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SnapShop Monthly Summary - March 2014 |
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Posted At: 27 March 2014 11:35 AM
Related Categories: Administrations, Retailers |
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Two administrations have been reported on SnapShop since February.
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Pawnbroker Albemarle & Bond appointed PwC as administrator after its lenders told the board they were unable to support the turnaround plan for the business, which was hit by the falling price of gold last year leading it to report large losses. All stores will initially remain open while a buyer is sought for the business.
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As reported last month, Internacionale did succumb to administration with the appointment of PwC. It had been hoped to keep all stores open while a buyer for the business was sought, but as of March 24, eight stores had been closed with the loss of 91 jobs.
Shopper confidence is improving on the high street, as shown by IGD research which reveals confidence is at a three-year high. Confidence has increased most rapidly outside London, with 20% of northern shoppers saying they will be better off this year compared to just 8% in 2011. Shoppers still remain cautious, however, embracing ‘savvy shopping’ habits developed during the recession.
Next month will see the roll-out of pop-up shops across Old Street, Piccadilly Circus, Baker Street, and St James’s Park tube stations as Transport for London uses its vacant retail space for new purposes.
Figures from the British Independent Retailers Association and LDC reveal that 44 independent shops opened every day in 2013 as small businesses replaced contracting big chains, which closed an average of 16 shops a day.
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Retail Spotlight - New food and beverage retailers |
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Posted At: 26 March 2014 17:16 PM
Related Categories: General, Retail |
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Earlier this year we reported that pub and restaurant groups had enjoyed a successful start to 2014, with total sales, including the impact of new openings, ahead 10.1% year-on-year in January, according to the Coffer Peach Business Tracker.
We’re taking a look at some food and beverage brands which are new to SnapShop and reflect a continuation of the above trend in the sector with plans for expansion…
Sports Bar and Grill
Who they are: Sports Bar & Grill are a restaurant and bar chain who show sports channels in their locations and offer English cuisine at mid-range prices.
Number of outlets: 4 – all in London
Recent news:
• ‘Sports Bar & Grill to open at new Crossrail destination’
The bar chain has signed up to open at Canary Wharf Group’s new Crossrail retail and leisure destination due to open in May 2015.
Honest Burgers
Who they are: Honest Burgers are a burger restaurant inspired by great British produce, which first opened in Brixton Village in 2011. The business has grown successfully around London since then, offering food at a middle range.
Number of outlets: 6 – around London
Recent news:
• ‘Honest Burgers to open sixth outlet’
The restaurant is set to open its sixth site, near Oxford Street in London’s West End, in April 2014. The new opening joins the brand’s existing sites around the capital including Soho, Camden, Portobello Road and King’s Cross.
Panda Yummy
Who they are: Panda Yummy is a noddle bar offering freshly made meals to eat in or take-away, at the lower middle/value price levels.
Number of outlets: 1 – in Crawley, West Sussex
Recent news:
• ‘Panda Yummy announces expansion plans’
The brand has lined up its first eight site openings of 2014 as it looks to grow to around 40 sites by the end of the year. Around two-thirds of the upcoming openings will have a sit-in restaurant, although the focus is on take-aways and deliveries, with each new location being run by individual franchisees.
Bunnychow
Who they are: Bunnychow is a South African street food vendor currently operating one outlet in Shoreditch, London, which is positioned in the middle of the market and aims to provide a unique food offering. Its name comes from the South African fast food dish Bunny Chow, which consists of a hollowed out loaf of bread filled with curry.
Number of outlets: 1 – in London
Recent news:
• ‘Bunnychow announces London expansion plans’
The brand is set for an aggressive rollout across London, targeting the opening of 19 permanent sites over the next five years. It made its UK debut in Shoreditch’s semi-permanent Boxpark development last year.
Foodilic
Who they are: Foodilic is a health fast-food concept launched by restaurateur Peter Ilic. The take-away driven stores offer a range of raw salads, vegetarian and vegan dishes, and sweet and savory ‘feuillete’ pastries at a mid-price range.
Number of outlets: 3 – two in Brighton and one in London’s King’s Cross
Recent news:
• ‘Foodilic announces London expansion’
The brand is looking to take the London grab-and-go market by storm with plans to open at least 30 new Foodilic outlets over the next five years, aiming for A1 sites in prime locations in and around the capital.
SnapShop welcomes this expansion of F&B brands, adding to the whole leisure experience associated with retail, but a word of warning to manage that expansion in an organic way and develop a robust location strategy. Whilst London is the hub for new and unique food offerings, targeting expansion to relevant towns and the customers therein will help ensure growth is manageable, achievable and profitable .
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Making informed decisions to better your brand offerings to consumers |
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Posted At: 10 March 2014 00:50 AM
Related Categories: Retailers |
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It’s no secret that High Street retailers, both small independents and larger corporations, are struggling in the current post-recession economy. The rise of digital and e-commerce also means that many retailers need to re-consider their offerings to customers, taking into account particularly ease of use, convenience, quality and pricing.
A great example of this currently is Superdrug. The retailer celebrates its fiftieth birthday this year, and to mark the occasion they are due to open up three new store formats. The new formats are initially trial based but if successful, will be rolled out across the UK.
The first concept is a beauty store, initially opening in Cardiff, offering cost effective, quick and easy beauty treatments. These will include eyebrow threading, manicures, pedicures and so forth. Superdrug bosses claim they have identified a lack of these stores on the current High Street and there is strong customer demand for such stores. If this trial is successful, Superdrug will look to open between 20-50 beauty stores in the UK.
The second concept is pharmacies within doctor’s surgeries, again offering convenience to customers. Superdrug realise their in-store pharmacies are not convenient for every type of customer, only those willing to travel into town centres. By offering this service they are widening their potential shopper reach by demographic and geographic location.
The third concept Superdrug will be trialling are well-being stores, aiming to strengthen their competitive positioning against Boots. These stores will offer healthcare services, such as consultancy and health checks.
The above multi-million pound format investments will also include bright and colourful store designs, allowing Superdrug to stand out against all other competitors on the High Street. Superdrug claims the designs will resemble ‘candy stores.’
In addition to the above store formats, new technologies are also being trialled at various other Superdrug stores. These technologies include: magic mirrors that take pictures of customers, allowing them to change their hair colour, aiding in the decision process. It is also looking to expand its own-brand products and also integrate smaller, more ethical suppliers into their in-store and online offerings.
Significant changes to retail offering like the above can be daunting for a brand, especially when the market is so uncertain and success isn’t guaranteed. There are multiple factors to consider when making decisions to make sure that they are the right ones for you and maximise your chance of success.
However, in light of the competition from online and out-of-town retail, innovation on the high street is needed. Retailers need to think creatively about their offerings and positioning to give shoppers the reason to visit them. Cutting-edge market research and consumer insight from FSP can inform your decisions, including on location strategies and retail offering, to ensure you are maximising current opportunities and develop in an innovative, but relevant, way in the future.
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Retail Spotlight- Internacionale Collapses into Administration |
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Posted At: 04 March 2014 13:15 PM
Related Categories: Administrations, Retailers |
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Despite previous plans to expand the brand’s awareness and consumer reach, Internacionale have officially gone into administration after months spent battling closures across the UK, with PwC appointed as administrators. Read on for Snapshop’s overview of the brand’s trading history and highlights of where the cracks started to show.
At SnapShop we wonder if the struggling retailer has focused too much energy into plans for expansion, at the expense of developing its offering in existing stores. From early 2013, despite news of redundancies and store closures, the brand was still promoting its plans to expand in the UK and overseas. Perhaps an opportunity was missed to pause these plans and instead concentrate on ensuring existing stores and retail offering were right.
On 28th February 2014 Internacionale went into administration, appointing PricewaterhouseCoopers to handle the process. Despite Internacionale’s bosses’ attempts to implement a turn-around strategy for the brand, shareholders made the decision to enter administration early due to continued poor trading and increasing debt pressures. Around 1,000 jobs are under threat currently and suppliers of the retailer have been counting potential losses, totalling what is understood to be £12m for unsecured creditors.
Administrators have said that they are looking to keep the retailer trading for as long as possible and, while there is no guarantee that staff, suppliers and landlords will be paid for debts, PwC have said that any new contracts agreed will be honoured.
24th February 2014- Internacionale filed to appoint administrators.
23rd February 2014- Internacionale were poised to file for administrators to be appointed, due to bailiffs arriving at stores over unpaid rent and rates.
17th February 2014- It was revealed that over a third of their staff were made redundant, including several head office staff, in an attempt to cut costs and save the business. It was also revealed that one store in Swansea had been closed. Speculation mounted over the retailer’s future.
2nd August 2013- Internacionale bosses fought to keep stores open for the run-up to Christmas, arguing that the surge in sales could save the struggling brand.
15th July 2013- Internacionale went on a mission to find rent-free spaces and negotiate cheaper rates from landlords in order to be able to keep staff and stores open.
12th July 2013- Internacionale were bought out after threatening to fall in administration. As a result however, eight stores were closed and 1,550 staff had to be transferred or offered redundancy pay.
25th June 2013- Internacionale teeters on the brink, filing a notice of intention to appoint administrators.
19th June 2013- Plans were unveiled for a full store re-fit at Crawley’s County Mall, as part of wider initiative to increased brand awareness and appearance among customers.
22nd April 2013- Despite redundancies earlier in the month, Internacionale bought a new unit at St. Stephen’s Shopping Centre in Hull as part of an expansion plan.
9th April 2013- Against the background of expansion plans, this is when the cracks initially started to show for the brand, as eight redundancies were announced with members of Internacionale’s buying and merchandising team losing their jobs.
21st November 2012- Internacionale signed a 10-year lease for a bigger unit at The Centre at Livingston, as part of the previously mentioned wider initiative to expand.
9th November 2012- Internacionale announced their new TV advertisement launch. News also confirmed that 150 stores were to be opened in the UK and branches overseas were planned by March 2013.
29th August 2012- Internacionale’s second launch for their e-commerce site took place, as a development of the first website launch.
24th July 2012- Internacionale posted their business review, outlining that 15 stores had been opened, but four of the weaker stores were closed, resulting in an increase in trading figures. Plans for expansion were also outlined.
17th July 2012- Internacionale joined Festival Place and announced new store plans to offer clothing for girls aged 8-15 years.
3rd May 2012- Internacionale launched their first e-commerce website.
SnapShop subscribers can view Internacionale’s retailer profile, related news, accounts and historical financial standing, by visiting Retailer Directory.
Subscribe to SnapShop to stay up-to-date with retail administrations and receive the latest retail news. Register for a free trial of the service and to receive an information pack here.
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