Posts from August 2023

Northern Ireland’s public transportation provider Translink has named developer MRP as partner for its Weavers Cross Development in Belfast. The development is set to deliver nearly 1.3 million sq ft of mixed-use space, including provisions for retail and leisure. Sitting on brownfield land, the development site is located alongside the new Belfast Grand Central Station. Currently under construction and due to open in 2025, the station is set to be the largest sustainable transport hub on the island and is considered the catalyst for the Weavers Cross Development. Weavers Cross has a development value of £500 million, with MRP now appointed to lead on delivery of private sector investment. The development has already obtained planning permission from Belfast City Council and is estimated to bring over £1 billion of additional spending to the Northern Ireland economy once completed. Chris Conway, group chief executive of Translink, said: “The international connectivity which the transport hub will bring, along with an imaginative mixed-use development will create an exciting new city centre neighbourhood that will be a catalyst for economic growth.” Stephen Surphlis, managing director of MRP, added: “The vision for Weavers Cross is a bold one, marrying world-class urban design that incorporates the...

News

Rain dampens high street footfall figures

Footfall fell in July for the first time in 14 years as an uncharacteristically wet month discouraged shoppers from heading out. Overall footfall fell by 0.3%, the first time the figure has declined in July since 2009, according to analysis firm Springboard. High streets were the worst affected, however shopping centres and retail parks saw an increase in the number of visitors due to their overhead cover and parking provisions. Springboard said that along with the rain, cost-of-living pressures and rail strikes were also factors which had an impact on the number of high street shoppers. High streets in coastal areas were particularly affected, seeing a drop in footfall of 4.6% as day-trippers were deterred from visits to the beach. However, some sectors have benefitted from the wet weather, such as cinemas, which saw a spike in sales in July. Vue saw its cinemas’ revenue increase 36% year-on-year, and 56% against June. However much of this success may be attributed to the “Barbenheimer” phenomenon, which saw the release of box office hits Barbie and Oppenheimer on the same day. Springboard director Diane Wehrle has warned that a subsidence in bad weather may not spell a return to the norm for...

News

How to advertise your retail business

Starting a retail or leisure business is an exciting endeavor, but success depends on not only opening your doors but also attracting customers to walk through them. Understanding how to advertise your retail business effectively allows you to drive foot traffic, increase sales, and build brand awareness. For first-time business owners, navigating the world of advertising can be overwhelming. This guide aims to simplify the process and provide practical strategies for how to advertise your retail business successfully, empowering you to take your venture from dream to reality. Understand your target audience The first step in understanding how to advertise your business is to understand your target audience. Conduct market research to identify who your potential customers are, their preferences, needs, and behaviors. This information will guide your advertising efforts, ensuring you reach the right people with the right message. Creat a Unique Selling Point (USP) A strong USP sets your business apart from competitors and gives customers a compelling reason to choose you. Identify your unique qualities, products, or services that resonate with your target audience. Your USP should communicate why your business is the best choice to meet their needs. Remember, a strong USP is crucial for not...

Advice

Wilko files notice to appoint administrators

Discount homeware and garden retailer Wilko has filed a notice of intent to appoint administrators. The struggling retailer has considered a number of options, including a Company Voluntary Agreement, however it is now looking to secure a deal to protect it from creditors. Wilko is being advised by PwC, and previously appointed CBRE to help deal with landlords as it looked to slash its rents. Mark Jackson, CEO of Wilko, said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with. “Unfortunately, with this in mind, today we’re having to take the difficult decision to file an NOI (notice of intent).” The retailer had previously secured a £40m revolving credit facility from Homebase owner Hilco as it looked to reverse its fortunes. Its owners were also reported to have been considering a sale, which would see the family-owned business under a different ownership for the first time in its 93-year history. “We continue to believe that...

News

Next raises profit guidance after increase in sales

Next has increased its full year profit guidance by £10m after enjoying a period of increased sales during the second quarter. During the 13 weeks to 29 July, Next’s full price product sales were up by 6.9% year-on-year, with online sales increasing 10% and retail sales growing by 2.2%. In the first half of the year, Next’s full price product sales increased by 2.9% year-on-year. As a result, the clothing and homeware retailer has opted to increase its profit guidance for the year ending January 2024 to £845m. Next said that its stock levels have been “well-controlled” and it went into its end-of-season sale with surplus stock down by 22% compared to 2022. It add that its clearance rates are ahead of last year and ahead of its internal forecasts, adding around £4m to the group’s profit before tax. The retailer will announce its full results for the first half of the year on Thursday 21 September.

News

Shaftesbury Capital has “excellent” momentum following merger

Shaftesbury Capital has said it saw “excellent operational momentum” in the first half of the year, boosted by high footfall and positive trading activity. The group, which has a portfolio spanning Central London and the West End, said it had seen “strong demand for all uses, excellent leasing activity and low vacancy”. The real estate investment trust (REIT), which was formed in March following a merger between Shaftesbury and Capco, said that high footfall across the West End had been buoyed by increasing international visitor numbers. In the six months to 30 June, Shaftesbury Capital said it had completed 220 leasing transactions with a rental value of £15.1 million, including 89 commercial lettings and renewals. It said its estate had seen a low vacancy rate, with 2.5% of estimated rental value (ERV) available. The group also added 27 retail and hospitality concepts across its portfolio. During the period, Shaftesbury Capital saw a 3.3% like-for-like increase in estimated rental value across its estate to £235 million, and an increase in annualised gross income of 5.6% to £188 million. The REIT said the valuation of its wholly-owned portfolio remained unchanged at £4.9 billion. Ian Hawksworth, Shaftesbury Capital chief executive, said: “We have...

News

Primark opens sixth ‘Tasty by Greggs’ café in Leeds

Primark and Greggs have continued their partnership to launch their sixth ‘Tasty by Greggs’ café at Primark Trinity Leeds Shopping Centre. Having opened on Wednesday (2 August), the 117-seat café offers Greggs’ range of baked goods, sweet treats, coffee, and its new selection of chilled drinks. The launch follows the success of the format in Primark’s Birmingham, London Oxford Street, Newcastle, Bristol, and Liverpool stores. The café’s interior is in line with the vibrant designs seen at the other Tasty by Greggs cafés, with bright colours, doughnut seating booths, and a sausage roll swing giving it a distinctive look. Tony Rowson, property director at Greggs, said: “We have been delighted by the response to the Tasty by Greggs cafés so far and the opening in Leeds marks another milestone moment in our efforts to open in more locations where people work, shop and travel.” The news follows Greggs’ recent announcement that it intends to open a number of standalone cafés within Sainsbury’s supermarkets by the end of the year. Earlier this week, Greggs said it is on target to open a net 150 new stores by 2024.

Deals News

Asian tech manufacturer opens first European store in Birmingham

Asian drone and camera manufacturer DJI is set to make its European debut with an opening in Birmingham this weekend. Taking a 2,800 sq ft unit on a five-year lease, DJI will be launching at the corner of New Street and Corporation Street. The store will sell drones, cameras, lenses, and accessories. DJI will be occupying the ground and basement floors of the six-storey building, which has lain vacant since Vodafone’s exit in 2019. The retailer will also sell products with Swedish camera brand Hasselblad, which it acquired in 2017. The shop will be the only combined DJI and Hasselblad store outside of Asia. Majid Shah, DJI director, said: “Birmingham is a young and vibrant city with major brands that attract a high footfall but it also offers more cost-effective rent than comparable units in London. “We are hopeful that the new store will perform well and have plans to explore other openings in the UK in the near future.” FHP acted on behalf of DJI, while Johnson Fellows acted on behalf of landlord Birmingham City Council. Oliver Marshall, director at FHP, said: “We’re thrilled to bring two huge global brands to Birmingham city centre. “Its location nearby several established...

Deals News

B&M targeting more stores nationwide

B&M is seeking new locations across the country as the variety retailer looks to expand its nationwide presence. The retailer, which trades out of over 700 stores, is looking for sites in both in and out-of-town locations. B&M is targeting locations between 10,000 and 30,000 sq ft in size, preferably with a nearby garden centres. Ideal stores will also be in close proximity to a supermarket. In smaller towns, the retailer is looking for high footfall areas, while more prominent standalone units are also being considered. B&M is considering both existing units as well as development sites. Ian Burns and Martin Musgrave of BPC have been appointed to find suitable locations in England and Wales. Stuart Moncur of Savills has been tasked with finding Scottish locations, while Michael Pierce of Cushman & Wakefield will look for suitable units in Northern Ireland.

Requirements

Guildford House of Fraser to close in September

Guildford’s last department store House of Fraser is set to close its doors in September. Closing down signs appeared at the 185,347 sq ft store on Tuesday (2nd August) however owner Frasers Group has made no mention of the closure online. A staff member said the department store could close as early as the end of August. Since its acquisition by Mike Ashley’s retail empire in August 2018 after entering administration, House of Fraser has undergone significant downsizing, reducing from 59 stores to 31. This comes just days after Frasers Group boss Michael Murray described the department store model as “broken”. Murray said that the historical store sizes of 150,000 sq ft or larger are now considered too large, leading to insufficient investment in the past. The group is now aiming for stores of around 50,000 sq ft or smaller. The future of the Guildford branch of House of Fraser remains uncertain, however the site at 105-111 High Street has been on the market for a number of years. Past rumours have speculated that the upper levels of the six-storey building could be turned into residential accommodation, with the lower floors remaining as retail units. Based in between Guildford High...

News

Lunson Mitchenall bolsters senior team with promotions

Lunson Mitchenall has made promoted two long-standing team members as the retail and leisure advisory firm looks to bolster its senior team. Nick Klein has been promoted to the role of equity director while Chris Watt will be taking on the position of director. Klein’s promotion comes after six years as a director in the Lease Advisory Team. Lunson Mitchenall said the promotion reflects his “significant contributions” to the firm’s growth and success, having transacted on over 300 deals in 2022. He has also developed the business with new client mandates from M&G, abrdn, British Land, Legal and General, Global Mutual, Sovereign Centros, NewRiver, and Boots over recent years. Nick Klein said: “We have an outstanding team here at Lunson Mitchenall; I’m thrilled to take on this new role and look forward to further contributing to the company’s ongoing success. With a depth of experience across the team and rising stars amongst more junior team members, Lunson Mitchenall is well placed to support clients on all aspects of retail and leisure lease advisory.” Meanwhile, Chris Watt’s promotion within the Investment Team follows a six-year tenure at Lunson Mitchenall. Watt has worked with a diverse client base and will aim to...

News

Realm lets over 34,000 sq ft of outlet space

Outlet operator Realm has completed a flurry of lettings to a number of retailers, securing over 34,000 sq ft of space. At the London and Livingston Designer Outlets, Tommy Hilfiger, Guess, The North Face and Levi’s have signed a total of 17,247 sq ft for major upsizes. New arrivals at the schemes include Carvela, Lyle and Scott, Timberland, and Sole Trader. Meanwhile, footwear brand Skechers and Radley London have signed new leases at Lakeside Village in Doncaster. Realm said that many retailers are looking to capitalise on the ongoing strong performance at outlet centres, with fashion houses choosing to relocate or upsize allowing them to increase their offer and introduce new product lines. Brands are also choosing to invest in their stores to create a ‘flagship experience’, Realm said. As a result, retailers are opting to invest in visual merchandising, digital screens, and in-store technology. Christine Grace, leasing director at Realm, said: “We are clearly seeing both a desire for growth and consolidation behind these deals as brands have become increasingly at ease with the outlook for the outlet sector. Outlet shopping as a concept in the UK has been maturing; greater investment and sophistication in stock packages, promotion and general...

Deals News

Plans lodged for aparthotel just minutes from St Paul’s

Plans for the conversion of an office building in the City of London into an aparthotel have been submitted to the local authority. Developer HubCap’s proposals for 30-32 Ludgate Hill detail the creation of a low-carbon long-stay hotel and a ground floor café. Dating back to the 1800’s, the building is located a stone’s throw from St Paul’s Cathedral and has formerly been used as a bank. Urban living developers HubCap, a subsidiary of HUB, submitted the proposals along with architecture firm Holland Harvey. The designs look to re-use the structure of the building to save embodied carbon, with the development targeting BREEAM and WELL certification. The aparthotel will look to deliver all-electric, net zero carbon living spaces in the busy tourist district. Developers will now have to wait and see whether the City of London Corporation will give the project the green light.

News

Creams scoops up franchise agreement with Tesco

Creams has signed a franchise agreement which will see the desserts chain open within Tesco Cafés nationwide. This follows the successful launch of a standalone Creams Cafe in Tesco Extra Streatham in November of last year. The newly-formed partnership will see Creams take shop-in-shop spaces within Tesco Cafés, marking a first for the two brands. Creams is set to open its first Tesco Café location in Gateshead on 3 August, and then in Maryhill, Glasgow, the next day. The ice cream chain is aiming to open more of these concessions later this year. Under the agreement, Tesco Cafés will offer the brand’s range of desserts alongside its own usual core selection of products. Everett Fieldgate, chief executive of Creams, said: “We are delighted to be chosen as Tesco Café’s first franchise partner – it marks a significant moment for Creams and provides a huge opportunity to expand our reach to new audiences and cement our position as the UK’s favourite dessert restaurant brand.” Tesco operates over 300 cafés nationwide, while Creams Cafe trades from around 100 sites across the UK.

News

Popeyes hungry for growth as it secures £50m funding

Popeyes is hungry for more UK restaurants as it secures £50m of additional funding from TDR Capital. The American fried chicken chain, which first came to the UK in Stratford in November, has since opened a further 27 sites this side of the pond. This year, the chain also opened its first drive-through site in Rotherham, which Popeyes said broke multiple sales records for the brand. Popeyes aimed to open around 350 restaurants in the UK following its arrival. For TDR, this is the latest in a series of moves into the food retail market, following its joint acquisition of Asda alongside the billionaire Issa brothers, with whom the capital markets company also co-owns the EG petrol forecourt group. Tom Crowley, chief executive at Popeyes UK, said: “This partnership with TDR Capital allows us to continue the fantastic momentum we have built up across the UK and to accelerate our store openings programme. “We have a significant and strong pipeline of restaurants with landlords across the country recognising the opportunity of working with us and actively approaching us with good incentives. This investment allows us to fully capitalise on these opportunities.” Tom Mitchell, managing partner at TDR Capital, added: “There...

News

Birkenstock owner considers stock market listing

The owner of Birkenstock is considering launching an Initital Public Offer (IPO) which would see the footwear company placed on the stock market. The move, which could take place as soon as September, could see Birkenstock valued at over $8bn (£6.26bn), sources told Bloomberg. Birkenstock’s owner private equity company L Catterton bought a majority stake in the brand for an undisclosed sum in 2021. The group is backed by French fashion house LVMH, the operator of luxury brands such as Hennessy, Louis Vuitton, and Dior. Earlier this month, another L Catterton-backed brand, online beauty products retailer Oddity Tech, raised over $400mn (£313m) when it was listed on the Nasdaq stock exchange. Goldman Sachs and JPMorgan are reportedly advising on the potential listing. Founded in 1774, Birkenstock’s footwear, including its trademark sandals, are sold in around 90 countries worldwide.

News

Black Sheep Coffee targets expansion

Black Sheep Coffee is looking to open more sites across England and Scotland. The coffee chain is seeking sites in prime locations with high footfall and traffic. Ideal sites would be between 1,500 and 3,000 sq ft in size, although this requirement is flexible to accommodate transport hubs. Corner units are preferable, but not essential, while Black Sheep is also considering drive-through sites. Black Sheep Coffee has appointed regional agents to aid it in its search, with Barker Proudlove retained to find locations in the North East, Metis Real Estate seeking North West locations, Culverwell appointed to find Scottish units, and Prime Retail searching in the South of England. The chain has been on an expansion drive in recent months, having opened or secured cafés in Peterborough, Milton Keynes, Woking, Basingstoke, and Manchester.

Requirements

Domino’s enjoys “acceleration” of store openings

Domino’s has said it saw a “material acceleration of new store openings”, as it enjoys the benefits of franchisee alignment. In the pizza chain’s half year results, Domino’s said it had opened 29 new stores with 11 franchise partners, compared to 12 new stores in the first half of 2022 with seven partners. The chain said its pipeline for new openings is around 70% larger than in 2022, across 30 franchisees. This comes as Domino’s reports increased revenue for the first half of the financial year, which was up by 19.6% to £332.9m in the 26 weeks ending 25 June. Domino’s profit after tax was also up from £42.1m in the first half of 2022 to £80.2m in the same period in 2023. As well as increasing its store estate, the chain said it had made continued digital progress with growth in app customers, and improved its delivery times. Elias Diaz Sese, interim CEO said: “We have delivered a strong first half of 2023 with continued growth in orders and sales. Thanks to our alignment with our brilliant franchise partners, we have been able to accelerate our progress on the strategic initiatives set out at the beginning of the year,...

News

Greggs eyes 150 new stores by year end

Greggs has said it is on target to open a net new 150 stores by the end of 2023, as it sees a “strong pipeline of good opportunities”. In its interim report for the first half of the year, the bakery chain said that it had opened 94 stores and closed 44. By the beginning of July, Greggs had 2,378 stores trading. This comes as Greggs reveals that it has traded ahead of 2022 levels so far this year, with total sales reaching £844m, up from £694.5m in the first half of last year. The chain’s pre-tax profit was also up, increasing from £55.8m in the first half of 2022 to £80m in 2023. Despite economic uncertainties, Greggs said its continues to trade in line with its plan and is making good progress against its strategic objective to grow the frequency of customer visits through new channels. Roisin Currie, Greggs chief executive, said: “Greggs’ strong performance continued in the first half of 2023 as we deliver on our strategic growth plan. With consumers remaining under pressure, we continue to offer exceptional value, which is reflected in our performance and growing market share. “In the period we continued to open further new...

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Swarovski shines at Liverpool ONE