Retail Property News

UK consumer confidence falls again after sales dipped at Christmas

20th January 2023

Consumer confidence dropped to near historic lows in January after a small resurgence in the last quarter of 2022, following a greater than anticipated fall in Christmas sales. This follows a small but consistent increase seen between September and December 2022. GfK’s monthly Consumer Confidence survey was down three points in January to -45, with four of the recorded measures down and one up, compared to December. The measures include personal financial situation and the general economic situation for both the last 12 months, and the next 12 months, as well as the major purchase index, which is a measure of how confident consumers feel about making larger purchases. The only measure which had improved was consumer confidence in their personal financial situation for the next 12 months, although an improvement of two points only brought this score to -27, 25 points worse off than the same time last year. The savings index, which is also measured but not incorporated into the overall index score, also fell by six points to 14. This fall in confidence may not come as a surprise, as Office for National Statistics figures released on Friday revealed that retail sales are estimated to have fallen […]

Colliers: New business rates will provide relief for retailers

20th January 2023

April’s new rates bills following the 2023 rating revaluation will provide welcome relief for many larger retailers, and already appear to be encouraging new store openings, says Colliers’ head of business rates John Webber. Webber highlights the recent news of M&S’s £480m investment across its UK stores and its plans to open five new locations in 2023 as an encouraging sign for retailers. “There is no doubt a more favourable business rates environment will help such store expansion, particularly as the government listened to the industry and has not brought in a downwards transition scheme, so that retailers will be paying lower rate bills immediately following the start of the new list in April”, Webber said. The retail sector will see a 10% decrease in rateable value (RV) and rates bills in the next list, however Colliers anticipates that some areas will see reductions of 30 or 40%. Large department stores and hypermarkets were among the biggest winners of the revaluation, with RVs in London’s Oxford Street having fallen by approximately 30%. 2023’s business rates revaluation explained M&S’s decision to open its new store in the vacant Debenham building in the Bullring has led Colliers to believe that the rates...

Gloucester Quays enjoys record sales

20th January 2023

Property developer Peel L&P has announced that south west outlet and dining destination Gloucester Quays reported record sales in 2022. Sales at the Gloucester scheme last year surpassed both 2021 and 2019 by 6% and 9% respectively. The figures, which covered the period from March 28 to December 31 2022, showed growth at the destination across all sectors. Against the same period in 2019, retail sales saw an increase of 8% while food and beverage sales jumped by 10.5%, both supplemented by leasing in 2022, which saw an upsize at fashion retailer Levi’s and the opening of Mediterranean eatery The Real Greek. In December, Gloucester Quays welcomed bath, body, and beauty retailer Molton Brown, topping off a 2022 which saw over 15,000 sq ft of new lettings arrive at the scheme. Peel L&P added that its Christmas results were also positive, despite a shift in consumer habits to start festive shopping early which saw footfall considerably up in November. Despite this, December sales were up 14% versus 2019, and 18% higher than 2021. Gloucester Quays’ Christmas market returned in 2022, opening only at weekends as a response to customer demand. The destination saw footfall increase by 8% and sales rise […]

CBRE makes appointment to newly created role

19th January 2023

Real estate group CBRE has announced the appointment of Antonio Tarroc in a brand-new role. Tarroc will take the reigns as retail property platform lead for Europe, the Middle East and Asia (EMEA). CBRE said the new appointment will help deliver on its ambition to create a market-leading retail operator platform for EMEA. Tarroc has worked at CBRE Investment Management for nearly six years and will continue in his current role as head of retail asset management Iberia. With over 13 years experience in real estate, he has specialised in property, asset, and investment management in the retail sector. The appointment completes CBRE’s EMEA operating model evolution with regards to property platform leads, with each sector now having a dedicated lead for retail, logistics, offices, and residential. Eric Decouvelaere, EMEA head of retail operator division, at CBRE Investment Management, said: “Antonio’s promotion to retail property platform lead EMEA completes our roster of property platform leads and to have filled this role internally exemplifies the depth and breadth of talent across our team. Antonio will be crucial in delivering consistent standards that meet the highest requirements across our market-leading retail operator platform, and we are delighted to have appointed someone of […]

Dunelm credits customer offer for soaring sales

19th January 2023

Homeware retailer Dunelm has recorded a strong second quarter which has seen revenue skyrocket. Total sales for the second quarter (13 weeks to December 31 2022) of its 2023 financial year (FY) rose 18% year-on-year to £478m, a 48% increase against pre-pandemic levels. Revenue for the first half of FY23 reached £835m, a year-on-year increase of 5% and 43% higher than pre-COVID levels. Dunelm said it had seen strong growth both in stores and its online division, which now represents 35% of the retailer’s total sales. Its full year guidance remains unchanged from its preliminary results in September, and that its profit guidance remains ahead of market expectations. The strong performance reflects a quarter in which its Autumn and Winter ranges proved popular with customers, the retailer said. It added that it had seen broad based growth across all categories and good sales amongst its Christmas offering. “We are pleased with recent trading and our focus remains on continuing to offer outstanding choice and value across our broad range of categories. Consumers are still adapting to the inflationary environment and our product offering, which includes many everyday essential items, is resonating with new and existing customers”, the retailer said in […]

SCC: Increasing concerns for Scottish businesses

19th January 2023

The Scottish Chambers of Commerce (SCC) have highlighted a number of key concerns which are facing Scottish businesses, including price rises, labour costs, inflation and a decline in consumer confidence. As a result of these hardships, cashflow and profits are falling, investment decisions have paused, and firms are raising prices and struggling to recruit and retain staff, the SCC have said. The SCC’s report said that 82% of all firms indicated that they intend to raise their prices over the next quarter, a record high for the survey. The retail and tourism sectors had the highest proportion of firms indicating a future price rise at 77% and 76% respectively. The report said that labour has now overtaken energy as the top cost pressure for businesses, with concern over the former halving since the last quarter as a result of the Government’s energy bill relief scheme. Over seven in ten firms (72%) said that labour costs were now the biggest cost pressure for businesses. Concern remains over the cost of fuel and raw materials, both cited by six in ten firms. Concern for inflation has fallen for a second successive quarter, but is still cited by 8 in 10 businesses and...

Hotel Chocolat looking to open 50 new stores

19th January 2023

Hotel Chocolat plans to open 50 new shops in the UK after enjoying its best ever Christmas. The chocolatier said it was considering a return to the US after an increase in sales of 10%. The retailer withdrew from the US last year following heavy losses. The luxury brand was founded in 2004 as an online only retailer. It now has 125 outlets in the UK and plans to open 50 new stores in the next three to five years. UK and Ireland stores posted a like-for-like sales increase of 10% for the 9 weeks ending Christmas Day 2022. For the half-year (26 weeks to December 25), like-for-like sales were up by 7%. This number was 25% higher than pre-Covid levels. The retailer did note that online revenues were lower year-on-year due to more customers beginning to revisit high street stores and a deliberately lower marketing spend. The upmarket chocolate brand also said it was showing encouraging progress on its strategic plan, which involves an inventory reduction and a management of overhead costs, demonstrated by strong cash generation and an improving sales trend following record temperatures in the UK hitting consumer demands. It added that its new store format and […]

£3.5bn Silvertown regeneration plan submitted

19th January 2023

A planning application for the Silvertown site in Newham has been submitted by The Silvertown Partnership, a joint venture between Lendlease and Starwood Capital. The £3.5bn plan would aim to develop Silvertown as a cultural hub for the Royal Docks, with arts and leisure facilities, cafés, restaurants, and bars. New public squares would host cultural events and access to green spaces would aim to provide access to nature and encourage walking. The newly opened Custom House Station on the Elizabeth Line would also provide access to the development, just 15 minutes from central London. The plans also accommodate for 6,500 new homes with a 50% affordable housing target. The designs for the 50-acre site feature a restoration of the iconic Millennium Mills building, which has been left derelict and mostly unused for 40 years. Situated within the Capital’s only Enterprise Zone, the London Plan identifies the Silvertown site as one of London’s largest regeneration opportunities with the development expected to contribute between £76-£90m annually to the city’s economy. The proposals also reveal plans to make Silvertown an industrial hub, featuring over 780,000 sq ft of next generation work and creative spaces in the refurbished Millenium Mills buildings and surrounding employment […]

NewRiver praises strong tenant trading as occupancy increases

19th January 2023

Real estate investment trust (REIT) NewRiver has credited the strength of its portfolio as its tenants continued to trade well into the Christmas period. The REIT also cited its retail occupancy rate as a reason to be confident, increasing to 96.5% from 96.3% in September 2022 and 95.6% in March 2022. Leading retailers in NewRiver’s portfolio include B&M, Sainsbury’s, M&S, JD Sports, and Poundland. NewRiver said that above-expected Christmas trading for multi-channel retailers reflected the importance of a physical store network and suggested that the UK consumer is perhaps more resilient than expected. The REIT also said that it had agreed 673,300 sq ft of new lettings and renewals for its 2023 financial year (FY23), including the appointment by M&G Real Estate to manage a retail portfolio including 16 retail parks and one shopping centre in the UK. The agreement with M&G is for a term of three years and will bring the total number of retail parks under NewRiver’s management to 31. NewRiver added that 180,100 sq ft of new lettings had been agreed in the third quarter of FY23. Allan Lockhart, NewRiver chief executive, said: “Our focus on resilient retail, alongside our best-in-class operating platform and the strength […]

John Lewis continues real estate venture with Bromley proposal

19th January 2023

The John Lewis partnership is looking to invest further into real estate projects, having unveiled plans for its latest scheme in Bromley. The proposals detail improvements to the existing Waitrose shop, as well as the creation of a public piazza, café and green spaces. The plans also include the construction of around 350 homes. In December, John Lewis announced a joint venture with global investment firm abrdn which looks to deliver 1,000 new homes in a £500m deal. John Lewis said that although it has unveiled the design for Bromley, it will continue to evolve the plans as the consultation process involving residents and community groups continues. The site is located next to Bromley South Rail Station in the centre of the South London town. John Lewis said it had tested various designs to determine how the buildings would integrate with the site’s surroundings. The newly constructed properties would be owned, developed, and managed by John Lewis, who says it is aiming to deliver 10,000 homes in the next 10 years, half of which would be built within schemes within its own portfolio. The group is aiming for 40% of its profits to come from non-retail income by 2030.

Boohoo sees sales slip after strong 2021

19th January 2023

Online fashion retailer boohoo saw a slump in sales in the latter months of 2022, citing a strong end to the previous year and a focus on cost reduction. In the four months to December 31, boohoo recorded a UK revenue of £400.8m, a fall of 11% £451m in 2021. This however was 57% higher than in 2019, the last Christmas period unaffected by COVID-19. boohoo cited a strong 2021 as a reason for the fall in revenue. Concerns about the Omicron variant towards the end of 2021 meant many customers looked towards online retailers as they stayed away from the high street. boohoo said it had seen improvements in its cash generation through tighter inventory management, cost control, and an improved working capital cycle. The retailer also noted the launch of its distribution centre in Sheffield, which it said will lead to improvements in efficiency in the coming months. On the international front, boohoo saw a fall in revenue in all regions, which it said was affected by extended delivery times. boohoo expects its 2023 financial year (ending February 28) revenues to decline by 12% for the full twelve months. The retailer said it continues to optimise its operations […]

SouthGate makes two retail signings

19th January 2023

British Land and Aviva have announced the signing of ZARA and Goldsmiths to Bath shopping destination SouthGate. Fashion retailer ZARA will take a 32,000 sq ft unit spanning over two floors, the brand’s first outlet in the city. They join jewellery retailer Goldsmiths, which has agreed to take a 5,000 sq ft space. The lettings build on what was a strong first half of the year for British Land, which saw 1m sq ft of retail deals being signed across its portfolio. Both stores are set to open in the Autumn, joining brands such as Apple, Lululemon, Tommy Hilfiger and Levi’s. Kate Lea, head of shopping centre leasing at British Land, said: “ZARA’s decision to choose SouthGate for its first store in the city is a testament to the popularity of the destination, and the work we’ve done to make the centre as attractive and engaging for customers as possible.” British Land and Aviva Investors were advised by Cushman & Wakefield.