14th March 2014 WEEKLY RETAIL NEWS HIGHLIGHTS FROM AROUND THE MARKET KNIGHT FRANK RETAIL NEWS
General retail news
Franklin & Marshall the fashion Lima London the Peruvian restaurant, retailer, has announced plans to open has taken a second UK site in Garrick its first UK store. The 2,654 sq ft unit at Street, Covent Garden. The 70-cover 47/49 Neal Street, Covent Garden will restaurant named Lima Floral will open launch this spring. in July 2014.
Yo! Sushi the restaurant brand, has Volvo Car UK the car manufacturer, taken a 4,400 sq ft unit in Kensington. has opened its first UK pop-up The company has signed a 20-year dealership. The innovative 2,700 sq ft lease at 176-206 Kensington High store will be open at Bluewater, Kent Street, which was quoting a rent of for the next four weeks. £250,000. Robert Dyas, Sutton BrewDog the brewer and retailer, has Westfield Stratford the shopping opened its thirteenth UK site at 108- The Knight Frank Lease Advisory team centre, has agreed new lettings with 110 Devonshire Street, Sheffield – its has completed a lease renewal on Unit two retailers. TK Maxx will take 17,700 second site in Yorkshire following the 1.04, St Nicholas Shopping Centre, sq ft with Gmybox taking a 19,400 sq ft opening of its Leeds bar last year. Sutton. A significant rent reduction was unit. successfully negotiated on behalf of Marks & Spencer the department retained client Robert Dyas on a new Coffee Republic the café chain, will store, has opened its first standalone lease for a term of 5 years. open two new franchised stores this beauty and lingerie store in Saudi month at Queensmere Shopping Arabia. The 2,476 sq ft shop opened Centre, Slough and Trinity Parade, this week in Riyadh, with the company Hounslow. This comes as the company planning to roll the concept out to increases its expansion plans after new Mumbai, India later this spring. franchise agreements in the UK as well as Oman and Qatar. Orlebar Brown the fashion retailer, has taken one of five pop-up units in Floral Las Iguanas the restaurant chain, Street, Covent Garden. The site will launched its second site in Scotland last open in March and the initiative will run week after opening at the former through the spring, encouraging Aspecto unit in West Nile Street, upcoming fashion brands to take Glasgow. temporary space.
Fallen Hero the fashion retailer will Whistles the womenswear retailer, has open its second UK store in Marshall’s announced plans to open its first Yard, Gainsborough. The 1,670 sq ft standalone store outside the UK and up Tweet of the Week store will open in spring 2014. to 50 international stores over the next five years. The company also plans to Knight Frank Retail Transport for London has agreed a open concessions in Bloomingdales @KFRetail deal with Appear Here, the online stores in New York, New Jersey and th property agents, to open pop-up Massachusetts. 7 March 2014 stores across vacant retail units at London Underground stations. Fifteen LA Fitness the gym, has announced The @knightfrank European units will initially be made available at plans to sell 33 of its 80-strong Prime Shopping Centre stations including Piccadilly Circus, portfolio of clubs in the UK. The rental cycle shows rental Baker Street and Old Street (where company also plans to revise the leases growth accelerating in Oslo eight spaces will be offered on three- on some of the remaining 47 sites in a and Paris month deals from April 2014). bid to reduce its debt burden. pic.twitter.com/NfAZlUk776
RETAIL IN DETAIL: 14th March 2014
Retailer SENTIMENT
Morrisons the supermarket has RETAIL OUTLOOK FOR THIS WEEK announced pre-tax losses of £176m for the year to 2 February 2014 – compared to pre-tax profits of £879m the previous year. Turnover fell 2% to £17.7bn while like-for-like sales dropped 2.8% excluding fuel. The disappointing results came as the company prepares to undergo a large JD Wetherspoon the pub operator, restructuring of the business and on Evans Cycles the bicycle retailer, has has announced strong results for the the back of a £903m spend on announced strong results in its financial six month period to 26 January 2014. exceptional items in the financial year – year to November 2013. The company The company recorded a like-for-like in part from property and IT costs. recorded a pre-tax profit of £2.3m in sales increase of 5.2% in the period to Performance was also hit by the the period, an increase from £269,000 £683.2m – boosted by a 10.5% like-for- underperformance of Kiddicare in the previous financial year. The like increase in food sales and a 3.6% (acquired in 2011 for £70m). The company’s sales increased 8.7% year- increase in bar sales. Operating profit company has announced it plans to sell on-year in the period to £144m and increased by 7% to £55.7m with profit this arm of the business along with EBITDA increased 47% in the year from before tax and exceptional items rising FreshDirect in the US. It also aims to 3.9m to 5.7m. The results come on the 8.5% to £37.8m. invest £1bn over the next three years in back of a year where the company an attempt to lower prices and improve opened three new stores and closed efficiencies. one, bringing its UK store portfolio up Did You Know? to 47, and also launched a bike range Shoppers stole approximately with Olympic champion Chris Hoy. £1.6bn from the supermarket
industry last year by sneaking items
through self-service machines.
Market sentiment
Research from the British Retail Average retail performance in February Additionally, in the clothing sector, like- Consortium (BRC) has shown that retail would have been worse still was it not for-like online sales increased 2.6% on prices declined for the tenth for online revenues. Research from the February 2013 levels to comprise 23.6% consecutive month in February, and at BRC-KPMG Retail Sales Monitor shows of total revenues. The weather also had the steepest rate for eight years. Prices that the heavy rain which drove footfall some impact on the pub and fell 1.4% in the month, with food down in February also worked to the restaurant industry according to the inflation down to 1.1% from 1.5% in advantage of online retailers, keeping Coffer Peach Business Tracker, which January and non-food prices dropping shoppers away from stores. Although recorded flat like-for-like sales in the 3% after a 2.7% fall in January - the total like-for-like UK retail sales month – up just 0.2% on 2013. The lowest ever recorded in both instances. dropped 1% in February, without online London market was the best performer These price decreases have been linked shopping sales this would have been with monthly like-for-like sales up to the low footfall experienced on the considerably worse as like-for-like non- 1.3%, whereas the rest of the UK UK’s high streets throughout another food online sales increased 14.3% from recorded a collective 0.3% drop. wet month. February 2013 levels.
KEY CONTACTS DEVELOPMENT CONSULTANCY AGENCY LEASE ADVISORY Ian Barbour Richard Griston Jeremy Elphick Partner, Head of Retail Associate Partner Partner T +44 20 7861 1223 T +44 20 7861 1188 T +44 20 7861 1590 E [email protected] E [email protected] E [email protected]
The above information is sourced from Property Week, Estates Gazette, Retail Week, Drapers, The Times and the BBC and does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects and must not be relied on in any way. No legal responsibility can be accepted by Knight Frank LLP for any loss or damage resultant from the contents of this document.