Posts from January 2024

The Global Mutual-managed outlet shopping destinations at Dalton Park and Livingston Designer Outlet have reported a record year of sales in 2023. At Dalton Park, the North East’s largest outlet shopping centre, seasonal sales peaks were up by 10% year-on-year, with sales during the whole year up by 16.2% year-on-year. Meanwhile at Livingston Designer Outlet in Scotland, year-on-year sales increased by 13%. Global Mutual said these figures underline the popularity of the centres as go-to retail destinations in their respective regions, and reflect the demand for outlet shopping seen throughout the UK as consumer budgets continue to be squeezed. Both centres also saw increased footfall in 2023, driven by the addition of 13 new brands at the centres. Big names to arrive at the destinations include Tommy Hilfiger and Calvin Klein at Dalton Park, and Carvela, Timberland, and the upsized Tommy Hilfiger at Livingston. The arrivals form part of Global Mutual’s strategy to diversify the tenant mix to increase catchment dwell time and continuously drive sales. Some existing tenants opted to take on larger units, such as Barbour at Livingston Designer Outlet which doubled its presence. Nicky Lovell, head of outlets and business development at Global Mutual, said: “2023 has...

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Woolworths could make a return to UK high streets

The once-omnipresent Woolworths brand could make its return to British high streets, the retailer’s chief executive has said. The retailer collapsed in 2009 following the global financial crisis, however its German division was rescued by HH Holding. HH Holdings chief Roman Heini told Retail Week that bringing the Woolworths brand back to British high streets is on his “bucket list”. The brand has over 600 stores in Europe, where it is known as ‘Woolworth’. The majority of its stores are based in Germany but the brand has recently found success in Poland and Austria, too. Heini – who has formerly held executive positions at both Aldi and Lidl – has been Woolworth chief executive since 2020. He told Retail Week that despite challenges, he believes there is an opportunity to “make Woolworth great again”. Woolworths originated in the US but had operated in the UK for 100 years before its collapse, becoming a high street staple. In 2009, the retailer had 807 British stores but problems with finances and increased competition led to the brand’s exit. Woolworth Germany told the BBC it was “unable to confirm any plans for Woolworth to return to the UK market” but did not rule...

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Liverpool ONE to welcome White Stuff

Fashion retailer White Stuff is set to open at Liverpool ONE shopping centre. Opening on Peter’s Lane, the 1,800 sq ft store will offer a range of womenswear and menswear, including the brand’s spring collection. The retailer will join a number of other well-known brands on Peter’s Lane, including Sweaty Betty, Space NK, The White Company, and Mint Velvet. Jo Jenkins, chief executive at White Stuff, said: “Our new store in Liverpool is a confident step forward for White Stuff, building on the good progress we have made over the last year to broaden the appeal and style credentials of our brand and products.” White Stuff operates 113 shops and 36 concessions across the UK, serving some 1.3 million customers a year. Rob Deacon, asset management director at Liverpool ONE, added: “We are proud to announce that White Stuff is the first brand to commit to Liverpool ONE in 2024. Innovation and evolution are at the heart of our strategy, and by bringing in exciting brands like White Stuff, we will build on last year’s successes and ensure we continue to contribute positively to the city centre and wider Liverpool City region.” Liverpool ONE has enjoyed a strong start to...

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Co-op to expand as it targets greater market share

The Co-op is set to open more stores as it targets a greater share of the UK convenience market. The retailer said it had ambitions to acquire new Co-op sites, more than double the number of its franchise stores, and open 400 new Nisa stores. Co-op also said it is looking to accelerate its share in the quick commerce market to over 30%. This comes as The Co-op looks to increase the number of its member-owners from five million to eight million by 2030. This follows the release of new data which revealed that group membership had grown ahead of the Co-op’s expectations. The figure of five million active members was up almost 15% on the previous year, the highest amount of growth in eight years. There was also a 21% increase in members shopping with Co-op in December. The Co-op also announced a number of price cuts for its members, which for the first time will include branded goods. Shirine Khoury-Haq, CEO of The Co-op, said: “Over the past year our underlying financial strength has enabled us to support our colleagues and their communities, through the cost-of-living crisis. By placing our member-owners firmly at the heart of our Co-op,...

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Manchester Arndale welcomes new arrivals as it gears up for 2024

Manchester Arndale Shopping Centre is preparing for a busy year, with a number of new arrivals set to open within the coming months. The Manchester scheme has already welcomed The North Face this year, with the openings of Korean supermarket Oseyo, fashion brand Lounge, and leisure operator King Pins set to come early in 2024. The new arrivals take Manchester Arndale to 95% occupancy, and follow a strong 2023 for the scheme. During the past 12 months, joint asset managers M&G Real Estate and Global Mutual secured over 106,042 sq ft of leasing transactions, including 13 new tenants and 25 lease renewals. The scheme also saw a year-on-year increase in footfall of 6.3%, with over 46 million visitors heading to Manchester Arndale and New Cathedral Street in 2023. The year saw the scheme welcome the arrival of international brands such as Nike, Moss, Manchester City, Dune, Clarks, Sunglass Hut, and French Connection, as well as up-and-coming operators including Sides, Creams, Black Sheep Coffee, and Lazy Sundae. The centre also secured a number of long-term lease renewals for brands such as River Island, which upsized its space by 3,686 sq ft. Global Mutual and M&G said they are now working towards...

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Trio of luxury retailers commit to Royal Exchange

A trio of luxury retailers have committed to The Royal Exchange in London, signing new long-term leases at the Square Mile shopping destination. Both British watchmaker Bremont and handbag maker Aspinal of London have signed 10-year renewals for their stores – which are 380 sq ft and 280 sq ft respectively. Meanwhile, jeweller Tiffany & Co has extended the lease on its 1,900 sq ft boutique until 2038. The 458-year-old trading centre was acquired by Ardent UK in autumn 2022 in a deal worth around £50m from Oxford Properties. Andrew Hilston, managing director of Ardent UK, said: “The long-term commitments made cement the Royal Exchange’s position as the City’s leading luxury retail destination.” This follows the recent agreement to bring former D&D London CEO Des Gunewardena’s restaurant project to The Royal Exchange later this year. The project is Gunewardena’s first since his departure from D&D.

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Everyman Cinemas “committed” to expansion

Everyman Cinemas has said it is “committed” to organic expansion in 2024, with “excellent opportunities available for new sites”. The group added that it will continue to consider “opportunistic acquisitions”. This comes as the cinema operator releases a trading update for 2023, a period during which it opened four venues in Marlow, Salisbury, Northallerton, and Plymouth. Everyman also acquired two Tivoli venues in Bath and Cheltenham from Empire Cinemas in December. The group now operates 44 venues, with a total of 152 screens. In August, the up-market cinema chain said it had a “well-developed” pipeline of new openings in 2024. It had also agreed a new loan facility of £35m which it said ensures that it is soundly financially structured and well positioned. In 2023, Everyman’s revenue increased by 16.7% year-on-year to approximately £90.9m, up from £77.9m in 2022. The group’s earnings (EBITDA) increased by 19.1% to approximately £16.2m. Everyman’s performance in the second half of the year was hindered by strikes within the film industry, although the chain said it could re-confirm market expectations for 2024 and has confidence in its prospects moving forward. Alex Scrimgeour, chief executive officer of Everyman, said: “We have delivered robust, double-digit growth in both...

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Morrisons nears £2.5bn petrol forecourt sale

Morrisons is close to agreeing a £2.5bn sale of its petrol station estate to forecourt company Motor Fuel Group (MFG). The deal – which was first reported in September – could be completed within the coming weeks, Sky News reports. MFG and Morrisons are both majority-owned by American buyout firm Clayton Dubilier & Rice (CD&R), with talks between them now on the verge of a formal agreement. A source told Sky News a deal could be announced as soon as early February. Insiders said the deal could be used to pay off part of Morrisons £5.7bn debt pile. The funds could also be used to strengthen the supermarket retailer’s wholesale and convenience offerings. Morrisons currently operates around 340 petrol forecourt sites, while another 150 could be added as the retailer looks to expand its electric vehicle charging network. CD&R’s takeover of Morrisons in 2021 was scrutinised by the Competition and Markets Authority (CMA) due to the group’s ownership of MFG. The CMA ruled that the sale could go ahead if MFG agreed to sell 87 of its petrol forecourts. In a similar deal last year, Asda acquired petrol forecourt group EG Group’s UK and Ireland business for £2.27bn. The deal...

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Merry Hill welcomed over 330,000 sq ft of new deals in 2023

Merry Hill shopping centre in Dudley completed 65 leasing deals in 2023, covering over 330,000 sq ft of space. The destination also saw an increase in sales of 7% for the whole year against 2022, whilst December sales were up by 6.5% year-on-year. Footfall also increased during the year, up by 9.4% compared to 2022 and increasing 2% in December, ahead of the national average. The 65 completed leasing deals represent over 30% of Merry Hill’s units. New retailers at the scheme included the likes of Nike Unite and homeware and stationery specialist KENJI. Merry Hill’s leisure quarter also saw a number of new arrivals, with the opening of anchor tenant Hollywood Bowl, pan-Asian restaurant Wagamama, and ASK Italian’s first restaurant in three years. Last year also saw the opening of the first Sides fried chicken restaurant outside of London, and a second site for Starbucks at Merry Hill. As well as the 30 new arrivals, Merry Hill exchanged contracts with four further brands for 2024 openings. These are led by the repurposing of the former Debenhams department store, which will become occupied by lifestyle and technology retailer Harvey Norman and fitness operator XTRAFIT. The two brands will take 57,000...

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Live-fire restaurant to serve up at The Whiteley

Nela, the live-fire restaurant founded in Amsterdam, has agreed to take nearly 10,000 sq ft of space at London’s The Whiteley development. The concept – which was founded by chefs Hari Shetty and Ori Geller in conjunction with British entrepreneur Gilad Hayeem – will feature an open kitchen and a 360˚ centrepiece bar. The menu will feature a mixture of main dishes and sharing plates inspired by locally and internationally-sourced ingredients. Shetty and Geller, said: “Following the success of our launch in Amsterdam in 2022, we’re very excited to share the Nela experience with our London guests. Our vision has always been to create a space where we can gather round the fire to share good food and drink with friends in a beautiful setting. The Whiteley is a unique place and, together with our incredible team, we can’t wait to create a destination within a destination for all lovers of great hospitality.” Adam Goldin, head of UK at C C Land, added: “With the announcement of our latest tenant, Nela, we are advancing our mission to rejuvenate Bayswater into a premier destination for living, shopping, dining and leisure. The team’s incredible success in Amsterdam and track record working with globally...

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Canary Wharf welcomed over 67m visitors in 2023

Canary Wharf welcomed a record-breaking 67.2m visitors in 2023, an increase of 25% compared to 2022. This marks the second consecutive year of record visitor numbers to the mixed-use neighbourhood, which – alongside the world-leading finance district – is home to an offer comprising the retail, leisure, hospitality, sport, office, and residential sectors. In total, Canary Wharf is home to over 310 retailers, including 74 cafés, bars and restaurants, eight grocery stores, and five health clubs including Barry’s, Third Space, and Sweat by BXR. The neighbourhood has also grown its sports offering over the last few years, welcoming open water swimming, the UK’s fastest indoor go-karting track, and minigolf. Canary Wharf also hosts over 100 culturally-inspired events and is home to the UK’s largest free-to-visit outdoor public art collection, as well as 16.5 acres of parks and access to 5km of waterside boardwalks. Stuart Fyfe, managing director of retail, leisure and hospitality at Canary Wharf Group, said: “The record footfall at Canary Wharf is testament to the exceptional environment we have created. Canary Wharf is a cultural hotspot with something for everyone. We’re thrilled to see such strong and continued demand for the diverse array of shops, restaurants, leisure and...

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American investor snaps up Doncaster Morrisons

American real estate investment trust WP Carey has acquired a Morrisons supermarket and attached petrol station in Doncaster for £23m. The supermarket and petrol station are triple-net leased for 14 and 13 years respectively, with inflation-linked rent increases. WP Carey has invested a total of approximately £1.03bn into the UK market since entering in 1999. Karolis Adlis, executive director of European investments at WP Carey, said: “We’re delighted to kick off the new year by adding another high-quality facility to our portfolio, and one that is leased to one of the UK’s largest supermarket brands. “The UK grocery retail space has demonstrated strong resilience, continuing to grow amidst the wider challenges presented within the current economic environment. We look forward to working with Morrisons, supporting the business’ evolving needs over the coming years.” Last week, two Morrisons supermarkets were acquired by Israel-based capital fund MDSR Investments along with one Sainsbury’s store for £100m.

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Bond Street Fenwick store to make way for charity pop-up

Part of Fenwick’s former Bond Street department store will make way for a pop-up hosted by a multi-charity retailer. Charity Super.Mkt will take residency in the former handbag and accessories department in February. The charity shop – which brings together the likes of Shelter, Traid, Shaw Trust and Havens Hospices – will be open for a fortnight and host weekend events. Some of the items on sale will be donated by designer brands which are in the process of leaving the department store. Last January, Charity Super.Mkt opened a six-week pop-up at Brent Cross Shopping Centre in London. The pop-up on Bond Street will become the brand’s 15th. Fenwick director of strategic partnerships Leo Fenwick said: “Partnering with Charity Super.Mkt combines many threads of our sustainability and charitable initiatives, including helping accelerate the move to a low-waste society with the reduction in textile waste, supporting opportunities for women to thrive, and partnering with charities to improve communities and the environment.” The department store building’s new owner Lazari – which purchased the site for £430m – is set to transform it into a mixed-use development with a ground floor retail provision supported by upstairs offices.

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Asda to open 21 convenience stores by the end of January

Asda is set to add 21 convenience stores to its estate by the end of January, including five which opened over the weekend (19th). This comes as Asda continues to convert the portfolio of convenience stores it acquired from the Co-Op and EG Group to its Asda Express brand. The retailer had already opened 17 stores in January in locations such as Southampton, Cardiff, and Clapham. Andy Perry, Asda’s vice president of convenience, said: “After pausing our convenience rollout during the festive period, the programme is now in full swing once more. We have exciting plans to accelerate the programme over the next couple of months with the aim of converting all 470 stores acquired from the Co-op and EG Group to Asda Express before the end of Q1. We are looking forward to opening our doors and welcoming customers in new locations right across the UK.” Asda said that addressing its gap in the convenience market has been a key pillar of its strategy since being acquired by the Issa brothers and TDR Capital in 2021.

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Trio of supermarkets snapped up for £100m

Israeli capital fund MDSR Investments has acquired three supermarket properties from Aviva Investors for approximately £100m. The assets consist of two Morrisons stores in Milton Keynes and Leigh, and a Sainsbury’s supermarket in Sutton. The three properties have an average lease length of around 19 years and inflation-proofed rents. Mark Girling, partner at Montagu Evans, which acted for Aviva, said: Blending a range of geographies, lease lengths, rental levels, and credit strengths, this £100m transaction was structured to include a 5-month delayed completion, which occurred just before Christmas, allowing our client to take advantage of additional rental income. “The blended effective net initial yield of around 6.25% represents an attractive result for Aviva Investors in the prevailing market, whilst providing the purchaser with a long, attractive, indexed income profile.” Marcus Wood, head of retail and leisure investment at Cushman & Wakefield, which advised MDSR Investments, added: “Despite the headwinds in the wider UK investment market, the grocery sector offers liquidity to vendors and attractive income profiles to investors.”

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Custodian and Abrdn agree terms to £1bn merger

Custodian Property Income REIT (CREI) and Abrdn Property Income Trust (API) have agreed terms to an all-share merger to create a combined group with a portfolio worth over £1bn. Under the deal, CREI will acquire the entire issued and to be issued share capital of API, which is valued at approximately £237m. Following completion of the Merger, existing CREI Shareholders will hold approximately 59.7 per cent whilst API Shareholders will hold approximately 40.3 per cent. The two groups said they share an income-focused investment strategy with an emphasis on regional and below-institutional sized assets that are well-positioned to capture the rental growth and yield advantage available in order to generate higher income returns and capital growth for shareholders. The combined group’s portfolio includes retail warehousing and high street retail, which make up 18% and 6% respectively. David MacLellan, chairman of CREI, said: “This transaction creates a well-positioned REIT of significant scale, giving the combined group’s shareholders the opportunity to participate in the returns from the complementary API and CREI portfolios, with a fully covered and sustainable dividend and a focus on ESG. “In the current interest rate environment, security and resilience of cash flows, scale and liquidity, supported by a...

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Fashion retailer to open second store at Sheffield’s Heart of the City

Fashion retailer The Cream Store is set to open at Sheffield’s Heart of the City scheme. Taking a 3,000 sq ft unit on the ground floor of Burgess House, the store will stock clothing and accessories from a number of rotating brands including Carhartt WIP, Fred Perry, Edwin, Nudie Jeans Co and Gramicci. The Sheffield store will become the retailer’s second in the UK, following the opening of its debut site in Nuneaton in 2005. The Heart of the City scheme is led by Sheffield City Council alongside development partner Queensberry. Councillor Ben Miskell, chair of the transport, regeneration and climate policy committee at Sheffield City Council, said: “We are thrilled to welcome The Cream Store to Heart of the City. It’s another significant addition to the scheme’s growing fashion offer and builds on the likes of Weekday, Monki, and the recently signed Fjällräven and Yards Store. “This is going to be a huge year for Heart of the City and the wider city centre, with the Cambridge Street Collective food hall, Leah’s Yard and Bethel Chapel all set to open in the coming months.” Alex Hyams, senior asset and leasing manager at Queensberry, added: “The Cream Store is a...

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Rituals opens first Scottish store at Caledonia Park