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| Retail Burn |
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| This month, the most talked about retailers, according to SnapShop and the Retail Burn, include H&M ,
John Lewis,
Uniqlo,
J Sainsbury's PLC,
Tesco plc,
Amazon,
Waitrose,
Starbucks,
McDonalds,
Debenhams,
Staples,
Nokia,
Comet,
Mothercare,
Topps Tiles,
Pringle of Scotland,
Liz Claiborne ,
Carpetright,
Best Buy and
Aquascutum.
The retailer with the highest number of positive news articles in April was H&M . The retailer is considering the UK for the global launch of its planned new upmarket fascia '&Other Stories'.
At the other end of the scale, Aquascutum collapsed into administration. Administrators have closed its 100 year old factory in Corby, making 115 staff redundant.
Other notable stories include the news that Staples is undertaking a property review in which it is considering around 30 store closures.
Amazon plans to bring shoppers high-end fashion including Michael Kors, Vivienne Westwood, Jack Spade and many others.
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| Retailer Births & Deaths |
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In April, eleven new retailers were added to SnapShop and four retailers went into administration.
New Retailers
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Canteen (Restaurant) |
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Watermark Books |
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Frae |
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Robert Stewart |
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Bayfields Opticians |
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Galeries Lafayette |
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Liz Earl |
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Superga |
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Orlebar Brown |
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Whitby's |
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Kit & Kaboodle |
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Retailers In Administration
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Administrations in April remain the same compared to March; However they are a lot lower compared with April last year.
The number of new retailers for April 2012 has shot up to eleven. The highest recorded number since April 2009.
SnapShop members can be notified when retailers go into administration or new retailers are added to SnapShop. |
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| Hot 100 |
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| The Hot 100 in April 2012 included; |
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| These highly sustainable businesses have consistently delighted their loyal customers, have prudently managed their finances and have cautiously expanded, maintaining their appeal. |
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| The FSP Retail News Index is a 3 month moving average measure of sentiment in reported retail news stories.
The April RNI index for All Retailers increased to 99. For the first time since June 2009, all indices saw an increase.
Leisure increased the most, going up 7 to 101. Personal wasn't far behind increasing 4 to reach 99.
Food & Beverage and Grocery increased by 1, both are now at 102.
Clothing & Footwear and Household went up 2.
Grocery, Food & Beverage & Leisure now exceed the 2005 benchmark of 100.
Even with the double dip recession and news that overall spending dropped at the sharpest rate in 11 months, the news in April seems to be taking a positive turn.
For the full report, click here.
FSP on average reviews over 350 unique items of retailer news. Each article is scored according to sentiment. RNI is the sum of these scores indexed against 2005 and averaged over a three month period. The RNI time series for all retailers starts from May 2002. |
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| Product Focus |
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Pre-Acquisition Due Diligence
In Pre-Acquisition Due Diligence for retail property, FSP deals with the critical question, “What is for sale?” The answer is in two parts, the value of the current business and the opportunities to which it provides access.
Valuation of the current business is directly linked to rents, both actual and potential. However, the ability of retailers to pay rent depends on their sales and margins. FSP has developed analyses to determine the degree of risk involved for each retailer to pay the passing rent. These individual risks are then summed, to show the overall rental risk for the asset.
The opportunities for a retail asset depend on the relationship of the catchment population demand for retail merchandise and the existing supply. Measuring this relationship, the size of the Trading Gap, is therefore very important.
Time for due diligence is always limited, so FSP has a well-honed system rapidly to gather the essential information. In a recent project, FSP was able to generate within 4 days answers to both parts of the question. In this time, FSP was able to relate its estimate of catchment demand to the level of retailer sales and calculate the degree of retailer risk and the upside potential, as expressed in the Trading Gap.
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