Retail Property News

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. […]

Restaurant insolvency rates highest in a decade

14th July 2023

British restaurants and cafés are going bust at rates not seen in over a decade, according to the Insolvency Service. In the past to years to March 2023, 3,347 establishments were unable to pay their debts, with 98% of cases ending in closure. An average of six restaurants a day were affected by an inability to stay solvent during the first three months of 2023. Data from lobby group UKHospitality has shown that the number of restaurants in the UK has declined by 18% since March 2020 – when the country first went into a Pandemic lockdown – with 3,415 shutting their doors. The hospitality industry was hit hard by multiple COVID-19 lockdowns, with many forced to shut their doors. As a result, many restaurant and café businesses were left with high amounts of debt. Now with extraordinary levels of inflation leading to higher interest rates, a large amount of hospitality businesses have been unable to pay these debts off. The Bank of England says that companies which are facing interest payments that are higher than 40% of their annual revenue a more likely to experience difficulties with repayment. The number of medium-sized companies hitting this threshold is expected to […]

Proposals for £2.5bn Salford masterplan submitted

14th July 2023

The first phase of proposals for a £2.5bn development in Salford been handed over to local councillors. The English Cities Fund (ECF) has submitted outlines for a 1.7 million sq ft innovation district and 933 homes within a site between Broughton Road East and University Road. The site sits in close proximity to Salford University, Salford Royal Foundation Trust, and MediaCity. The initial proposals include: 1.4 million sq ft of ‘commercial innovation floorspace’; 25,000 sq ft of retail and leisure space; a 260,000 sq ft multi-storey movement hub with parking; and 71,000 sq ft of learning facilities. It would see all buildings within the site, called Crescent Innovation North, demolished except for Innovation House, which would be refurbished. The wider Salford Crescent masterplan, which covers 240 acres of the city, includes proposals to construct 145,000 sq ft of retail space, a 165,000 sq ft hotel, 2.4 million sq ft of research and industry space, and over 2,650 homes.  Set up in 2001, ECF is a strategic joint venture between Muse, Legal & General, and Homes England. It was recently selected to deliver the next phase of nearby Stockport’s regeneration. Make Architects is leading the project’s design while CBRE are advising […]

TfL appoints asset management advisor

14th July 2023

Transport for London’s (TfL) wholly-owned commercial property company has appointed Catella APAM (APAM) as asset management advisor and delivery partner. The real estate asset manager will aim to support TfL’s mixed-use portfolio, which includes retail and commercial spaces. TfL has previously set out its strategy to invest in its current assets to focus on long-term income, improved sustainability, and a better customer experience. The appointment follows an initial phase of work in which APAM reviewed TfL’s existing capabilities and operations within its asset management team. APAM will now look to conduct an analysis of TfL’s asset base to identify opportunities for improved customer and tenant offerings and better sustainability credentials, while looking for ways TfL can generate more long-term revenue. Daniel Lovatt, director of asset management at TfL’s commercial property arm, said: “As one of the largest landowners in London, we are committed to creating well-connected, safe and sustainable places that people want to live near, travel to and visit. As part of this, we are excited to continue working with APAM as we unlock the long-term value of our diverse real estate portfolio, which ranges from small retail businesses to commercial offices. “By focusing on areas that can offer...

Frasers increases stakes in Currys and N Brown

14th July 2023

Frasers Group has upped its stakes in electronics retailer Currys and online retailer N Brown Group. The retail group purchased a number of shares in Currys to raise its stake from 10.4% to 11.1%, while upping its 17.6% stake in N Brown Group to 18.1%. The purchases may not come as a surprise, with Frasers Group seemingly employing an eager approach to snapping up large stakes in retailers. In June, the group doubled its investment in Currys, while also taking a stake in Boohoo, which itself is facing a stock-market dogfight with Revolution Beauty. Frasers Group has also recently upped its stake in fashion retailer ASOS, as well as online electrical specialist AO World. The group has also made a spate of acquisitions over the last year, picking up brands such as Gieves and Hawkes, Amara Living, and a number of JD Sports brands. Frasers Group has also picked up shopping centres in Luton and Dundee, as well as a retail park in Livingston in recent months.

Aparthotel development at Oxford cinema given go-ahead

14th July 2023

Proposals to transform an Oxford cinema into an aparthotel and community hub have been given the go-ahead by local councillors. Cinema operator Odeon’s lease at the property at 38-40 George Street is set to expire in September 2024. Oxford City Council has been carrying out a procurement exercise since September 2022 to determine the best use for the site. The £37m development will see the property demolished and redeveloped, with the ground floor being used as a community space and the upper five floors converted into a long-stay hotel. The proposals are set to meet modern building standards and will feature windows on all sides of the building instead of its existing large blank walls in hopes of improving the local atmosphere. The plans also outline social value commitments through the construction and lease term, including apprenticeships for young people in Oxford and paying all staff at least the Oxford Living Wage, including aparthotel staff. Following the cabinet’s approval, the new contract and lease could be signed in August or September. The council will then aim to secure planning permission for the new building by summer of 2024. Demolition and construction is expected to take about three years, with the […]

All Good Things eyes growth following investment

14th July 2023

Pre-loved clothing retailer All Good Things is looking to open more stores after securing a £2.5m equity investment. The retailer secured the Series A funding from Souter Investments, alongside a number of experienced retail figures, including: Former TFG London chief executive Ben Barnett and managing director Lee Harlow; former Whistles managing director Helen Williamson; former Jigsaw chief executive Charlie Atterton; and former Dune chief executive John Egan. All Good Things currently operates stores in Bristol’s Cribbs Causeway and Merry Hill Shopping Centre, Dudley. It is now looking to expand its store estate later this year and into 2024. The retailer is headed up by a management team consisting of former Jigsaw retail director Karen Fuller, the former head of global media networks at BT Keith Bristow, and former senior buyer at Brand Alley Sonia Chopra. Ben Barnett chairs the company. All Good Things has partnered with over 200 UK and European fashion brands during the last 12 months, as it looks to provide a physical home for clothing set to be recycled. Keith Bristow, chief executive, said: “The growth of All Good Things has been a labour of love for the team. Establishing a new, sustainable retail concept has involved a […]

Burberry on track to refurbish entire store estate by 2026

14th July 2023

Burberry has said it is on track to refurbish half of its store estate by the end of the 2024 financial year (FY24), and expects to refurbish its entire portfolio by 2026. This comes as Burberry releases its trading results for the first quarter of FY24, a period during which the brand reopened its flagship New Bond Street store in June. The retailer said it had refurbished a total of 19 stores during the period. Burberry also revealed that it had seen an increase in revenue during the first quarter of FY24, as nearly all regions saw their sales increase. This was particularly helped by a 46% increase in sales in Mainland China, which looks to be recovering from COVID-19 lockdowns. Group sales outside of Mainland China grew by 11%, with only the Americas seeing a decline, of 8%. As a result, retail revenue during the first quarter was £589m, up from £505m during the same period in 2022. Jonathan Akeroyd, Burberry chief executive officer, said the luxury brand is on track to achieving its FY24 and medium-term guidance.

Hospitality groups call for late night levy scrap as Gov’t extends scheme

13th July 2023

UKHospitality and the Campaign for Real Ale (CAMRA) have called on the Government to abolish the late night levy, despite the Home Office extending the scheme. The levy is an optional power that allows licensing authorities in England and Wales to levy businesses that supply alcohol late at night. The proceeds are used to support local policing. The Home Office has now confirmed that the levy will be extended to: UKHospitality chief executive Kate Nicholls described the move as “frustrating”, describing the seven-year-old evidence base as “horribly out of date”. She added: “Introducing more powers for local authorities to implement the levy and making more venues eligible to pay is a damaging blow to the late night economy, which already paid hundreds of thousands of pounds in late night levies last year. “Given the challenging economic circumstances businesses face, the Government should be focused on reducing regulation and easing cost burdens. Instead, they have chosen to add more. This will simply stymy investment and limit economic growth. “I would continue to urge the Government to show that it’s on the side of businesses and abolish the late night levy as soon as possible.” CAMRA said the changes were a “step […]

Domino’s delivers new CEO

13th July 2023

The UK branch of Domino’s Pizza has appointed Andrew Rennie as chief executive officer. He is set to join the group as a director on 1 August before taking on the role of CEO from the 7th. He has extensive experience with Domino’s global network, having worked as a multi-unit franchisee for a decade. Rennie worked with Domino’s Pizza Enterprises for over two decades, working in roles such as CEO of France and Belgium between 2006 and 2010, chief financial officer and then CEO of Domino’s Australia and New Zealand businesses from 2010 to 2013. Between 2014 and 2020, he was CEO of Domino’s European business, which included the master franchise agreements for France, Germany, Belgium, and the Netherlands. While at the Sydney-listed Domino’s Pizza Enterprises, its market capitalisation grew from AU$132million (£69.3m) to AU$5.85 billion (£3.07bn), the group said. Domino’s added that its continental store count increased threefold during his tenure as CEO of the chain’s European branch. Elias Diaz Sese, who took over as interim CEO of Domino’s in the UK in October 2022, will step down on 7 August 2023. He will remain a non-executive director, a role he has held since joining the board in 2019....