Retail Property News

JYSK results resilient despite global challenges

25th November 2022

Danish furniture retailer JYSK has posted strong financial results, despite challenges from increasing inflation and the War in Ukraine. In its annual report for 2021/22, the retailer posted a pre-tax profit of 4.538bn Danish Krone (c. £525m), an increase of 1% from the year before. JYSK also recorded an increase of 11.2% in turnover to 36.277bn Danish Krone (c. £4.1bn). JYSK has over 3,000 stores worldwide in 48 countries, including 27 in the UK. Jan Bøgh, president and CEO of JYSK, said: “With inflation on the rise, consumer trust in decline and many other challenging global factors, the latest financial year has exceeded even the past few years, which were turbulent on their own.” Bøgh spoke of the war in Ukraine as one of the factors affecting the business. JYSK initially closed all 86 of its Ukrainian stores when war broke out in February, although most are now open again to customers. The retailer also made the decision to close all of its stores in Russia. However, JYSK has managed to open a total of 135 new stores in Europe, with plans to launch in Turkey in spring 2023. Bøgh also announced his departure from the company, with deputy president […]

Frasers Group acquires Savile Row tailors

25th November 2022

Mike Ashley’s Frasers Group has announced its acquisition of Savile Row tailors Gieves & Hawkes. “Welcome to the Group @gieveslondon”, Frasers posted on Instagram. All five of Gieves and Hawkes’s UK stores will be part of the deal, including its flagship shop at Number 1 Savile Row. The tailors was put up for sale earlier this year after its Hong Kong-based owner collapsed into liquidation. Gieves and Hawkes was formed under its current name in 1974, but the origins of its tailoring labels go back to the late-eighteenth century. Gieves and Hawkes has held royal warrants for the late Queen Elizabeth II, King Charles III and the Duke of Edinburgh. It has also dressed some of the most important figures in British History, including Sir Winston Churchill and Lord Nelson. Savile Row, synonymous with high-quality menswear, has seen a reduced customer base since the pandemic as working habits have changed and the need for bespoke suits has fallen. Frasers – formerly known as Sports Direct International – has in recent years acquired a number of High Street brands, including Jack Wills, Evans Cycles and Agent Provocateur. It bought online fashion retailer Missguided for £20m in June, and more recently looked...

Mixed-use destination approved for ex-Debenhams Guildford site

24th November 2022

Property developer Native Land has received approval to transform the ex-Debenhams site in Guildford into a 300,000 sq ft mixed-use destination, to be called St Mary’s Wharf. The new site will comprise of 185 new homes, 21,000 sq ft of retail and restaurant space, and almost an acre of riverside public realm. Native Land says the buildings will be all-electric and net zero carbon in operation. The Guildford project is part of a wider strategy by Native Land to reposition former retail assets in fundamentally strong UK towns and cities. The development will comprise of two buildings, designed by architects Squire & Partners, as well as a new civic square, a park, and a riverside walk with access to the High Street. Native Land has committed £1m to riverside infrastructure spend, which could see a new footbridge constructed over the River Wey. The development looks to repurpose brownfield land and offer a range of 1-3 bedroom homes. Native Land anticipates strong demand for St. Mary’s Wharf. Robert Harris, managing director acquisitions at Native Land, said: “Our plans for St. Mary’s Wharf will inject new life into Guildford town centre by transforming a redundant retail asset into a vibrant mixed-use destination. […]

Mothercare appoints new CEO as profits slump

24th November 2022

Mothercare has announced the appointment of Dan Le Vesconte as its first CEO in two years, as it released its interim results which revealed a drop in profits of £3.2m. The parenting and young children brand has suffered from its withdrawal from Russia, following the invasion of Ukraine. Mothercare estimates this has cost them around £2.9m in earnings. However, international retail sales from its partners increased by 15% over last year, excluding sales from Russia. Mothercare is taking steps to recover lost profits, and said it had successfully completed a refinancing of the business without further equity dilution. The appointment of Le Vesconte is hoped to reinforce the product, brand, E-commerce and distribution skills within the executive team. Le Vesconte has held senior leadership positions at companies such as Abercrombie and Fitch, Hollister, Dr Martens, and the Wolverine Worldwide group of brands. Clive Whiley, chairman of Mothercare, said: “Our results demonstrate the strong foundations and resilience we have created in the business over recent years. Furthermore, we have generated both profit and cash despite the impact of Covid-19 and the war in Ukraine. Our immediate priority now remains to support our franchise partners as we together navigate out of this […]

Demand for energy efficient products powers up Kingfisher

24th November 2022

DIY retailer Kingfisher, the parent group of B&Q and Screwfix, has recorded a third quarter sales increase of 1.7% to £3.3bn, with the retailer saying that demand for energy efficiency was supporting DIY sales. In the three months to October 2022, Kingfisher, who also operate stores in France and Turkey, recorded sales were significantly above pre-pandemic levels, with an increase of 15.3% on a three-year like-for-like (LFL) basis. The retailer also recorded a strong start to the fourth quarter, with a 16.2% increase on a three-year LFL basis for the three weeks leading to November 19. Kingfisher said Screwfix, who have opened two debut stores in France, had made significant gains in market share. TradePoint, B&Q’s trade-focused banner, saw a 29.5% increase in sales on a three-year LFL basis. However, UK & Ireland sales were down 2.3% in the third quarter on a LFL basis, with Kingfisher citing abnormally warm October weather and the funeral of Her Majesty Queen Elizabeth II as reasons for a poorer sales period. Thierry Garnier, CEO of Kingfisher, said: “While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up […]

Trio of openings at Elephant Park

24th November 2022

Real estate company Lendlease has announced the opening of three new venues at Elephant Park. Cyber esports cafe SideQuest, Asian restaurant OISOI, and Taiwanese tea specialists YiFang have taken an interconnected 6,000 sq ft unit facing onto New Kent Road. This news follows the openings of Mexican-inspired restaurant Cheeky Chicos, Korean-Japanese eatery Kokoro, and community pub the Rosy Hue, at the centre. Elephant Park is a £2.5bn regeneration project in Elephant & Castle in cooperation with Southwark Council. When complete, it aims to have opened 50 new retail and leisure units, as well as the completion of 3,000 new homes and 50,000 square feet of workspaces, all centred around a two-acre park. Guy Thomas, head of place assets at Lendlease, said: “Consumers expect more from destinations post-pandemic and increasingly the right tenancy mix is one that blends traditional retail with one-off venues and experiences.” Nash Bond, CF Commercial, and Shelley Sandzer represent Lendlease.

Aldi plans new store in Coventry

24th November 2022

Aldi is planning to open a new supermarket in Coventry’s Central Six Retail Park. The store will take over the long vacant space previously let by Outfit, located next to Boots and TUI. Aldi have yet to announce the stores launch date. Development plans show that the supermarket will create up to 45 new jobs. Aldi has also submitted applications for 10 extra servicing hours to give ‘improved choice’ for locals. The news comes as part of Aldi’s plan to open 100 new stores in the UK over the next two years, averaging one new store every week. The grocery giant invested £4.2m in new stores in Warwickshire in September, creating more than 300 jobs. Richard Thornton, communications director at Aldi UK, said: “We’re continuing to gain even more customers – with over 60 per cent of UK households shopping with Aldi in the last year. Our focus is on expanding our store estate, making sure Aldi is accessible to as many of these new shoppers across the country as possible.

Halfords sees profits fall as customers’ budgets squeezed

23rd November 2022

Halfords has recorded a £28.9m fall in profits compared to last year, with the motoring and cycling retailer citing inflationary headwinds and low customer confidence as reasons for the decline. The £29m profit seen in the first half of the year was significantly lower than the £57.9 recorded a year ago. In the business’ interim review for the financial year, it was revealed that Halfords recorded an increase in revenue of 10.2% in the six months leading up to September, however like-for-like sales were down by 1.5%. Halfords said that service-related sales represented 42.6% of the groups overall sales, with this number expected to arise to around 48% following the acquisition of Lodge Tyre. The retailer expects that over half of its sales will come from services in FY24. Service related sales reached £326m this half, exceeding the total reached in the entirety of FY20. The increase in services demand means Halfords intends to fill 1,000 new automative technician roles within the next year. Halfords says that although service-based sales look strong, sales within more discretionary areas have softened. Graham Stapleton, CEO, said: “In such a volatile macroeconomic environment, our strategy of focusing on the kind of predictable and recurring […]

Schroders announces spree of leasing activity

23rd November 2022

Schroders has announced a wave of retail leasing activity which sees 93% of its portfolio now let. Among the activity is a 15-year lease secured with pets supplies retailer Pets at Home for a 15,000 sq ft unit at Schroders’ now fully occupied Winfrey Avenue Retail Park in Spalding, Lincolnshire, also home to B&Q and Iceland. Schroders also recently announced a series of lettings at two of its larger assets in Bracknell and Romford. A 40,000 sq ft Sports Direct has been opened at The Lexicon in Bracknell within Princess Square, which has recently seen a £30m redevelopment. The Lexicon has also signed off a combined retail space of 22,041 sq ft, including the letting of a Giggling Squid restaurant and women’s clothing store quiz. The Brewery in Romford has seen Schroders secure 18,907 sq ft of lettings to Turtle Bay, Wagamama, and Five Guys. Meanwhile, Turner Rise Retail Park in Colchester has seen the arrival of a McDonald’s drive-through, while home furnishings retailer Dunelm has seen a renegotiation for a c.30,000 sq ft unit on a five-year reversionary lease. Schroders has also secured a deal for a new five-year lease with Sports Direct on Mile End Road in Central […]

Lidl eyes up Bournemouth retail park – at the cost of three existing shops

22nd November 2022

Lidl is planning to open a new store at a Bournemouth retail park, but this could see the existing occupiers demolished. Westover Retail Park is currently home to Pizza Hut, Pets at Home and a Cotswold camping store. Lidl’s proposed development plans would see these existing stores removed. A spokeswoman for Lidl said this would only happen once the existing retail units’ leases expire. In a planning statement, Lidl said: “The site is ideally located to serve the surrounding residential areas and is already in retail use, being an existing retail park. “The proposals would replace the existing non-food retail units with a modern Lidl foodstore, built to our latest specifications.” The supermarket retailer also said the 1,210 sq ft area would include a its bakery, longer style tills and customer toilets. The space includes an 81-space car park with disabled and parent and child spaces, along with EV charging ports.

AO sees greater losses as cost-of-living crisis hurts sales

22nd November 2022

Online electrical retailer AO has posted its interim results revealing an operating loss of £9m, over three times as much as this time last year. The results, which encompass the six months up to September 2022, exposed the impact the cost-of-living crisis is having on consumer spending power. Revenue was down £115m from 2021, while loss before tax saw an increase of 168% to £12m. AO cited a reduction in the electrical market, as well as actions taken to remove loss-making sales and non-core channels, as reasons behind a year-on-year revenue decline of 17%. The retailer is planning to end its operations in Germany, although it now expects this process will cost the company “around zero”, down from its previous estimation of £15m. John Roberts, AO’s founder and chief executive, highlighted an “extraordinarily difficult macro-economic state”. However, AO was pleased to state that it had welcomed over 410,000 new customers, and saw an increase in repeat customer purchase rates. It also said that its customer satisfaction scores remained outstanding, with over 370,000 Trustpilot reviews averaging over 4.6 out of 5 stars. AO has an 18% market share in major domestic appliances and holds a 34% overall market share. Roberts added: […]

Former East Midlands theme park to undergo £65m redevelopment

22nd November 2022

A public consultation has begun on the £65m redevelopment project of Cleethorpes’ Pleasure Island amusement park. Lidl lead a consortium of developers aiming to transform the 54-acre site off the Kings Road into a holiday and tourism hotspot. The development would include 272 1950s-style holiday homes, a 148-room hotel, and a conference centre. Various retail and leisure units, including a Lidl supermarket, are also planned. A family-oriented indoor gaming arcade is also being proposed, featuring a new fishing lake, cycle hire facilities, and food and beverage outlets. The scheme would repurpose a site that has been unoccupied since 2016, creating more than 200 jobs during the initial building phase. This is in addition to the 440 full-time positions that will be filled once development is finished and taken on by operator. An impact evaluation predicts the site to generate around £17m per year once it is operational.  Working on behalf of the developers, planning and development consultant Lichfields is now conducting an online consultation to gather feedback from local residents and stakeholders on the ideas. Jonathan Wallace, senior director at Lichfields, said: “This is a comprehensive redevelopment proposal that will bring an important and well-known local site back into use, allowing several leisure, retail and tourism operators to work closely together across...