Posts from February 2024

Tax-free shopping for tourists could be reinstated with the Office for Budget Responsibility (OBR) set to reassess the Government’s decision to abandon the scheme. VAT-free shopping for tourists was abolished in 2020 by the then-chancellor Rishi Sunak. Now, the OBR will look at the potential benefits and drawbacks of reintroducing the scheme, with its findings set to be released next month along with the Spring Budget. The UK is currently the only country in Europe which does not offer tax-free shopping for international visitors. Since its abolition, a number of figures from various sectors, including retail, have been critical of the Government’s decision. Speaking at a parliamentary debate in September, Conservative MP and leader of the Scrap the Tourist Tax campaign Sir Geoffrey Clifton-Brown said that London’s retail and hospitality businesses have been abandoned by tourists in favour of mainland European destinations. He added that the UK was missing out on a £1bn ‘Brexit boost’, as tourists opt for other destinations. The so-called ‘tourist tax’ has had a greater impact on businesses in the West End than the cost-of-living crisis, according to a New West End Company (NWEC) study. The group found that 92% of surveyed businesses said they have...

News

Dudley shopping centre to head to auction

The freehold of a shopping centre in Dudley is set to go to auction with a guide price of £2.5m. Going under the hammer later this month, Trident Shopping Centre spans approximately 94,215 sq ft and comprises 17 high street-facing shops and 10 shops inside the mall. The scheme is also home to an 175-space underground and rooftop car park. Tenants include B&M, Subway, The Salvation Army and a mix of retailers and cafés, with neighbouring occupiers including JD Wetherspoon, CeX, Superdrug, Boots, and Poundland. The property is being marketed by Acuitus and will head to auction on 15 February. John Mehtab of Acuitus said: “Assets of this size which are located in sizeable towns such as Dudley hold considerable value in the eyes of potential investors, especially when one considers that Trident Shopping Centre has a full tenant roster generating strong rental income.”

News

Asda to open 110 convenience stores in February

Asda is set to continue expanding its convenience estate with the opening of 110 new stores in February – a record for the retailer in a single month. The supermarket retailer will convert 109 former convenience stores acquired from the Co-op and EG Group to the Asda Express brand, whilst also opening one new site organically. This comes as Asda looks to convert all 470 convenience sites acquired from the Co-op and EG Group to Asda Express by the end of March. The supermarket had opened 21 convenience stores in January, bringing its total to 259 sites by the end of the month, in addition to the eight organic Asda Express sites already open. The record number of openings will also bring Asda’s combined supermarket and convenience portfolio to its largest size yet, as the retailer hits the landmark of 1,000 stores. Andy Perry, Asda’s vice president of convenience, said: “Asda’s significant investment in building a nationwide chain of convenience stores is a key component of our long-term strategy to become the number two player in UK grocery. February is a transformational month for programme with a record number of store openings and conversion of all former Co-op sites to Asda...

News

Bracknell’s The Lexicon to welcome three new operators

The Lexicon in Bracknell is set to welcome a trio of new tenants, building on a successful 2023 at the scheme which saw an increase in spending and footfall. Bar and café chain Lounges will occupy a 3,400 sq ft space at The Lexicon, whilst Amorino, the international gelato and dessert brand, and ProCook, the kitchen and dining ware retailer, will also be joining the scheme. Meanwhile, jewellery retailer Beaverbrooks – which has been a tenant at The Lexicon since the scheme’s opening in 2017 – will upsize by 1,650 sq ft to create a new 3,350 sq ft flagship store. The new leases bring The Lexicon – which is owned by a joint venture between Schroders Capital and Legal & General Capital – to 95% let. The signings also follow a 2023 which saw a number of new operators open at the scheme. Last year, The Lexicon welcomed the likes of Thai eatery Giggling Squid, which opened a 4,750 sq ft restaurant, as well as Danish retailer Søstrene Grene and homeware store Robert Dyas. Elsewhere at the scheme, American burger chain Five Guys opened a 3,500 sq ft outlet, its first restaurant in Berkshire, whilst Pan-Asian eatery Chopstix made...

Deals News

Superdry co-founder in buyout talks

The co-founder of Superdry is in talks with potential partners to fund a buyout of the struggling retailer. The clothing retailer confirmed that Julian Dunkerton – who owns a 20% stake – had requested permission to begin exploring the possibility of making an offer for the company, which was granted. Last year, Dunkerton denied plans to delist the company, which was placed on the stock market in 2010. Superdry said there can be no certainty that an offer will be made. This comes after it was reported that Superdry could close stores as part of restructuring plans. The retailer confirmed it has called advisers in from PricewaterhouseCoopers to examine its debt-raising options. In a trading update released just before Christmas, Superdry had blamed milder-than-expected Autumn weather for lower sales. The results had capped off a year in which the retailer had undertaken a number of measures to strengthen its balance sheet. However, rumours of a possible buyout had increased over the course of the week after Norweigan hedge fund First Seagull purchased a 5.3% stake, with shares doubling in value on Friday.

News

Starbucks set to join Altrincham’s Stamford Quarter

Starbucks is set to open a new branch at Altrincham’s new retail, leisure, and workspace destination, Stamford Quarter. The international coffee shop brand has agreed to take a 1,708 sq ft unit on the ground floor of the Foundation building. It will sit alongside three other brands including independent bowling alley and entertainment venue Lane7. The announcement follows a successful 2023 for Stamford Quarter, with visitor numbers rising by 5% year-on-year. The Foundation building which will host the Starbucks store is set to be completed by this summer. James Tootle, head of retail and leisure at property group Bruntwood, said: “We’re delighted that Starbucks has chosen Foundation for its new home on the high street. A brand that is as globally popular as Starbucks is a fantastic bedrock for the Foundation community – one which will be made up of an exciting mix of independent and national brands. It will be a vibrant workspace community which integrates and supports the hospitality offering with amenities that benefit the immediate area and the wider town. As work gathers pace on Foundation and Stamford Square, we’re looking forward to making more announcements soon.” Councillor Tom Ross, leader of Trafford Council, added: “We are totally committed to...

Deals

The Alchemist secures £15m loan as it eyes 10 new sites

Cocktail bar and restaurant group The Alchemist has secured a £15m loan from digital bank OakNorth as it looks to roll out new sites and refinance existing debt. The business – which is backed by private equity firm Palatine – is looking to open 10 new sites over the next three years. Founded in 2010, The Alchemist now operates 23 sites across 12 major cities, including six in London, three in its hometown Manchester, and three in Scotland. It also opened its first overseas venue in Berlin last year. The group’s next location, in London Victoria, is set to open this month. Stewart Haworth, director of debt finance at OakNorth, said: “The Alchemist is a perfect example of the creativity that’s currently on offer by the UK’s top bar and restaurant operators. The group has built-up a highly impressive reputation, with the management team delivering an experiential and theatrical food and drink offer across all day parts, in an array of locations, as they plotted their expansion here in the UK and abroad. With the pub and bar industry set for significant growth over the next five years, driven by a rising demand for craft spirits, the group is in a prime...

News

Karma Kitchen launches sixth site and secures first partner

Commercial kitchen operator Karma Kitchen has opened its sixth site in Wimbledon, South West London, and has secured a first partner for the location. Spanning 14,682 sq ft with 26 units, the space looks to offer flexibility and scalability to food and beverage operators, at a lower price than a traditional space. The site has already secured McDonald’s as its first tenant, which has taken a 2,000 sq ft delivery kitchen. This follows the fast food giant’s opening of a delivery kitchen at Karma Kitchen’s Bermondsey site in March 2023. This news comes as Eccie and Gini Newton, co-founders of Karma Kitchen, were recently named by trade publication Business Leader as part of the ‘Top 32 Serial Founders’. They said: “Wimbledon represents another major milestone for us. It continues our growth within carefully selected sites, those that work to support not only the business development of each of the brands that sign here, but also give us the best opportunity to improve the welfare of their employees. We are excited to welcome operators to our new Wimbledon location, bringing Karma Kitchen to a new area of the capital to create success for the brilliant people and businesses that really make...

Deals News

Local retailer opens at Festival Place following successful pop-up

A local independent retailer has opened permanently at Sovereign Centros’ Festival Place, following the success of its pop-up store at the Basingstoke scheme. Homeware and gifts retailer Fig & Fox has taken a 1,790 sq ft space – which is 50% larger than its pop-up store which ran at the end of 2023. Fig & Fox – which was founded by couple James and Helen Mitchell – offers a range of independently-crafted design-led products, including homeware, gifts, cards, and jewellery. The Festival Place store also features a takeaway counter serving hot drinks and baked goods from local food and beverage operators. Poppy Radford, asset manager at Sovereign Centros, said: “Responding to the needs and wants of our catchment, Festival Place is introducing more premium but accessible retail brands, and the opening of Fig & Fox is evidence of Sovereign Centros’ ability to deliver this. Following a successful pop-up at the end of last year, the locally-based operator has now built a brick-and-mortar home here, with a quality fit out that Festival Place’s visitors will love. Coming shortly after the opening of Rituals, we look forward to seeing another brand with a premium feel go from strength to strength at the destination.”...

Deals News

Tortilla to open new travel restaurants with franchise partner

Tortilla and its franchise partner SSP have confirmed that the Mexican restaurant chain will be opening four new travel locations in 2024, with a number of opportunities in the pipeline for 2025. The partnership currently operates five sites across the UK, with Manchester Piccadilly the most recent addition, having opened in the first half of 2023. Tortilla said that franchise partnerships are a key part of its growth strategy, as locations such as transport hubs and universities become an increasingly important channel to access consumers. Richard Morris, CEO of Tortilla, said: “At Tortilla, our fundamental purpose is to provide outstanding food, at excellent value for money and great service. Our relationship with SSP has been hugely successful since we launched with them in 2019 at Euston station in London. Whilst Covid inevitably impacted the rate at which we opened sites, we have since launched record breaking sites in London Gatwick and Bristol Airport, as well as Leeds MSA and Manchester Piccadilly station. “We are excited to continue our partnership with more UK travel locations, and potential European equivalents over the coming years given SSP’s strong foothold across 37 countries globally.” Cathy Granby, business development director at SSP, added: “SSP are...

News

Coppa Club owner targets 13 new sites in growth drive

The group behind all-day bar and restaurant concept Coppa Club is planning to open 13 new sites in its next expansion phase. Various Eateries said it is looking to open up to three Coppa Club venues, as well as 10 restaurants for Italian restaurant concept Noci. Last year, the group opened three sites bringing its total estate to 18 locations. This included its second Noci site which opened in May 2023 at Battersea Power Station, and a third in Shoreditch which opened in September. The group said that it believes Noci to be the “most compelling near-term growth opportunity”. Whilst the immediate roll out is expected to be focused on the Greater London area, Various Eateries said that it believes that there are over 100 suitable sites in the UK. The restaurant chain is actively seeking suitable locations in London. It also said it believes there is “significant potential” for the expansion of the Coppa Club brand, with the next opening due in Cardiff this spring. Last year, Coppa Club opened one new site in Guildford, the second iteration of its townhouse format. This comes as Various Eateries releases its results for the 2023 financial year, a period during which...

News

Morrisons sells 337 petrol forecourts in £2.5bn deal

Morrisons has reached an agreement with Motor Fuel Group (MFG) for a £2.5bn deal which will see MFG acquire 337 of the supermarket retailer’s petrol forecourts and over 400 associated sites. Under the terms of the deal, Morrisons will take a minority stake of approximately 20% in MFG and the two groups will enter into commercial and supply agreements. The two groups said that the benefits of the new deal include: Morrisons said the proceeds of the sale will fund further investment in its grocery and food-making businesses, as well as significantly strengthening the business’s capital structure. Rami Baitiéh, CEO of Morrisons, said: “As the needs of the customer continue to evolve, Morrisons and MFG’s partnership will see us combine our respective expertise and resources to deliver the best value for customers at the pump, in our convenience stores and in our supermarkets. It means Morrisons customers will continue to see a competitive and attractive forecourt offering, including expanded access to EV charging, while also benefitting from greater focus on investment in Morrisons’ core food business. We are delighted to have such a strong partner in MFG and look forward to the opportunities a combined MFG and Morrisons forecourt offering will provide.” ...

News

OFFICE opening builds on strong 2023 at Angel Central

Fashion footwear specialist OFFICE has opened at Angel Central in Islington, North London, building on a strong 2023 for the scheme. The retailer has taken a 1,969 sq ft unit at the Upper Street entrance to the scheme, stocking a range of collections including brands such as Dr Martens, Nike, UGG, and Adidas. This comes as CBRE Investment Management has announces that Angel Central reported a sales increase of 16% in 2023 compared to 2022. The shopping destination also saw an increase in footfall of 6.4%, compared to the national average of 2.9%, whilst transactions rose by 4%. Angel Central has also opened a refurbished store for long-standing tenant Accessorize, adjacent to OFFICE. The new space was designed to enhance the customer experience, with improved light fixtures and signage to create a more inviting and appealing atmosphere. Earlier in 2023, Maven Leisure opened Northwood, Angel Central’s first purpose-built sports pub and kitchen, spanning 3,600 sq ft on the first floor. Anchor tenants at the scheme include the likes of UNIQLO, H&M, Rituals, and MUJI. Louisa Butters, head of retail asset management UK at CBRE Investment Management, said: “Angel Central continues to create opportunities for brands to thrive within Islington, with...

Deals News

M Core snaps up Glasgow’s Princes Square