General Retail News
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8th August 2014 WEEKLY RETAIL NEWS HIGHLIGHTS FROM AROUND THE MARKET KNIGHT FRANK RETAIL NEWS General retail news Dixons Carphone the newly merged Walgreens the US pharmacy group, electronics retailer, has opened seven has revealed it will buy the remaining new format stores. The shop-in-shops 55% stake in Alliance Boots. The at 88 Oxford Street includes a merger will create the largest Carphone area that covers 1,072 sq ft pharmaceutical wholesale and of the 4,700 sq ft. A further 23 shops distribution network in the world, with will open in time for Christmas. approximately 11,000 stores. Harrods the iconic department store, Karen Millen the women’s fashion has opened 42,000 sq ft ‘Shoe Heaven’ retailer, has opened a new 5,000 sq ft this week that will stock more than 50 US flagship on New York’s Fifth designers and labels. Avenue. The brand currently has 400 stores across the world and is planning Holland & Barrett the health food to launch new stores in Mexico, retailer, is to open a new concept store Norway, India and Taipei this year. in the Rushmere Shopping Centre in Craigavon, Northern Ireland. The 2,290 Waitrose the supermarket chain, is in sq ft venue is the retailers’ first in both the process of setting up refrigerated 12-22 Strand Street, Douglas, Isle Northern Ireland and Ireland. lockers in Gatwick airport in of Man. partnership with logistics firm ByBox. Sports Direct the sportswear retailer, The service will launch in autumn in The Knight Frank Retail Investment has announced plans to expand heavily both of Gatwick’s terminals enabling Team acted on behalf of the vendor throughout Europe by identifying and travellers to pick up their groceries on in negotiating the freehold sale of working with strong local partners. the way home. 12-22 Strand Street, Douglas, Isle of Man. The investment, occupied by Smiggle the Australian stationer, is to Industrie the Australian menswear Boots and Spa, was bought by open 10 new stores, doubling its store retailer, is planning to expand its UK London Metric for £5.265 million in count, including the Bullring, Westfield store presence by opening up to 30 July 2014. London and Meadowhall –. Smiggle new stores. The company now has operates 150 stores in Australia, 23 in around 80 stores in Australia and one New Zealand and 17 in Singapore but UK store on Earlham Street, London. eventually hopes to have 300 stores in the UK. TwoRuba Bar the Regency-inspired bar, is to open at the Hilton London Schuch the footwear retailer and Tower Bridge this September. The Tweet of the Week Pandora the specialist Jeweller, are standalone venture is located by Tower opening 4,000 sq ft and 950 sq ft stores Bridge on Bankside. respectively in the Frenchgate Knight Frank Retail Shopping Centre, Doncaster. This is Boux Avenue the lingerie retailer, is set @KFRetail part of a £10 million investment plan at to open its first ever airport store at the South Yorkshire Centre. Manchester Airport's Terminal One this 8th August 2014 week. Boux Avenue now have a total of Café Rouge the French restaurant 22 stores across the UK and Ireland. chain, is opening an express site with a Retail property returns hit five-year rotisserie and shop at Victoria Place. Carat the London Jewellery brand, is peak! #Retail #RetailInDetail The venue is the second site following planning to open two additional stores @EGi_research the opening of its first Express store at in Hong Kong . The retailer has 19 http://bit.ly/1oitTdj Euston Station. outlets in the Far East. RETAIL IN DETAIL: 8th August 2014 Retailer optimism RETAIL OUTLOOK FOR THIS WEEK Michael Kors the US luxury lifestyle brand, has posted a surge in profits for its first financial quarter. Revenues increased 43.4% to $919.2 million (£545.3 million) from $640.9 million (£380.2 million) at the end of Waitrose the supermarket chain, is the same period last year, while gross expecting a fall in profits following profit increased 43.9% on the year unprecedented investment. Despite before to $571.6 million (£338.9 were up 4.5% driven by audio and sales growth of 5.2%, excluding petrol, million). European sales on a gaming. In the home department, sales for the half, the retailer is forecasting comparable store basis increased by increased 6.5% as the ‘Any Shape, Any that profits will be impacted when it 54.2%, while in North America, revenue Fabric’ offer in upholstery propelled reveals its interims next month. The increased 30%, with comparable store demand. Beds also did well, up 25%. supermarket has heavily invested in sales growth of 18.7%. The results building its online business, opening come at a time of major retail Card Factory the greetings card new shops and improving existing expansion for the company. Michael retailer, has announced a strong first ones. Over the past week, Waitrose Kors now operates 443 retail stores, half to its financial year with like-for- sales, excluding petrol, rose 6.7% to including concessions, compared to like sales increasing by 2.6%. In the six £121.9m. 328 at the end of the same prior-year months to July, total sales rose by 8.9% period in 2013. The business has an as the retailer experienced strong Did You Know? additional 162 retail stores. growth from both its existing and new stores. Card Factory opened 36 net Michael Kors the fashion designer, John Lewis the department store, has new stores in the period to bring the born Karl Anderson Jr was allowed to reported sales increased 7.5% to total estate to 749 stores however the choose a new first name, aged five £71.12m in the week to August 2. group is confident that it will open net years old, by his mother when she Fashion sales were up 11.9% while 50 new stores in the current financial remarried to Bill Kors. Michael was his electricals and home technology sales year. favourite name. Market sentiment This is welcome news for consumers All five components of the index who have hit the high street boosting dropped in July, in particular the like-for-like spending for the month of forecast for personal finances, as July has recorded a sharp fall in shop July by 1.7%- denoting the fifth consumers are anticipating a hike in prices, marking the fifteenth consecutive monthly increase in interest rates. This data is reinforced by consecutive month of decline. The spending. If this growth trend rolls into The Retail Think Tank that believes British Retail Consortium and Nielsen next month, it will be the first six month public confidence in the economy Shop Price Index revealed prices fell period of straight growth seen in the needs to rise significantly before 1.9% this month. The decline is the past four years. Conflicting data from interest rates are increased, otherwise fastest that the survey has ever GfK’s UK Consumer Confidence Index, concerned consumers could reduce recorded since it began in 2006. Food shows that consumer confidence their spending. inflation fell to 0.3% in July, while non- slipped three points month on month food posted decelerated deflation of in July, to -2 following a rise to +1 in 3.3% from 3.4% in June. June. 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. .