Retail Property News

Grocery price inflation eases for fourth consecutive month

18th July 2023

Grocery price inflation fell by 1.6% during the four weeks to 9 July, marking the fourth month of consecutive easing and the steepest fall since March. At 14.9%, however, grocery price inflation still remains incredibly high. Kantar, which provided the figures through its Worldpanel platform, said that while the shift in prices reflected a change in the cost of many staple goods, many customers turned to promotional items, which now make up over a quarter of the market. Major supermarkets are currently under scrutiny from the Competition and Markets Authority, who have reason to believe that they are unfairly profiteering from rising prices. Speaking to MPs last month, executives from Britain’s biggest supermarket said the market is at its “most competitive” level ever. They rejected the notion that they have been making excess profits, instead claiming that they were shielding customers from high costs. Fraser McKevitt, head of retail at Kantar, said: “One of the biggest shifts we’ve seen in this [promotions] area is retailers ramping up loyalty card deals like Tesco’s Clubcard Prices and Sainsbury’s Nectar Prices. “This could signal a change in focus by the grocers who had been concentrating their efforts on everyday low pricing, particularly by […]

Ocado UK performance demonstrates “potential” for international ambitions

18th July 2023

The chief executive of Ocado has said that the retail company’s UK operations are an “important demonstration of the potential” of its international ambitions. Tim Steiner said the company is seeking to “transform the economics of online grocery” and expand into other markets, namely automated storage and retrieval solutions. This comes as the retail company posts its half year report for the 26 weeks ending 28 May, during which the group saw revenue reach £1.9bn, an increase of 9%. Ocado’s retail division’s revenue grew by 5% and its logistics revenue increased by 2%. However it was the group’s technology solutions division which saw the biggest increase, of 59%. However, Ocado’s retail division saw a small loss in terms of earnings (EBITDA). Ocado said it had continued strong customer acquisition growth in its retail business, with items per basket stable since last October, while an improved customer focus and efficiencies delivered positive earnings throughout the second quarter. The retail group said its logistics division, which supports Ocado Retail and Morrisons in the UK, is continuing to perform “strongly”. Ocado’s technology solutions business saw a marked increase thanks to international expansion. During the period, two ‘Customer Fulfilment Centres’ (CFCs) were opened alongside...

Public consultation launched for Oxford Street proposals

18th July 2023

Proposals for a number of redevelopments to Oxford Street have been revealed as the plans head towards a public consultation. Westminster City Council and the New West End Company are proposing various changes between Marble Arch and Tottenham Court Road, including the widening of pavements, the creation of amenity spaces, and increased trees and greenery. The current 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 ranks, and bike and e-scooter parking. Members of the public have been invited to give their views on the proposals between 17 July and 31 August. Councillor Geoff Barraclough, Westminster City Council’s cabinet member for planning and economic development, said: “The West End constantly needs […]

Revolution Beauty CEO and chair to step down following Boohoo agreement

18th July 2023

Revolution Beauty’s chief executive officer and chair are set to resign following a settlement agreement with majority shareholder Boohoo. Bob Holt and Derek Zissman will step away from the board, although the former will remain in his role as interim CEO until 31 August 2023. Alistair McGeorge, Neil Catto, Rachel Horsefield and Peter Hallett will now join the board. Elizabeth Lake will remain as chief financial officer as the company looks to return to “sound financial health.” The news appears to draw a close to an ongoing war of words between the two companies, which begun in June when Boohoo declared its intention to vote out Holt, Zissman, and Lake. Revolution described the move as a “cynical” attempt to seize control of the cosmetics brand. They were then voted out at an eventful annual general meeting by 74% of Revolution’s shareholders, before being almost immediately reappointed by independent director Jeremy Schwartz. Boohoo said Schwartz’s actions “contravened corporate governance” practice and described them as an “abuse of process.” Boohoo upped its stake in Revolution to over 26% in November of last year as the London-listed cosmetics retailer dealt with an accounts probe which saw its shares suspended. A subsequent investigation found […]

David Lloyd Clubs set for £6.5m transformation at Fulham Broadway

18th July 2023

Health, fitness, and wellness group David Lloyd Clubs is set to undergo a £6.5m transformation at Fulham Broadway, relaunching its new concept site in the first quarter of 2024. The leisure club has now begun an eight-month long programme of redevelopment which will look to transform its offering at the CBRE Investment Management-owned scheme. The new club will look to split 38,000 sq ft of leisure space over two floors, creating a redeveloped gym, group class studios, a kids area, a 20 metre indoor pool, and a spa retreat. Members will have access to a new-look clubroom, where they can relax and socialise with food and drink. A business lounge area will also be available. David Lloyd Clubs’ in-house design team has created a modern theme for the club, featuring marble and natural stone surfaces along with a neutral colour palette, as it looks to create a soft and welcoming environment for visitors. Louisa Butters, Head of Retail Asset Management UK at CBRE IM, said: “This new look bespoke David Lloyd Leisure Club will really set Fulham Broadway apart from other schemes in the capital. It will provide a destination-led leisure flagship and would be a first for West London. […]

Durham shopping centre refurbishment heads to consultation

17th July 2023

Plans for a £60m redevelopment of Prince Bishops Place in Durham have been revealed and are now heading towards a public consultation. The site, which was opened in 1998, currently has a high vacancy rate and little interest from large retailers. However, Citrus Group is now looking to transform the centre into a thriving retail hub. The proposals include the creation of a number of smaller retail units for independent operators, while a 130-bed hotel, leisure attractions, and public events spaces would also be constructed. The centre’s larger upper floors would be repurposed to create around 300 units of student accommodation, while the 400-space multi-storey car park is set to remain in place. Planning company Lichfields has now brought the project to a public consultation, with residents able to voice their views until August 16. Robert Dibden, associate director at Lichfields Newcastle office, said: “This is an exciting regeneration project that will deliver new opportunities, jobs and economic prosperity. It would herald the transformation of an important part of Durham City Centre; so we are extremely keen to hear the views of as many local people and stakeholders as possible before final plans are submitted.”

YouTube’s Sidemen open first clothing store

17th July 2023

YouTube’s The Sidemen have begun their first venture into physical retail with the launch of their first clothing store. The group of YouTubers, whose channel boasts over 18 million subscribers, have opened the store in a 6,000 sq ft space at Kent’s Bluewater shopping centre. The opening follows the group’s venture into the food and beverage market, with its fried chicken concept, Sides, operating at Boxpark Wembley and through dozens of delivery sites nationwide. The Bluewater store sits on the scheme’s Upper Rose Gallery, next to Apricot. James Waugh, centre director at Bluewater, said: “With the ever-changing landscape of physical retail, it is important for us as industry leaders to bring digital-first brands to the centre and ensure our guest experience evolves and is enhanced.  “The Sidemen shop really is something quite special and we’re in no doubt that the in-store experience will be a massive draw, not just to Sidemen fans living locally, but further afield too.” Matt Peters, managing director of Sidemen Clothing, added: “The Sidemen are undeniably pioneers in the rising world of creator-led brands and this is another huge moment which further cements that. The Sidemen and team at Sidemen Clothing are incredibly excited for the […]

Hotter owner Unbound to appoint administrators

17th July 2023

Unbound Group, the owner of Hotter Shoes, is to line up administrators from Interpath Advisory after failing to secure a buyer. The group’s shares have also been suspended from the London Stock Exchange. Since the termination of its sales process, which was announced at the end of June, the group has had discussions with interested parties regarding a purchase of Unbound’s largest subsidiary, Beaconsfield Footwear. It has also looked to progress a restructuring plan through an equity fundraise, and has investigated the possibility of an acquisition of the group’s debt by one of its shareholders. However, these discussions have been called off. The decision to appoint Will Wright and Rick Harrison of Interpath Advisory was taken to “preserve value for the group’s creditors” and to avoid insolvency for Beaonsfield. Interpath are now in the process of implementing a sale of Beaconsfield’s trade and assets to a third-party purchaser. Any transaction of this kind would see no value for Unbound’s current shareholders. The group is not a trading company and has no operating revenues. It is believed to owe creditors around £0.9m. It suspended its shares on Monday morning.

DFS reaches record market share

17th July 2023

DFS has said it took a record market share of 38% for the 2023 financial year, benefitting from leading brands, scale, and its retail proposition. The furniture retailer said its underlying profit before tax for the year ending 25 June was slightly above £30m, despite the market being “worse than expected”. Market volumes were down by 15-20% during the financial year, as consumer demand took a hit from the wider macroeconomic environment, DFS said. However, the retailer expects to outperform the market and continue to grow its market share into the 2024 financial year, delivering profit growth of a few million pounds. DFS said trading at the beginning of the 2024 financial year has been consistent with its expectations, but added that the economic outlook appears “uncertain”. It expects underlying profit in 2024 to be slightly above 2023 levels. Tim Stacey, chief executive of DFS, said: “We are in the strongest position we have ever been as a Group in terms of market share, and when the market recovers, we will be well placed to deliver our strategy and grow our earnings and cash flows towards our longer term plan”.

Tortilla sees record franchise sales as it continues expansion

17th July 2023

Mexican restaurant concept Tortilla has recorded record results in its franchise sites, as it looks to continue expanding its estate. The chain has a franchising partnership with food travel group SSP, and said it has further franchise sites in the pipeline. This comes as Tortilla provides a trading update for the first half of the 2023 financial year, during which its opened restaurants in Derby and Greenwich alongside a franchised site at Manchester Piccadilly. The chain said all sites had been performing well. By the period end, there were 85 sites operating under the Tortilla and Chilango brands. Tortilla is set to make its Northern Ireland debut later this week in Belfast, with another site opening in Bracknell planned for the coming weeks. During the period, which encompassed the six months ending 2 July 2023, Tortilla’s group revenue increased by 22% to £32.7m. Tortilla said it had successfully implemented several efficiency and cost-saving initiatives that are supporting profitability, which will continue in the second half of the year. Richard Morris, CEO of Tortilla, said: “We continue to deliver on our disciplined but ambitious approach to new site openings and strategic expansion, with all of our new openings performing well and...

Hollister and Gilly Hicks launch new concept at Liverpool ONE

17th July 2023

Hollister, the teen division of Abercrombie & Fitch, has opened a new store alongside sister brand Gilly Hicks at Grosvenor’s Liverpool ONE shopping centre. The 7,300 sq ft combined store on South John Street delivers a new concept for the two brands, and sees them under the same roof in Liverpool for the first time. The new store will look to offer an omnichannel experience with a central click-and-collect area alongside order in-store and same-day delivery capabilities. Offering the retailers’ full range of clothing, including Gilly Hicks’ loungewear and activewear ranges, the new format is one of Abercombie & Fitch’s first new prototype stores in Europe. Rob Deacon, senior asset manager at Grosvenor, said: “Hollister’s substantial investment and exciting introduction of the Gilly Hicks brand is a key moment for us, particularly as it evidences yet more commitment to Liverpool ONE from global brands. Launching one of the first new prototype stores in Europe is a major endorsement for the destination and we are sure it will be a great success with the widespread teenager demographic.” Metis and CBRE acted for Liverpool ONE, while Abercrombie & Fitch Co. dealt directly. Hollister and Gilly Hicks have joined activewear and lifestyle brand […]

Two restaurants line up Glasgow debuts

14th July 2023

Turtle Bay and Popeye’s are both looking to open in Glasgow for the first time. Turtle Bay has applied to open at a former Barrhead Travel unit on St Vincent Street, with a Glasgow opening representing the Caribbean cocktail bar and restaurant’s first venture north of the Scottish border. The chain, which operates 49 sites, is looking to open a further six sites this year. The Caribbean restaurant opened in Hammersmith in March, before launching in Blackpool at the newly-restored Forshaws Hotel. It will open its 50th site – in Camden – in August. Another opening is lined up in Lincoln’s Cornhill Quarter in September. The chain is reportedly looking to open over 120 restaurants in the UK in the future. Meanwhile, Popeye’s is also looking to bring its offering to Scotland’s largest city, as it eyes the former Tower Records site on Argyle Street. The American fried chicken chain has also been linked to a drive-thru site at Braehead Retail Park on the city’s outskirts. The chain first entered the UK drive-thru market at Parkgate Shopping Park, Rotherham, and is set to open further sites at Cardiff Bay Retail Park and The Peel Centre in Barnsley later this year....