9th January 2015 WEEKLY NEWS HIGHLIGHTS FROM AROUND THE MARKET KNIGHT FRANK RETAIL NEWS

General retail news

British Land the property company, WHSmith the card and stationary Deal OF the week has sold Kingswood Retail Park, Hull retailer, is trial opening its new value for £58 million reflecting 5.7% NIY and greetings card fascia Cardmarket within House of Fraser in for existing WHSmith stores. £71.4 million reflecting 6.8% NIY. It is understood that there will be a total of five dual-branded WHSmith Intu the shopping centre focussed and Cardmarket stores by the end of REIT, has acquired the Puerto Venecia January. shopping centre and retail park in Spain, one of the best known in the the supermarket chain, has Spanish retail property market, for opened the first of three new 'Format €451 million. Flex lab' store formats in Weybridge. The new concept experiments with MEATliquor the American diner chain, tailored formats that are targeted at is to open a new venue at 77-79 different local communities. 207B Baker Street Stokescroft in Bristol. It will be the The Knight Frank retail agency team chain’s first outpost in the South West, Happy Socks the Swedish retailer, has has successfully secured a ten year and doors are due to open in opened its first standalone store in lease on 207B Baker Street with tenants April 2015. Seven Dials. The 600 sq ft store on Neal Currency Exchange Corporation on Street follows a series of pop-ups behalf of clients Berkeley Court Bone Daddies the ramen concept, has across Europe. Investments Limited at a passing rent opened at the Whole Foods Market in of £26,500 pa. Kensington. It joins the Forever 21 the US fashion retailer, is original Bone Daddies and the Flesh & primed to open 50 stores across key Buns concept in Covent Garden. European Cities during the next three Happy New Year from the Knight years seeking 16,000-21,000 sq ft units Frank Retail Team Busaba Eathai the Thai casual dining in prime locations. chain, has opened at the O2 centre in Greenwich. The 182-cover restaurant River Island the fashion retailer has takes the total number of sites to 13. signed for a 10,000 sq ft store in the Friars Walk development in Newport the supermarket giant, has bringing the scheme to 65% announced it is to close 43 unprofitable occupancy. stores. The move is designed to steady the company following its accounting Fenchurch Seafood, Bar & Grill, crisis last September. Darwin Brasserie and Sky Pod have all Tweet of the Week opened in the Sky Garden at 20 Bolongaro Trevor the -based Fenchurch Street. The venues fashion retailer, is set to expand the offer breakfast, lunch and dinner, right Knight Frank Retail brand across the UK and into the through to night-time drinks. @KFRetail Middle East and US following investment from a Middle Eastern Holland Esquire the men’s tailoring business. brand, has launched a womenswear 8th January 2015 range and is seeking its first store in Congratulations @BouxAvenue Alexandra Boutique the independent London to open in September 2015. who topped the Christmas trading fashion retailer, is to open a new store league table with like-for like sales in Tunbridge Wells, Kent. The former Yeah! Burger the pop-up burger increase of 31.7% owner of London-based store LilliDiva aficionados, have opened a new http://bit.ly/17l89ah is expected to open the new 1,614 sq ft restaurant at Star Of Kings, King's store in March. Cross.

RETAIL IN DETAIL: 9th January 2015

Retailer optimism

Boux Avenue the Theo Paphitis Group owned lingerie retailer, topped the RETAIL OUTLOOK FOR THIS WEEK Christmas trading league table for 2014 with like for like sales up 31.7% in the the discount retailer, six weeks to December 24th. reported the best Christmas trading it has experienced to date. Sales John Lewis the upmarket department increased by 14.7% in the five weeks to store has posted total sales of £777 December 30th. Poundstretcher’s 409 million in the five weeks leading up to stores saw a rise in like-for like sales of December 27th which represents a 10.39% over the festive season 5.8% increase from the year before and accompanied by a 10% rise in footfall. a rise of 4.8% in terms of like-for-like The figures were supported principally sales. 52% of the stores online by the retailers budget food offering customers chose to collect in store, which saw increase of 47.7%. Seasonal representing a shift from traditional products sales rose by 17% and online sales and in store trade to click- clothing sales rose by 25.8% and-collect. Majestic Wine the beverage retailer, Signet the Anglo-American Jewellery saw an increase in sales of 3.7% in the ten weeks to January 5th. The company chain has recorded it’s best Did You Know? performance in a decade with a 9.7% which has more than 200 shops across increase in like-for-like sales. the UK saw a like-for-like sales increase Ted Baker isn’t a real person. The of 1.1%. brand was founded by a man called Ray Kelvin who didn’t use his real Ted Baker has reported a 22.8% year- name because he wanted it to be all on-year increase in sales over the eight about the brand but also because if weeks preceding January reflecting the brand was to go bankrupt his strong performance in both the UK and name wouldn’t be associated. the US.

Market sentiment

Black Friday 2014 was officially the move away from the tradition adopted news for the dining industry. Average biggest day in UK retail history. from the US. household spend on eating out Consumers spent £810 million on the increased 4% (£3) to £76 in November day, rocketing 18% from the volumes Zone A rates on Oxford Street are with households with children spending seen in 2013. Department stores predicted to reach the £1000 mark this 22% more on eating out monthly in benefited from both a 144% increase in year at the western end of the street. comparison to last year. Drinking out spending and a 44% increase in in- Industry experts suggest that Selfridges was flat year on year however store spending. However Andy Street, will be the key driver behind this rental November saw a 4% increase in MD of John Lewis has suggested that increase. spending from October. concentrating so much trade on one day may have negative effects More and more people are choosing to in the UK marketplace and considers eat out according to Green King’s that retailers would be best advised to Leisure Spend Tracker, spelling good

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.