Retail Property News

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Next reports improved sales

2nd November 2022

After full price sales in Q3 came in slightly ahead of projections, fashion giant Next has been able to maintain its annual profit guidance. The fashion and homeware company reported that full price sales increased 0.4% from last year in the 13 weeks leading up to October 29. Additionally, sales have climbed by 1.4% over the past five weeks thanks to a particularly strong week of business at the end of September, when cooler temperatures led to a rise in the purchase of cold-weather apparel. Sales in Next’s high street locations increased by 3.1% during the 13 weeks. However, online sales did not show the same improvement, decreasing by 1.9% in the same period. The performance has led Next to reaffirm its forecast for a full-year pre-tax profit of £840 million, a 2.1% rise over the previous year.

Data shows £3.7 billion of space goes unused

2nd November 2022

Research by Real Business Rescue showing the most cost-effective places to rent retail space has revealed that UK vacancies remain above pre-Covid levels. According to the data, the UK currently has over 150 million square feet of unused retail space. At an average annual price of £24.48 per square foot, this leaves £3.7b of spare space. Perhaps unsurprisingly to many, London remains the most expensive place to rent at £49.64 (all prices are per sq ft. per year), with Kensington and Chelsea the most expensive borough at £86.15, higher than the national average by 252%. Interestingly, Blackpool is the cheapest place in the UK to rent retail space at £12.45, despite being second in its footfall recovery score. That is, how fast footfall in the area has recovered to pre-pandemic levels. Blackpool saw a record boom in visitors following the pandemic in 2021. Plymouth had the highest footfall recovery score, with an average rent price of £20.08 per sq ft. per year. London had the worst footfall recovery score, alongside being the most expensive place to rent. The report suggests that businesses in London may not be getting complete value for the premium prices they pay on rent. Shaun Barton,...

Retailers still suffering since Covid, data shows

2nd November 2022

Data published by the Office for National Statistics (ONS) on Monday shows that the retail industry is still falling short of pre-Covid levels. “High contact” industries, such as shops and restaurants, have recovered at a slower rate than previously expected. It was previously estimated that these “high contact” industries would recover to pre-pandemic levels by the second quarter (April to June) 2022, however their output is still below the levels seen in the final quarter of 2019. The Coronavirus lockdowns seeing many businesses forced to close and restrictions when they could reopen had a huge impact on the sector. Household spending on “social consumption”, that is, spending on recreation and culture, restaurants and hotels, was also reduced, although the effect this has had was closer to what was expected. Other research by the ONS showed that while personal wellbeing rose in the year to March 2022, satisfaction levels were still lower than 2019 levels, which may contribute to consumer spending habits. The War in Ukraine and uncertainty surrounding the UK’s exit from the EU are other factors which have also had an effect on the economy within the last three years, suggesting that Coronavirus may not be the only factor […]

Peter de Savary, entrepreneur and hotelier, dies aged 78

2nd November 2022

Entrepreneur Peter de Savary passed away on Sunday (30 October), at the age of 78, following a remarkable career that spanned six decades and four continents. De Savary made his first fortune after establishing an import/export business in Nigeria and would go on to pursue a number of other enterprises before turning his hand to hospitality. He opened the first St James’s Club in London in 1979, noticing a gap in the market for small, personal hotels and built up the worldwide chain with venues in Antigua, Paris, Los Angeles, and New York. He sold the chain in the late 1980s for more than £56.6m and set about restoring Skibo Castle in Scotland. This became the first Carnegie Club property when it reopened in 1995 after a five-year revamp, and was sold eight years later to a group of members for £27m. De Savary was also responsible for the regeneration of industrial land in the US and UK. His vision created more than 60 hotels, resorts and hospitality projects, including seven championship golf courses and three world-class marinas. The Havana West portfolio of boutique hotels he created and ran with his wide Lana, include the Beachcroft hotel in Bognor Regis, […]

OutPost launches at Lendlease’s IQL Stratford

2nd November 2022

East London bar OutPost has launched at Lendlease’s International Quarter London (IQL), following the success of its sister site, White Post, in Hackney. The new OutPost location serves as a flexible, multi-purpose creative space. Following in the footsteps of its sister site, OutPost is a community-led bar, that also operates as a venue for meetings, pre and post-event gatherings and workshops. The bar serves an extensive range of local and international beers, a comprehensive wine and cocktail menu, and a selection of artisan stone baked pizzas. Guy Thomas, Head of Place Assets at Lendlease Europe, comments: “IQL is one of the most exciting hubs for forward-thinking businesses in the UK and has been designed as a destination for collaboration, creativity, and innovation. Adding to the local operators we have brought to the IQL estate and with its community-focused and multi-purpose approach, OutPost is a great asset for IQL and Stratford, reflecting post-pandemic consumer priorities of flexibility and connectivity delivering a bar that will be the enhance the social scene.” Dan Heath, found of Outpost, comments: “Unrivalled in connectivity and with community front of mind, IQL Stratford has so much to offer an independent business such as OutPost. We are excited […]

Jobs at risk as 132 “loss-making” McColl’s stores to close

2nd November 2022

Supermarket chain Morrisons has said it plans to close 132 McColl’s convenience stores, putting 1,300 jobs at risk. Morrisons said the stores set to close were “loss-making” and had “no realistic prospect” of recovering soon. The grocer purchased McColl’s out of administration in May. McColl’s currently has 1,164 stores, with 286 operating under the Morrisons Daily brand. The supermarket chain now plans to convert most of its remaining McColl’s shops into Morrisons Daily convenience stores. Redundant workers will be offered jobs elsewhere within the company, says Morrisons. Out of the closing stores, 55 have a Post Office counter. Morrisons said it would delay the closure of these stores until after Christmas “to allow the Post Office additional time to make alternative arrangements.” After competition regulators cleared Morrisons to buy McColl’s last week, Morrisons chief executive David Potts said the retailer “was now able to begin the urgent journey to transform McColl’s into a viable, well-invested and growing operation”. He added that there would be more than 1,000 Morrisons Daily stores trading within two years. Joseph Sutton, director of Morrisons wholesale, said: “We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step...

Vertu Motors acquires two BMW outlets

1st November 2022

UK automotive retailer Vertu Motors has announced the acquisition of two BMW Motorrad outlets in Yorkshire. The two outlets in Rotherham and Shipley, near Bradford will become part of the retailer’s motorcycle division. BMW Motorrads is the motorcycle brand of BMW (‘Motorrad’ meaning ‘motorcycle’ in German), and the two shops will immediately trade under the Vertu Brand after being acquired from Saltaire Motor Company Ltd, which trades as Alan Jefferies. Established in 2006, Vertu Motors aims to ‘consolidate the UK motor retail sector’ and operates 160 sales outlets, including one Motorrad outlet in Sunderland which it acquired in 2020. Robert Forrester, CEO of Vertu Motors, said: “Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically to the Group. Vertu becomes the largest partner in the UK for BMW Motorrad.” Paulo Alves, Head of BMW Motorrad UK and Ireland, added: “We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu. The Jefferies family have built a fantastic operation and we are confident that the business will be in good hands. As a leading brand, our customers take priority and we share this […]

Made.com close to administration as shares suspended

1st November 2022

Online furniture retailer Made.com has filed a notice of intention to appoint administrators as the Financial Conduct Authority suspends the trading of sales in the company. This comes after the company announced that it had failed to find a buyer last week. The online retailer ceased taking new orders last Wednesday (26th October) after its stock prices plummeted. Made.com was founded in 2011 and describes itself as the ‘leading digitally native lifestyle brand in home, connecting designers and makers to customers through technology.’ The retailer saw a boom in sales during the COVID-19 pandemic as more people shopped from home and saw a valuation of £775m on the London Stock Exchange in June 2021. Since then, the company has suffered weaker sales as consumer spending habits see more customers heading back to the high street. In a statement this morning, Made.com Design Ltd (MDL) said that it had ‘received proposals from interested parties to acquire certain of or substantially all of MDL’s trade, assets and brands’, however it added that at this point any sale at this stage would be ‘affected by administrators.’ It also added that the board expected the company to be ‘wound up’, that is, shutting down […]

Festival Place celebrates its 20th anniversary

31st October 2022

Festival Place celebrated it’s 20th anniversary last week. Under the ownership of AEW Europe, the 1.1 million sq ft scheme has established itself as the leading retail destination in Hampshire. Since its opening on the 22nd of October 2002, Festival Place has attracted more than 22 million annual visitors by adapting to their consumers changing habits. The centre recently welcomed brands such as Brewdog, Five Guys and Tapas Revolution after introducing a strategic leasing programme focused on food and beverage over the last 18 months. The successes of this programme have led to 25 newly agreed leases/lease renewals since the beginning of 2021, while footfall has now returned to pre-pandemic levels. Last month Festival Place announced it would be expanding its offering through the launch of community-focused initiatives. Recent community efforts include the provision of vital services such as a 6,113 sq. ft. community NHS Health Hub in a prime location within the centre, and the offering of free space to the Community Food Link, a Basingstoke charity that collects fresh food and delivers it to those in needs, to operate a new delivery hub. A new community art wall created by children attending local schools alongside local artists has […]

Cornish Bakery launches Plymouth Barbican outlet as part of wider expansion plan

31st October 2022

Independent chain Cornish Bakery has announced the opening of a waterfront bakery in Plymouth Barbican, Devon. The 2,600 sq ft bakery will be housed in a Grade II listed former glassblowing building with double-height ceilings and floor-to-ceiling windows, giving views out onto the marina and the cobblestoned Barbican. Cornish Bakery founder Steve Grocutt wants to expand the business by opening 100 sites across the country. He said: ““We’re proving ‘bakery is the new coffee shop’ in the most sought-after destinations and locations in the UK.” Grocutt added: “From the minute I saw it [Plymouth Barbican], I knew this would be an incredible space for us – and the sophisticated design and fit-out has met all my expectations… you can’t help but feel the emotive power of this historic space and location.” Cornish Bakery has appointed KLM Real Estate to help deliver its expansion plans.

WatchPilot to open first physical store

31st October 2022

Online watch retailer WatchPilot is set to launch its first physical store on George Street in Richmond on 7th November. The business has been an online-only venture since it was founded in 2020, after the COVID-19 pandemic hampered plans to open a physical store sooner. WatchPilot has worked with international design and display company Redd Retail Group to help design the concept store. Tim Harrison, co-founder and co-director of WatchPilot, said: “We will continue to grow our online presence, however particularly within the luxury side of watch retail, there will always be a demand for a premium, in store experience. If our initial Richmond store proves successful, we are open to replicating the concept in other similar locations. “We will provide a premium shopping service delivered by a staff of watch experts in a relaxed, modern retail environment.” Akbar Hussain, co-founder and co-director said: “We are looking to deliver a local retail alternative in the Richmond area which will offer leading Swiss, as well as fashion brands along with smaller niche brands, that do not gain the visibility they deserve in major national retailers.” The new store will also offer designer and sport sunglasses. Property consultant Stephen Kane and Company […]

H&M reopens ‘elevated’ Angel Central store after refurbishment

31st October 2022

Fashion retailer H&M has reopened its Angel Central store in Islington, which now offers its H&M HOME concept, ‘experiential services’, and a new interior. The renovated store features click-and-collect lockers as well as self-service checkouts as the company looks to create a ‘seamless customer experience’. Christopher Clare, the H&M UK & IE expansion manager, said that H&M Angel Central “will create a welcoming, modern and meaningful shopping experience where style, creativity and culture are celebrated.” The Swedish company opened its first UK store in 1976 and its portfolio currently includes over 200 stores in the UK and Ireland. The retailer aims to promote sustainability as its looks to encourage a ‘transition to circular, climate positive fashion.’ The Islington store will offer H&M’s garment collection and recycling service, launched in 2013, which allows customers to donate unwanted clothes and textiles. Ciara Duffy, asset manager at CBRE Investment Management, said: “H&M has been an important retail anchor at Angel Central for many years, and has built a solid foundation within the community of Islington. The brand’s refurbishment elevates the store with a refreshed interior and enhanced customer experience, and its emphasis and focus on sustainability very much mirrors the ethos of Angel...