Retail Property News

John Lewis expects recovery to take two years longer

14th September 2023

John Lewis’ plan to return to profit has been pushed back by two years to 2028, with the retailer citing inflationary pressures and greater than expected investment requirements. The retailer said that high rates of inflation in 2022, which led to an increase in costs of £179m, had led it to sharpen its focus on its “long-standing productivity challenge”. The group, which also owns Waitrose, had hoped to return to profitability in 2026. John Lewis has struggled against its high street competitors in recent years and has closed a number of stores, whilst Waitrose has faced tough competition from cheaper rivals as consumers grapple with a higher cost of living. In the six months to 29 July 2023, John Lewis’ losses before tax narrowed by 43% year-on-year, but were still at a deficit of £56.2m. In the same period, Waitrose saw the value of its sales increase by 4%, however as prices for its goods jumped by 9%, the actual amount of products sold had actually decreased. John Lewis said the economic outlook remains “uncertain”, but it still expects an improvement in its full year results. The retailer said its priorities for investment remain the modernisation of the business, the […]

Wilko brand here to stay after The Range purchase

14th September 2023

The Range has struck a deal which will see the retailer take control of rival Wilko’s brand. Wilko’s website will remain operational under the arrangement, however its stores are still set to close their doors for good. The value of the deal was not disclosed, although Sky News reported on Wednesday afternoon that The Range paid Wilko’s administrators PwC £5m for the brand. The deal could see some Wilko products stocked and sold in The Range’s stores. Jane Steer, joint administrator at PwC, said: “Since our appointment, the feedback from customers and wider stakeholders during this challenging period has reinforced the fact that Wilko remains a much loved and trusted brand within the UK. “This sale to The Range will ensure that the Wilko name lives on under their ownership and we wish The Range every success.” This comes after Pepco announced an agreement to take on the leases of up to 71 Wilko stores to convert to its Poundland brand. Rival chain B&M had also acquired over 50 stores from Wilko in a £13m deal, although did not specify which ones. Wilko fell into administration in August after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to...

Deal agreed for £90m Oxford Street revamp

14th September 2023

Westminster City Council and the New West End Company (NWEC) have signed a Memorandum of Understanding agreement to jointly-fund a £90m pound revamp of Oxford Street. Councillors have also approved the business case for the scheme and approved £7.7m of funding for the next phase of design work. London’s Oxford Street has long been criticised for falling behind many other top retail destinations, having been overrun by American candy shops and vacant units. The proposals include various changes between Marble Arch and Tottenham Court Road, including the widening of pavements, the creation of amenity spaces, and increased trees and greenery. Currently, the width of the historic shopping street varies from end-to-end, however the plans propose to create a consistent 6.5 metre width for the carriageway, allowing two-way traffic along the street. It is also hoped that the increased space will provide comfort for pedestrians. The proposals also include details of 16 designated “amenity spaces”, which are designed to provide a place for pedestrians to gather and rest, with seating and greenery to enhance the appeal of these spots. Other proposed changes include street lighting upgrades, upgraded and new pedestrian crossings, the creation of cycle lanes, updated bus stops, new taxi […]

Zara owner extends lead as world’s biggest fashion company

13th September 2023

The owner of Zara has extended its lead over H&M as the world’s biggest fashion company. Inditex, which also owns brands such as Pull & Bear and Bershka, recorded a 40% increase in profit during the six months to July 2023 compared to the same period the year before. The Spanish fashion group posted a net income of €2.5bn (£2.15bn) between February and July, ahead of investor expectations. This was despite Inditex opting to slow the rate of price increases to customers. The group has benefitted from being able to deliver fashionable trends quickly from nearby suppliers, enabling it to widen its gap to closest rival H&M. Inditex said its sales had risen to €16.9bn (£14.6bn), up 13.5% against the same period of 2022. The group reported a gross margin of over 58.2%. Óscar García Maceiras, Inditex chief executive, said: “The […] results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model. The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level.” Since the period end, the group said that its autumn-winter collections […]

Four charged with fraud in connection with Patisserie Valerie collapse

13th September 2023

Four individuals have been charged by the Serious Fraud Office (SFO) in connection with the collapse of bakery chain Patisserie Valerie. The SFO has brought fraud charges against former director and chief financial officer, Christopher Marsh, along with his wife, accountant Louise Marsh. Financial controller Pritesh Mistry and financial consultant Nileshkumar Lad have also been charged. The SFO had opened a full investigation into the conduct, codenamed “Operation Venom”, in October 2018, just two days after the company abruptly suspended trading, leading to the closure of 70 sites at the cost of some 900 jobs. All four suspects have been charged with conspiring to inflate the cash in Patisserie Valerie’s balance sheets and annual reports between 2015 and 2018, including by providing false documentation to its auditors. During this period, the company also reported holding £28 million in accounts, yet the SFO said it had concealed £10 million in debts from its investors and creditors. The defendants have been summoned to Westminster Magistrates’ Court on 10th October 2023 to hear the charges against them. Lisa Osofsky, director of the SFO, said: “Patisserie Valerie’s abrupt collapse rocked our high streets – leaving boarded-up shops, devastating job losses and significant investor losses in […]

Poundland agrees to take 71 Wilko stores

13th September 2023

The owner of Poundland has reached an agreement with Wilko’s administrators PwC to take on the leases of up to 71 stores. Following the acquisitions, Pepco Group will bring the former Wilko stores under the Poundland brand. The lease assignments are expected to be completed by early autumn, with the stores set to join Poundland’s 800-plus strong estate and begin trading in the fourth quarter of 2023. This follows news that all 400 Wilko stores are set to close by early October, after a bid from HMV owner Doug Putman fell through. Wilko fell into administration in August after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to the cost-of-living crisis. At the time, it employed over 12,500 members of staff. Poundland said that the Wilko leases it has taken on are largely in areas where it has a “limited presence”. The discount retailer said it would prioritise recruitment for former Wilko staff when applying for jobs at the new stores, with Andy Bond, executive chairman of Pepco Group, adding that it will be “pleasing” to offer employment to former Wilko colleagues. The acquisitions comes as Poundland continues to expand, with the retailer opening or relocating eight stores...

Padel Social Club courts O2 opening

13th September 2023

Padel Social Club is set to open a new venue at The O2, after receiving planning permission approval. The 13,000 sq ft venue will house three indoor courts, as well as a number of amenities including social areas, a bar, a café, changing rooms, and a mezzanine with riverside views. Padel Social Club will join other leisure operators at the Greenwich venue including iFLY Indoor Skydiving, TOCA Social, and Boom Battle Bar. As well as being a permanent venue for the quickly growing sport, the club will also look to host professional international padel events in the coming years. The announcement follows Padel Social Club’s previous ventures, including courts at Soho House’s Babington House which launched last year, and a pop-up in Cannes for real estate conference Mipim. The club is also opening a show court at Empress Place in Earls Court in a few week’s time until late October. According to Playtomic’s Global Padel Report, padel clubs held €1,2bn (c.£1bn) in global market value in 2022 and the sport has been growing by over a quarter every year. In 2022, the amount of courts in the UK doubled, however it still holds some of the lowest numbers compared to […]

Rosa’s Thai hungry for growth as it launches in Scotland

13th September 2023

Restaurant chain Rosa’s Thai is looking for more sites as it makes its first foray into Scotland with two new locations. The recently-opened Glasgow restaurant at 41-43 West Nile Street totals 2,109 sq ft of ground floor space along with a 2,205 sq ft basement. It is located within the central business district, close to other established food and beverage brands. Opening soon, Rosa’s Thai in Edinburgh will total 4,001 sq ft in space and be located at 43 Frederick Street in the city’s New Town. The restaurant will include a large external terrace area for outdoor seating. Rosa’s Thai has now grown to 37 sites nationwide, with retail and leisure specialists P-THREE aiding the Thai restaurant chain as it looks for more locations. The chain’s co-founder Saiphin Moore grew up on a mountain farm in Khao Kho, northern Thailand where she learned to cook with local ingredients. After moving to London, she helped open the first Rosa’s Thai in 2008 in Hanbury Street. Thomas Rose, co-founder at P-THREE, said: “We have partnered with Rosa’s Thai for four years, working hand-in-hand with them to create and execute their expansion strategy and we are delighted that we have now launched the […]

Primark owner expects 15% sales growth

13th September 2023

The owner of Primark has said it expects its retail sales for the 2022-23 financial year to be 15% ahead of the previous year. Associated British Foods (ABF), which also operates a number of agriculture and food brands, said it expects to reach sales of £9bn in the year to 16 September 2023. This would represent a like-for-like sales increase of 9%. ABF said sales growth had been driven by selective price increases, well received ranges and strongly performing new stores. The group has also completed the rollout of its enhanced website, whilst its UK trial of click-and-collect has been extended to womenswear. ABF has also made progress in the expansion of its international Primark estate, opening eight stores in the fourth quarter comprising four in the US and one each in France, Spain, Poland, and Romania. The group is also opening new stores in Salisbury and Mellila in North Africa. At the end of the financial year, the retailer expects to be trading from 432 stores with 18.2 million sq ft of selling space. ABF said the retailer is continuing to trade well, manage inflation, recover cash margin, and driving sales in a challenging macro-economic environment. Over the 2023/24 financial […]

Liverpool City Council seeks specialists for waterfront development

12th September 2023

Liverpool City Council is to launch a search for planning and placemaking specialists to create a long-term strategy for the city’s waterfront development. A report to the council’s committee submitted next week will seek approval for the appointment of “an exceptional team with outstanding expertise at an international level”. The “ambitious” masterplan will look to ensure the waterfront’s “continued growth as a global destination and major economic engine”. The strategy and masterplan will also aim to be informed by significant engagement with stakeholders such as Liverpool BID Company and the Canal and River Trust, as well as major land owners such as Grosvenor and Peel Land & Property. Despite describing the waterfront as a “thriving destination”, the council said there are challenges around inequality and deprivation in nearby neighbourhoods, as well disparities between the demographics of the wards along and adjoining the waterfront. The masterplan’s main aims include maximising the waterfront’s contribution to Liverpool, the city centre region and nearby neighbourhoods. It will also look to enhance connectivity around the waterfront, delivering excellency in quality of place and urban design, and deliver sustainable, creative, and innovative solutions to address the impact of climate change. Other aims include identifying key Infrastructure...

Wickes targets 20 new stores

12th September 2023

Wickes is targeting 20 new stores over the next five years, despite an increase in cost inflation hurting its profits. The DIY retailer is opening three new stores in the second half of the year, having already launched a new outlet in Chelmsford in July. During the first half of the year, the retailer completed six refits, with a total of 11 planned for the entirety of 2023. This comes as Wickes releases its interim results for the six months to 1 July 2023, a period during which the retailer recorded a year-on-year increase in revenue of 0.7% to £827.7m, driven by an increase in ‘do it for me’ (DIFM) sales. However, the retailer’s reported pre-tax profit declined to £21.1m during the period, down from £33.5m in the first half of 2022. Wickes said that this decline in profit was due to cost inflation exceeding revenue growth. The retailer said that trading in July and August had been in line with its expectations, and it continues to expect full year adjusted profit before tax to be between £45m and £48m, in line with the market consensus. David Wood, Wickes chief executive, said: “This was another positive period for the business, […]

John Lewis chair calls for Royal Commission to help town centres

12th September 2023

The chair of the John Lewis Partnership has called upon ministers to set up a Royal Commission to investigate problems faced by town centres. Dame Sharon White described a “crisis” engulfing high streets, with many towns and cities “shells of their former selves”. The last Royal Commission into the health of British towns was 180 years ago and led to the Public Health Act of 1848. White labelled the issues of the UK’s high streets as an “issue of national importance” and deserving of a conversation. According to the British Retail Consortium (BRC), over 6,000 British shops have closed in the past five years, with data from earlier this year revealing that 14% of high street shops lay vacant. White said that planning, taxation, crime, environmental policy, housing and transport should all be on the policy agenda and must be considered as a whole to bring high streets “back to life”. “A Royal Commission could take a long-term, holistic view of the challenges facing our high streets and the role they can play in the fabric of local communities. It would bring together leaders from business, hospitality, retail, housing and entertainment, local authorities, politicians and academics. This is the time...