Posts from June 2023

Dr. Martens reaches £1bn revenue but profits fall

2nd June 2023

Dr. Martens has seen its revenue reach a record £1bn in the 2023 financial year, however the footwear retailer said it made “operational mistakes”, leading to a dip in profits. In the 12 months to 31 March 2023, Dr. Martens’ revenue increased by 10% from the previous year, however its saw profits before tax fall by 29% to £128.9m. Dr. Martens said its decision to move to a distribution centre in Los Angeles and the ways in which it conducted its marketing campaigns and Ecommerce trading contributed to the fall in profits. The retailer said trading in the current period has been in line with its expectations, with “very good” direct-to-consumer growth. Dr. Martens added that it will be increasing prices to offset supply chain cost inflation. Kenny Wilson, Dr Martens chief executive officer, said: “We are focused on the successful execution of our proven […] strategy, which we will underpin with continued investment in the business and our people to support our increasing scale and capitalise on our iconic brand’s strength. The board retains its conviction in the strategy, long-term growth and cash generation of the business.”

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BrewDog boss calls on government to “get a grip” on train strikes

2nd June 2023

The chief executive of BrewDog’s bars division has called on the Government to reach a resolution over ongoing train strikes, stating that they “disproportionally impact hospitality businesses”. RMT members are striking today (June 2) while the ASLEF union has organised another strike for Saturday. The chief executive of UKHospitality, Kate Nicholls, said earlier in the week that industrial action will cost the hospitality industry £3.25bn. Speaking on LinkedIn, CEO of bars at BrewDog, James Brown, said: “BrewDog are fortunate that we have the scale to be able manage the pain over time and we can take a longer view on on sales and profitability. “Small independent pubs and restauranteurs who have to survive day to day are being starved of oxygen and are closing their doors at the fastest rate ever. This is terrible for the communities they serve and the millions they employ.” He cited the week-on-week disparity in sales at some of the pub company’s sites, with the worst affected, Seething Lane Tap in the City of London, seeing a fall of 76%. “[The] UK Government need[s] to get a grip of the situation and get to a resolution”, he continued. “The economic impact is huge and the...

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Gordon Ramsay’s Lucky Cat opens in Manchester as group eyes expansion

2nd June 2023

Gordon Ramsay’s Asian-inspired restaurant concept Lucky Cat has opened in Manchester, becoming the brand’s second location. The three-storey, Grade II-listed site at 100 King Street was previously home to a Jamie’s Italian and HSBC. The celebrity chef’s restaurant group currently operates 36 UK sites, including the three-Michelin-starred Gordon Ramsay Restaurant in London as well as the casual dining Bread Street Kitchen, Street Burger, and Street Pizza brands. It also trades in 14 locations in Europe, the Middle East, and Asia. The opening of Lucky Cat in Manchester comes a year after the launch of its first site in Mayfair, and is part of a wider expansion push by Gordon Ramsay Restaurants. The restaurant, which features a private dining room in an underground former bank vault, was designed by Russell Sage Studio and its design takes inspiration from 1930s Tokyo jazz bars and Shanghai ‘drinking dens’.

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Revolution Beauty sees revenue fall following accounts scandal

2nd June 2023

Revolution Beauty saw a fall in revenue in the first half of its 2023 financial year, as the brand recovers from an accounting scandal which led to the departure of multiple members of its senior leadership team. In the six months to August 31 2022, the beauty retailer’s group revenue decreased by 4.2% to £75.3m, down from £78.6m recorded the previous year. However, the group’s operating loss narrowed from £23.7m in FY22 to £12.1m in FY23, which Revolution said was primarily due to reduced stock provision and a lack of IPO fees. Revolution’s UK store revenue did see an increase of 21%, aided by new distribution in Boots stores and good performance across Superdrug stores. The group said it had seen an improving trend in the second half of the financial year, with full year revenue expected to deliver single digit growth on 2022. Revolution added that trading in the current period had been “encouraging”. The retailer’s shares are currently still under suspension by the London Stock Market, after an investigation into the company’s audit found a number of wrongdoings. In May, Revolution’s new chief executive, Bob Holt, criticised “unacceptable business practices” within the group. He said that the latest...

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An exterior shot of Apex London Wall Hotel

London Wall hotel changes hands for £53.4m

2nd June 2023

Dalata has purchased the Apex London Wall Hotel from Apex Hotels for £53.4m, with the site set to be rebranded under the Irish hotel group’s Clayton brand. The hotel at 7-9 Copthall Avenue will become Dalata’s fifth in London, and their 12th in the UK. The transaction is expected to be completed in early July. The acquisition brings the total number of Dalata bedrooms in the Capital to 877, once Maldron Hotel Finsbury Park opens later this month and Maldron Hotel Shoreditch opens in 2024. The hotel is a four-star facility with 89 bedrooms and suites, a gym, a restaurant and bar, and a ground floor lobby. The site is located close to Moorgate, Bank, and Liverpool Street Stations and sits in the heart of the City of London. Dalata said the property, which is expected to produce annual earnings (EBITDAR) of approximately £4.5m in 2024, will need minimal investment. Shane Casserly, corporate development director at Dalata, said: “To have acquired such an attractive existing London hotel, in the current market, that will allow us to further expand the Clayton brand, is a fantastic achievement for the business. London remains a key development market for us and we remain focused on securing future opportunities for...

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The O2 spices up F&B offering with two new signings

2nd June 2023

The O2 is set to welcome two new restaurants, as the centre’s Entertainment District continues to enjoy a strong period of trading. African-inspired restaurant Afrikana will be taking a 1,992 sq ft unit opposite Las Iguanas and the newly-opened iFLY Indoor Skydiving. The new location will mark the concept’s second franchise site in London. The restaurant specialises in mainstream dishes with an African twist, such as chicken, buns, fish and chips, curry goat, and sharing platters. Joining Afrikana at The O2 will be Chipotle, which will take a 1,835 sq ft unit in between Thunderbird Chicken and German Doner Kebab. The brand, which originated in the US, has seen particular success since crossing the Atlantic. Chipotle offers a Mexican-inspired menu, featuring burritos, bowls, salads, quesadillas, and tacos. The news comes as The O2 announces that sales at the centre during May were ahead of 2022 by 42%, while footfall was up by 2%. The results continue a period of strong momentum during 2023 which saw sales rival pre-Pandemic levels during the first quarter. Janine Constanin-Russell, managing director at the Entertainment District and Icon Outlet at The O2, said: “Following the hugely successful openings of JD Wetherspoon and iFLY, together with...

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Latino fried chicken concept cooks up bricks-and-mortar debut

1st June 2023

London-based Latino fried chicken concept El Pollote is set to open its first bricks-and-mortar site at Carnaby Street. The eatery has enjoyed prior success at Seven Dials Market and Camden Market, and is now looking to begin its expansion across London. Opening on June 13, the Carnaby Street restaurant will accommodate 40 guests, complete with an outdoor terrace and a Latino-inspired bar. Founders Katherine Delgato and Rotsen Ibarra moved to the UK from Venezuela and subsequently created Venezuelan arepa bar Petare in 2014. They then launched El Pollote and trialled the concept across a number of London’s markets, before being given a permanent spot at Seven Dials Market in 2019.

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An open public space with surrounding greenery

Research identifies ‘Six Pillars of Success’ for retail spaces

1st June 2023

New research has put forward ‘Six Pillars of Success’ for ensuring that the UK’s towns, cities, and retail destinations remain relevant for their local communities. Consumer and location intelligence specialist CACI, in collaboration with real estate agency P-THREE, have said that there is a “disconnect” between what spaces offer to the public and the wants and needs of customers. The research found that consumer spend is increasingly coming from a 15-minute catchment, with over 75% of revenue coming from the local population in eight out of 13 asset types. However, 52% of locations are “over spaced” for retail, and with online spending set to surpass offline by 2030, CACI and P-THREE said that there is a “clear need for retail-led destinations to evolve”. The report has characterised six ‘pillars’ for ensuring retail spaces survive: 1. Right sizing retail The report found that 37% of the population actively seek out independent businesses over chains, and suggests that curating a mixture of independents and national chains to reflect local identities is key. As a result, CACI and P-THREE have argued that this can be achieved through rightsizing and a reassessment of tenant line-ups. 2. Unique offline experiences The report argues that offering...

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Toys”R”Us makes UK return with WHSmith partnership

1st June 2023

Toys”R”Us is set to make its return to UK high streets through a store-in-store trial partnership with retail giant WHSmith. The toys and games retailer’s first concession will open in the WHSmith store at York’s Monks Cross Shopping Park on June 10, followed by a further eight in Canterbury, Chelmsford, Cheltenham, Cwmbran, Oxford, Poole, Reading and Solihull. The store-in-stores will feature demonstration tables, interactive experiences, and offer products from a range of brands such a LEGO, Star Wars, Bluey, and others. The trial will last 12 months, with a possible extension if an agreement is reached. The managing director for WHSmith’s high street division, Sean Toal, said: “At WHSmith, we’re always exploring new opportunities to launch exciting new product ranges to our customers on the high street, and our partnership with Toys R Us certainly does this.” Toys”R”Us went bust in the UK in 2018, shutting 100 sites. However the retailer returned in the form of an online retailer last year, launching dedicated online stores for both Toys”R”Us and Babies”R”Us.

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Chanel doubles HQ size with Mayfair move

1st June 2023

Chanel is set to double the size of its headquarters after agreeing a 20-year lease in Mayfair. The luxury fashion brand will be moving from the Time and Life building, which has been its home since 2018, to 38 Berkeley Square. Chanel plans to move its staff into its new 86,000 sq ft headquarters from 2025. Leena Nair, CEO of Chanel, said: “London has been an important centre for Chanel for many years and today’s announcement reaffirms our commitment to the UK and to our people. “This new global headquarters has been designed to be at the forefront of sustainability, and an inclusive and beautiful working space, supporting Chanel’s future growth ambitions.” This comes as Chanel revealed its 2022 financial results, which saw profits increase by 5.8% to $5.78bn (£4.63bn), while sales rose by 17%. “Chanel has delivered another solid financial performance in 2022, with double-digit growth across all categories”, said the brand’s chief financial officer Philippe Blondiaux. He added: “The fact that this has been achieved despite broader macroeconomic challenges is testament to the creativity and agility of our teams around the world, and the strength and uniqueness of our brand.”

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Lincoln shopping centre acquired by joint venture

1st June 2023

Waterside Shopping Centre in Lincoln has been acquired by Lincolnshire Co-op and property management company Wykeland in a 50/50 partnership. The retail and leisure destination is currently 95% let, with occupiers at the scheme including H&M, Next, New Look, Superdrug, O2, Office, and Skechers. The purchase follows Lincolnshire Co-op’s Cornhill Quarter redevelopment, which saw the transformation of Lincoln’s corn exchange building into a retail and leisure destination. Waterside Shopping Centre will be operated as a retail-centric scheme, although Lincolnshire Co-op said the new partnership will look to develop the site’s leisure offering. Wykeland has previously worked in partnerships to develop and manage property assets such as the Fruit Market urban village in Hull and the Treadmills mixed-use scheme in Northallerton, North Yorkshire. Head of property at Lincolnshire Co-op, Kevin Kendall, said: “We’re always looking for opportunities where we could further support the retail and leisure offer within Lincoln and this partnership with Wykeland, focusing on a key site, is a perfect fit.” Wykeland managing director Dominic Gibbons added: “We see this as a highly attractive asset in a vibrant city centre location benefiting from significant and ongoing investment, particularly the neighbouring Cornhill Quarter scheme where Lincolnshire Co-op have undertaken a...

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KIBOU to open fifth restaurant in Cambridge

1st June 2023

KIBOU is set to open its fifth location this summer, taking up residence in a former Pizza Express site in Cambridge. The Japanese restaurant concept currently operates sites in Battersea, Solihull, Clifton, and Cheltenham, with its latest addition becoming the group’s largest yet. The 150-cover Cambridge restaurant will sit in a Grade II listed property at 7a Jesus Lane, which is currently undergoing a full redesign and refurbishment. KIBOU in Cambridge will feature a cocktail lounge and dining area with an open sushi and hot kitchen, as well as two dining rooms, and offer a menu The chain’s joint managing director, Sam Horswill, said: “We’ve long set our hearts on operating here, it’s spot on to our core demographic, so when the right site came along, we knew it was time.” He added that KIBOU was remaining “firmly focused on expanding the brand over the next five years”, and teased that the restaurant group has another site in the pipeline for 2023.

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Rail strikes to cost hospitality sector £132m

1st June 2023

Upcoming rail strikes are set to cost the hospitality sector £132m, bringing the cumulative impact of the strikes to £3.25bn, UKHospitality has said. Members of the ASLEF union are set to strike on June 3 following industrial action on Wednesday, while an RMT strike on June 2 involving 20,000 catering and station staff, as well as train managers, is set to cause further disruption. UKHospitality chief executive Kate Nicholls said: “The May half term normally represents a bumper week for hospitality, with typically sunny weather encouraging families to head out on activities, visits and staycations. “Unfortunately, we’ve seen time and time again that rail strikes put a significant dampener on any sales as visitors are deterred from booking visits or eating and drinking out. This time around that means families staying at home and football fans travelling to the capital for the FA Cup final disrupted.” In a message from RMT’s general secretary Mick Lynch released on Thursday morning, he told members that their “efforts and commitment [are] having an effect and making a difference”. “That’s why we must continue to stand firm in the strike action this Friday and in the future to get a deal for our members”.

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New Look enters refinancing talks over £100m debt

1st June 2023

New Look has reportedly entered talks with lenders to discuss the refinancing of £100m of debt, just two years after its last restructuring. The struggling fashion retailer is working with advisers at Deloitte regarding options for a loan which matures in June 2024, Sky News has reported. The holders of the debt include Alteri, Davidson Kempner, and an arm of Wall Street giant Goldman Sachs. New Look, which trades from some 400 UK stores and employs over 10,000 staff, is expected to reach a resolution regarding financing talks within the coming months. The company last restructured following a CVA in 2020 which saw the retailer move to more favourable rent structures in some of its stores. It had also undergone a CVA in 2018 in which a number of stores were closed with many jobs lost. In the financial year ending 25 March 2023, the retailer reported total revenues of £895m and earnings (EBITDA) of £42.2m, a 67% increase year-on-year. A source close to the retailer reportedly said that it was a good time to refinance, considering the current trading outlook.

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Investors presented with £20bn of West Midlands opportunities

1st June 2023

The West Midlands Combined Authority (WMCA) has presented potential investors with £20bn of opportunities, including town centre redevelopment schemes. In the WMCA’s 2023 West Midlands Investment Prospectus, the combined authority said it wanted to put the region “on the global stage”. The group has offered investment opportunities in a number of cities and towns, including: Birmingham; Coventry; Dudley; Nuneaton; Royal Leamington Spa; Rugby; Shrewsbury; Solihull; Stratford-upon-Avon; Telford; Walsall; West Bromwich; and Wolverhampton. Current projects include Birmingham Curzon, a 141 hectare mixed-use regeneration project in the city centre, and Solihull Town Centre, which is set for development in the retail, commercial, and housing sectors. The prospectus also outlines future projects, such as the Coventry City Cultural Gateway, a mixed-use transformation of a former Ikea, and the Martineau Galleries in Birmingham, where proposals outline the development of almost 1.4 million sq ft of retail, leisure, and office space. Andy Street, mayor of the West Midlands, said: “With a combined investment value of over £20 billion, this Investment Prospectus sets out the profile and prestige of opportunities, which have grown following recent events such as hosting the hugely successful 2022 Commonwealth Games. The West Midlands is driven by assets such as our young,...

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L’Estrange secures third London site

1st June 2023

L’Estrange has acquired its third site in London at Kings Cross’ Coal Drops Yard. The new store will become the menswear brand’s third in the Capital, adding to its sites in Covent Garden and Spitalfields. The King’s Cross opening will be the retailer’s second this year, following its launch in the Nine Street District of Amsterdam. L’Estrange, which opened its first pop-up in Covent Garden in 2013, looks to maintain a culture of sustainability and conscious shopping. In March, the brand was awarded Climate Positive brand certification. The store was designed by Fred Rigby Studio, which also worked on the retailer’s other locations. Jamie Orme of Bruce Gillingham Pollard acted on behalf of L’Estrange to secure the letting.

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Independent coffee and wine bar seeking ‘quirky’ London spaces

1st June 2023

A London-based independent coffee and wine bar is looking to open a third location within Zones 1 and 2 in the Capital. Westland Coffee & Wine currently operates two sites, its original bar in Shoreditch and another at Mountview Academy in Peckham. The business is now looking for 500 sq ft+ sites in ‘quirky’ spaces. As well as their core offering of takeaway coffee, lemonade, sandwiches, soups, pastries, and late night drinks, the bars also host art and fashion related events, wine tasting, and cultural meet-up evenings. The business was formed in 2012 after moving into the former training kitchen of Jamie Oliver’s Fifteen Restaurant, before opening a second site at drama school Mountview Academy in 2018, when the establishment’s management looked to create a café space to cater for students, teachers, and facilitators. Westland Coffee & Wine is operated by Paul Murphy, who has over 30 years in the hospitality sector, and travel, hotels, and tourism expert Hideki Tanaka. Richard Wassell of twentyretail has been appointed to find suitable sites for the business.

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Former Ikea in Coventry wins green light for arts hub

1st June 2023

Planning permission for multimillion pound development of a former IKEA store in Coventry has been granted by councillors. The project, known as the Coventry City Cultural Gateway, will be developed over three phases, with the first seeing part of the building become host to the collections of CV Life, Arts Council England, Arts Council Collection, and the British Council. Phase two will see Coventry University create a cultural hub on the fifth and sixth floors, with a gallery, café, library and exhibition space, dance studio, conference area, artists’ studios, post-production filming facilities, and a shop for students to sell their artwork. The facilities will be available to hire and open to the public. The third phase of development will see the Council enclose and future-proof the internal car parks. Councillor David Welsh, cabinet member for housing and communities at Coventry City Council, said: “We are delighted that planning permission has been granted for the City Centre Cultural Gateway. It is a significant milestone. This visionary project will provide a dynamic and inclusive cultural hub for our city”. Matthew Burl, director at Buttress, which led a public consultation in February, said: “We have worked extensively with all stakeholders to re-design the building...

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