Posts from May 2023

Poundland is seeking sites to expand its new store format within the Capital. The discount retailer has recently opened four ‘Poundland Local’ stores over the last six months in East Dulwich, Clapham, Swiss Cottage, and Whitechapel. The new store format delivers Poundland’s core range of products, as well as new offerings including fresh produce, frozen goods, bread and alcohol. Poundland’s director of property, Ben Wall, said: “While the newer store openings have followed our essential format, we are open to looking at store opportunities of different sizes on high streets, shopping centres and retail parks.” The retailer will be opening its expanded store in Bow on May 20, increasing the size of its shop floor by a third. Poundland’s director of retail Darren Kay said the store would offer a “new and improved shopping experience and wider ranges.”

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Nike Unite opens first Irish store

Nike Unite has opened is first store in Ireland at Dublin’s Blanchardstown Centre. Opening in a 10,000 sq ft store, the community-based concept will line-up nearby other athleisure retailers including JD Sports, Lifestyle Sports, Skechers, and Schuh. Nike Unite will be partnering with youth organisation Foróge and will look to create a year-round sports programme alongside Special Olympics Ireland. Sharon Walsh, leasing director at Blanchardstown Centre asset manager Falcon AM, said: “A compelling in-store experience is increasingly important to consumers and this new concept speaks directly to that. The community focus and experiential element offers something different – and will act as a real draw.” The retailer joins a number of others who have recently opened at Blanchardstown including Bershka, Flannels, and Zara.

Deals

Consumer confidence continues upwards trend in May

GfK’s Consumer Confidence Index rose three points in May, with all measures ahead of those recorded in April. Reaching -27 points, May is the fourth consecutive month in which the index has increased, after a dip in January. The long-standing index is measured in five measures: Of those surveyed, opinions on personal financial situation over the last 12 months rose one point to -20, while personal financial situation for the next 12 months rose five points to -8. Consumer opinions on the general economic situation over the last 12 months rose 1 points to -54, while feelings about the next 12 months rose four points to -30. The major purchase index, which measures consumer likelihood to make larger, discretionary purchases, increased four points to -24. The savings index, which does not contribute to the overall score, was unchanged at 19 points. Joe Staton, Client Strategy Director GfK, said: “The cost-of-living crisis has been part of our daily financial reality for a long time, with double-digit inflation and record-high food prices. But despite those pressures, May sees an encouraging three-point uptick in consumer confidence.” He adds: “Of course, the headline score of -27 means we’re still deep in negative territory and a...

Insights News

Vinoteca Birmingham to close within a year of opening

Vinoteca’s first restaurant outside of London is set to shut its doors, less than a year since it opened. The wine bar arrived at Birmingham’s Paradise Estate in July 2022, but has struggled with financial problems in a post-Pandemic landscape. The 4,500 sq ft venue will close on May 27. Vinoteca’s remaining five restaurants in the Capital will remain open. “The move is in answer to difficult trading conditions during and post-pandemic which has had a huge impact on leisure operators across the country”, the company said in a statement. “The challenges of a much-changed economic landscape over the past 12 months of rising costs, inflation, spiralling energy charges and regular train strikes have proved too great for a site which Vinoteca had hoped to continue to grow over the coming years.”

News

Hotter owner considers sale

The owner of Hotter Shoes, Unbound, has announced the initiation of a formal sales process as it struggles with funding. The group has appointed Interpath Advisory as joint financial adviser alongside Singer Capital Markets to manage the process. Unbound said it would be able to make a scheduled bank repayment due on July 31, although it risks a temporary working capital shortfall in September and October due to a build-up of inventory ahead the release of its Autumn/Winter range. Other options are being considered, such as the raising of additional funding from a debt provider or strategic investor. Under stock exchange rules, the group is now in an ‘offer period’, meaning interested parties may engge in conversations regarding a sale. Earlier this week, Unbound said it would suspend activity on its multi-brand ecommerce platform so it could focus on the “simplification of the business” and the core Hotter brand. The group sadi it expects a pre-tax loss between £4.25m and £4.75m, with the extended summer heatwave, Royal Mail strikes and broader economic conditions to blame.

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Søstrene Grene opens first London store

Søstrene Grene has opened its first store in the Capital in Wandsworth’s Southside. The Danish homeware brand is currently in the process of expanding across England, Scotland, and Northern Ireland, with openings in High Wycombe and Bracknell expected later in the year. Looking to bring the Danish concept of ‘hygge’ to the UK, Søstrene Grene offers a range of products including contemporary interiors, hobby items, children’s toys, soft furniture, and kitchen accessories. The store’s opening was attended by the Mayor of Wandsworth Jeremy Ambache as well as TV hosts the Style Sisters. Søstrene Green’s stores are run by its UK joint venture partners, Norma Jacob and Richard Power. Power said: “Wandsworth marks our twelfth store opening in the UK and our first ever location within the M25, making this a very exciting launch for the brand. We look forward to seeing the store flourish and Søstrene Grene’s unique shopping experience continue to grow.”

Deals News

Joint approach agreed for Edinburgh ’20-minute neighbourhood’

The City of Edinburgh Council and West Town Edinburgh have agreed a joint approach to develop a sustainable ’20-minute neighbourhood’. Costing £2bn, the 205-acre development in the Scottish capital’s West Town site will look to create a mixed use neighbourhood that both satisfies housing needs and delivers a “significant sustainable urban expansion”. City of Edinburgh council leader Cammy Day announced the agreement alongside Graeme Bone, group managing director of West Town developer Drum Property Group, at the UK Real Estate Investment & Infrastructure Forum in Leeds. The West Town site is based between Ingliston Park and Ride and the Gogar Roundabout at the western gateway of Edinburgh. The city’s tram route runs through the site and a new station will be constructed to connect the neighbourhood to the rest of the city. The site is part of the council’s City Plan 2030 and has been identified as having the potential to become a “vibrant, high-density city extension”, with the commercial and community facilities to become a ’20-minute neighbourhood’. The site also has the capacity for some 7,000 homes. Drum Property hope that work will start on the site in 2024, with the first homes ready for occupation in early 2026....

News

Colliers: Number of appeals shows business rates system isn’t working

The latest government figures on business rates appeals show that the current system isn’t working, Colliers’ head of business rates has said. 16% (132,690) of checks (the first part of the appeal process) over the last six years were registered within the first three months of the year, nearly seven times as many as in the previous quarter. Colliers’ John Webber said the figures represent how unhappy businesses are with their rates bills, especially as they are willing to negotiate the “complex” Check Challenge Appeal (CCA) system. He added that resolving the appeals will need a large amount of dedicated time and resources from the Valuation Office Agency (VOA). “CCA was brought in to stem the number of appeals made and to process them quickly. Yet appeal figures are now averaging over 140,000 a year and are as high as ever. Businesses still remain bogged down trying to get them resolved”, said Webber. There were over 1 million appeals registered in the seven years of the 2010 list, with the CCA introduced in April 2017 to satisfy demand and make the appeals process simpler. “Appeal figures fell in the early days not because CCA was working, as the VOA claimed”,...

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Princess of Wales’ parents sell party business following insolvency run-in

The parents of the Princess of Wales have sold their business following a collapse into administration, Sky News has reported. Party Pieces Holdings was purchased from Carole and Michael Middleton on Thursday by entrepreneur James Sinclair’s company, Teddy Tastic Bear Co. The business specialises in party decorations, tableware, and gifts. It is reported that the deal was implemented through a pre-pack administration, and it is unclear what price was paid for the business. Insiders said Kate Middleton’s parents had preferred to sell Party Pieces with a dowry to avoid insolvency but this proved impossible. On Thursday morning, Interpath Advisory were appointed as administrators in court, it has been reported. They were instructed by the Middletons to find a buyer for the business earlier this year. Trading at Party Pieces is said to have suffered during the Pandemic with the company recorded to have made losses during the last financial year.

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Disability charity seeks six London sites

Disability equality charity Scope is looking to open six stores within the Greater London area. Agents from Carter Jonas have been appointed to find suitable locations, as the charity looks to build on its current estate of 170 retail outlets in England and Wales. Scope provides information and emotional support for disabled people. Its stores sell a range of new and second-hand goods including clothing, furniture, and electronics. The charity is looking for high street or shopping centre units ranging between 1,600 and 2,500 sq ft with 100% access for disabled customers. Target locations include Bexley, Clapham, Fulham, Finchley, Edmonton, Tottenham, and Wandsworth. Ruth Blazye, executive director of retail and communities at Scope, said: “Our research shows people are visiting charity shops more than ever as rising inflation and soaring energy prices mean many people have less money in their pocket for clothes and homewares. This has prompted people to discover the value, variety and sense of community to be found at Scope charity shops.”

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Liverpool ONE sees Eurovision boost to the tune of £19.9m

Liverpool ONE benefitted from an estimated £19.9m boost during the Eurovision Song Contest, scheme owner Grosvenor has revealed. During the week of May 7-13, which included the Eurovision final and the two semis, footfall increased at the Liverpool scheme by 31.5% compared to the previous year, beating expectations of 25%. This compares to an increase in footfall of 5.7% for the UK on average. Footfall for the entire Eurovision period (May 15-14) increased by 17.3% against 2022, with Liverpool ONE welcoming a total of 680,000 customers. During the week of the final, total sales at the scheme increased by 23% against the same time last year, with restaurants benefitting in particular from a 78% increase over the whole Eurovision period and an 87% increase on the Saturday of the final. These results, calculated by consumer and location intelligence specialist CACI, are the centre’s best so far in 2023, and have broken post-COVID records outside of the holiday season. Donna Howitt, place strategy director at Liverpool ONE, said: “We describe Liverpool ONE as the heart of the UK’s most sociable city, and there is no better endorsement of that than the impact of Eurovision. The whole city rose to the occasion,...

News

Green light for Grade II Sicilian Avenue refurb

The London Borough of Camden has given the go-ahead for a refurbishment of Sicilian Avenue to deliver retail and office space. The site is sits on the west side of Southampton Row with Sicilian Avenue to the north andBloomsbury Square to the northwest. It consists of 3 buildings: Sicilian House, Vernon House, and no. 21 Southampton Row. The Grade II buildings were constructed between 1905 and 1910 and were altered during the 1970s. The proposals for ‘Bloomsbury Quarter’, submitted by Tristan Capital Partners-managed fund CCP 5, will look to create 17,000 sq ft of retail space. This will be supplemented by a number of amenities and end-of-journey facilities. 55,000 sq ft of office space at Vernon & Sicilian House and 21 Southampton Row will also be developed. The original proposals included the construction of a roof terrace, however these have been scrapped after consultation, along with plans to amalgamate three small retail units into one larger space. Tristan Capital is working alongside Knight Frank to deliver the proposals. In a letter to the London Borough of Camden’s planning services, Nick Belsten, executive director at consultancy Hgh, said the scheme offers the potential to secure a long-term sustainable use for the...

News

The Works sees sales increase despite online decline

The Works enjoyed “robust” sales growth in the 2023 financial year, despite its online business lagging behind. In the year ending April 30, total sales at the arts and crafts retailer increased by 6.1% to £316.6m, despite a “challenging backdrop”. Stores, which represent 88.8% of The Works’ total sales, produced an increase in like-for-like sales of 7.5%, however the retailer’s online division saw a declined of 15%. Overall, like-for-like sales grew by 4.2%. The retailer said that trading was “broadly as anticipated”, and expects to report an adjusted earnings result of around £9m for the financial year. The Works’ board said it is confident in the future prospects of the business, due to the “appeal and relevance” of the retailer’s proposition, the opportunity to grow sales, and a strong financial position. Gavin Peck, chief executive officer of The Works, said the business had traded well through difficult conditions, making note of the inflationary environment. “The store performance was strong throughout the period, demonstrating the enduring value of our store network in communities across the UK and Ireland. Online sales continued to lag behind, partially reflecting the normalisation trend seen more widely”, he added.

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Sainsbury’s launches its “most energy-efficient supermarket ever”

Sainsbury’s has opened the doors to what it calls its “most energy-efficient supermarket ever” in Hook, Hampshire. The 25,000 sq ft supermarket will utilise an array of energy-saving features, some of which have already appeared across other stores in the grocer’s estate. Sainsbury’s said the store will use 100% renewable energy, with no need for fossil fuels. Over 700 solar panels have been installed on the roof, which are expected to provide some 300 megawatt hours of energy per year. The store has also been fitted with 100% LED lighting, which responds to surrounding daylight levels. A “cold aisle retrieval system” which funnels cool air the chilled sections of the supermarket and displaces warmer air into other areas, has also been implemented. Fridge doors on chilled cabinets and display freezers are also being trialled, to keep cold air in and reduce energy usage. It is hoped that the Hook supermarket will contribute to Sainsbury’s ambition to become water-neutral by 2040, aided by low-pressure taps and rainwater harvesting. Sainsbury’s says the new store will “set the standard” for its future supermarkets, with some technology being retroactively fitted into its older sites. Patrick Dunne, property director at Sainsbury’s, said: “I’m immensely proud of...

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Wendy’s lines up first Surrey restaurant

Wendy’s could open its first restaurant in Surrey after plans were submitted to councillors to take a vacant unit in Guildford. The 3,204 sq ft store on North Street was previously home to Mothercare but shut in 2019 as part of mass closures. Proposals sent to Guildford Borough Council’s Planning Committee by architects Gensler detail changes to the front and rear of the building, including the installation of venting and illuminated signage for the Wendy’s brand. Although Wendy’s has not confirmed a Guildford opening, the property is now listed as ‘under offer’ on agent Green & Partner’s website. Applicant’s JRK Restaurants are currently aiding the American restaurant’s UK expansion, including in Kingston-upon-Thames and Reading. The restaurant chain has been seeking both high street and drive-through locations in the UK.

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JYSK to open 30th UK store in Warrington

JYSK is set to open its 30th UK store at Riverside Retail Park in Warrington. The Danish furniture retailer will open the doors of its 13,821 sq ft store on May 26, and says the launch will create over 12 jobs. The Warrington store will feature a range of JYSK’s outdoor living collections, furniture, accessories, soft furnishings, and lighting. Customers will also be able to make use of the store’s partnership with AnyVan, enabling them to benefit from a click-and-collect service. Looking to bolster its existing portfolio, JYSK is also set to renovate six existing UK stores. JYSK saw record results in the UK and Ireland during the 2021/22 financial year with turnover increasing by 11%, despite a difficult trading environment. The retailer said this performance was partly owed to its store expansion over the last year.

Deals

Watches of Switzerland announces two UK showrooms

The Watches of Switzerland Group has announced plans to open two UK showrooms as part of a wider pipeline. The luxury group has signed a letter of intent with watch brand Audemars Piguet (AP) to open an AP House in Manchester, via a joint partnership in the spring of 2024. A flagship TUDOR mono-brand boutique is also set to open at Old Bond Street in London in early 2024. Earlier in the year, two Goldsmiths showrooms were expanded in Cabot Circus, Bristol, and Lakeside, West Thurrock. Two mono-brand boutiques were also opened in partnership with Breitling in Leicester and Bristol’s Cribbs Causeway. The openings are part of a wider international pipeline for the group, which will launch more showrooms in Europe and the United States over the coming 12 months. This announcement comes as the Watches of Switzerland Group reveals its final results for the 2023 financial year: Group revenue reached £1.54bn, an increase of 19% on a constant currency basis against 2022. In the UK and Europe, the group enjoyed a 10% rise in revenue to £890m.

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Toby Carvery owner “delivering significant value” through property investments

Mitchells & Butlers says it is improving the “competitive position” of its pubs and restaurants through investment projects. The hospitality operator, which runs brands such as Harvester, Toby Carvery, and O’Neill’s, said it had completed 90 investment projects in the first half of the financial year. This consisted of 81 remodels, 3 conversions, and 6 acquisitions. The conversion programme includes the trial of one of the group’s brands, Browns, opening in a suburban environment, a change from its usual high street location. Two of these sites have now been opened with both performing strongly, Mitchells & Butlers said. Within the half-year period, a Browns restaurant was opened within the Marriott hotel in Cardiff, and a new Innkeeper’s Lodge and Miller & Carter were opened in Sheffield. Mitchells & Butlers said it is also eyeing the remainder of the owner of Mediterranean-inspired Ego Restaurants, of which it acquired a 40% in 2018. The group aims to acquire the leftover 60% in June this year. Ego currently operates 26 sites, including 16 which are leased from Mitchells & Butlers, who said that it sees scope for around 20 to 30 conversions using the Ego format within the next three to five years....

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British Land defends “operationally strong year” despite £1bn loss

British Land has praised an “operationally strong year”, despite recording a loss of £1.04bn for the 2023 financial year. This was a decrease on a profit of £965m recorded in 2022. British Land said the movement from profit to loss reflected the downward valuation of its properties and joint ventures as property values adjusted to a higher rate environment. Despite a “challenging macroeconomic environment”, the real estate investment trust (REIT) achieved record leasing volumes and signed 1.2 million sq ft of deals at retail parks. British Land said the completed deals were 19.5% ahead of estimated rental value and 9.7% below previous passing rent. British Land’s retail park occupancy reached 18.8%, the highest level in 12 years, with like-for-like income up 6.2%. Across shopping centres, the REIT completed 991,000 sq ft of deals at 18.5% higher than estimated rental value. British Land said that footfall (95.6%) and sales (108.4%) were almost on par with pre-Pandemic levels recorded in 2019. Simon Carter, British Land chief executive, said: “Ultimately, value in real estate is created over the medium to long term. We like to invest in supply constrained segments with pricing power, where we can be market leaders and leverage our competitive...

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JD Sports hails record year