Posts from June 2023

WHSmith amongst major retailers who failed to pay minimum wage

21st June 2023

WHSmith, Marks & Spencer, and Argos are amongst over 200 companies which have been named and shamed by the Department for Business and Trade for not paying their employees the minimum wage. A total of 202 named employers were found to have failed to pay a cumulative £5m in wages, leaving some 63,000 workers short-changed. WHSmith was the biggest offender, owing arrears of over £1m. In second place was Lloyds Pharmacy, which owed some £903,307 to employees. The were followed by Marks & Spencer and Argos, which owed £578,391 and £480,094 respectively. The list of 202 employers also includes smaller companies and small traders. All businesses in the list have since paid back what they owed to staff and have faced financial penalties. Of the employers named, it was found that: Minister for enterprise, markets and small business Kevin Hollinrake said: “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff. “Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.” The release of the list...

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Soho’s Bar Italia café to go under the hammer

21st June 2023

The site of a much loved London institution is up for sale. The historic Bar Italia site in Soho is set to head to auction with a guide price in excess of £2m. The café at 22 Frith Street has been trading as the Bar Italia since 1949 and will head under the hammer on July 6th along with 123 other lots. Bar Italia, famous for its delicious coffee, is located close to Old Compton Street and is walking distance from tube stations including Piccadilly Circus, Leicester Square, and Covent Garden. The Soho café sits opposite Ronnie Scott’s Jazz Club and adjacent to Little Italy restaurant. The current tenant benefits from licenses which grant the playing of late night music, the sale of alcohol, and trading until 5am.

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Gunwharf Quays transformation headlines Landsec retail investments

21st June 2023

A £45m transformational development at Portsmouth’s Gunwharf Quays is one of three major investments Landsec is set to announce at its Capital Markets Day. Landsec said the Portsmouth development will enhance the look and feel of the centre to create a more memorable experience for shoppers, attract more guests, and deliver more value for brand partners. The Gunwharf Quays investment is expected to increase turnover at the site by over a third during the next five years. Landsec is also set to outline further developments at St David’s in Cardiff and Trinity Leeds. The Cardiff development will see the removal of 160,000 sq ft of retail space left vacant by Debenhams, as well as the creation of a new city square and introduction of a further 30,000 sq ft of new food and beverage and leisure space. In Leeds, Landsec will be investing in Trinity Kitchen, which looks to repurpose under-utilised retail space and create a 70,000 sq ft multifunctional hospitality destination. Bruce Findlay, managing director of retail at Landsec, said: “We’re focusing our strategic investment on where we can drive growth and deliver attractive returns. Our prime, catchment-dominant retail destinations have recovered strongly since COVID and, through targeted investment,...

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Former Gateshead House of Fraser let to NHS

21st June 2023

A former department store in Gateshead is set to be transformed into an NHS Community Diagnostic Centre (CDC), representing the repurposing of 40,000 sq ft of retail space. The ex-House of Fraser site at Metrocentre has been let to the NHS Foundation Trusts for Newcastle and Gateshead, with the new CDC set to provide imaging as well as respiratory and cardiac investigations. The centre will be built to create capacity for those medical services which are seeing increasing amounts of referrals. It is hoped the centre will provide improved access to screening and diagnostic services for local people outside of a hospital environment. Metrocentre asset manager Sovereign Centros said the plans will create extra capacity while speeding up diagnoses for patients, to enable better patient care and outcomes. Ben Cox of Sovereign Centros said: “The letting represents a major milestone in the evolution of the Centre. Metrocentre is renowned as a leading retail and leisure destination, but in the future it will also be a key regional location for alternative uses including healthcare.” He added: “This initiative is particularly significant due to the repurposing of the former House of Fraser department store space. Delivering alternative uses to Metrocentre is a...

Deals News

Frasers Group takes stakes in Currys and Boohoo

21st June 2023

Frasers Group has made “strategic investments” in both Currys and Boohoo, continuing a streak of acquisitions. The House of Fraser owner has doubled its investment in electrical retailer Currys to 8.9% and taken a 5% stake in online fashion retailer Boohoo. Frasers Group said that driving growth through strategic investments is a core part of its DNA. “Under (CEO) Michael Murray’s leadership, we continue to build on our long track record of establishing supportive shareholder positions in attractive retail companies. We have a clear strategy to identify opportunities to invest in businesses which complement our existing sport, premium and luxury businesses, or help us to build and further utilise our sector-leading ecosystem”, the group said in a statement. The investments are characteristic of a group which over recent times has made large numbers of acquisitions, most recently with a £75m investment in electrical retailer AO World and an increase in its stake in Boohoo rival ASOS. The group said it sees potential synergies between Boohoo and its other brands including I Saw It First and Missguided. It added that the Currys investment provides a “valuable opportunity” to build on its foothold within the electricals industry as well as the existing...

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Kurt Geiger secures £150m package to support international roll-out

21st June 2023

Kurt Geiger has secured a new funding package, estimated to be worth around £150m, to refinance its debt and support its international growth ambitions. The funding facilities have been provided by UK private credit fund Blazehill Capital alongside the UK capital finance arm of US banking giant Wells Fargo. Founded in 1963, footwear and accessories brand Kurt Geiger now operates over 70 stores and trades through over 100 department store concessions. Now the brand has set its sights on further expansion in Europe and North America, having already secured wholesale partnerships with leading US retailers including Dillard’s and Nordstrom. Kurt Geiger’s chief financial officer, Dale Christilaw, said the combined facilities will provide “significant flexibility” to accelerate its expansion. Jake Hyman, head of Originations, Blazehill Capital, said: “Unlocking additional liquidity for such an established business is a great example of what we’re trying to achieve at Blazehill Capital. Kurt Geiger’s continued success is testament to an impressive management team with a dynamic approach to growth, and with this new funding package the company can now continue to expand its global footprint.”

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Revolution Beauty responds to “cynical” Boohoo takeover plans

21st June 2023

The board of Revolution Beauty has accused its majority shareholder Boohoo of a “cynical” attempt to seize control of the cosmetics brand. Revolution said that Boohoo’s “hostile” requisition is “value-destructive, opportunistic and self-serving, as well as not being in the interests of the company’s shareholders as a whole.” Boohoo, which controls 26.6% of Revolution’s share capital, announced on Monday that it would be voting against the reappointment of a number of senior figures of the cosmetics brand’s board. The online retailer also said it would be proposing the appointment of its own senior leadership team, stating that the “right retail, e‐commerce and consumer brands experience is required to deliver shareholder value”. Revolution said that Boohoo’s actions would create considerable risk to the restoration of trading in the company’s shares, which were suspended in September 2022. The cosmetics brand also argued that Boohoo’s actions “appear calculated to destabilise rather than support the business”. Following its suspension from the stock exchange, the brand came under fire after an independent audit found a number of financial wrongdoings. However Revolution has now argued that the current directors and management team have navigated the brand out of the “chaos” arising from the historical management and...

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Wagamama owner announces number of senior changes

21st June 2023

The Restaurant Group (TRG), which owns brands including Wagamama and Frankie & Benny’s, has made a number of changes to its senior leadership team. Kirk Davis will be stepping down as chief financial officer of the group following a five year tenure at TRG. He will depart after presenting the group’s interim results in September and will remain available to the company until the end of October. TRG CEO Andy Hornby said: “These management changes are the result of carefully managed succession planning. I would particularly like to thank Kirk for his huge efforts over the past five years. TRG is a very different business from when he joined in 2018. He was instrumental both in the acquisition and successful integration of Wagamama and in supporting the business as it successfully navigated the COVID pandemic. We wish him all the very best for the future.” Davis will be succeeded by the current CEO for leisure and concessions, Mark Chambers. Chambers has over twenty years of senior experience in the leisure and hospitality industry. Chambers spent 15 years in finance before moving into general management roles over 10 years ago. Jonathon Knight, who has been with TRG for just over three...

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Chinese restaurant makes European debut in Fitzrovia

21st June 2023

MealTime Matalang, which has over 50 restaurants in China, has made its European debut at 34 Goodge Street in Fitzrovia, London. The 500 sq ft restaurant provides covers for 26 guests and features a minimalist design. Customers are invited to make use of a standalone counter to choose their own ingredients. Founded in Shanghai in 2018, MealTime Matalang offers traditional Sichuan street food in a similar style to a hotpot meal, and will look to draw upon the local demographic of office workers, students, and tourists. Andrew Price, executive director at Shaftesbury Capital, which owns the Fitzroia neighbourhood in which the restaurant has opened, said: “We are delighted to welcome MealTime Malatang in their first venture outside of China. Their fresh, flavoursome malatang will be a welcome casual dining option for all and is a fantastic edition to Fitzrovia’s incredible line-up of global cuisine.” MealTime Matalang joins other food and beverage operators in Shaftesbury Capital’s Fitzrovia neighbourhood. The area comprises of Goodge Street, which is home to a mixture of East and Southeast Asian restaurants which make use of the area’s growing student population, as well as Charlotte Street, which accommodates some of the Capital’s most regarded chef-patron restaurants.

Deals News

Windsor hotel heads to market for £13.25m

20th June 2023

The Harte and Garter Hotel in Windsor has been put on the market by The Crown Estate, which is seeking offers in excess of £13.25m. The site has lain vacant for around three years, and is being sold with vacant possession and furniture, fixtures, and equipment. The 79-bedroom hotel on Thames Street has spa facilities and two restaurant units which are currently let to The Ivy and Wagamama. The site accommodates four meeting rooms and a 260-capacity events space, called ‘The Ballroom’, as well as bar and lounge facilities on the first floor. Knight Frank, who are marketing the property, have said the site presents a “significant value-add opportunity” if the bedrooms, spa, and public areas are refurbished. The 56,630 sq ft hotel is located opposite Windsor Castle, which Knight Frank says attracts 1.5 million visitors every year. It is also walking distance from both Windsor Central and Windsor Riverside train stations.

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John Lewis drops value of head office by £15.6m

20th June 2023

The John Lewis Partnership has downgraded the value of its London head office by £15.6m, following an increasing shift towards hybrid working amongst its staff. This comes after the group, which owns both the John Lewis and Waitrose brands, announced it would close seven floors of its London office. In 2022, the partnership negotiated the early surrender of its leasehold interest in its 220,000 sq ft London office, which was set to come to an end in May. It has also revised the use of its Bracknell office buildings, cutting a large number of space but retaining the site’s gym and sports hall sites. John Lewis also said that simplifying the way its stores work to cut costs will see an impact on staff numbers. These changes come as the group looks to increase its cost-cutting measures threefold to £900m by January 2026, as it looks to come back from a £234m loss for the full year ending 28 January 2023. The partnership’s chair, Dame Sharon White, said its mantra for the year is “cost out, margins up and customer focus”.

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Just for Pets eyes more sites as it debuts new concept

20th June 2023

Just for Pets is looking for more sites to open its new DOG concept, as it makes its debut in Cirencester. Opening in a 1,476 sq ft space at 3-4 Brewery Court, DOG by Just for Pets has signed for a ten-year lease at £30,000 per annum. The property has been vacant for several years and has since undergone an extensive refurbishment. The store is focused on dog health and wellbeing, providing products from high-end brands such as Barbour, Le Chameau, Oxfordshire-based Cocopup and George Barclay beds. The chain’s packaging-free natural treats collection and meat foods will also be on offer. The retailer is now seeking further sites to expand the concept, alongside its ongoing search for larger premises for more Just for Pets stores. Carter Jonas has been appointed to lead the search for ideal properties, which would be between 2,500 sq ft and 6,500 sq ft in size located in areas such as Bath, Cheltenham, Hereford, and Stroud. Car parking would be essential for these stores, with a focus on roadside, edge-of-town, and retail park properties. Stuart Williams, partner at Carter Jonas, said: “Since we came on board in 2020, Just for Pets has opened seven new stores,...

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RICS appoints new CEO

20th June 2023

The Royal Institute of Chartered Surveyors (RICS) has announced the appointment of Justin Young as chief executive officer. Young is set to join the institute on July 5 and and has been appointed by the body’s governing council to “continue to lead the transformation of RICS”. Over the last 25 years, he has accrued experience within the real estate and professional services sector, having spent time in the UK, Europe, and South East Asia. Young was previously chief operating officer at real estate consultancy Knight Frank, and has also held positions in the military, leading a tank troop during Operation Desert Storm in the 1990s. Justin Young said: “I am really pleased to have been appointed into the role of RICS CEO. The opportunity to lead an organisation whose work is pivotal to the public interest, to a huge body of professionals, millions of clients and a host of decision makers globally is truly unique. “I feel highly energised by this opportunity to drive further strategic, cultural, and operational, change to RICS – providing the right environment in which members reap the benefits of thought leadership and influence, professional development, and unparalleled networks.” Martin Samworth, Chair of RICS Board, added:...

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Olympic Velodrome architect Sir Michael Hopkins dies aged 88

20th June 2023

Sir Michael Hopkins, the architect behind the London Olympic Velodrome, Portcullis House in Westminster, and the Mound Stand at Lord’s Cricket Ground, has died at the age of 88. His wife, Patty Hopkins, with whom he founded Hopkins Architects, said he had died peacefully “surrounded by his family”. Born in Poole in 1935, Hopkins went on to study architecture at the Bournemouth School of Art before enrolling in the Architectural Association in London. Hopkins Architects challenged traditional techniques through the use of lightweight steel and glass structures which paved the way for more permanent lightweight fabric materials to be used in British architecture. In 1989, Hopkins was recognised with a CBE and then a knighthood in 1995 for services to architecture. He was then awarded the AJ100 Contribution to the Profession award in 2011. He was elected as a Royal Academician in 1992 before being awarded the Royal Institute of British Architects Gold Medal alongside his wife two years later. Hopkins fathered three children, all of whom followed him into creative and design-based passions. He also went on to have 11 grandchildren. The principals at Hopkins Architects said: “Michael will be sadly missed by all of us who were lucky...

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How bricks and mortar retailers can learn from online payments

20th June 2023

In recent years, a significant shift has taken place within the retail landscape. For the first time, research indicates that customers consider the payment journey to be the most crucial aspect of their shopping experience. With the advent of fintech, this shift is not limited to just online shopping, but it is also revolutionising the in-store experience. Fintech has become an integral part of the retail industry, enabling merchants to adapt to the uncertainties of today’s market. One of the key innovations within the fintech space is checkout finance, which empowers customers to pay with flexibility. This helps them to not only take advantage of deals that were previously out of reach, but also better manage their cash flow overall. The emergence and growth of checkout finance The rise of checkout finance can be attributed to several factors. First and foremost, customers have increasingly sought out options that allow them to spread the cost of their purchases over time. Traditional credit options’ applications are often tedious and time-consuming, requiring lengthy forms, whereas today’s checkout finance provides instant approval in many cases, and a seamless buying experience. In addition, the ongoing reality of the macroeconomic crisis has led 69% of customers...

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Revolution Beauty considers legal action against former CEO

20th June 2023

Embattled cosmetics brand Revolution Beauty is considering legal proceedings against its former CEO. The brand said it had sent a letter to Adam Minto on May 19 which alleged that he breached his duties to the company. Revolution said that these breaches contributed to the delay to the audit of the company’s 2022 results and the suspension of its shares on the London Stock Exchange. It is now looking to recover material sums relating to the “exceptional costs” brought about by the alleged matters. Revolution’s shares were suspended in September 2022 after it twice failed to post its annual results and became the subject of an investigation by law firm McFarlanes and accountancy Forensic Risk Alliance. The investigation found that Minto had made personal loans or other investments to distributors which were not disclosed at the time. He was also found to have made personal loans to a number of senior managers, which were also not disclosed. Revolution has set Minto a deadline of July 7 to respond. The cosmetics brand also expects to publish an announcement in the coming days regarding the declaration made by majority shareholder Boohoo, which said it intends to remove members of the board and...

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Sunglass Hut brightens up Manchester Arndale

20th June 2023

Sunglass Hut will be joining the retail line-up at Manchester Arndale after agreeing to sign a 10-year lease at the scheme. Opening in a 932 sq ft unit, Sunglass Hut will offer a range of eyewear from various fashion brands, as well as accessories, cases, cleaning kits, and replacement lenses. The signing follows a range of lettings at the Manchester scheme to retailers including Moss, Gilly Hicks, Nike, Manchester City, Clarks, Flying Tiger, MINISO, Tommy Hilfiger, Kick Game, and Kurt Geiger. Manchester Arndale has also welcomed a number of food and beverage operators in recent times, including Black Sheep Coffee, Krispy Kreme, and Slim Chickens. Steve Gray, head of European retail asset management at Global Mutual, said: “Sunglass Hut’s arrival further enhances the great range of retailers we have at Manchester Arndale and will no doubt resonate with Manchester’s vibrant and fashion-forward demographic, which includes students and families.” 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 agents.

Deals News

Milanese restaurant secured at the Old War Office

20th June 2023

A Milan-based culinary experience is set to open its first London restaurant at the Old War Office, which will become known as The OWO. Opening a 3,828 sq ft restaurant, Langosteria will be based at Whitehall Place and complete the food and beverage lineup at the destination. The OWO will see the transformation of the Grade II-listed Old War Office into the UK’s first Raffles Hotel, 85 Raffles residencies, nine restaurants, three bars, as well as a Guerlain spa and Pillar wellness centre. Langosteria will be opening alongside a new 4,189 sq ft rooftop restaurant by Creative Restaurant Group, which will also be launching a 947 sq ft sake bar on the ground floor. Other signings secured at the site include Parisian restaurant Café Laperousé, which will open its second site in the central courtyard’s 5,019 sq ft Pavilion unit, as well as a London debut for Italian restaurant Paper Moon, which will be opening in a 3,828 sq ft space. Knight Frank were the sole leading agents for The OWO. Josh Braid, partner, head of Central London retail at Knight Frank said: “By utilising Knight Frank’s global platform we have been able to secure several new restaurant entrants to London,...

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North East retail park given £6.77m price tag

19th June 2023

Part of one of the North East’s largest retail spaces has been placed on the market by commercial property firm UK Land Estates, which is seeking offers in excess of £6.77m. Portrack Retail Park in Stockton offers 65,235 sq ft of space and is currently home to brands including One Gym, Michael O’Connor Furniture, kitchens specialist Howdens, United Carpets, and Tile Mountain. Joint agents Knight Frank and JLL said a purchase of the site would produce a net yield of 7% and a capital value of £103.86 per square foot. Gross rent across the scheme is reported to be £505,950 per year. The site is part of the greater Portrack Lane cluster and is located nearby to stores such as The Range, B&M, Smyths Toys, Food Warehouse, Halfords, Screwfix and Toolstation. David Gibbs of UK Land Estates described the scheme as a “highly secure and diverse investment”. Dickon Wood, partner at Knight Frank said: “Portrack Retail Park provides an excellent opportunity to acquire a highly prominent retail warehouse and trade counter investment secured to a leading tenant line up, underpinned by a strong occupational market.”

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Shift in spending patterns sees Vinted match Primark in cashless transactions

19th June 2023

Consumer patterns amongst young people may be shifting after online ‘pre-loved’ marketplace Vinted matched Primark in cashless transactions during March and April. According to consumer and location specialist CACI’s platform Brand Dimensions, both retailers delivered nearly 900,000 cashless transactions in March and almost 1 million in April. The data platform compares spending across 300 large brands representative of the UK market. CACI said that the findings represent three key findings: the growth of Vinted; the increasing consumer demand for value retail both online and in-store; and the shift in spending patterns for younger people. Over the last 18 months Vinted has seen growth of 680%, supported by advertising campaigns and partnerships with television channels such as ITV and Channel 4. CACI added that the data shows the growing relevance of pre-loved fashion, as a “more sustainable and lower value choice”. It was also found that Vinted, which had traditionally appealed to middle-affluence groups, had increasingly begun to shift its appeal to higher-affluence groups. Alongside the findings, CACI’s Centre Dynamics data revealed that all UK city centres have reduced their clothing and footwear offering, along with 99% of town centres and 93% of regional shopping centres. This shift in physical markets...

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