax loss of £91m in its latest full year results. However, investment banking company Panmure Gordon has said the retailer provided “significant reassurance” in its most recent figures. Tony Shiret and Georgia Pettman, analysts at Panmure Gordon, said: “The Boohoo preliminaries gave evidence of control and stabilisation which now prompt us to dismount from the fence. “Boohoo has never, in our view, been very transparent on its buying model. But the company’s conviction that it is now able to return to a full-on test-and-repeat buying model should allow it to function properly as a sales driving machine. “Additionally, the new US distribution centre will be absolutely key for moving the US sales into a higher level.” The analysts have also increased their target share price from 60p to 70p, with Boohoo’s shares currently trading at 45p. “We think there is plenty of upside in the near-term given the significant reassurance provided by these results and the management’s much more positive demeanour. “Boohoo is again beginning to demonstrate a...

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Sandersons makes head of buying appointment

22nd May 2023

Sandersons has appointed Louise Fearnehough as head of buying. Fearnehough has worked seven years at the independent department store business, spending time leading the fragrance team and running the company’s flagship store at Fox Valley in Sheffield. She has also previously worked at John Lewis and Debenhams. Fearnehough will be in charge of buying strategies at Fox Valley, Five Stroud, and Morpeth, as well as Sandersons’ online store. Fearnehouge said: “I have a deep understanding of our customers in our different locations and have participated in the opening of new stores and the growth of the business. Sandersons reputation has grown significantly and we are known for our beautiful stores with amazing brands which have been curated over the years by the owners.” Sandersons reported that it has grown its turnover £6.5 million over the last six years, and is now looking to grow both its bricks-and-mortar and online businesses.

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Sainsbury’s prepares for online fashion marketplace

22nd May 2023

Sainsbury’s has approached a number of third-party fashion retailers as it looks to establish an online marketplace, The Times has reported. Brands including Jigsaw and White Stuff have been contacted about selling their products on Sainsbury’s website as well as in some of its stores. The supermarket retailer already sells some third-party products from brands such as Sosandar, Fat Face, and Brakeburn on its online store. The initiative is led by Sainsbury’s general merchandise commercial director and former John Lewis head Paula Nickolds. She is working alongside the retailer’s director of clothing, home, and furniture Christine Kasoulis, another former senior John Lewis executive. Sainsbury’s is reportedly offering brands a lower commission rate than John Lewis, which currently charges at least 40%.

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Deichmann finds its feet at Epsom’s Ashley Centre

22nd May 2023

The Ashley Centre in Epsom is set to welcome Deichmann, following a “significant investment” from its landlord. Taking a 7,100 sq ft two-unit in the former Sports Direct site, the European footwear giant will open in late June and will look to deliver a more spacious and modern experience as part of its new retail format. The news follows the recent signing of GAIL’s Bakery at the Epsom scheme, which will be opening a 5,958 sq ft unit this summer. Louisa Butters, Head of Retail Asset Management UK at CBRE IM, said: “Following the recent signing of GAIL’s Bakery at the Ashley Centre, the signing of Deichmann is once again reaffirming our long-term strategy for the destination as we continue to welcome leading high street brands to the centre.” Deichmann will join the likes of Next, Sports Direct, M&S, Starbucks, and The Body Shop. GCW & Cushman and Wakefield represent the Ashley Centre. BKL acted for Deichmann.

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Moss suits up at Manchester Arndale

22nd May 2023

Moss Bros. is set to join the fashion lineup at Manchester Arndale. Taking a 4,157 sq ft unit on New Cannon Street, the brand will open as Moss, as the retailer looks to transition into a modern, omnichannel retailer. Moss has enjoyed a strong post-COVID recovery, with profits doubling in the year to January 2023, rising from £17m to £36m. Moss’ arrival follows a number of new retail lettings at the Manchester scheme including Gilly Hicks, Clarks, Flying Tiger, MINISO, Tommy Hilfiger, Kick Game and Kurt Geiger, as well as the upsizing of Sports Direct. Steve Gray, head of European retail asset management at Global Mutual, said: “As we move through the year, we’re looking forward to announcing more exciting brands as we continue to reinforce Manchester Arndale’s reputation as a vibrant destination that attracts millions of visitors from across the North West and beyond.” Brian Brick, CEO of Moss Bros. Group added: “Our customers tell us they want physical stores in the heart of their communities, and as such we are committed to the high street and the role that our stores and style advisors play in delivering the best brand experience for our audience.” M&G Real Estate and...

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HMV returns to Dublin’s high street after seven years

19th May 2023

The third time could be the charm for HMV as it makes another return to Dublin’s high street, seven years after its closure. The music and electronics retailer will be opening a three-storey flagship store where it has previously had to close on two occasions. The retailer has seen somewhat of a resurgence in recent years, as vinyl sales outsold CDs for the first time in 35 years in 2022. It has also been aided by the arrival of Canadian business owner Doug Putman in 2019 after his acquisition of the business. HMV is also set to make a return to London’s Oxford Street, where it first opened in 1921. Under pressure from tech, HMV closed its doors in Dublin in 2013 before shortly reopening. In 2016, it was then forced to shut once again. Putman said he hoped the new store, on Henry Street, would become “a home for a new community of fans to come together”. “What’s more, we hope that once we’ve got our feet back under the table in Ireland, further HMV shop openings will follow,” he added.

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TCS secures planning consent for Leeds mixed-use scheme

19th May 2023

Town Centre Securities (TCS) has secured planning consent for the next phase of development at the mixed-use Whitehall Riverside site in Leeds. The development is set to deliver 235,000 sq ft of office space, a multi-storey car park, and a 108-bed hotel/aparthotel. TCS has previously worked with Leeds City Council to deliver the first phase of development at the 3-acre site, which involved the creation of offices, residential space, and a Premier Inn hotel. In 2022, TCS entered a joint venture with Glenbrook to bring forward the latest phase of development, submitting a planning application in May of last year. The riverside location is situated in Leeds city centre with good transportation links to the train station, the historic office core, and retail quarter. Craig Burrow, group property director of TCS, said: “Our masterplan has been designed for modern needs, but with flexibility front of mind to adapt to the changing requirements of workspace, residential, electric vehicles, and the visitor economy. It will deliver a truly mixed-use scheme and a unique neighbourhood in the West End of the city which is now enjoying increased activity and development.”

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Tesco chair to step down amid misconduct allegations

19th May 2023

Tesco has announced that John Allan will be stepping down as chair, with the supermarket giant stating claims of misconduct “risk becoming a distraction”. The Guardian has previously reported that Allan had been accused of inappropriate behaviour by four women. The Tesco chair “vigorously denied” three of these claims but “unreservedly apologised” for one. The latter regarded comments made about a female staff member at the Confederation of British Industry (CBI) while he was president of the lobbying group. One allegation regarded his behaviour at Tesco’s annual general meeting (AGM) in 2022. The retailer said it had conducted an “extensive review” of the incident. Tesco employees had been invited to come forward if they had any concerns, especially regarding the 2022 AGM. “This review has not identified any evidence or complaints in relation to John at the Tesco 2022 AGM or at all in his tenure as Tesco chair”, the retailer said. Allan will be stepping down from his roles as chair of the board and director at Tesco’s AGM on June 16. He was appointed in 2015 and was due to step down soon, with a succession planning process having already been initiated. Byron Grote, a senior independent director...

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