Retail Property News

New Look to accelerate store closures

6th January 2025

New Look is set to accelerate store closures, with around a quarter of the fashion retailer’s locations at risk. The retailer – which operates 364 stores across the UK – is likely to close the stores when leases expire, The Times has reported. It is believed that the acceleration in closures is a direct result of increased costs announced in the October Budget. These include a hike in employer National Insurance to 15% and a reduced threshold at which they pay the tax. Minimum wage is also set to increase to £12.21 an hour while business rates are also due to rise in April. New Look traded from nearly 600 stores in the UK in 2018, but has since reduced its high street presence following two restructuring processes. The retailer’s stores are now held on relatively short leases with rents linked to store turnover. A spokesperson for New Look told The Times: “Our store estate is an important part of our business, alongside our best-in-class website and app. On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable. However, we remain on the lookout for appropriate new opportunities across the […]

The O2 hails record year of sales and footfall

6th January 2025

The O2 in London has recorded its best-ever year for sales and footfall, with the live entertainment destination bolstered by significant leasing across its retail, leisure, and F&B offerings. In 2024, The O2 welcomed over 10 million visitors, an increase of 12% compared to 2023 and a record for the destination. Meanwhile, sales across retail, leisure, and F&B were up by 6% year-on-year, signifying The O2‘s best-ever year for trade. Outlet Shopping at The O2 finished the year 10% up on 2023’s sales, with standout trading periods including Black Friday, with the three-day weekend of 29th November to 1st December sitting in the destination’s top five sale days of the year, whilst the full week of 25th November to 1st December recording a 16% like-for-like sales uplift compared to the previous year. The retail destination also welcomed over 31,000 sq ft of new brands in 2024, including All Good Things, Clarks, Bedeck, Castore, and Soletrader, as well as several renewals for existing tenants such as Le Creuset, Whittard, and Clarins. Meanwhile at The O2‘s Entertainment District, sales were up by 3% compared to 2023, after the destination achieved full leasing completion in February 2024. New arrivals included Chopstix and Slim...

Pandora to upsize Bath store

6th January 2025

Pandora is set to upsize in Bath after signing a new 10-year lease. The jewellery retailer will relocate from its current unit within Southgate Shopping Centre to 56 Southgate Street, which was previously occupied by EE. The new store comprises 1,630 sq ft split over two levels and is situated on a prominent retail position, located at the junction of Southgate Street, Stall Street, and the entrance to Southgate Shopping Centre. A rent in excess of the quoted figure of £125,000 per annum was achieved on the lease. GCW advised the landlord, a private investor, whilst Stephen Kane & Co acted for Pandora.

London Designer Outlet celebrates bumper 2024 as outlets continue to thrive

3rd January 2025

London Designer Outlet (LDO) at Wembley Park has hailed a 2024 which saw sales figures grow year-on-year by 5% to over £103m. The outlet shopping centre also welcomed over 5.4 million visitors during the past 12 months, representing an increase of 2% compared to 2022. These figures were bolstered by LDO reporting its strongest-ever Black Friday, with sales increasing by 12% year-on-year, including £749,000 worth of sales on the Saturday. Meanwhile, LDO’s retailers took over £3.4m in one week over Christmas, up 7.8%, and made nearly £1m of sales on Boxing Day, an increase of over 10%. These figures have been aided by a tenant mix which has looked to reflect changes in Londoner’s shopping trends. During 2024, LDO secured 11 new lettings and relocations reflecting a total area of 15,759 sq ft. New tenants included French Connection and Rituals as well as outlet debuts for MINISO and Abaci. Alongside the arrival of new brands, LDO also saw continued commitment from 18 existing tenants which, occupying a total area of 32,594 sq ft, recommitted their futures to the scheme and invested to upgrade and enhance their stores. LDO has also enhanced its F&B line-up after announcing the addition of Afrikana, […]

Carlisle’s Eden Centre and Market Hall changes hands

3rd January 2025

The Eden Centre in Carlisle has changed hands after being acquired by the Llandudno-based Bearmont Group. The centre also includes The Market Hall, a former Wilko store, a Tk Maxx Store, and a retail arcade, and is one of the few covered Victorian markets remaining in the UK. The scheme – which was previously owned by BAE Systems 2000 Pension Funds Trustees Limited – is also home to a number of independent businesses, including a greengrocer, a butcher, a flower shop, as well as several cafes and food outlets. Rob Lloyd, CEO of Bearmont Group, said the building needed “some TLC” as well as refurbishments, and hoped that the number of tenants at the scheme could be increased. “The centre is approximately 40% vacant and we would hope that Bearmont will provide its magic touch to get the vacant space let within three-to-six months,” he added. Day-to-day management of The Eden Centre will be handled by Mason Partners. Barbara Cannon, Labour councillor for Cumberland Council, welcomed the news: “The Market Hall presents a huge opportunity to create an exciting destination for residents and visitors that would contribute to the vitality and sustainability of Carlisle city centre,” she said. “It’s been […]

Liverpool ONE kicks of 2025 with opening of upsized Zara

3rd January 2025

Zara has opened its upsized store at Liverpool ONE shopping centre, marking the beginning of what is set to become the Liverpool scheme’s biggest-ever year for openings. The Inditex-owned fashion retailer has increased its presence at Liverpool ONE by 55%, upsizing from 27,200 sq ft to 42,000 sq ft at its flagship store on South John Street. Set across two floors, the reopened store offers a larger collection of menswear, womenswear, and childrenswear. Alongside a more spacious interior, the flagship also introduces the brand’s latest technologies such as self-service payment systems. Rob Deacon, asset management director at Liverpool ONE, said: “Liverpool ONE is defined by its leading mix of brands and ability to deliver the best of the best, and the opening of Zara’s significantly upsized regional flagship is the perfect example of this.  Demand for Liverpool ONE is at an all-time high, with leading brands recognising its appeal as a destination for flagships and showcase spaces. “2024 was a milestone year for big-name signings and 2025 will be our biggest year for openings yet, with UNIQLO, Sephora and TFG London set to make their debuts.” Zara is one of 22 brands to invest in their existing stores at Liverpool...

Pizza Hut’s biggest UK franchisee seeks new ownership

2nd January 2025

The UK’s biggest franchisee of the Pizza Hut restaurant chain is in advanced talks with potential buyers regarding a takeover of the business. Heart With Smart – which operates nearly 150 Pizza Hut restaurants in the UK – is aiming to select a preferred bidder for the company in January, Sky News has reported. Sources close to the process told Sky that a range of trade and financial buyers have expressed an interest in acquiring a large stake in the American pizza restaurant chain. The company operates all of Pizza Hut’s dine-in restaurants in Britain, but does not operate any delivery outlets, which are instead run by individual franchisees. In November, it was reported that Heart With Smart had already begun approaching potential bidders as it looked to offset higher costs brought about by the October Budget. Insiders previously said that the increases to the national living wage and employers’ national insurance contributions would add approximately £4m to Heart With Smart’s annual costs – equivalent to more than half of 2023’s EBITDA (earnings before interest, tax, depreciation and amortisation). Heart With Smart is working with advisers at Interpath during the process.

High streets lost more than 13,000 stores in 2024

2nd January 2025

Over 13,000 stores on UK high streets closed their doors in 2024, according to new figures. The Centre for Retail Research found that 13,479 stores closed their doors in 2024, an increase of more 28% compared to the previous year. Independent shops in particular suffered, with 11,341 closing in 2024, representing an uptick of 45.5% against 2023. The data also revealed that over half of the closed stores, 7,537 in total, were shuttered after some form of insolvency procedure undertaken by the retailer. Large chains including Carpetright and Homebase closed stores after entering insolvency in 2024. A further 5,942 stores were found to have closed through cost-cutting programmes, with retailers including Boots and Shoe Zone reducing their exposure to high street retail in 2024. The Centre for Retail Research also said it expects store closures to jump to around 17,350 in 2025, with around 14,660 of these coming from independent retailers. Professor Joshua Bamfield, director of the Centre for Retail Research, said: “Whilst the results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.” Despite these figures, […]

Co-op plans to open 75 convenience stores in 2025

2nd January 2025

Co-op has announced plans to open 75 new convenience stores across the UK in 2025, as part of long-term plans to open 120 new stores over the next four years. These will include both Co-op estate stores and Co-op franchise stores, a sector which the retailer has actively pursued recently with strong growth. Last year saw the group open franchise stores on university campuses, on petrol forecourts (in partnership with EG On The Move), as well as a store at HMS Collingwood and one in a hospital, a first for the group. The first new Co-op stores to open in early 2025 will be located at The Anchorage in Salford Quays and East Benton, Newcastle Upon Tyne. In addition to the new openings, Co-op has also planned to undertake major refurbishments at 80 further stores this year, including those in Exeter, Brighton, Bristol, Cambridgeshire, Hampshire, Avonmouth, Hereford, and Clapham. As well as offering traditional groceries, the group’s convenience stores offer added services including parcel collection and returns and payment services.

What’s in store for the retail market in 2025?

2nd January 2025

The retail and leisure market is constantly evolving. It wasn’t too long ago that high streets, large department stores, and shopping centres, were the dominant force driving the sector forwards. The world of retail has a different look now, with online shopping, shifts in consumer preferences, and a global pandemic all reshaping the industry. The year 2025 will mark half a decade since the country went into complete lockdown, at a time when it looked as though the market may never recover. However, some operators have found a way to thrive since then. Experiential leisure and F&B for example, have found a new lease of life over the last few years. Although what happens to the market this year is yet to be seen, Completely Retail News spoke to industry experts to get their takes on what’s in store in 2025: Chris Lidington, associate partner for retail and fast-moving consumer goods at CACI: “At CACI, there are a number of trends we foresee coming into play across the year ahead. “More retailers will start to charge a premium for convenient fulfilment of online orders and returns. We have already seen this with Asos changing their returns policy and where it has not worked...

Q&A: Outlet shopping in 2024 and beyond

24th December 2024

Outlet shopping destinations have thrived in 2024, continuing a post-pandemic trend that has seen them withstand the ongoing financial pressures which have put many retail centres at risk. This year, centres such as London Designer Outlet in Wembley Park and the North East’s Dalton Park Outlet have posted record sales, a testament to the strength of the outlet shopping market. But what has driven outlet shopping’s success in 2024? And what lies in store for next year? Matt Slade, retail director at London Designer Outlet owner Quintain, and Simon Tothill, property and development director at Robert Hitchins – the developer of Cotswolds Designer Outlet, set to open next year – gave Completely Retail News their thoughts on the outlet shopping market. Matt Slade and Simon Tothill How have outlet shopping destinations been able to evolve throughout 2024? Despite continuing economic difficulties, outlet shopping destinations have continued to succeed. Why is this? London Designer Outlet We’re seeing more leisure and F&B at outlet centres – are these assets becoming destinations in their own right and not just a place to pick up a bargain? What support does the outlet shopping sector need to continue to thrive into 2025 and beyond? What can we […]

CBRE wraps up 2024 with £62m Manchester retail park acquisition

23rd December 2024

CBRE Investment Management has acquired a retail park in Ashton-Under-Lyne in Manchester from Orchard Street Investment Management for £62m. Located five miles east of the city centre, Snipe Retail Park spans 242,000 sq ft and is anchored by B&Q. CBRE IM was represented by Xprop, whilst Savills acted for Orchard Street. James Hurst, director in investment at Savills, said: “2024 has proved to be a resurgent year in the retail warehouse investment market with strong trade, low vacancy and rental growth driving investment volumes in excess of £3 billion, for only the third time in the last decade. With such a robust occupational platform, we see this trend continuing into next year and beyond.”  The sale represents Savills’ 50th retail park traded this year, with the firm having been involved in over £1.6 billion worth of transactions, representing a 50% share in total market volume.