Posts from May 2023

Interest rates hike will inflict “economic pain” on hospitality venues

12th May 2023

Further rises in interest rates are set to inflict “economic pain” on the hospitality industry, the chief executive of UKHospitality has said. The Bank of England increased interest rates from 4.25% to 4.5% on Thursday, the highest level in almost 15 years. UKHospitality chief executive Kate Nicholls said: “Interest rates reaching their highest levels since 2008 will be a huge worry for hospitality businesses and could significantly impact business viability. “Hospitality was the business sector most affected by the pandemic, with a large number of businesses forced to take out loans to survive. With those loans now due, consistently rising interest rates compound debt and inflict further economic pain on venues.” Interest rates were increased as part of the Bank of England’s measures to reduce inflation, which currently sits at 10.1%. The bank’s target is 2%. The Bank of England said that uncertainties around the global financial and economic outlook “remain elevated”. Nicholls added that the hospitality sector is in a period of “peak energy pain”. “Urgent action is needed from Government to bring costs down, particularly on energy, and more needs to be done to assist businesses in their pandemic debt. We would urge HMRC to be lenient in...

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Bean Coffee launches new upsized concept at Liverpool ONE

12th May 2023

Bean Coffee Roasters has opened its new upsized store at Liverpool ONE, following a successful pop-up and subsequent debut site at the scheme for the local coffee brand. The 4,361 sq ft coffee shop marks Bean’s second relocation within Liverpool ONE within the space of a year, and will enable the brand to elevate its offer and meet customer demand. Providing cover for 150 customers and set over two floors, the new store feature dining and co-working zones, centred around a new brew bar. Bean’s relocation means the brand can implement its sustainability strategy, which involves ensuring an eco-conscious supply chain, sourcing directly from farms, and using biodegradable coffee cups. Rob Deacon, senior asset manager, Grosvenor said: “Having evolved from an initial pop-up at Liverpool ONE in 2021, to debuting its first permanent space last year, we are proud to play a role in the ongoing success that Bean has experienced at the destination. Supporting independents and local businesses has always been a huge part of our strategy at Liverpool ONE and we are pleased to welcome Bean’s elevated offer to our established food and drink line-up.” Bean’s upsize follows the recent announcement that Swiss sportswear brand On has launched...

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Nike Unite makes regional debut at Merry Hill

12th May 2023

Nike Unite has opened its latest store at Dudley’s Merry Hill, marking a regional debut for the community-focused concept. Opening in a 10,165 sq ft space, the new store will be a first for the retailer in a shopping centre environment. The concept is described as ‘a Nike store for the family’, and is designed to keep the local community in mind. The store stocks a selection of footwear, apparel, and accessories across Nike’s men’s, women’s, and children’s ranges along with seasonal offerings. Alistair Winning, asset manager at Sovereign Centros, said: “Nike Unite manages to combine a genuinely local community feel with the prestige that comes with the globally renowned brand, two things that are really well reflected in the overall Merry Hill offer.” Nike Unite’s arrival at Merry Hill follows the opening of children’s footwear brand Schuh Kids, which recently opened a 4,000 sq ft store at the scheme.

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Fattal secures £43m loan for Grand acquisition

11th May 2023

Israeli hotel group Fattal has secured £43m worth of financing from Leumi UK to help fund its acquisition of the Grand Hotel in Brighton. In February, the group announced the purchase of the 201-bedroom, five-star seafront hotel, meaning that it now operates three hotels in Brighton, alongside the Leonardo Brighton Hotel and the Leonardo Royal Brighton Waterfront. Fattal said it plans to make a significant investment to refurbish the hotel, which opened in 1864, while maintaining its status and title. The Grand saw a refurbishment in 2019 to restore some of its original design features. The group was founded by former hotel waiter David Fattal in 1998 as a hotel management company. Fattal has since grown into a multinational group, operating over 50 sites across the UK and Ireland. Cushman and Wakefield acted on valuation while DLA Piper acted as legal counsel for Leumi UK’s.

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Supermarkets need clarity on Windsor Framework – BRC

11th May 2023

Supermarkets need a clearer explanation on the Windsor Framework before changes come into effect in October, the British Retail Consortium (BRC) has said. The Windsor Framework was created to ease trading between Northern Ireland and the rest of the UK post-Brexit. Under the current framework, laid out in February, products heading to Northern Ireland from the UK will be labelled to determine whether they will be checked or not. Based on labelling, products will either go through the ‘green’ lane or the ‘red’ lane. Products in the green lane will be labeled ‘not for EU’, while products in the red lane will be able to be traded into the EU and Republic of Ireland. The objective of the framework is to reduce the amount of checks on products arriving at Northern Irish ports, as only goods with in the red lane will be checked. Speaking before a House of Lords committee, food and sustainability director at the BRC, Andrew Opie, said he is expecting the Government to provide guidance of labelling within 10 days. He added: “Labelling is one of the requirements of using the green lane, so if we don’t know how to label the products then we shouldn’t...

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Plans submitted for Shepherd’s Bush Market transformation

11th May 2023

Plans which would see the redevelopment of Shepherd’s Bush Market and the adjacent Old Laundry Yard have been submitted to the London Borough of Hammersmith and Fulham. The application has been submitted by Yoo Capital, which has been the majority owner of the site since 2020. The plans, originally released in October 2022, describe changes to the market and Old Laundry Yard to create an ‘ecosystem’ for existing traders, and propose new entrances, canopies, and stalls in a “stunning refurbishment”. The developments would also see the creation of co-working spaces and 40 new homes. Proposals would see demolition of the former St Mungo’s building and associated structures. Yoo Capital said it is committing to supporting existing traders at the market, ensuring they can continue to trade in the refurbished remarket. It said the development would give the area a “shot in the arm”. Lloyd Lee, managing partner, Yoo Capital, said: “Shepherd’s Bush Market has a unique vibrancy and culture. As a firm, we believe in celebrating community assets across London. We made a commitment to Shepherd’s Bush Market’s traders to invest in the market in a way that honours and retains its much-loved sense of community and diversity.”

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Frontrunner emerges in Black Sheep Brewery bid

11th May 2023

An investment firm has emerged as the leading bidder of a number of potential contenders to take control of the struggling Black Sheep Brewery. Breal Capital, part of the Breal Group, has entered negotiations to purchase the Yorkshire-based brewery, Sky News has reported. A deal between Breal Capital and Black Sheep Brewery is not yet finalised nor certain. The company said in April that it was considering a sale to support “ambitious plans”, and had appointed Teneo as its financial advisor. Just days after the brewery filed a notice of intention to appoint administrators last week, Teneo asked interested parties to present offers by last Friday. The brewery has been struggling with costs following the Pandemic. Charlene Lyons, Black Sheep Brewery chief executive, said this week: “The business has been hit very hard by the pandemic and the sudden rise in all costs. “It has been the perfect storm, but the team are confident that with a new structure Black Sheep will thrive and grow as the team set course in a new direction.”

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Lush invests £2.3m in recycling ‘Green Hub’

11th May 2023

Lush has invested £2.3m into a circular recycling ‘Green Hub’ in the brand’s hometown of Poole. The cosmetics retailer’s new plant consists of 40,128 sq ft of industrial space at Fleets Corner Business Park. Lush said that in 2022 its existing Green Hub operation had recycled 12 tonnes of PP plastic through its ‘Bring it Back’ scheme in which customers can return Lush packaging to stores in return for credit. The retailer also said it had recycled 15 tonnes of PET product moulds and 998 tonnes of manufacturing waste. The hub is also home to a number of other Lush initiatives such as a woodshop to recycle and repurpose store furnishings, a repair and maintenance department for equipment, and a donations section in which surplus products are given to charity. The retailer has also invested in a dissolved air unit to recycle waste water created in its spa laundry and manufacturing process. Lush said this will allow waste water to be reused within a circular economy. Chase Clark, Lush manufacturing director, said: “At Lush, we are designing for zero waste. Our brand-new Green Hub at Fleets Corner allows us to close the loop on our packaging and water as we...

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‘Home of the Titanic’ hotel rescued from administration

11th May 2023

A historic Liverpool hotel known as the ‘Home of the Titanic’ has been sold out of administration for an undisclosed sum. The grade II-listed site at 30 James Street has been snapped up by German group RIMC Hotels & Resorts. Completed in 1896 and once the home of the White Star Shipping Line, the 63-bedroom hotel houses a bar and restaurant, a grand hall, and a spa. The hotel opened in 2014 under the management of Signature Living but fell into administration as a result of issues with the developer group. It was then put up for sale in both 2019 and October 2021 – when an asking price of £12.5m was not met. Duncan Gray, managing director of RIMC UK, said: “We are delighted to have acquired 30 James Street as our first UK acquisition and plan significant investment into the property and business to create an exciting and unique offer, befitting of such a prestigious building in the fantastic city of Liverpool.” Savills worked on the transaction on behalf of administrators Moorfields Advisory.

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JD Sports appoints CFO

11th May 2023

JD Sports has announced the appointment of Dominic Platt as chief financial officer (CFO), who will join the global sports retailer later this year. Platt is currently CFO of Compare the Market owner BGL Group, and has previously held the roles of group finance director and managing director of international business at French retail group Darty. He has also held positions at Cable & Wireless both in the UK and internationally. Platt is currently an independent non-executive director at N Brown Group and a fellow of the Chartered Institute of Management Accountants. He takes over the role of CFO from Neil Greenhalgh, who will leave the business in the summer. Régis Schultz, JD Sports chief executive officer, said: “Having worked closely with Dominic before, I am certain his financial expertise, deep knowledge of governance and strategic counsel will be crucial in helping to drive forward the next chapter in the global growth story of JD.” On Monday, JD Sports announced that it had entered negotiations regarding the takeover of French rival Courir.

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Sint & Co duo launch London-based agency

10th May 2023

Two former Sint & Co agents have teamed up to create Ascent RE, a Camden-based commercial agency and chartered surveyor practice. Ascent RE was founded by former Sint & Co director Dan Harris and former associate David Raymond, with both taking on the role of director at the new firm. The new agency said it will focus on investment sales and acquisitions, developments, freehold sales and acquisitions, leasehold disposals, tenant representation, professional services, and asset management. Harris had worked at Sint & Co since 2006, while Raymond had been at the firm since 2020. He had also previously worked as a commercial agent and an LPA receiver at Tarn and Tarn. Speaking on LinkedIn, Dan Harris said: “I’m extremely privileged to have built up such a great network of clients and agents over the last 20 years. I’m looking forward to continuing to work with you all and hope this will also be a springboard to many new relationships and opportunities.” David Raymond said the new firm has “a few exciting instructions on [its] books”.

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John Lewis chair faces criticism but survives employee confidence vote

10th May 2023

John Lewis chair Dame Sharon White has survived a vote of confidence from the retail group’s members amid growing pressure to turn the business around. In a separate vote, however, John Lewis members, called partners, expressed their unhappiness over her management within the last year. John Lewis staff own a stake in the business and elect councillors who undergo democratic processes relating to the management of the company. The confidence votes were non-binding but provide a litmus test over employee satisfaction. Dame White has previously sparked discontent over suggested plans to sell part of the business, meaning that John Lewis would no longer be entirely employee-owned. She took the position of chair in 2020, a year in which the retailer posted its first ever annual loss of £517m. After posting further losses last year, the retailer is looking for ways to return to growth, including with the development of residential schemes on John Lewis and Waitrose sites. Waitrose, who is owned by John Lewis, is also under pressure from cheaper supermarkets as consumer budgets are squeezed.

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Asos into the red but retailer confident it will bounce back

10th May 2023

Asos saw an adjusted loss before tax of £87.4m for the six months to February 28, but has said that it expects to see its decisions pay dividends in the second half of the financial year. The online fashion retailer had seen an adjusted profit before tax of £14.8m in the same period last year. Despite making losses, Asos said it was on track to deliver its full year targets, which includes over £300m of benefits from the retailer’s ‘Driving Change’ action plan, an inventory reduction of around 20% year-on-year, gross margin improvements, and profitability and cash generation in the second half of 2023 and beyond. The retailer said it has a “robust and flexible” balance sheet with the amendment and extension of a £350m revolving credit facility through to November 2024, which reduces to £220m in August of the same year. Asos added that it had refreshed its management team, with a newly formed management committee now largely complete. The retailer’s CEO, José Antonio Ramos Calamonte, said 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. “We are improving our gross margin...

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Last orders for many Wetherspoon pubs despite record Easter

10th May 2023

JD Wetherspoon is continuing the trim down its trading estate, despite a strong third quarter of its 2023 financial year which saw a record Easter week. In the 13 weeks to April 13, the chain opened one pub and sold, closed, or surrendered to landlords three sites. In the trading year to date, the hospitality giant has opened three and disposed of 21 pubs. JD Wetherspoon received a net cash inflow of £4.7m from these disposals. A further 30 pubs remain on the market, with the chain currently trading from an estate of 834 sites. In the third quarter, like-for-like sales increased 9.1% compared to the 2019 financial year (the last pre-COVID trading year) and 12.2% against 2022, while year-to-date sales were up 6.4% against 2019 and 12.7% compared to last year. JD Wetherspoon said the May bank holiday weekend was “exceptionally strong”, with the chain enjoying its “busiest ever” Saturday. The group said that the Coronation weekend was slightly less strong, with a “noticeably quiet” Saturday. JD Wetherspoon said the weekend likely benefitted from a boost in “off-trade”, that is, increased trading in supermarkets rather than bars, pubs, and clubs. Tim Martin, chairman of JD Wetherspoon, said: “Lockdowns and...

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Watch the Innovation Studio: Reinvigorating roadside

10th May 2023

Drive-through restaurants are now used by a “variety” of customers, not just “people on the go”, said James Hamilton, property and store development director at Costa Coffee. “It is not just people on the go, it is remote workers especially, it’s kids after school, it’s families”, he added, speaking at Completely Retail Marketplace’s Innovation Studio session, ‘Reinvigorating roadside’. “They’re just really convenient, accessible, clean, and safe. I think that’s why they’ve been such a huge growth engine.” He was joined by Alfred Bartlett, founder of Ogle Property, who said that the story was different for quick service restaurants (QSRs), which require a “settled catchment”. QSRs need good traffic flow, visibility, accessibility, and nearby complementary users, he added. This was in comparison to more “transient” forms of roadside retail, such as coffee shops, which can benefit more from passing traffic. Other topics at the discussion, which took a look at how roadside dining has changed, included staffing issues, electric vehicle charging, old roadside favourites, and new contenders such as Brightside. Watch the full Innovation Studio session above.

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Liverpool’s Royal Albert Dock changes hands for £40m

10th May 2023

Royal Albert Dock in Liverpool has been acquired by General Projects and investment management firm Neo Capital for £40m. The 375,000 sq ft dock consists of the largest single collection of grade I-listed buildings in the UK. Originally opened as warehouses in the 19th Century, the site has since undergone a number of transformations and is now home to retail and leisure destinations as well as two hotels and office space. General Projects said it aims to enhance the sites offering through events including concerts and pop-ups. Jacob Loftus, chief executive of General Projects, said: “Already one of the busiest leisure and cultural destinations in England, we hope to add our energy and creativity to further evolve the dock into the most exciting experiential and authentic destination in the UK.” A Neo Capital spokesperson added: “This acquisition is a testament to our confidence in the UK real estate market and an important milestone to investing in high quality projects.” Metis Real Estate advised General Projects on the deal.

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Reiss set for Milton Keynes debut

10th May 2023

Reiss is set to make its Milton Keynes debut, joining centre:mk this summer. The fashion retailer will open a 1,884 sq ft store on Silbury Arcade, stocking a range of womenswear, menswear, accessories, and childrenswear. Reiss will join other retail brands at the Milton Keynes scheme including Jigsaw, Hobbs, Ted Baker, H beauty, and H&M. Fashion retailer Mango is also due to open soon at centre:mk. With Reiss pledging to reduce its carbon emissions to zero or less than zero by 2040, its philosophy aligns with centre:mk’s waste reduction initiatives, which have seen a 100% diversion from landfill. Kevin Duffy, centre:mk’s centre director, added: “Reiss is the latest of a series of leading brands to join centre:mk’s Silbury Arcade, and its curated line-up of premium retailers. Converting 95% of footfall in to spend, we are so proud of the continued upward momentum of centre:mk’s success, and look forward to welcoming Reiss later this year.” The signing follows the arrival of H&M’s regional flagship, with the retailer opening a multi-storey 30,000 sq ft store featuring both its fashion and home ranges.

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April sees sales increase despite fall in volume

9th May 2023

Total retail sales rose in April, however sales volumes decreased as inflation continues to put pressure on consumer budgets. Sales increased by 5.1%, against a fall of 0.3% in April last year, according to the BRC-KPMG Retail Sales Monitor. Like-for-like sales increased by 5.2%, compared to 1.7% in 2022. Food sales rose by 9.8% in April with an increase of 10% like-for-like over three months. Non-food sales were up by 1.2% in total and 0.8% on a like-for-like basis. However, high levels of inflation means that overall sales volumes saw fell. Helen Dickinson, chief executive of the BRC, said: “While retail sales grew in April, overall inflation meant volumes were down for both food and non-food as customers continued to adjust spending habits.” “Retailers hope sales will improve over the warmer summer months, especially as consumer confidence stabilises and inflation begins to ease. However, they continue to face huge cost pressures from a tight labour market, high energy prices and other rising input costs, with many retailers reporting lower profits this year as a result”, she added.

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Eurovision set to deliver retail and hospitality £470m

9th May 2023

The upcoming Eurovision Song Contest in Liverpool is expected to provide retailers and hospitality venues with a £470m boost. According to research from VoucherCodes, 15 million people are expected to tune in to watch the event, which returns to the UK after 25 years. The research estimates that UK retailers will generate £244m in sales, with customers stocking up on food, drink, and decorations ahead of the event, which runs from May 9-13. Food and drink sales will make up the majority of retail spending, accounting for £187m of total revenue. Hospitality venues are also set to receive a boost, with an expected £143m passing through bar, pubs, and restaurants. Takeaway restaurants are set to account for £71m of this. Maureen McDonagh, international & managing director at VoucherCodes said: “It’s clear the Eurovision Song Contest returning to the UK for the first time in 25 years means excitement levels are high amongst British consumers. As our data shows, this buzz will result in a busy period for many retailers and a boost in sales during the contest, in what is set to be a bumper May for the industry.” The UK has also benefitted from an economic boost due to the Coronation, which brought in...

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Work begins on Caerphilly shipping container market

9th May 2023

Work has begun on a new market in Caerphilly made up of shipping containers, with the project expected to be completed in October or November. 58% of the project’s funding will be provided by the Welsh Government, which is providing a grant of £2.09m and a loan of £600,000. The remainder of the cost comes from the local council and the UK Government’s Shared Prosperity Fund. The project, called Ffos Caerffili, is the first in Caerphilly Borough Council’s 2035 regeneration masterplan, and will create 28 units for retail, leisure, and food and beverage operators. An outdoor space for events will also be developed. Welsh minister for climate change, Julie James, said: “Our transforming towns programme continues to deliver great results in our commitment and ambition to revitalise town centres across Wales, putting them at the heart of everything we do.”

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