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Retail Update - November 2013


Posted At: 14 November 2013 16:13 PM
Related Categories: Administrations, Retail, Retail Property, Retail Statistics, Retailers


In spite of what seems to be a gradual recovery in the UK retail market, with shopping centre landlords planning extensions and refurbishments to their portfolios, retailers announcing ambitious growth plans both for the UK and abroad, and international retailers making their debuts in the UK – J Crew, Carven - November saw the demise of two high street names - Blockbuster and Barratts.
In the news:

Blockbuster appointed Morrfields Corporate Recovery as it collapsed into administration for the second time in year. Failure to reach a licensing agreement with its former parent in the US hampered plans for a new digital platform to enable Blockbuster to compete in the online market. Despite the initial expectation that all stores would continue trading, 72 stores are now earmarked to close.

Duff & Phelps were appointed as administrator to Barratts, as the footwear retailer succumbed to difficult high street trading conditions for the third time since 2009. Barratts had been looking to secure an emergency loan to help pay for stock in the run-up to Christmas prior to appointing administrators. It is hoped the business can be sold as a going concern, although store closures and redundancies have not been ruled out.

Abercrombie & Fitch have announced that it is to close its standalone Gilly Hicks stores, including its five UK stores, in relation to its long-term strategic review. The Gilly Hicks brand will still be available to buy in Hollister stores and online.

• Cinemas are becoming an increasingly popular anchor for smaller, mixed-use developments as retail demand stalled in the last few years. Cushman & Wakefield have predicted that 60 new cinemas will open between 2014 and 2017. (Read More)

Bicester Village has retained its ranking as Europe’s most productive outlet scheme according to the rankings from Magdus. Bicester Village has held this status since 2008.

• Online sales continue to grow month-on-month. Monday December 2 has been predicted to the busiest shopping day in the run up to Christmas 2013 according to IMRG Capgemini e-Retail sales Index, kick-starting two weeks of high sales that will help take online sales for the month of December to £10.8bn. The analysis also suggests that spending in the nine weeks covering November and December will hit £20.4bn.

November signals the beginning of the festive season, with retailers’ airing their TV ads and launching their range of festive treats in-store as they fight to win shopper spend. What remains to be seen though is the result of these campaigns and if they actually make a noticeable difference in the battle for shopper spend over the crucial Christmas trading period. Keep up-to-date with all things festive, and how the retailers fare, on SnapShop.

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The opinions expressed herein are the personal opinion of the author and are not intended as statements of fact and do not represent the view of SnapShop or Pragma in any way.


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