Posts from August 2023

M&S launches legal challenge against Oxford Street flagship decision

31st August 2023

Marks & Spencer has launched a legal challenge against the decision to reject redevelop plans for its flagship Oxford Street store. The plans for the Marble Arch store involved the demolition of the existing building, which has stood for nearly 100 years. In July, the secretary of state Michael Gove rejected the proposals on the grounds that the public benefits would not outweigh the harm to local landmarks. At the time, M&S chief executive Stuart Machin branded the decision as “utterly pathetic”. In a statement released on Thursday, M&S operations director Sacha Berendji said: “Today we have launched a legal challenge against the government’s decision to reject our Marble Arch store proposal. “We have done this because we believe the secretary of state wrongly interpreted and applied planning policy, to justify his rejection of our scheme on grounds of heritage and environmental concerns. “It is hugely disappointing that after two years of support and approvals at every stage, we have been forced to take legal action to overcome a misguided agenda against our scheme, and we will be challenging this to the fullest extent possible.” Westminster City Council had previously approved proposals for the retailer to knock down the historic store...

News

Job losses to go ahead at Wilko after bid collapses

31st August 2023

Hundreds of jobs at ailing retailer Wilko are set to be lost after a bid for the company fell through. It emerged on Thursday that private equity firm M2 Capital’s £90m offer for the retailer had fallen through after it was unable to provide proof of funding. Wilko’s administrators at PwC have now said that there is no viable offer to acquire the whole business. However, Robert Mantse, chair of M2 Capital, told BBC News that his dealings with PwC had been a “circus” and accused them of being “beyond unfair”. He added that M2 Capital is now considering legal action. Redundancies at Wilko had been put on hold while administrators considered M2 Capital’s offer, with the firm pledging to retain all staff members’ jobs for two years. Further job cuts at Wilko’s distribution centres in Worksop and Newport are now expected to go ahead from next week. PwC said all of the retailer’s stores are continuing to trade, adding that “discussions continue with those interested in buying parts of the business”. This includes HMV owner Doug Putman, Poundland owner Pepco, B&M, and The Original Factory Shop, who are reportedly eyeing parts of Wilko’s 400-strong estate. Wilko fell into administration earlier...

News

Revolution Beauty announces new CEO in directorate switch-up

31st August 2023

Revolution Beauty has announced the appointment of Lauren Brindley as chief executive officer, as the cosmetics brand switches up its board of directors. She will take on the role from 18 September, replacing Bob Holt, who will be standing down as CEO and leaving the company today (31 Aug) following an agreement with majority shareholder Boohoo. Brindley has worked in a number of senior management roles in mass consumer businesses with a specialisation in the beauty and personal care sectors. In her new role, she will be tasked with leading the group globally, delivering strategic growth, and creating long-term value for shareholders. Most recently, Brindley was the group vice president for beauty and personal care at American retail company Walgreens. In this role, she built a strategy to help elevate the business’s approach to omnichannel retailing, leading to an increase in its performance. Prior to Walgreens, she served in various roles at Boots including head of prestige beauty and fragrance and head of the No.7 brand and mass beauty categories. She also served as country manager for the business’s Southeast Asian operations. Brindley began her career at Tesco serving in multiple roles within marketing and merchandising. Alistair McGeorge will move...

News

M&S makes return to FTSE 100

31st August 2023

Marks & Spencer has regained its spot as one of the top 100 companies on the London Stock Exchange after its shares rose to a 19-month high. It marks the first time the retailer has joined the FTSE 100 in four years after it closed hundreds of stores in 2019. Stuart Machin, M&S chief executive, said the news is a “reflection of everyone’s hard work”. “Although we’ve made progress, there is still so much more opportunity ahead, and my mantra with everyone is to stay positively dissatisfied; always seeking to raise the bar. As a team, we are very ambitious for the future of M&S and our focus is on reshaping the business for future growth”, he added. Last week, M&S said in a trading update it expects to deliver increased profits this year, despite originally anticipating a decline. The retailer posted an increase in food sales of 11% for the 19 weeks to 12 August, while clothing and home sales also increased by 6%. M&S’s shares increased by 9% after it released its trading update, bringing its market capitalisation to over £4.3bn. The retailer’s shares have increased in value by over 70% since the beginning of 2023. The retailer’s...

News

Frasers Group set to move into former Leeds Debenhams

31st August 2023

Frasers Group is set to open a flagship Flannels store at a former Debenhams in Leeds following the approval of a planning application by councillors. The retail group, in conjunction with Jigsaw Planning and HCUK Group, submitted an application to Leeds City Council earlier this year which proposed to use the Grade II-listed building as a department store. The proposed Flannels store on the corner of Briggate and Kirkgate will trade out of all six floors, with gym space on the lower ground floor as well as food and beverage provisions on the ground and fourth floors. Also included in the proposals are external repairs and decorations, including the installation of security shutters. A planning officer’s report said: “This proposal retains the building in primarily retail use, it is considered an important building on the main shopping street in Leeds. There are significant associated economic benefits for the vitality and viability of Leeds’ shopping quarter and this proposal will contribute to the vibrancy of the city centre. “There are considered to be also benefits associated with bringing a vacant grade II-listed building back into use and safeguarding its future. There are also associated repairs which will benefit the special interest...

News

Asda owners consider £500m portfolio sale

31st August 2023

The owners of Asda are reportedly considering a £500m sale of some of the supermarket retailer’s property portfolio in an effort to reduce debts. The billionaire Issa brothers, Mohsin and Zuber, with the backing of TDR Capital, are said to be in negotiations with Australian firm Macquarie Asset Management regarding a sale. The deal would see Macquarie purchase the ground rent leases of around 50 Asda stores, with a clause allowing the supermarket retailer to reassume control of the sites at the end of the 50-year term. Asda would then be able to pay lower rents at these stores while raising higher amounts of equity. The Issa brothers acquired the Asda estate from Walmart in 2021 in a deal worth £6.8bn, however some £2.75bn of debt was included in the transaction. In March, it was reported that the billionaire brothers were eyeing the sale-and-leaseback of the entire Asda estate, worth £8.6bn. The supermarket retailer then disposed of 25 stores to American investor Realty Income in a sale-and-leaseback deal worth £650m. Asda recently reported an increase in sales during the second quarter, which the supermarket said reflected the “strength” of its customer proposition.

News

Green Light for Pizza Restaurant in Nottingham City Centre

31st August 2023

Approval has been granted by Nottingham city council for the transformation of the former French Connection unit on Victoria Street in Nottingham. The site will soon be home to a pizzeria as developers embark on converting the listed building into a Rudy’s restaurant. The chain also has branches in Liverpool, Manchester, Birmingham, Leeds, and Soho. This decision comes in the wake of Arc Inspirations, a bar operator, withdrawing its plans to establish a Manahatta bar at the location due to concerns regarding the building’s historical significance. The three-storey former bank building which was constructed in 1896 to form the base of the Midland Bank but has remained empty after French Connection vacated the premises. A planning statement provided by devolopers explains: “These modifications will be carried out with great sensitivity to the historical value of the listed building. The scope of the project is confined to the building’s ground and basement floors, focusing solely on interior alterations. No exterior modifications are included in this application.”

News

The vision for Cardiff’s historic Howells renovations

31st August 2023

Real estate developer Thackeray has unveiled fresh artistic depictions showcasing the retail portion of its comprehensive £100m mixed-use revitalization scheme for the iconic Howells building in Cardiff. The reimagined schemes retail sector is being introduced as the Hayes @ Howells. Encompassing 15,000 sq ft and marketed jointly by EJ Hales, and the London branch of CBRE. Earlier this month Thackeray began marketing the building’s former Baptist Bethany Chapel. The historically listed chapel site is set to become a focal point in the redevelopment, positioned as an “iconic” venue for restaurants, a food hall, or recreational establishments. For decades, the listed chapel had been nestled within the building, devoid of street frontage. Ongoing efforts are creating a scheme that will unveil the chapel, integrating it with a public space that connects to Cardiff Market. Marketed as ‘The Bethany’, this chapel area will supply 15,000 sq ft. The building’s renovation include a prospective 40,000 sq ft of dining and leisure space along St Mary Street, branded as The Walter. Blueprints also outline a 25,000 sq ft leisure area, potentially attractive to restaurant and bar proprietors. The refurbishment of the Bethany Chapel area is expected to take two years with Thackeray currently finalizing...

News

Shaftesbury Capital prepares to sell Fitzrovia portfolio

30th August 2023

Shaftesbury Capital has enlisted CBRE to manage the sale of its properties in Fitzrovia, with a value exceeding £100m. The portfolio spans over 100,000 sq ft of properties around Goodge Street and Charlotte Street, comprising 28 hospitality and leisure units, 11 office spaces and seven retail units. Ian Hawksworth, Shaftesbury’s CEO, confirmed the decision to put the assets up for sale, stating that the Fitzrovia portfolio no longer met the firm’s investment criteria. Hawksworth expressed the intention to offload a minimum of 5% of the portfolio, where additonal value is limited, and instead focus on its core estate of Covent Garden, Carnaby and Soho which he believes can increase its rent roll by £40m a year. This news follows a string of new restaurants which have recently opened in Fitzrovia, including Woodhead and MealTime Matalang.

News

Rooftop bar acquired by Upmarket Leisure

30th August 2023

Upmarket Leisure, a hospitality group based in Manchester, has acquired the Radio Rooftop at the 5 star ME London hotel for an undisclosed sum. This move strengthens Upmarket Leisure’s ongoing partnership with Meliá Hotels International, Spain’s largest hotel group. The two entities already jointly own and manage the premium Italian restaurant Luciano by Gino D’Acampo. Upmarket Leisure will now oversee all food and beverage activities, including Radio Rooftop, Marconi Bar, ME events, and in-room dining, effective immediately from August 30. An updated menu is set to be revealed in the autumn season, with a renovation expected next year.

Deals News

Natura & Co explores sale of The Body Shop

30th August 2023

Natura & Co, owner of The Body Shop, is contemplating the sale of the retailer after it’s failure to revive its finances post-pandemic. The cosmetic chain is currently examining “strategic alternatives”, and has said: “There can be no assurance that this process will result in any transaction. Natura does not intend to comment on or provide updates regarding this matter unless and until it determines that further disclosure is appropriate or required.” However analysts at J.P. Morgan have stated the more likely outcomes is the sale of the beauty retailer, valued at £406m. Company executives informed analysts earlier this month that The Body Shop had negatively impacted the firm’s financial performance as consumer spending patterns shifted in the wake of the pandemic.

News

Hotel removed from Salford tower development plans

30th August 2023

Manchester-based property developer, Progressive Living Developments, has submitted revised proposals to Salford City Council for its Gorton Street site in Salford. The updated application outlines new plans featuring a 41-storey co-living residential tower adjacent to the River Irwell in the city’s Greengate district. This submission replaces a previous proposal put forth by Progressive in 2021 which included a mixed co-living and 171-bed hotel concept, along with the transformation of eight neighboring railway arches alongside a the tower. Progressive is currently working on a seperate planning proposal for the railway arches, aligning with the proposed public space improvements. David Fairclough, Director at Progressive, stated, “The Gorton Street vision involves redeveloping an overlooked parcel of land that currently serves as a surface-level parking lot. Our aim is to contribute positively to Salford’s broader revitalization strategy for the Greengate district, offering desirable co-living spaces that provide young professionals with affordable, high-quality living arrangements.”

News

Polish brand Reserved launching three London stores

30th August 2023

Polish fashion brand Reserved is opening three London stores as it looks to expand its presence in Western Europe. The brand, which is owned by the LLP group, has already opened a store in Westfield Stratford City, with two more stores launching at Oxford Street and Brent Cross Shopping Centre in September. LPP said the openings are part of its plans to strengthen is position in Western Europe while also expanding its reach in the capital. Reserved first made an entrance to the UK with the launch of an online store alongside a physical location at 252 Oxford Street in 2017. All of the new stores feature a new concept created by Studio 1:1 and are inspired by the Polish landscape. Przemysław Lutkiewicz, vice-president of LPP’s management board, said: “Over the recent months, we have shifted our focus towards Western markets, capitalising on the rising recognition of our brands among Europeans. “The UK is one of the crucial locations, both from the perspective of its sales potential, as well as further strengthening our brand recognition. This is why we decided to open three new stores in London just a few weeks apart. Recognising the UK’s competitive landscape, which makes British...

Deals News

Wilko: Redundancies put on hold while final offers considered

30th August 2023

Potential job losses have been put on hold at Wilko as administrators consider a number of final rescue bids for the retailer. Following a meeting with Wilko’s administrators PwC on Tuesday, the GMB Union said that it had received assurances that the redundancy process for staff would be halted while a number of offers are still ongoing. Interested parties include private equity firm M2 Capital, which said it had made a £90m bid for the business and pledged to retain all staff members’ jobs for two years. A number of other parties are also looking to snap up all or parts of Wilko’s estate, including HMV owner Doug Putman, Poundland owner Pepco, B&M, and The Original Factory Shop. This comes after GMB Union called for a meeting with the business secretary after it claimed that some prospective bidders for the company were facing “difficulties” with its administrator PwC. In a letter to Kemi Badenoch, the union’s national secretary Andy Prendergast called for reassurance that all steps will be taken to protect jobs as part of the administration process. The union also said it was troubled by the influence of Hilco, the private equity firm which had previously loaned Wilko £40m....

News

How to write a retail business plan

30th August 2023

Starting a retail business is an exciting journey that holds the promise of bringing your entrepreneurial vision to life. However, to ensure your venture’s success, it’s crucial to have a well-structured business plan in place. A business plan serves as a roadmap, outlining your business goals, strategies, and financial projections. This guide will walk you through the step-by-step process of how to write a retail business plan, equipping you with the tools needed to craft a compelling and comprehensive plan for your retail venture. Conduct Market Research The foundation of a successful business plan is solid market research. Identify your target audience, understand their preferences, and analyze your competitors. What unique value will your retail store offer? Define your niche and gather data that supports your business concept. This research will help you tailor your strategies and offerings to meet the needs of your potential customers. Read more: How to start a retail business Outline Your Business Structure Clearly define the structure of your retail business. Will it be a sole proprietorship, partnership, corporation, or LLC? Detail your business’s mission, vision, and core values. Set specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals will act as benchmarks for...

Advice

The Works sees profits fall but says it is “well-positioned”

30th August 2023

The Works has posted a decline in profit for the last financial year, but said that it is “well-positioned to capitalise on opportunities”. In its preliminary results for the year ending 30 April 2023 (FY23), the arts, crafts, and books retailer posted a profit before tax of £5m, a decline from £14.2m the previous year. The retailer was hit by an increase in business rates costs of £5.8m as COVID-19 reliefs ended. However, The Works’ revenue increased by 5.8% to £280.1m, with like-for-like store sales growing by 7.5%. Its online sales declined by 15%, resulting in an overall like-for-like sales increase of 4.2%. The retailer said it had made good strategic progress over the period, providing “solid foundations” for the current financial year (FY24). The Works opened 14 new stores during the period, all of which it said are trading ahead of expectations. It relocated a further three, and closed 13 stores. The retailer said it had continued to optimise its existing estate with an investment of around £1.4m in 34 refits. Trading during the first 17 weeks of the current financial year has been in line with the retailer’s expectations, with a total like-for-like sales growth of 3.1%. Gavin Peck, chief executive...

News

AEW acquires Windsor Royal Station shopping centre

30th August 2023

AEW’s Urban Real Estate Fund (UREF) has acquired the Windsor Royal Station shopping centre and the adjoining 1 Thames Street property for £18.5m. The 74,200 sq ft scheme sits adjacent to Windsor Yards, which UREF acquired in 2021. Forming part of Windsor & Eton Central train station and situated opposite Windsor Castle, the Grade II-listed building was originally built for the exclusive use of the Royal Family. The scheme’s retail tenants include Hobbs, Whistles, Phase Eight, Jigsaw, Space NK, Jo Malone, Sweaty Betty and Mint Velvet, whilst its food and beverage offering is led by Bills, Five Guys, and All Bar One. AEW said the acquisition represents the completion of UREF’s acquisition phase. Last July, AEW raised £171m for UREF from investors and secured a £30m debt facility. The fund had already invested £133m in nine assets by this point. Charles Royle, portfolio manager of UREF, said: “We are pleased to have secured the purchase of Windsor Royal, which completes the acquisition phase of the Fund. Windsor Royal is our second asset in Windsor having acquired Windsor Yards in 2021. “We look forward to continuing the proposed transformation of Windsor town centre in partnership with occupiers, local stakeholders and the...

News

Zara to upsize at Meadowhall

30th August 2023

Zara is set to upsize its presence at the Meadowhall shopping centre in Sheffield. The fashion retailer will take the 35,000 sq ft unit previously occupied by House of Fraser and will reopen in spring of next year. The new store will feature a wider range of Zara’s menswear, womenswear, and childrenswear, and will feature technology from Zara’s integrated online and physical store platform. Zara’s current Meadowhall store will continue to trade until the new one opens. Darren Pearce, centre director at Meadowhall, said: “Our Zara store is incredibly popular with our visitors, and we know they will be just as excited as we are about the new, bigger and better offering. “The expansion into a larger unit demonstrates the continued demand for high quality fashion for Meadowhall shoppers. We look forward to seeing the new store come to life, bringing with it a great new range of clothing to the centre, and even more job opportunities for the local area.” Earlier this month, it was announced the Frasers Group had agreed a deal with scheme owner British Land to acquire the 120,000 sq ft former Debenhams unit. It will use the space to open a Sports Direct and its...

Deals News

Councillors hand demolition order for Windsor hotel

29th August 2023

Councillors have handed a Conservative Party donor a demolition order for a luxury hotel in Windsor which breached planning regulations. Runnymede Borough Council has informed Surinder Arora’s hotel company that it has until 7 October to take action at the Fairmont Windsor Hotel, the site where the signing of Rishi Sunak’s Brexit deal took place. The company must now make “the unauthorised building comply with the terms of the planning permission”, or it will need to demolish the building and remove all resultant waste and material, according to the notice. In a statement, Arora said: “We are truly sorry for the mistakes made during the construction of the Fairmont Windsor Park. It was a highly challenging construction site being developed in the middle of the Covid-19 pandemic. “We are now constructively engaging with Runnymede Council and other local stakeholders to find mutually acceptable solutions to the planning concerns which have been raised. The hotel is a fantastic property. We want to ensure it continues serving the local area and bringing significant economic benefits to Runnymede.” The hotel played host to the meeting between the Prime Minister and the president of the European Commission Ursula von der Leyen signed a revised...

News

Liverpool ONE gets its MOJO back

29th August 2023

American-inspired rock ‘n’ roll cocktail bar MOJO has opened at Grosvenor’s Liverpool ONE shopping centre. Launching in a 3,000 sq ft two-storey venue on Hanover Street, MOJO has relocated and upsized from his previous Liverpool home on Back Berry Street. The new bar becomes MOJO’s eight in the north of England, and offers over 100 cocktails, beer pong, and bottomless brunch. Customers will also be able to take part in cocktail classes and watch live sports. Rob Deacon, senior asset manager at Grosvenor, said: “The addition of MOJO further diversifies our impressive food and beverage lineup, providing more choice for the sustained consumer demand we’ve seen at Liverpool ONE. We look forward to seeing visitors enjoy MOJO’s signature lively atmosphere in an new, upsized location.” The news follows the recent bricks-and-mortar launch of competitive Esports concept Leveltap at Liverpool ONE, providing a 6,000 sq ft interactive gaming venue. Metis and Starka acted for Liverpool ONE, whilst Harlow Property Consultants acted for MOJO.

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