The Summary

We had high hopes for a whole month of no retailers going into administration, until yesterday, when Out of Town Restaurants hit the buffers, following allegations of fraud. The waters are also a little troubled by Miss Sixty who is looking to pre-pack administration but will potentially be thwarted by a legal challenge.

Conversely, the UK market is being swamped by brand new retailers (Family Bargains; Hub; NOW; Union Market), online retailers and brands looking for a high street presence (Jack Wolfskin; CORE SPIRIT; Pretty Green) and foreign retailers entering the UK (Acne; Campo Marzio; Victoria’s Secret). Whilst Tesco is threatening a high street attack with Florence and Fred.

In the news…

Expansion plans have been announced by many retailers this month, either because they truly are expanding (Burberry; Dwell; Ed Hardy) or because they’re after some headlines and no-one will question whether their stated plans are pie in the sky or grounded in reality (BrightHouse; Maplin; Matalan). Private Equity companies are playing pass the brand, with Fashion Runway Limited buying Nicole Farhi, Primary Capital backing the Paperchase management buyout and TPG buying Republic

Our Statistics are throwing up mixed messages, with retail sales showing year-on-year increases, but pedestrian flows barely changed (Footfall) or down (SPSL). Although, for a change, things are looking better in Ireland.

Finally, we are always keen to spot a new trend in high street occupiers and, according to building consultancy EC Harris, converting empty shops into schools could give retailers an alternative way to exit unwanted leases. Of course, with the kids in the middle of town, we’ll need some shops for them and their parents to visit on the way home. A path to the regeneratin of the high street maybe?

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