The Food Retailer Group Acquires Co-Op Stores
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Newsletter Q1 2016 The Food Retailer Group acquires Co-op stores Strongest first quarter yet at Kraus The Co-operative Group has agreed the sale of a portfolio of properties to The Food Retailer Group, a Hilco Capital company. The sale of Somerfield Stores Limited, which comprises 36 trading stores and an additional non-core property portfolio, will bolster the Co-op’s aim of becoming the best local food Kraus Group achieved a record- retailer in the UK. breaking start to the year, delivering its strongest first Co-op Food is already the quarter results since the business country’s most frequently visited major retailer, by The Food Retailer Group will continue to trade as was acquired by Hilco Capital in according to Kantar, helping customers shop little food stores and all staff will TUPE transfer, resulting 2012. The Kraus team smashed and often through its convenience stores. in no planned redundancies. their sales budgets at January’s International Surface Event in The Somerfield Stores properties were originally The Food Retailer Group is working with market Las Vegas (pictured) by 60% and acquired as part of the Co-op’s acquisition of leading wholesaler Booker Group to relaunch the grew overall sales in the period Somerfield in 2008. The 36 trading stores acquired acquired stores under Booker’s Budgens fascia. by 11.6% over the prior year. Kraus’ results are remarkable Project Penny completed HMV rises in Kantar chart as 2016 is the third consecutive year in which the company has Data from Kantar saw HMV move up two percentage delivered strong year-on-year points to number two in the research firm’s UK growth in the first quarter. Q1 Entertainment Retail Barometer. Calculating market 2015 sales were up 9.4% over share based on consumer interviews, the Barometer the prior year and Q1 2014 sales for Q1 saw HMV overtake Tesco to finish just behind were up 6.7% compared with the Amazon. Kantar’s data does not include sales of same period in 2013. vinyl – a major category for HMV – but does include sales by third party Amazon Marketplace sellers. CEO Steve Malinowski was quick Hilco’s retail team completed the successful to praise the “collective hard work transition of 252 stores from 99p Stores to Kantar commented: “Such a strong performance and dedication” of the company’s Poundland in the first quarter. Project Penny kicked from HMV has not been seen since it entered employees, commenting: “I don’t off in October and saw Hilco staff deployed across administration in 2013. HMV has really focused on know of any other company in 99p Stores’ head office and stores to manage the creating an in-store environment that stimulates and the flooring industry that has process for Poundland. excites consumers like it did in its heyday.” made this kind of turnaround.” www.hilcocapital.com Newsletter New Denby range draws on heritage Tilley prepares brand relaunch in South Africa in February, puts the company’s quintessential hats front and centre of stunning natural landscapes. Back at its Toronto base, Tilley’s senior team defined a new product strategy for 2017 and beyond, setting a clear direction for the firm. After 30 years of bringing to market variations of the world’s best sailing hat, Tilley will specifically target Denby launched a significant new enthusiasts of land-based outdoor range in February, mixing design Tilley Endurables is set to launch its first brand pursuits for the first time. With the simple motivation cues from the company’s archives campaign since the company’s acquisition by Hilco of producing the absolute best possible hat for each with contemporary neutral tones. Capital’s Canadian arm, Re:Capital Canada, last activity, Tilley’s new products will major on technical Natural Canvas pays homage April. Using the tagline “Designed for nature. Built performance with specialised features for each to Denby’s classic Chevron for life”, the campaign, which was shot on location environment and activity. collection which was created by designer Gill Pemberton in the 1960s, featuring its distinctive Oceans opens first store Clipper Marine sets up patterned texture on key items. across the water shop in Mallorca As with all of Denby’s stoneware product, Natural Canvas is made in Derbyshire from locally sourced clay and handcrafted by the pottery’s skilled artisans. Clipper Marine expanded into the Balearic Islands Oceans Rattan Furniture opened its first store with the opening of an office in Mallorca at the end in Spain in February. Located in Cartagena in the of the first quarter. Located in Port Alcudiamar, the To coincide with the launch, Murcia region, the store serves the Costa Blanca, new office joins the company’s four UK locations, Denby has produced a series of Costa Del Sol and Costa Almeria areas. offering new and brokerage yacht sales with a short videos showcasing both personal, high quality service. the Natural Canvas range and The outdoor furniture specialist also launched the company, its heritage and a dedicated Spanish ecommerce site offering Clipper Marine is the UK’s fastest-growing yacht its enduring values. To find out nationwide delivery and is planning to open further broker and the world’s third largest distributor of more, visit: bit.ly/1Y7MsPw stores throughout the country. Bavaria motor boats and sailing yachts. 2 Hilco Capital Newsletter Q1 2016 www.hilcocapital.com Newsletter HPR generates Denby overhauls South Korea stores profits for Aggreko the stores and provided the opportunity to greatly improve the brand experience and visual merchandising standards. Denby Korea trades from 36 concessions in Hilco Profit Recovery’s new Lotte and Shingsegae business wins in the first quarter department stores and included Aggreko. The generator 7 stores in Lotte and AK hire company appointed HPR to Denby Korea made swift progress in the first quarter, Plaza outlet centres. conduct an audit recovery review. completing a full refit of the brand’s entire 43 store estate. The company was formed in December At the time of going to press, the company was Aggreko was founded in the 2015 to take over Denby’s operations in the country preparing to open its largest store yet in South Korea Netherlands in 1962 and has from a local operator. The move to direct ownership with a 1,244 sq ft unit in the new Hyundai Premium expanded to become the world’s necessitated the re-fixturing and refurbishment of Outlet mall in Songdo (pictured). leading provider of temporary power systems. The company, which is headquartered in Scotland, provides mission- PureHMV hits new member milestone critical generators to high profile events including the Olympic PureHMV, HMV’s customer rewards programme in Games, FIFA World Cup and the UK and Canada, exceeded four million members Glastonbury Festival. in March. Over 92,000 new Pure cards were sold in the UK alone during the first quarter as the scheme doubled its membership numbers since relaunching HMV CA partners in November 2013. with Ticketmaster Pure, which won Best Loyalty Programme in the HMV Canada inked a deal with Loyalty Awards 2015, lets members exchange Ticketmaster that will see the points earned on purchases at HMV for priority live event ticketing market leader access to HMV events, signed memorabilia, discount launch branded areas in 47 HMV vouchers and the chance to win once-in-a-lifetime which garnered over 13,000 entries. stores across Canada. experiences. Since relaunching, Pure has rewarded members with 425 competitions, 1,500 signed Pure provides consumer insight services to HMV, its By joining forces, Ticketmaster items and 2,000 priority access event tickets. suppliers and carefully selected third parties in the and HMV share opportunities UK and Canada. With over 30% of members in the to deliver unique and engaging Highlights in Q1 included a VIP trip to the Newport hard-to-reach 16-24 age range, Pure has carved out ticketing promotions and bundles Beach Film Festival in California which received over a valuable niche in the consumer insight landscape to fans of live entertainment 75,000 entries and a guitar signed by The 1975 where its competitors struggle to compete. across Canada. www.hilcocapital.com Hilco Capital Newsletter Q1 2016 3 Newsletter Denby adds farm shop to Pottery Village NEWS Adam Henson, presenter of FROM BBC One’s Countryfile, was on ACROSS hand to formally open the new THE POND Walter Smith Farm Shop at Denby Pottery Village. Cutting the Hilco Real Estate has acquired ribbon on the 2,500 sq ft shop, one of Chicago’s historic Henson commented: “Working landmark towers, One North as a farmer and TV presenter LaSalle. The 47-storey office block will undergo an extensive is exciting and rewarding, redevelopment project to particularly as the public are now introduce a variety of high end much more engaged with the tenant amenities. countryside and are interested Hilco Real Estate announced to know where their food comes the sale of Cornucopia Gold Mine, from. I believe that Britain produces pork pies, Walter Smith a notable gold mine in Halfway, Oregon. The property is located the best food in the world and farm has been awarded on the site of a former gold rush shops offer everyone the opportunity Great Taste Supreme boomtown and includes nearly to enjoy great quality produce whilst supporting Champion and is a member of the prestigious Q 900 acres of land. British farmers and producers.” Guild which recognises Britain’s best butchers. Hilco Industrial completed the sale of assets for Harbor Isle The Farm Shop is operated by craft butchers Walter The Walter Smith Farm Shop at Denby Pottery Plastics, a mid-sized injection Smith which has been serving customers across the Village has already proved a resounding success moulding company.