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Retailer View - Monki |
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Posted At: 18 December 2018 16:00 PM
Related Categories: Retail, Retailers |
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Founded in 2006, Monki is a young fashion brand for women targeting 14- to 20-year olds. Monki describes its core collection ‘a flirt between expressive street style and crisp Scandinavian fashion sense’.
H&M Group acquired 60% of Monki's owner Fabric Scandinavien, which also operates casualwear retailer Weekday and denim brand Cheap Monday, in 2008 before snapping up the remaining 40% in 2010.
Monki launched in the UK market in September 2011 with the opening of a concession in Selfridges London. Although exact UK store ambitions are unknown, Monki has been growing steadily in the UK with its "Scandi cool meets Asian street style” look appealing to young British consumers. There are now seven standalone Monki stores in the UK with an outlet in Birmingham coming soon according to its website.
Monki’s unique selling point is its idiosyncratic store layout and unconventional branding.
Currently operating 115 stores in 14 markets in Europe and Asia, as well as an ecommerce site that delivers to 18 European countries, Monki seems destined to continue to grow despite the rapidly changing fashion industry.
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Retailer View - Boden |
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Posted At: 18 December 2018 11:22 AM
Related Categories: Retail, Retailers |
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Founded by Johnnie Boden in 1991, Boden is a British clothing retailer selling primarily online and by mail order and catalogue.
Initially launched as a menswear retailer, Boden’s offer now includes womenswear (introduced in 1992), childrenswear (introduced in 1996), Baby Boden (introduced in 2007) and 'Johnnie b' Teenswear (introduced in 2010. Boden's UK website was launched in 1999, and trades in over 60 countries worldwide including the USA, Germany and Australia.
Boden made the move into bricks-and-mortar retailing with the opening of its debut flagship store on London’s King’s Road in November 2017. There is also another store at Hanger Green in west London, and in the first half of 2018 Boden opened its first shopping centre store at Westfield White City. Boden has further strengthened its physical presence in the UK through a partnership with John Lewis that sees an edited collection of its womenswear and Mini styles available through several stores.
Boden’s improved visibility led to a 14% rise in first-time customers during 2017. The year to 31 December 2017 saw Boden record a 13% rise in group sales to £347.1m, up from £308.3m in 2016, and pre-tax profits of £27m, an increase of £1m from 2016. The brand said the increase in revenues was driven by more customers and a rise in average spend per existing customer.
Initial results for 2018 show that sales have continued to rise – they were up 12% for the first half of the year - and with plans to continue expanding its physical presence, Boden is definitely one to watch.
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Retailer View - The Entertainer |
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Posted At: 18 December 2018 11:20 AM
Related Categories: Retail, Retailers |
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Established in the early 1980s, The Entertainer is the largest independent toy retailer in the UK.
Boasting over 150 stores nationwide, The Entertainer is hungry for expansion in the absence of now defunct competitor Toys R Us and in the wake of increased competition from online retailers such as Amazon.
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The year to January 2018 saw an increase of 14 stores to The Entertainer’s portfolio. A further 12 stores are planned in the coming year, together with a number of store refurbishments
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And it’s not just standalone stores fuelling The Entertainer’s expansion. Following a successful trial in 2017, 59 concessions were launched in Matalan stores in September 2018
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Neither is it solely UK-based; The Entertainer ended the year with 19 international stores trading in four countries, and there are plans to expand into further overseas territories
The year to January 2018 saw The Entertainer post a 38% rise in profits and a 74% rise in total sales across all channels.
Having announced a 30% sales increase on its online platform, The Entertainer relaunched its website in September 2018 to support continued growth. With web sales forecast to triple over the next five years and almost 80% of The Entertainer’s web traffic coming from mobile users, the website has been designed with a mobile-first approach to enhance browsing on tablets and phones. This includes a more refined consumer journey for faster shopping, improved performance to support with increasingly high levels of traffic, and a new predictive search engine for ease when locating products.
Trade for the first half of 2018/19 has been above expectations for The Entertainer and the company is confident about delivering a strong performance for the full 2018/19 financial year.
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Retail Update - August 2018 |
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Posted At: 17 August 2018 00:44 AM
Related Categories: General, Retail, Retailers |
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Continuing the pattern of the year, the retail world is still a bit gloomy.
The high street continues to suffer retail losses, as Poundworld closed the last of its stores following administration, and both Henri Lloyd and House of Fraser were rescued in pre-pack administration deals. The eating-out sector hasn’t escaped the dismal picture, as Gaucho Group appointed administrators to its loss-making CAU steakhouse chain, Villandry closed both outlets on the back of soaring rents and Aulds bakery shut up shop in its retail operations to focus on wholesale-only.
However, the prolonged heatwave the UK has been experiencing has had a positive effect in some areas of retail, and there is some better news out there;
• UK consumer spending rose 5% year-on-year in July, boosted by the largest increase in women’s clothing sales since January 2016 amid unusually warm temperatures, according to Barclaycard. The July rise marks the third consecutive month of growth above 5% and the strongest three-month period since it began measuring this data in 2014
• A survey of 1,249 British adults by Kantar TNS has found 16-24 year olds visit department stores more often than older people, despite an overall preference for shopping online - 41% prefer shopping for high street items online, compared to 36% in department stores, and 23% in standalone outlets. Despite this, the majority (82%) of 16-24 year olds have visited a department store in the past six months, the highest of any age category. And 62% believe department stores have a future on the high street
• Over half (55%) of UK consumers now shop more online than in-store compared to last year. Customers now shop online on average six times per month, with Generation Y saying that they buy on a retailers’ websites eight times per month and 27% of men and 25% of women report making an online shopping trip once a week, says eCommerce search and navigation specialists EmpathyBroker that examined current consumers shopping behaviour
• Royal Mail has announced plans to enhance its online shopping delivery experience to include email and SMS notifications after research found that almost two-thirds of customers said it was important to receive updates on the progress of items throughout the delivery journey
• The future of the high street will see retailers become “brand ambassadors” that use emotional intelligence and experiences to connect with consumers, a new study backed by the owners of Centre:MK has found. Hermes Investment Management and AustralianSuper said that by the middle of the next decade shopping centres will be redesigned as providers of “novel and inspiring experiences” rather than simply places to purchase items
• Plastic bag sales in England's supermarkets have dropped by 86% since the government introduced a 5p plastic bag charge in 2015. New figures show that shoppers in England's seven biggest supermarkets bought nearly a quarter fewer plastic bags last year compared to 2016/17 - a decrease of nearly 300 million bags
• New research from Visa has found late-night shopping events are the most popular high street initiative amongst shoppers. Family and community-focused events and seasonal parties such as switching on Christmas lights came in second and third place. Free parking days, farmers markets and food festivals also made it into the top ten, suggesting there is still consumer enthusiasm to interact with their bricks and mortar high street retailers
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Retail Update - March 2018 |
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Posted At: 23 March 2018 16:00 PM
Related Categories: General, Retail, Retail Statistics |
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2018 is proving to be a difficult year so far for retail, with not much improvement on the gloomy landscape since our last update and high-profile administrations including Toys R Us, Maplin and Countrywide Stores, and a number of CVAs also approved. The news that over a quarter of the UK’s largest retailers are loss-making does not paint a rosy future.
However, there is some good or interesting news if you look hard enough for it.
• Retail sales showed surprising growth according to the ONS, with retail sales volumes up 1.5%, ahead of predictions
• UK inflation fell to 2.7% in February with a slow-down in food and transport price increases named as the largest downward contributors
• More retailers are jumping on the bandwagon of ‘try-before-you-buy’ for online shoppers
• IGD forecasts that the European grocery retail market is set to achieve sales of €2,289bn by 2022, driven by growth in central and eastern Europe
• Instagram has unveiled its much-anticipated shopping update, allowing UK businesses to sell products via posts
• Research has revealed that consumers are willing to pay up to £1.25 more for a burger if it comes in a gourmet bun, a study by Lantmannen Unibake showed
• The restaurant and bar scenes in Liverpool, Manchester and Leeds are growing at double the rate of that in London
• Pubs continued to prove resilient to industry pressures in February achieving a 1.3% increase in like-for-like sales compared to a 1.5% decline seen in restaurants. However, the Coffer Peach Business Tracker has shown that people continued to dine out in February despite the cold weather and negative media coverage around high-profile casual dining brands closing sites
• Data from online retailer OnBuy shows the North West, West Midlands and Scotland had the highest rate of independent store openings in the UK in 2017 – with 230, 194 and 114 independent openings respectively
• Chinese tourist spend on shopping in the UK has risen by almost a third. Figures from the UK China Visitor Alliance show numbers of Chinese visitors to the UK soared by over 150% in the five years since 2012, from 211,000 visitors to 532,000 in 2017
And finally, a new study has found that Brits have collectively blown £4.46bn on spontaneous purchases while under the influence of alcohol, with almost half of British adults – 45.8% or around 15 million people – confessing to making a purchase while under the influence. Finder’s new report, which surveyed 2000 adults, also revealed that the average spontaneous spend while drunk shopping was a whopping £291.07 each!
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Retail Spotlight - The turbulence continues for fashion retailers |
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Posted At: 21 February 2018 16:43 PM
Related Categories: Retail, Retailers |
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Nearly a fifth (19%) of UK clothing retailers are showing “early warning signs” of insolvency, according to accountancy firm Moore Stephens. Out of 35,078 fashion retailers surveyed, 6,580 were showing early signs of financial distress, including a large fall in revenue and poor payment history.
Moore Stephens cited a fall in consumer spending together with growing payroll costs as compounding the pressure on bricks-and-mortar fashion retailers, already struggling to compete with their online pure play counterparts.
High street brands holding their own
FSP’s post-Christmas insights suggest it’s not all doom and gloom on the high street. Certainly brands such as Ted Baker, Joules and Fat Face performed well. These brands share a clear view of who their customer is and focus on driving targeted propositions. In the main, they avoided aggressive discounting; Jigsaw opted to avoid Black Friday and instead look at delighting customers with an innovative collaboration with chocolatier Rococo.
Some of these brands have had to invest in their online position too, closing the gap here.
Young fashion in trouble
It’s really at the younger fashion end of the market where the real trouble lies with New Look well established as the front-runner in a dismal Christmas trading period. CEO Alistair McGeorge is exploring plans to close about 60 of its 600 British stores, as New Look’s like-for-like sales fell by 10.7% in the final quarter of last year.
The media are reporting on vulture funds circling New Look, to capitalise on bond prices plummeting. The collapse had in part been triggered by the fashion brand considering a company voluntary agreement (CVA), with a view to restructure its ailing finances.
New Look’s troubles predate the Christmas period as the retailer has been hit by buying mistakes, over-expansion and competition from rivals like Primark and Zara. This was further compounded by a number of credit insurers declining to cover new shipments by suppliers to its shops. McGeorge is quoted as saying that New Look’s clothes became “too young and edgy” under his predecessor.
Department stores sinking too
New Look joins high street rivals like Debenhams and House of Fraser, which are also battling tough market conditions and ever-increasing competition from online players.
Debenhams, for example, is struggling to find its way out of a cumbersome property estate, keeping stores open it can’t afford to invest in, while tied into leases. At the same time, a confused stable of own brands and lack of online sophistication has left the customer disconnected. House of Fraser too is struggling with its own estate challenges, however it runs the risk of compromising concession partners, who may feel their under-invested stores no longer support their premium needs.
The pressures of rising costs, falling consumer spending and increased competition are set to make the rest of the year challenging for the sector. Innovation and adaptability will be key for those looking to stay afloat.
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Retail Update - January 2018 |
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Posted At: 22 January 2018 10:22 AM
Related Categories: Retail, Retail Statistics, Retailers |
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So Christmas has been and gone, delivering a mixed bag of results across the retail sector as evidenced in our Christmas Sales report, and highlighting those retailers that are teetering on the edge.
It’s not all doom and gloom, however.
2017 saw the UK entertainment retail market sales hit record highs in 2017 outpacing the wider UK economy by more than four-fold. According to the latest figures from the Entertainment Retailers Association (ERA), which combines music, film and video games, sales grew 8.8% to £7.24 billion last year, marking the fifth successive year of growth. This “historic” growth is down to the growing presence of digital services like Spotify and Amazon, accounting for more than 70% of entertainment sales values during the year.
The coffee shop market also had a good 2017. Store openings contributed to 7.3% hike in turnover to £9.6bn across the category in 2018 according to Allegra World Coffee Portal in its Project Café 2018 UK study. Over the year, 1,215 openings took the total number of stores to 24,061. Branded chains accounted for 10.5% of the sales growth, with combined revenue of £4bn. Costa, Starbucks and Caffe Nero continue to dominate the market, and together make up 52.9% of the total branded chain market.
So what does 2018 hold?
With December seeing falling retail sales as a result of Black Friday bringing Christmas sales forward, footfall decreasing during the month and consumer confidence dropping by one point, 2018 could, perhaps, see the retail market get worse before it gets better. Retailers are going to have to innovate and make the latest advances in technology work for them to entice shoppers to part with their cash and visit their shops, rather than shopping solely online; and landlords are going to have to get their tenant mix right to ensure they are catering for the needs of their local shoppers and visitors alike.
FSP can help with location strategies and tenant mix strategies. Contact us to find out how.
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Retail Spotlight… crikey its Christmas! |
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Posted At: 14 December 2017 11:57 AM
Related Categories: Christmas, Retail |
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“Its mid-December – how did that happen?” “Better start my Christmas shopping. “ Both phrases we use year in year out with the realisation that Christmas is just around the corner.
Christmas is now firmly in our sights now the madness of Black Friday and Cyber Monday has passed for another year, but something feels different this year. Perhaps it’s the falling retail sales, dropping consumer confidence, and stalling footfall figures or the recent string of administrations and rising online sales contributing to this feeling; perhaps it’s just the snow.
Indeed with Black Friday sales having monumentally shifted online this year, you would be forgiven for thinking that Christmas will follow suit. There are conflicting reports.
More than half (54%) of shoppers do their Christmas shopping online, according a survey of more than 1,500 adults by market research and insights agency Trinity McQueen. Personally, this is where I sit, smugly saying that my festive shopping is now complete.
However, according to a survey of 2000-plus people conducted by mobile network GiffGaff, almost 52% of participants stated they do their Christmas shopping in-store and prefer to shop this way.
There is a definite shift in the way people shop, hunting out the best bargains both on and offline, split by age and gender as to the preference for which method of shopping suits. Indeed, FSP’s research suggests that pure online shoppers are rare; with click & collect and multi-channel shopping making in-store just a part of the jigsaw. The challenge remains to make shopping an experience rather than a chore
What the next few weeks hold for retailers remains to be seen, but FSP will keep you updated with our regular Christmas Sales Reports in January.
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Retail Spotlight - It’s beginning to look a lot like an Amazon Christmas |
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Posted At: 20 November 2017 16:18 PM
Related Categories: Retail, Retailers |
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With the unofficial kick-off of the Christmas shopping season due to start on the 24th November, Amazon is, predictably, a step ahead. The retail giant opens its Black Friday Deals Store on November 17 running through to November 26.
Amazon has consistently been building on its position of ownership of Black Friday since the event landed in the UK. It’s also seen as the one to beat, with retailers actively devising their strategies to that end.
Going off-line
This year sees Amazon taking its Christmas strategy in the UK off-line, opening its first pop-up shop, with the aim to drive sales for its 10-day Black Friday event. Based in central London, the pop-up will essentially act as a showroom, where customers can browse Black Friday sales items as well as Amazon Prime offers. Workshops and tutorials will also be offered around its big ticket electrical goods, like Amazon Echoes.
“We’re making Black Friday more fun than ever by holding our first-ever Home of Black Friday pop-up in central London,” Amazon UK country manager Doug Gurr said.
Getting behind the scenes
Leaving no stone unturned, earlier this week, Amazon released a sneak peek of its plans for Black Friday across 30 categories. It’s also revealed a series of behind the scenes photographs of staff at its 16 UK warehouses preparing for what could be its biggest Christmas to date. This is despite the furore around its Christmas advert which implied Father Christmas doesn’t exist which caused an angry viewer response.
A disappointing Black Friday?
So will this be the year Amazon owns Christmas? New figures from Retail Economics suggest that retailers have overestimated consumer appetite for Black Friday this year. While nearly half the retailers surveyed predict a higher Black Friday demand than last year, only 19% of consumers were looking to make the most of Black Friday events, down from 21% last year. FSP, as always, will monitor consumer trends and report back on Black Friday’s place as it becomes further entrenched in the retail calendar.
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Retail Update - September 2017 |
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Posted At: 20 September 2017 15:26 PM
Related Categories: Retail, Retail Statistics, Retailers |
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FSP’s SnapShop brings you a snapshot of the UK retail environment for the past month:
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Young fashion brand Rare London ceased trading in August following the appointment of administrators
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August retail sales smashed expectations, with overall growth of 1% between July and August according to the ONS – well above the consensus forecast of 0.2%
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According to the IMRG Capgemini Online Retail Sales Index, UK online sales grew by 16.4% in August. Average basket values were the highest seen in August for five years, reaching £130
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Latest research by GlobalData predicts that clothing and footwear will drive 35% growth in the UK online market, to reach £69bn by 2022. Mobile spend is also expected to jump 112% in the next five years
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Second-hand retail is on the rise. According to Ibis World the second-hand market accounts for around 14% of London’s retail establishments, and sales volumes across the industry grew over 5% last year
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GfK’s Consumer Confidence Index rose two points in August, compared to the July’s one-year low
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Latest figures from The Department for International Trade reveal that UK fashion exports rose to a record £10.7bn in 2016, with an 8% rise in exports of footwear, clothing and textiles compared with the previous year. The US, Hong Kong and Australia in particular snapped up more than £1bn in UK exports
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Retail Update - August 2017 |
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Posted At: 18 August 2017 00:33 AM
Related Categories: Retail, Retail Statistics, Retailers |
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FSP’s SnapShop brings you a snapshot of the UK retail environment for the past month:
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July saw the demise of Chicago Rib Shack after it struggled with a lack of working capital; the chain was subsequently rescued by the entrepreneur behind the Camden Dining Group
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The month also saw the weakest reading in consumer confidence since just after the Brexit vote, dropping two points to reach -12 in GfK’s Consumer Confidence Index. Excluding the post-referendum dip in July 2016, the index hasn’t been this low since 2013
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Online retail sales grew by 11% in July, representing the slowest growth for the month since July 2013 according to the latest IMRG Capgemini e-Retail Sales Index. So far in 2017, online sales have grown by 12%
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British Land research has revealed a symbiotic relationship between physical stores and ecommerce. The research, using data from Connexity Hitwise, shows that when a new store opens, traffic to the retailer’s website from the surrounding postal area increases by 52% on average within six weeks of opening. And digital traffic from the local area then remains around this level, demonstrating that a physical store has a significant, positive and sustained impact on digital interaction with the brand
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The UK sports clothing market is expected to climb 8% to £2.5bn this year according to GlobalData, as the athleisure trend continues to grow. Customer demand following 'high profile attention via Instagram influencers' has driven fashion retailer investment in sportswear
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UK consumers made nearly 1.4 billion card payments in June, an increase of 12% on the same month last year and the highest growth rate since 2008, according to new figures from UK Finance. Contactless payments accounted for 34% of all card transactions, while online payments made up 13%. There are calls to increase the spending limit on contactless cards
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The KPMG/Ipsos Retail Think Tank said that the health of Britain’s retail industry had fallen in the second quarter and was likely to drop even further in the third quarter. It said that if this were to happen, it would represent three consecutive quarters of negative performance “which is something that has not happened since 2012”
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Retail Update - July 2017 |
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Posted At: 25 July 2017 14:42 PM
Related Categories: Retail, Retail Statistics |
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The past month on the high street has seen Handmade Burger Company fall into administration and close nine of its stores, and, not surprisingly, Store Twenty One collapse into liquidation, with the subsequent closure of its remaining 122 shops.
Retail sales in June have driven a “renewed sense of optimism” for the UK economy, showing promising recovery from last month’s four-year low. The latest figures from the Office for National Statistics (ONS) revealed that sales volumes jumped 1.5% in the three months to June, rising significantly from the 1.4% drop seen in the prior quarter.
Couple this with a prediction from Worldpay that overseas visitors could spend as much as £2.4bn in a spending bonanza by the end of this summer as they take advantage of sterling’s weakness, and all is not looking too gloomy on the high street.
According to CBRE’s bi-annual Global Prime Retail Rents report, New Bond Street has been revealed as the second most expensive retail location in the world, seeing a huge 39.1% increase in prime rental growth in the first quarter compared to the same period last year to give it an average annual rent of £1345 per sq. ft. New York retained its top spot, with Fifth Avenue almost doubling the sq. ft. value of New Bond Street with an average of £2487.52.
An interesting report, Retail Revolutions: The Rise of the Community Shopping Centre, has revealed that an increasing consumer focus on affordability and convenience has seen value and discount retailers increase their UK store count by more than 5000 since 2009. Value retail accounted for 87% of all store growth in the UK during that time. The report also said supermarket chains have increased their convenience offer with more than 1600 stores since 2009.
The online market continues on its steady march. According to new research from GlobalData, clothing and footwear is driving smartphone shopping in the UK – with the sector set to account for 42% of all smartphone spend by 2022. Its latest report says spend via smartphones will outperform spend via tablets to account for 51.5% of the UK mobile and tablet market in 2018 – and is set to grow 112% in the next five years. Key sectors aiding market acceleration via smartphone are clothing and footwear, which have the highest proportion of sales on these devices. However, food and grocery is expected to be the fastest growing sector in terms of sales via smartphone to 2022.
It will be interesting to see how the smartphone shopping trend continues and if this becomes the ‘new’ face of online shopping, as well as how the high street fares over the summer months. FSP aims to keep you up-to-date with all the latest news and trends.
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Retailer Spotlight - Amazon continues on its disruptive path |
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Posted At: 12 July 2017 13:00 PM
Related Categories: Future of Retailing, Retail, Retailers |
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In this month’s FSP Spotlight, we’re looking at how Amazon remains on track to leave no corner of the retail space untouched by its disruptive strategy.
Disrupting a new industry
First, let’s look at its acquisition of Wholefoods, a move that took many industry commentators by surprise; not only is it a tech company taking over a grocery chain, but because Amazon has a reputation for making smaller deals. This $13.7bn deal is Amazon’s first ever $1bn+ purchase. The acquisition seals Amazon’s long-term commitment to building out its grocery business, consolidating its efforts via Amazon Fresh and the introduction of brick-and-mortar stores.
Amazon’s expertise in distribution means both grocery delivery and "Click and Collect" is set to sky-rocket though experts do expect in-store innovations, such as live cooking shows, trend showrooms and personalisation. At the same time, while Amazon has kept its UK-ventures small-scale, experimental and mostly confined to London, further disruption of the UK supermarket sector – and “Amazon fear” is widely expected.
Real-world expansion
Close to Amazon’s strategy is how it uses Whole Foods stores to keep expanding its own successful third-party business, an area that generates significantly higher margins than items sold directly by Amazon. It’s anticipated that the deal will build on its bricks and mortar strategy, utilising the Whole Foods locations as local distribution points for food as well as other items, as well as capitalising on Whole Foods' organic private label brand.
The launch – albeit small scale – of real stores earlier this year has also strengthened the brand’s footprint. While bricks and mortar retail remains a marginal part of Amazon's business, benefits include boosting brand awareness and exposing customers to Amazon's Prime subscription service. Prime members get the online prices in the store, while non-members pay the list price for books.
Becoming “the best place to buy fashion online”
Fashion also remains a huge focus for Amazon and this year it seems closer to achieving its aim of being the “best place to buy fashion online”. So far in 2017, it has launched seven private label apparel brands, added its own lingerie line with cut-rate prices and announced an extension of its Alexa-enabled Echo product line specifically designed to take outfit photos and give style feedback. The company is also investing in its own fully automated clothing factory, a shipping company and physical stores, showing it means all-out war on the industry.
Shares of Amazon have gained 9.2% in the past three months, compared with the S&P 500 index gain of 3%.
So what’s next for Amazon? Having filed patents for a robotic fashion mannequin that can change dimensions to allow a shopper to see how clothing items fit on different sizes, and a ‘try before you buy’ services in the US, it is clear that Amazon has the potential to become a major player in the fashion market, and that in the long-run this could have an impact on traditional fashion retailers. Watch this space!
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Retail Update - June 2017 |
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Posted At: 16 June 2017 11:39 AM
Related Categories: Administrations, Retail, Retail Statistics, Retailers |
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May was a month of change on the high street. German womenswear brand Basler fell into administration; Joy was bought out of administration by its owners in a pre-pack deal; and Edinburgh Woollen Mill acquired the Jaeger name. Additionally, Edinburgh Woollen Mill embarked on a new department store concept, Days, which launched in a former BHS store in Carmarthen.
Household spending growth slowed in May as British shoppers selectively cut back purchases, as the rise of inflation threatens living standards. According to Barclaycard figures, spending was up 2.8% on the year, which marked the slowest rate of growth since last July. The British Retail Consortium’s (BRC) study of shops’ sales found growth slowed to 0.2% on the year, a substantial slowdown from the strong Easter spending in April.
The BRC’s Online Retail Sales Monitor also found that e-commerce sales grew at their slowest rate for more than four years in May. Online sales of non-food products grew by 4.3% in May – down from 13.7% a year earlier and at its lowest level since the BRC analysis started in December 2012. The three-month average stands at 7% – also the lowest the BRC report has yet recorded.
This slow-down both online and on the high street in May could have been the result of a pre-election and pre-Brexit blip. However, according to the long-running and closely-watched GfK Consumer Confidence Index, consumers’ confidence in May stood at -5, two points up compared to -7 in April, suggesting that this isn’t the case.
Interestingly, Payments UK – the trade association for the payments industry – has forecast that debit cards will overtake cash as Britain’s most frequently used method of payment by 2018 thanks to the rise in contactless cards. Worldpay, which handles 40% of all UK card transactions, said that spending on all forms of contactless systems now accounts for 28% of all non-cash transactions in the UK, with total spend exceeding £10b for the year in 2016.
However, the Bank of England’s chief cashier and director of notes has said cash payments were “very much alive and kicking” and that contactless and electronic payments were not a threat. Victoria Cleland highlighted how technology has had a “huge impact”, with ways to pay including digital currencies, mobile payments and innovations such as contactless cards gaining “real traction”. But contrary to predictions of the eventual death of cash, Cleland said “if we dig further, it is clear that cash is very much alive and kicking”.
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Retail Update - April 2017 |
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Posted At: 26 April 2017 10:20 AM
Related Categories: Administrations, Retail, Retailers |
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March saw three high profile retailers hit the buffers:
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Agent Provocateur – subsequently bought by Four Marketing through a pre-pack deal
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Brantano
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Jones Bootmaker – the majority of its business was subsequently sold to private equity Endless, which acquired 72 stores as part of the deal
According to insolvency firm Begbie Traynor, almost 23,000 retailers reported significant financial stress in the first three months of 2017 as cost pressures continue to mount. Further administrations have been predicted by the firm, which has reported a 4% rise in retailers under financial strain compared to the same period last year.
The ramifications of the business rates reforms, announced last month, have yet to be fully felt in the industry. Mixed with increased price competition, a weak pound, dwindling consumer spending and a rise in minimum wages, analysts expect a 'large number' of retailers to fail in the coming months.
However, it is not all doom and gloom on the high street.
A record number of overseas tourists travelled to Britain during the first two months of 2017, up 6% on the same period last year, according to new figures published by VisitBritain. The 5.2 million visits also resulted in a record spend of £2.7b in January and February, a year-on-year increase of 11%.
London’s luxury market was also boosted by a momentous return of Russian visitors and Americans’ surge in interest for British luxury in the first quarter of the year. International tax free shopping data for London Luxury Quarter, which covers Mayfair, St James’s and Piccadilly, showed growth of 39% in the period. In addition, Russian visitors’ tax free shopping spend rose by 88% in March while American spend grew by 116% year-on-year.
Online continues on its steady upward trajectory, with UK shoppers spending £1bn a week online in March - 19.5% more than they did in the same month last year. That total accounts for 15.5% of all retail spending, excluding fuel, during the month, and contrasts with 13.6% a year ago, according to the Office for National Statistics’ Retail Sales report for March 2017. However, consumers are getting harder to please when it comes to online shopping (see FSP View).
It will be interesting to see what the next few months have in store for retail and consumers, as we head towards a general election. Whatever happens, SnapShop will keep you up to date with the latest news.
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Retail Update - March 2017 |
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Posted At: 24 March 2017 15:51 PM
Related Categories: Future of Retailing, Retail |
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February saw restaurant group Viva Brazil fall into administration after unsuccessful expansions put the business under unsustainable financial pressure. The business was sold as part of a pre-pack deal to its founder and has kept its restaurants open in Liverpool, Glasgow, Cardiff and Birmingham.
The month also saw a for sale sign hoisted above Jones Bootmaker, with all options for the business being explored. At the time of writing, the future of Jones Bootmaker hangs in the balance as it teeters on the brink of administration.
As ever, speculation surrounding Brexit and business rates dominated the headlines. A new study by Total Retail revealed that a fifth of UK shoppers (20%) think Brexit will impact their shopping habits over the next 12 months, with almost six in 10 consumers worried about their lack of disposable income; and almost one-fifth of small businesses - including retailers - would consider closing down as a result of the looming business rates revaluation, according to research from the Federation of Small Businesses. The research suggests that 36% of small businesses expect to see their rates increase, with 44% expecting bills to eventually rise by more than £1000 a year. Of the businesses expecting a rise in rates, 54% expect profits to drop and 38% said they will increase prices to make up for the loss.
However, it was not all doom and gloom on the high street.
According to Savills’ Global Luxury Retail report, London topped the global rankings for new luxury retail store openings in 2016. London saw a total of 41 new luxury openings during the year, (of which 15 were the respective brand’s first ever store in London), compared to 36 in Paris and 31 in both New York and Dubai.
New figures from Visa UK’s Consumer Spending Index show that average spend grew 1.5% in February, up from a five-month low of 0.4% in January. Spend on recreation and culture saw the most significant boost of 3.3%, compared to a rise of just 2% on miscellaneous goods and a drop in spend on clothing, footwear, food, drink and household goods.
It will certainly be interesting to see how consumer spending fares over the next few months and the impact rising business rates has on business. SnapShop will aim to keep you informed of this as and when it happens.
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Retailer Spotlight - Troubling Times for Womenswear |
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Posted At: 16 March 2017 14:17 PM
Related Categories: Retail, Retailers, Womenswear Retailer |
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Style Group Brands, the parent company of labels such as Jacques Vert, Windsmoor, Eastex and Precis, has launched ambitious plans to get the business back on track. The review, led by new chief executive Shaun Wills, includes the appointment of KPMG to explore a sale or restructuring options for the group. The UK’s largest womenswear concession operator is the latest fashion retailer to be affected by toughening trading conditions and increasing competition on the high street. Just this week, shareholders at French Connection have called for a break-up of the retailer as they record a full-year loss for the fifth consecutive year.
Style Group Brands was formed via the merger of Jacques Vert and Irisa Group, and trades in department stores including Debenhams, House of Fraser and John Lewis's online operation. It currently operates from more than 1,850 outlets in 470 separate locations in the UK, Europe and Canada.
The potential sale or restructure could lead to a reduction in the number of outlets, possibly under a new owner. It follows a wave of auctions of women's fashion brands. Last December, Aurora Fashion Group announced it was putting its brands Oasis, Warehouse and Coast up for sale. Elsewhere, Jaeger has appointed advisers to handle an auction and shareholders in LK Bennett are expected to follow suit in the near future.
While the Style Group Brands saw sales increase by 4% on a like-for-like basis for the second half ended 31 January, the group is very much at the starting point of its turnaround strategy.. Shaun Wills commented, “The real test is this spring/summer, which is where all our work around more commercial product will start to be seen,”
Wills, who took over as CEO from Tim Davies in April, suggested that there is some reorganisation going on in stores in terms of store management staff however no other details have been shared.
Clothing retailers are facing intense pressure from the impact of inflation, which is set to lead to substantial price hikes. Other costs linked to business rates, the national living wage and apprenticeship levy also pose a real challenge for the sector.
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Retail Update - February 2017 |
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Posted At: 22 February 2017 14:42 PM
Related Categories: General, Retail |
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January certainly proved to be a mixed month to mark the start of 2017, with a mixed bag of Christmas sales being reported across the board, and both retail sales and footfall dipping, even online sales faltered this month. Although not surprising, with Christmas being the monthly comparative, it is perhaps a sign that consumers are now starting to worry about what this year may bring; Brexit, business rate fears, price rises etc.
All is not doom and gloom however, with confidence increasing from -8 to -5 percentage points between Q3 and Q4 2016 among the 18 to 34-year-old age group resulting in them spending more money in bars and restaurants according to Deloitte.
The Leisure Consumer Q4 2016 update confirms earlier research from Deloitte which found that confidence about disposable income, debt and job security among millennials is now at a six-year high.
However, when looking forward to the first quarter of 2017, the research found that this age group is expected to spend less on eating and drinking, and more on holidays and gum activities than they did in Q4 2016. It will be interesting to see if this is the case, or if the increasing trend of eating and drinking out continues.
The start of the year also saw the price of an average basket of grocery items fall by 3% compared to January 2016. According to mySupermarket’s monthly Groceries Tracker, the price of a basket of 35 popular items came to £82.27 compared to £83.33 for December. This can only be good news for shoppers when price rises are imminent elsewhere.
With sales via smartphones set to more than treble in value from £13.5bn to £43bn over the next four years according to research by Google, PayPal UK and OC&C, and its increasing impact on people’s lives, a study by Apadmi has found that nearly 30% of consumers would like to see more innovation in mobile apps to enable the technology to provide a more personalised shopping experience. The study found that shoppers would be more likely to download a retail app if it featured technology that helped them to make a buying decision, or let them preview products before purchasing them, something for retailers to consider going forwards into an increasingly digital market.
SnapShop itself has only recorded one administration this month, that of Moda in Pelle, which was subsequently rescued by its founder through a pre-pack deal. Looking ahead, a number of new retailers are looking to enter the UK market this year, including H&M’s Weekday fascia, Polish retailer Reserved, and Swiss phone repairer iKlinik.
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FSP View: Will F&B Remain the Great Retail Saviour? |
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Posted At: 22 February 2017 14:20 PM
Related Categories: Retail, Retailers, Town & Shopping Centre Management |
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Here at FSP, whilst on balance being highly positive about the future for F&B in retail environments, we are cautious about some of the signals that it’s impossible to ignore.
Just looking back at December 2016 for a moment the positive contribution made by the ‘experience’ sector at that time of year is clear. Visa, through their IHS Markit report, reported a 2.6% LFL increase in consumer spending overall but +7.3% in hotels, restaurants and bars and +6.4% in recreation and culture. By comparison clothing and footwear was down -0.7% and household goods -1.1% on a like for like basis. January’17 seems to have got off to a good start with the same group citing hotels, restaurants and bars up 6%. Some interesting numbers also came out of Deloitte in their Leisure Consumer Update in which they highlight increased spending in cafes, bars and restaurants amongst 18-34s from Q3>Q4 2016 compared to 35-54s and 55+. So far so good – there is little doubt that F&B has provided huge opportunities for retail property owners throughout the last 5 years (and probably since the start of the recession) to inject life and vibrancy into shopping centres/parks and outlet malls, evidenced by the realisable rents in this sector.
On the potential downside we all know that there is far more retail space than actually required in the UK and there are concerns that over-supply in the F&B sector might be storing up similar problems: sales density dilution, declining profitability and potential closures. This is particularly the case in the London market but where the metropolis leads other large cities and towns follow. A phenomenon of retailing generally accepted is that product life brand cycles are shortening with the need for constant innovation crucial to the maintenance of shopper interest. Our view is that this is particularly the case in F&B where new brands, menu variations and service techniques continue to proliferate. Staying with a concept too long can lead to problems; for example The Restaurant Group (TRG) reported a drop of 5.9% in Q4 2016 LFL sales plus the closure of 37 restaurants (though in the same period 24 had opened) as well as putting a further 23 sites up for sale and the need for ‘substantial price and proposition changes’. TRG is clearly reacting positively to make the necessary changes but this approach came too late for Ed’s Easy Diner which went into administration in October 2016 and Red Hot World Buffet in June 2016. On the positive side the latter managed to continue trading and Giraffe Concepts took over 33 Ed’s Diners. Quoting the National Living Wage and potential price increases as a result of weakness in sterling many large F&B groups have sounded the warning bells for 2017 though the extent to which these will be realised is, as yet, unclear. Although inflationary pressures are mounting the feed-through into shop prices is yet to manifest itself. Early days perhaps but the BRC Nielsen Shop Price Index for January’17 v ’16 shows non-food prices dropping -2.3%, no doubt due to high seasonal markdowns after a relatively poor trading season but contributing to a continuation of that all-important consumer confidence mentioned earlier.
FSP has recently placed more resource behind its own F&B services with the recruitment of a specialist consultant – Harri Jaaskelainen – and the development of a comprehensive set of new tools to evaluate F&B trading potential and solutions in any retail environment. The trend for increase in ‘Fast Casual’ dining (think Tortilla, Itsu, Nando’s, Tapas Revolution) where seat turn is faster than standard Casual Dining and ATV higher than Fast Food is coming through clearly in analysis of shopper trends when comparing the scale of existing sales versus potential. What is increasingly evident is the need for a careful evaluation of the trading opportunity and identification of F&B gaps based on the shopper profile, demographic content and competitivity of each individual location rather than a simple assumption that piling in more F&B is the universal panacea.
To find out more about FSP’s F&B approach please call Harri on 01494 474740 or email Harri@fspretail.com
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Retailer Spotlight - Aldi steps ahead as UK’s fifth largest supermarket |
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Posted At: 14 February 2017 16:15 PM
Related Categories: Retail, Retailers |
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Aldi, the German-owned supermarket, has overtaken the Co-op to become the UK’s fifth largest supermarket. New figures from Kantar Worldwide show that a 12.4% year-on-year sales rise has taken Aldi’s market share to 6.2%, ahead of the Co-op's 6%. FSP previously reported on Aldi taking over from Waitrose as the country’s sixth largest supermarket just under two years ago. It is Aldi’s latest growth milestone; a decade ago, it was the UK’s 10th largest food retailer, accounting for less than 2% of the grocery market.
The move follows an ambitious programme of store openings – 70 stores in the last year- and attracting 826,000 more shoppers than the same period last year. The group plans to open a further 70 new stores this year in response to customer demand. The figures highlight the challenges faced by the big players from discounters like Aldi and its rival Lidl. Despite a slower pace of growth in the past three years, Aldi and Lidl now share nearly 11% of the entire UK grocery market, while Tesco, Sainsbury’s and Asda continue to lose ground.
Much of Aldi’s success has come down to its simple proposition, aimed to save customers time as well as money, and centred on a much smaller range of goods than rival stores. The simplified approach has shifted how the big four supermarkets operate, as they move away from multi-buys and discounting. Traditional counterparts are responding instead with everyday low pricing and a simpler proposition as they try to win shoppers back.
Aldi UK’s chief executive, Matthew Barnes, attributed the supermarket’s success to its “unique offering resonating with British shoppers.” He said: “Aldi customers get products of comparable quality to the leading brands at prices that are significantly cheaper than any of our competitors.”
Looking at the big four supermarkets, Morrisons was the only one to gain market share in the same period, growing to 10.9%, primarily due to the success of its premium own label. With 28% of the UK market share, Tesco remains the market leader in the UK.
Aldi has also announced plans to invest and extra $1.6 billion to upgrade its 1,300 U.S. stores.
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Retailer Spotlight: Corks pop as Majestic enjoys Christmas sales boost |
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Posted At: 23 January 2017 17:10 PM
Related Categories: Retail, Retailers |
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A combination of the “year of gin” and soaring sparkling wine sales have helped Majestic Wine celebrate its best Christmas to date. For a business that draws nearly a third of annual sales in the Christmas period, a strong festive season is critical. The boost is welcome news for the retailer, which issued a profit warning in September following a failed US marketing campaign and poor business customer performance.
Majestic’s gin sales rose 55% on last year, with upmarket brands such as Warner Edwards rhubarb gin and Sipsmith sloe gin performing particularly well. 2016 saw national gin sales break the £1bn mark for the first time. Sparkling wine sales rose 12%; prosecco sales increased three times faster than champagne.
Majestic, which acquired online retailer Naked Wines in 2015, reported sales at established Majestic Wine stores being up 7.5% in the 10 weeks to 2 January. With a sales increase of nearly 30% at Naked and 62.3% at fine wine specialist Lay & Wheeler, the overall group’s sales rose 12.4%.
This year’s performance can partly be attributed to a 1% cut in gross profit margins against last year, as the company moved to compete more effectively with the UK’s heavily discounted market. Aldi and Lidl have both made heavy gains in alcohol retail recently. Value-for-money drinks offers, voucher marketing and free standard delivery for just six bottles has proven successful for Majestic. The retailer’s three-year transformation plan has also helped it stay on track to generate £500m in annual sales by 2019.
Part of Majestic’s transformation programme is a complete re-focus on customer service and shopper loyalty. Earlier this month, Majestic appointed a new chief customer officer as Joshua Lincoln moved across from Naked Wines. Improved availability, enhancing the range, putting more staff on the shop floor and rolling out next-day home delivery will play a part in this refreshed customer strategy.
Looking at 2017, Majestic predicts Portuguese wines will be ‘the next British favourite’, after sales rose 160% over Christmas, overtaking Rioja as the retailer’s best-selling red wine.
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Retail Update - December 2016 |
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Posted At: 16 December 2016 12:40 PM
Related Categories: Administrations, Retail, Retailers |
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As we rapidly head towards the end of 2016, it has been pleasing to see that no administrations have been recorded on SnapShop since our last update.
November was the month for Black Friday – see our previous blogs – and the start of discounting as retailers geared up to capture the all-important Christmas spend. In fact, recent research from Deloitte has found that for the sixth consecutive year, consumers are enjoying bigger pre-Christmas discounts than they did in the previous year. Analysis of over 300,000 products currently for sale in the UK reveals that discounts are currently averaging 43.3% - some 1.5% deeper than at the same time last year.
Despite all the discounting, retail footfall in November edged down 1% on the same month last year following a 0.9% drop in October, and retail sales only edged up 0.6% year-on-year. and GfK’s Consumer Confidence Index dropped 5 points to -8. As has been seen throughout the year, the leisure industry has remained resilient and November was no different - like-for-like sales in managed pub and restaurants grew by 1.1% against 2015, with London providing the biggest increase.
London has been a talking point as it remains an attractive destination for new UK retail entrants. According to new research from CBRE, over 75 new retail entrants opened in London in 2016, with the prime streets in Mayfair and Chelsea proving to be a magnet for luxury brands.
Interestingly, a new report has predicted that travel hubs will be the most favoured location for new stores in the coming year. (0912) This doesn’t come as much of a surprise to FSP, when new figures have shown that like-for-like retail sales at Network Rail managed stations grew by 3.5% from July to September. This equates to total sales of over £166 million, up from £160 million in the same period last year.
What remains to be seen is how retail will fare for the remainder of the year and who will be the winners and losers over the festive season. SnapShop will bring you all the news on this in January.
In the meantime, we wish you all a very Merry Christmas and a Happy New Year
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Retail Update - November 2016 |
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Posted At: 18 November 2016 00:29 AM
Related Categories: Administrations, Retail, Retailers |
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Since our last update, SnapShop has recorded three administrations:
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Betta Living appointed administrators as rising rents pushed the company into a loss, and put pressure on cash flow
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American Apparel in the UK called in administrators from KPMG. The failure of two American Apparel UK companies, American Apparel (UK) Ltd and American Apparel (Carnaby) Ltd comes as the US company is being sold. The UK operation, along with some European parts of the business, is not part of the sale
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Bakery chain Cooplands collapsed into administration after its CVA failed, and was subsequently acquired by Cooplands Retail Limited, formerly associated with the same directors as Alison's Coffee Shop, which had traded as Cooplands since its initial administration last year
Despite what some would see as doom and gloom on the high street in terms of the rise in administrations reported over the past two months, and the news that Gap’s Banana Republic fascia is exiting its store presence in the UK, October’s retail sales grew at their highest rate since April 2002. Coupled with strong online growth throughout the month and backed up with GfK’s Consumer Confidence Index, the trend for buying now seems set to continue as we head towards Black Friday and Christmas.
Indeed, with many retailers now having launched their festive campaigns to entice shoppers and the grocers heading into battle over toy price matching schemes, it will be interesting to see if the big four can reclaim some lost ground over the discounters as we head towards the end of the year.
In other high street news:
With the crazy Christmas season upon us, FSP will be monitoring the news closely to see who is making a success of the latest retail evolutions.
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The Entertainer - let me Entertainer you |
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Posted At: 08 November 2016 00:48 AM
Related Categories: Retail, Retailers |
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On track to expand both its national and international footprint, this month’s Spotlight looks at The Entertainer. With soaring online sales underpinning UK and international expansion, the toy specialist recently posted its seventh consecutive year of growth.
The Entertainer was originally founded by husband and wife team Gary and Catherine Grant in 1981. In recent years, it has experienced significant growth, optimising multichannel opportunities, and using online and mobile channels as a way to drive greater engagement, in-store sales and brand loyalty. Sales at its online site, TheToyShop.com, climbed 39%, due in no small part to its 30 minute click and collect service.
The retailer now has 127 outlets in the UK and recently announced it is opening its first European stores in Cyprus through a franchise partnership. The Entertainer has four stores in Pakistan and two in Azerbaijan, and aims to open standalone stores in Cyprus during 2017.
Much of The Entertainer’s success can be attributed to its commitment to innovation and an ability to respond to changing consumer demands, embracing the need for experiential marketing and personalised customer experiences.
Brand licensing has also been a vital part of the business’ long-term strategy and where The Entertainer has developed a point of difference. Profits spiked in 2014/15 thanks to the likes of Loom bands, LEGOmovie and Frozen. Recent collaborations include its 26-strong range of Nickelodeon licensed products, with craft sets, science kits and a magic box. This range was stocked exclusively, and supported by joint marketing campaigns by both parties.
Its "Super Saturdays" concept has also been hugely successful. Working with licensors and suppliers, these themed 360-degree marketing campaigns include TV, window takeovers, online, social, feature space in-store, competitions and product demonstrations. The aim is to bring their ‘best in class’ proposition to life in-store and drive interaction and engagement with customers. Disney Princess Super Saturdays resulted in a 20% brand market share.
The Entertainer has set itself apart through its charitable giving too, and practises tithing, donating 10% of its net profit to charity - this year it gave away £750,000.
Looking ahead, there have been some challenges. A recent investment of £1.2m in a new UK warehouse impacted the business’ recent results. Gary Grant has also been vocal about the impact of Brexit, warning retail prices will rise 10% as a result.
However, with a commitment to innovation and working in partnership with brands to create exciting new customer-led concepts, FSP expects this retailer to continue to delight children – with sales to support it.
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Retail Update - October 2016 |
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Posted At: 20 October 2016 16:45 PM
Related Categories: Administrations, Retail, Retailer At Risk, Retailers |
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Since our last update, bakery and catering company Peyton and Byrne has gone into administration following the loss of contracts at London’s Kew Gardens and the British Library. The bakery business has been sold as a separate entity to Peyton and Byrne Bakeries Limited, a new business owned by the Peyton family, and its five existing public catering contracts have been sold as part of a pre-packaged sale to foodservice company Sodexo.
As seen in August, September has painted an equally rosy picture on the high street:
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Data from IMRG Capgemini’s eRetail Sales Index shows that September’s online performance topped off a strong quarter, with the Index recording the highest quarterly growth at 17% since the first quarter of 2014
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According to the latest Coffer Peach Business Tracker, consumer spending on eating and drinking out continues to hold up post-Brexit, with managed pub and restaurant groups reporting collective like-for-like sales up 1.8% in September against the same month last year, with those outside the M25 reporting bigger increases than those in the capital
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Consumer confidence rebounded to pre-Brexit levels in September, with GfK’s long-running Consumer Confidence Index increasing by six points this month to -1 (30/09)
In other news from the high street:
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The UK stationery market is set to rise by 2.4% to around £2.1 billion by 2021 according to research from Verdict Retail
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Consumer confidence rebounded to pre-Brexit levels in September, with GfK’s long-running Consumer Confidence Index increasing by six points this month to -1
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The post-Brexit crash in the value of the pound means that the UK is now the cheapest market in the world for luxury goods according to research from Deloitte
And finally, Mintel predicts UK Christmas sales will rise 2.5% to £42.2bn this year but this depends on retailers’ approach to the all-important Black Friday. It will be interesting to see the strategies surrounding what has become one of the most important festive shopping dates on the calendar, something we at SnapShop, will keep you up-to-date with.
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Retailer Spotlight - The Works |
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Posted At: 15 September 2016 16:00 PM
Related Categories: Retail, Retailers |
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With the news that The Works has delivered the most profitable year in its history, FSP takes a look back at the strategies that have driven its growth over the years.
Founded in 1981, The Works is a leading retailer of discount books, toys, gifts, stationery and arts & crafts, and operates from over 300 stores in high street and factory outlet locations. Despite its track record of profitability, it suffered deterioration in trading in 2007 and was placed into administration in January 2008.
Following its administration and subsequent sale to Endless, The Works embarked on a turnaround plan which included a refocus on improving its product offering, growing store numbers and modernising its store portfolio, as well as strengthening its management team.
These changes paid dividends, as The Works went on to record an improving EBITDA and sales performance year after year. And following the revamp of its website and its best ever Christmas sales in fiscal year 2012, the business was ranked number 7 in the Sunday Times Fast Track 2012 Buyout Track 100, and was ranked number 1 in the Midlands.
In 2013, The Works pioneered a loyalty scheme ‘Together’ across its entire store portfolio, in what was described as a first for the value sector. This scheme has been hailed a success, now boasting over 75,000 members and seen as an important factor in driving growth at the retailer.
It all seems to be going in the right direction for The Works, who for the 53 weeks ended May 1 2016, reported EBITDA of £12.7m from £9.5m in 2015 – a 37% increase year on year. The company grew sales to £154.4m from £117.2m the year before. This was a 9% growth on the previous year, which it attributed to a strong performance in key product categories, the addition of 40 new stores, and the continued growth of the online business which saw The Works develop a click and collect proposition.
The coming year will see The Works open at least 50 stores, with the company stating that the “fundamental principles” that have driven the strong profit growth over the last three years, such as proactive management of its property portfolio with zero loss making stores, strong cost controls and simple operating processes, remaining “cornerstones” of the business going forward.
It will be interesting to see how The Works continues to adapt to an ever-changing retail landscape in order to remain competitive, but for now it certainly seems to have got it right.
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Retail Update - August 2016 |
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Posted At: 18 August 2016 13:51 PM
Related Categories: Retail |
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So despite the widespread panic that ensued directly after Britain voted to leave the EU, it has not been all doom and gloom in the retail world. Shopping centres are still being bought and sold, retailers are still expanding their store presence, and consumers are still spending money, in a sure sign that the world hasn’t just stopped but is continuing as it has always done.
Britain’s managed pub and restaurant groups saw collective like-for-like sales grow 0.3% in July against the same month last year, indicating that the country is not giving up on going out to eat and drink in the wake of the Brexit vote. Figures from the Coffer Peach Business Tracker show that London operators recorded a healthy 2.9% like-for-like sales uplift against July 2015, while those outside the M25 saw like-for-likes fall 0.5%.
But it’s not just on leisure that consumers are spending. Online fashion sales jumped 22% in July according to the IMRG Capgemini e-Retail Sales Index, indicating that spending habits are not being reined in but that consumers are utilising their disposable incomes which are at a record high. As highlighted by the ONS, the median household earned £26,400 after taxes and benefits in the year to 31 March, up £700 on the previous year, and £400 above the previous high of £26,000 in 2007-08.
International retailers still see the UK as an essential launch pad into Europe and are signing for stores, and there has even been a revival into the use of UK manufacturers. John Lewis is launching a new 'Locally Made' initiative, bringing together locally designed and made products from across the country in a dedicated area in its shops, and Marks & Spencer has become one of the first customers of a new cotton mill in Greater Manchester, which is set to be fully operational from autumn.
And with new retail and leisure developments being given the green light to proceed, and the initial stages of the Night Tube being launched this week, retail is set to be boosted even further both in the Capital and throughout the UK.
Although Brexit will undoubtedly have an impact in the future, there certainly seems to be no signs of it stopping us yet.
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Retailer Spotlight - Mothercare |
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Posted At: 25 July 2016 00:26 AM
Related Categories: Retail, Retailers |
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Nursery retailer Mothercare is making steady progress on its turnaround plans, having reported its first statutory profit in five years in its latest financial year to March 2016. Although its latest quarterly results show a slight decline in sales, Mothercare said that fall reflected a 4.8% year-on-year reduction in space, as it continued to rationalise its UK store portfolio.
Having embarked on its turnaround strategy in 2014 which involved new chief executive, Mark Newton-Jones, over-seeing a six-point recovery plan that included a focus on digital and recapturing gross margin, Mothercare moved away from heavy discounting and turned its attention to restructuring its store portfolio and online operations to compete in the digital age.
Since 2014, Mothercare has rationalised its UK store portfolio, reducing from 220 UK stores in fiscal 2014 to 189 in fiscal 2015, and now to 170 in the year to March 2016. This figure includes eight Early Learning Centre stores.
While Mothercare has been busy closing under-performing stores in the UK, it has expanded its international footprint, rising from 1,221 international stores in fiscal 2014 to 1,273 stores in fiscal 2015, ending its current quarter with 1,322 stores. Of those, 958 were Mothercare stores while 364 were Early Learning Centre stores.
Having turned its attention to digital, Mothercare’s UK online sales now account for 25.5% of total UK sales. Last year online sales made up 32.7% of total sales. Mobile is responsible for 84% of online traffic and 61% of online sales.
It is clear from looking at the reduction in store count, the growth in overseas markets and the rising online sales, that Mothercare’s strategy for turning the business around was the right one. Given the current and ongoing challenges facing the high street at the moment, Mothercare will need to continue to innovate and use technology to continue to set it apart from its competitors in order to remain a sustainable business going forward.
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eSports and Competitive Gaming – Gotta Catch Em All! |
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Posted At: 22 July 2016 14:56 PM
Related Categories: Retail, Social Commentary |
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Following the news that Game has opened its first eSports and competitive gaming zone at its Manchester Trafford store and the eagerly awaited launch of Pokemon Go, FSP takes a look at the impact gaming is having on our lives and the wider retail industry.
Gaming has been a feature of many people’s everyday lives right from the release of the very first console - The Magnavox Odyssey – in 1972 through the years to the release of consoles from the major video game companies such as Atari, Nintendo, Sega, Sony, Microsoft.
Over the years, the consoles have evolved to match the changing needs of the gamer, providing a lucrative business for the likes of Game when consumers want to upgrade their consoles to get the latest release and upgrades. These changing needs have also brought about the evolution of online gaming, mobile gaming apps and virtual reality headsets, a long way away from the very first consoles ever produced, and yet more ways of making money, be it through in-app purchases or an online subscription.
The release of the mobile app Pokemon Go recently has been so well received it has surpassed all expectations from its makers. From the young to the old, Pokemon Go has people running down the road trying to ‘catch them all’, and it’s getting children outside and off of their normal consoles. This could be a good thing.
The gamer is definitely here to stay, and retailers will need to stay one step ahead in order to capitalise on this market. Game could be on to a winner; providing space where people can compete against each other while in a shopping centre environment and adding another leisure dimension to the standard shopping trip. Whether it is a success or not remains to be seen.
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Retail Update - June 2016 |
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Posted At: 16 June 2016 15:27 PM
Related Categories: Administrations, Retail |
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Since our last update, Austin Reed has failed to attract a buyer and its entire physical portfolio will cease trading by the end of June 2016. BHS is heading down the same route in what has been a sad month for the high street.
Consumer confidence is still just in negative territory despite having increased two points since April, and far below the levels seen last year. Brexit is playing a big part and given that the important EU referendum takes place next week on June 23rd, we await to see what impact this has on confidence.
May saw the contribution of online to overall sales grow as that of stores fell, suggesting a movement away from in-store shopping as more than a fifth of UK retail sales took place online in May for the fifth month in a row. Retailers saw growth in all categories online.
However, the percentage of online retail sales made through tablets and smartphones fell in the first quarter of 2016, the first decrease since etailing association IMRG’s records began in 2010. Just under half of online retail sales were completed through mobile devices during the period, down from 51.3% in the fourth quarter of 2015.
With the rising use of contactless payment methods, it comes as no surprise that debit cards are poised to overtake cash as the UK's most popular payment method in five years' time, the payment industry's trade body Payments UK has forecast. Current rates of growth indicate there will be 14.5bn payments made on debit cards in 2021 compared with 13bn cash payments. Cash usage will continue to decline past this date to account for just over one in four payments by 2025. The data showed that cash currently remains the most popular payment method in the UK, accounting for 45% of the 38bn payments made last year.
It will be interesting to see if online continues to outpace the high street, and how retailers respond to the changing retail landscape. SnapShop aims to keep you up-to-date with all of the news and latest in shopping habits.
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Retailer Spotlight – New Look |
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Posted At: 08 June 2016 00:58 AM
Related Categories: Retail, Retailers |
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Having started life a teen fashion retailer in 1969, New Look has come a long way since its humble beginnings; from upping its game to offer clothing to a more mature woman, branching out into menswear and standalone men’s stores, and expanding internationally. All things of which have led to New Look to report a significant year in its latest accounting period.
For the year to the end of March, New Look reported underlying profits of £174.7m on the back of sales of £1.5bn; an improvement driven by multichannel, menswear and “continued success” in China. Online sales soared for New Look, with own website sales up 27.9% for the year and third party online sales increasing 41.8%.
The year saw New Look open six standalone menswear stores, and a further two stores since year end – all of which are “trading well” - and New Look is on track to open 20 new stores by the end of March 2017.
China has certainly been a success story for New Look where it has opened a further 66 stores over the past year, and it now trades from 92 stores in the region having opened another seven stores since the end of March. The next year will see New Look open another 50 shops in China where demand for its product is high.
Having been sold to Brait in May 2015, New Look has certainly flourished over the past year, making continued progress against its strategic initiatives to develop into a truly global brand.
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Retail Update - May 2016 |
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Posted At: 19 May 2016 17:13 PM
Related Categories: Administrations, Retail, Retailer At Risk, Retailers |
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Since our last update, when BHS and Austin Reed Group had negotiated CVAs, both have now succumbed to administration. Although both have attracted a lot of interest, no announcement has yet been made regarding the future of these iconic brands.
Consumer confidence has also taken a bit of a knock since our last update, falling back into negative territory, as consumers show concern regarding Brexit and the wider Eurozone crisis. It will be interesting to see if this figure remains stable as we approach the EU referendum.
With the recently released Android Pay in the UK, data from the UK Cards Association has revealed that monthly contactless spending in the UK has reached a record high. A whopping £1.508bn was spent through contactless payments in March. This figure, despite security concerns surrounding contactless, looks destined to rise as the choice of options continues to grow for consumers.
As online continues to grow, footfall continues to decline, down 2.4% in April , following a 2.7% decline in the previous month. High streets saw the biggest decline with footfall down 4.7%, while shopping centre footfall edged down 0.7%. Retail parks, however, saw an uplift of 1.1%.
Interesting data from the Publishers Association was released in April that revealed sales of print books are rising for the first time in four years, while eBook sales were down for the first time since the e-reader hit the shelves. Total sales of book and journal publishing were up to £4.4bn in 2015.
In the same way, according to the latest figures from Kantar Worldpanel for the 12 weeks to 10 April 2016, physical stores are taking customers back from e-retailers in the physical entertainment sector. The figures found that high street and grocery stores accounted for 69.8% of sales, compared to 67.5% the previous year.
These are both significant to the retail industry as the battle for online against physical retailing heats up, and demonstrate that although online is clearly an important strategic market for retailers, consumers still want (and need) that ability to physically be able to enter a shop and feel and see the product in their hands before buying.
You can keep up to date with the latest consumer trends and shopping habits here on SnapShop.
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Retail Update - April 2016 |
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Posted At: 21 April 2016 16:00 PM
Related Categories: Administrations, Retail, Retailers |
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With the CVAs of Beales and BHS approved last month, April saw Scottish independent Xile Clothing fall into administration and subsequently rescued by JD Sports-owned Tessuti.
Austin Reed Group – which underwent a CVA last year to shed stores and restructure its operations – was acquired by Alteri Investments, having appointed advisers to find a way forward for the struggling chain almost a year to the day it’s CVA was approved.
All is not doom and gloom on the high street though. Consumer confidence – although possibly starting to reveal Brexit fears – is still positive and the average house price continues to grow, reaching over £200,000.
A new initiative aimed at making UK high streets some of the most digitally enabled in the world has launched, starting with pilots in Cheltenham and Gloucester. The digital high street programme is led by Home Retail Group chief executive John Walden and supported by businesses including IBM, Boots UK, Google, Lloyds Banking Group and Facebook. Additional locations already carrying out limited digital initiatives elsewhere will be included in the project, with the aim of launching the high street digital hub nationally in spring 2017.
Online continues on its steady growth path, with Mintel research revealing that nearly half of all British grocery customers shop online, with over 11% never visiting brick and mortar stores. Not surprisingly, total online sales grew by 11% in March, with smartphone sales growing by 101%. Sales via tablets were up by only 6%, the IMRG Capgemini eRetail Sales Index showed.
Interestingly, a survey of Co-operative Group shoppers has revealed that 65% of shoppers from a sample of 2,000 it interviewed thought they would only need a mobile phone to pay with by 2025. As it stands, two-thirds of all transactions at The Co-op stores are still made using cash, despite the Co-op being the first retailer to roll-out contactless payment points in 2014.
You can keep up with all the latest trends on SnapShop.
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Retailer Spotlight – Abercrombie & Fitch |
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Posted At: 25 February 2016 13:42 PM
Related Categories: Retail, Retailers |
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Following the news that Abercrombie & Fitch has been ranked as America’s most hated retailer according to the American Customer Satisfaction Index (ACSI), FSP takes a look back at what they may have done to deserve this title.
Although widely credited with transforming the brand in the 1990s, former CEO Mike Jeffries – who exited Abercrombie & Fitch in December 2014 amid falling sales and profits – faced widespread criticism for controversial statements relating to Abercrombie's brand. This included comments in which he indicated the retailer's clothes should only be worn by thin and attractive people, and a court case that involved a Muslim woman who believed she was denied a job at the retailer because of her head scarf. One employee pursued legal action against Abercrombie & Fitch after accusing it of banishing her to the stock room because she was an amputee.
These things, combined with Abercrombie’s famous practice of using topless models at events and store openings for both it and its sister brand Hollister, and the onslaught of rivals such as American Eagle and Forever 21, lead to young, fashion-conscious consumers jumping ship and heading elsewhere to spend their money.
Having such a controversial policy of how its staff looked generated negative headlines for Abercrombie & Fitch, so it came as no surprise that six months after Jeffries departed, the brand announced a new direction in which it would no longer hire store staff based on “body type or physical attractiveness” as it put an end to its “sexualised marketing”. As part of the changes, the company has overhauled its hiring policy to hire “nice, smart, optimistic people [with a] strong work ethic” who can deliver great customer service. A new management team was put in place and emphasis was placed on improving the customer experience.
Although sales and profits are beginning to improve at Abercrombie & Fitch, it’s not really a surprise that consumers shun the brand based on its past. And by the sounds of things, with its recent ranking in America that saw Abercrombie & Fitch attain a low number of 65 – almost 10 points below the entire sector’s overall score – concerning recent shopping experiences, it seems that consumers are not too hopeful about the future of this once iconic brand.
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Retail Update - February 2016 |
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Posted At: 24 February 2016 00:42 AM
Related Categories: Administrations, Retail, Retail Property, Retail Statistics |
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No administrations have been recorded on SnapShop since our last update.
Brantano, which was placed into administration in early January, was acquired by its former owner Alteri Investors in mid-February. Some 58 stores and concessions were not included in the Alteri acquisition. It will be interesting to see what happens with this retailer in the future, as it seeks to become more of a multichannel player with a slimmed down store portfolio.
The high street doesn’t seem to have been affected by the so-called ‘January Blues’ this year; indeed UK retail sales surged the most in more than two years in January, boosted by demand for clothing and computers. Pub and restaurant groups have continued their strong growth seen last year, with collective like-for-like sales in January up 1.9% on the same month last year, according to latest figures from the Coffer Peach Business Tracker.
A rather notable trend that emerged from 2015 was the soaring sale of gift cards. Figures from the Gift Voucher Shop, the company behind the One4all Post Office Gift Card, revealed a 35% increase in sales, online sales via One4allgiftcard.co.uk saw a 60% increase compared to 2014, and gift card orders for rewards and incentives via the corporate division, One4all Rewards, soared by 47% on the previous year.
According to the data, fashion retailers saw the largest value of One4all Gift Card redemptions during the 2015 Christmas period and overtook general merchandise stores which were number one in 2014.
FSP will be watching with interest as new trends emerge in 2016. Our understanding of retail helps our clients make informed investment, development and asset management decisions.
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Burgers – the eating out trend of 2015 |
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Posted At: 03 February 2016 16:22 PM
Related Categories: Retail, Retailers |
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The news towards the latter end of 2015 seemed to be dominated by ‘upmarket’ burger brands either expanding their operations or making their debut in the UK market. It is therefore no surprise that analysis of 2015 booking data by Bookatable found that burger restaurants had seen the biggest increase in bookings over the last year.
A number of new burger operators, such as US brand Smashburger, are making their debut in the UK this spring on the back of the success of operators such as Five Guys and Shake Shack, both of which have also made a jump across the pond.
So what makes these burger operators so attractive? Surely a simple burger can’t give rise to this phenomenon in eating out? Apparently it can. These operators, such as British-born Gourmet Burger Kitchen, offer a large range of luxury burger options that cater not just for meat-eaters but for the vegetarians among us, with more options than your average McDonald’s or Burger King.
Perhaps this is why the likes of McDonald’s is now revamping its menus and introducing table service, and why Burger King is trialling the sale of alcohol as it looks to attract a wider customer demographic and compete with an influx of new competitors.
It will be interesting to see if the burger trend continues throughout 2016, what operators – if any – fall by the wayside, and if new eating out trends rear their head. It has been widely publicised that eating out is a growing trend in itself, but what the UK consumer will be eating remains to be seen.
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Retail Update - January 2016 |
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Posted At: 26 January 2016 10:40 AM
Related Categories: Administrations, Retail, Retailers |
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Since our last update Christmas has come and gone and we have the first retail casualty of 2016 – Brantano. Having been loss-making for a number of years, Brantano’s demise was not unexpected. Macintosh Retail Group sold Brantano and sister company Jones Bootmaker to Alteri in November 2015 who subsequently appointed advisers to look at options for the chain.
Similarly, and a little more of a surprise, was Blue Inc’s announcement that it was putting its subsidiary A Levy Ltd into administration and closing 74 stores to restructure the business for profitable growth.
It remains to be seen what will happen with either of these retailers – and indeed if any others will succumb to administration – but SnapShop will bring you the news as it is reported.
2015 was a good year on the whole. Consumer confidence increased in December and the whole year showed positive scores for the first time in its history; London welcomed a record number of international tourists last summer with more than 5.2 million visits between July and September; and pub and restaurant groups continued their strong growth – the underlying long-term trend shows that like-for-like sales for the whole 12 months of 2015, up to the end of December, were ahead 1.5% on 2014.
It will be interesting to see what trends 2016 will bring and how our high streets will fare.
Indeed, a new proposal from Fragmented Ownership to revive shrinking high streets has launched following the release of data that shows footfall in the UK’s town centres is continually declining. Fragmented Ownership, a group of property experts and investors, argues that town centres need "investment zones" run by a single body that would be able to offer a package, rather than a disparate collection of shops. Let’s see if this latest revival plan manages to achieve something where others have failed.
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Retail Spotlight – The changing face of leisure |
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Posted At: 19 January 2016 17:19 PM
Related Categories: Retail |
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As consumers shopping habits shift more and more online, consumers leisure habits also seem to be shifting, evidenced by the rise of concepts such as indoor climbing centre Clip n Climb and trampoline park operator Oxygen springing up around the UK.
Both concepts signal a change for the leisure sector as both are family-orientated activities that provide an entertaining way of keeping fit, and are a bit different to the type of ‘normal’ occupier you would find on a retail park or as part of a shopping centre’s mix.
Having quietly started out with the odd one or two operators in a similar fashion to that of the budget gym operators, indoor trampoline parks have become the latest craze to spread across the pond and have been met with enthusiasm by the British public, something landlords will be pleased to hear. Oxygen has now become the UK’s largest operator having acquired five sites at the beginning of the year to add to its existing two sites opened at the end of 2015.
Clip n Climb is also taking the country by storm having originated from New Zealand to bring climbing to the masses and a fun and enjoyable experience. There are now 12 centres in operation in the UK and centres worldwide.
Both operators are making the most of a niche market, although are not the sole players. Other operators exist, and as the activities continue to grow in popularity, more operators will come to light to compete in the sector.
This change in leisure spend will mean that shopping centres will have to do more to attract shoppers to their centres in order to buck the declining footfall patterns seen recently, and that building dining quarter extensions and revamping their food courts to capture increased eating-out spend just isn’t enough to satisfy consumers.
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Retail Update - December 2015 |
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Posted At: 17 December 2015 16:24 PM
Related Categories: Administrations, Retail, Retailers |
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December has again been quiet on the administration front with nothing recorded on SnapShop.
Rumours have been flying around concerning the future of BHS, but with their recent high profile appointments we will be keeping a close eye on them as Retail Acquisitions continues to turn the chain around.
The news continues to focus on last month’s events surrounding Black Friday, Cyber Monday and Manic Monday and the fact that many retailers are firmly now in Sale mode for the remainder of the year as they continue trying to entice shoppers into their stores. However, Mintel has predicted a 4% rise in retail sales to surpass the £42.5bn mark in December.
Interestingly, research by Allegra World Coffee Portal has forecast that the UK's coffee shop market will be worth over £15bn by 2020 with over 30,000 outlets. Its findings show that sales at the UK's 20,700 coffee shops grew 10% in the last year to £7.9bn. In the past year customers are estimated to have drunk 2.2bn cups of coffee out-of-home. Costa topped the sales chart with an estimated 169m cups sold.
Business rates are another focus of the news, citing significant increases in bills when the review happens in 2017. Research from Colliers International suggests that 76 of the UK's main towns and shopping centres will see an increase in their business rates bill, with some parts of London seeing an increase of more than 400%.
What will happen remains to be seen, but this, along with the implementation of the National Living Wage, is sure to be playing on retailers’ minds.
Lastly, nearly two in three British towns have seen their numbers of pubs, bars, restaurants and clubs rise or stay the same in the last year, the latest edition of the licensed trade’s Market Growth Monitor from AlixPartners and CGA Peach has revealed. This is good news as the festive season is in full swing, helping to breathe life back into UK town centres.
You can keep up-to-date with how retailers fare over the festive period on SnapShop as the all-important rent quarter day rears its head again.
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Retail Update - November 2015 |
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Posted At: 20 November 2015 16:30 PM
Related Categories: Administrations, Retail, Retailers |
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October has been a fairly quiet month in terms of administrations, with the exception of Garage Shoes which underwent a pre-pack administration saving jobs and stores.
Not surprisingly much talk recently has been about the impending Black Friday next week and what retailers plan to do with it. See FSP View for our thoughts on this particular shopping day.
The general feeling this month is that things are improving on the high street and throughout the country. The British Retail Consortium is predicting that festive sales will see a healthy growth compared to last year. It’s not just the UK that is seeing an upturn, Retail Ireland is forecasting that Irish retailers will have their best Christmas in seven years following an increase in consumer sentiment.
Consumer confidence has remained in positive territory throughout 2015 in contrast to the loss reached between mid-2007 and early 2014 when the recession was at its height. It will be interesting to see if it remains this way in the run-up to Christmas and in the New Year.
The eating and drinking out market seems on a never-ending course of growth. Collective sales for managed pub and restaurant chains were 2.5% up against October 2014. This level of growth is perhaps unsurprising given the recent JLL report that reveals F&B operators have doubled the amount of floorspace they take in shopping centres over the last ten years.
The plans to relax Sunday trading laws could be knocked off course by the Scottish National Party who intend to vote against them over fears it could drive down wages in Scotland. Not everyone is on board with the plans, both retailers and members of parliament, although from the press it seems like the government is keen to pursue this.
It has been interesting to read that the Healthy High Streets scheme, which launched last year and is backed by a group of the high streets’ leading retailers, has been deemed a success in its first year. Perhaps lessons can be learned from the initiatives implemented and introduced in other areas to help revive further ailing high streets.
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Retail Spotlight - Reiss sees profits treble |
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Posted At: 16 November 2015 00:00 AM
Related Categories: Retail, Retailers |
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In an economy where we are seeing retailers constantly struggling and consumer confidence rising one month and falling the next, you might not expect to see any retail brands doing well. However, Reiss seems to be bucking the trend.
In its latest figures, the global fashion brand known for its modern, stylish women’s and men’s wear, has shown a trebling of its profits - truly remarkable in the current climate. But there are hard decisions behind this performance that has seen the business build on its impressive 2014 results, when it doubled its profit http://tinyurl.com/osxmuuj
In the previous year, the family-owned business, led by David Reiss, restructured its management team and at the same time scored some major marketing kudos when British royalty, Kate Middleton, confirmed that Reiss was a favourite of hers. This profile has helped drive awareness of the brand, especially across the US. In addition, Reiss has fought to avoid the trend to discount that has been adopted by many other high street brands.
Jump forward to this year and the latest figures are even more impressive;, so how can Reiss top the last two years? David Reiss has said that the next stage of development will be growing the international presence, with the business looking to increase store numbers to 250 globally. It is now working with Morgan Stanley to look at investment opportunities to support this growth http://tinyurl.com/og9fnq8.
Reiss is proving that however challenging a market place is, if you have the right brand and product mix, with strong marketing based on a lean structure you can deliver strong growth, definitely one to watch over the coming years.
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Retail Update - October 2015 |
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Posted At: 22 October 2015 15:32 PM
Related Categories: Administrations, Retail |
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Although there have been no recorded administrations on SnapShop again this month, all is not necessarily well on the high street. Quiksilver and American Apparel, who both filed for Chapter 11 bankruptcy in the US, have secured new financing packages enabling them to exit bankruptcy and restructure their operations ; and, Sports Direct and Direct Golf are currently locked in a legal battle of ownership for the golf brand.
Concern is also rising over the proposed changes to Sunday trading laws, with a number of MPs opposing the relaxation of hours, and new figures from Bira have revealed that traditional independent retailers have closed more stores than opened them in UK town centres in the first half of 2015. There was a net loss of 144 independent stores (0.14%) across all sectors in the first six months of this year, compared with a net increase of 289 stores (0.28%) for the same period in 2014.
But it is not all doom and glooms. The latest set of figures from the Office for National Statistics reveal that retail sales rose by 6.5% in September year-on-year despite average store prices falling by 3.6%, and supermarket price wars have left the average household better off by £58 a year, according to Kantar Worldpanel.
Figures released by the British Retail Consortium and Springboard in their monthly footfall monitor show that retail footfall in September was 0.2% lower than the same month a year ago. The figures show that high streets and shopping centres experienced declines of 1.4% and 1.3% respectively. Despite the fall, this was best performance recorded by high streets for seven months.
Interestingly, the eating-out sector is booming, with the managed pub and restaurant groups recording steady growth throughout 2015, boosted by new openings.
The latest Barclaycard Consumer Spending Report found that consumer spending in pubs had risen by 11.6%, and restaurants by 12.6% between 23 August to 26 September, marking the sector's 26th month of consecutive double-digit growth.
Black Friday looms again next month, with shoppers expected to spend at least 30% more on Black Friday and Cyber Monday this year, compared to 2014. It will be interesting to see if this is realised and if retailers have learnt from their mistakes last year.
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Cost of Cash Set to Rise |
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Posted At: 20 October 2015 12:55 PM
Related Categories: E-tailing, Retail |
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We have all seen it over the past few years, less cash purchases, more card transaction and with the latest increase in contactless payment limits, it is now even easier to use cards in all retail outlets. But the question is, what does this mean for the consumer over the coming years?
Last year, 2014, the volume of card transactions surpassed cash ones for the first time, largely driven by contactless payments. It was famously once stated that The Queen doesn’t carry cash with her, are we all finally following suit?
The pressure is not just coming from new technology, but is now being driven by the cost of cash. Most economic commentators are forecasting a rise in interest rates which will increase the cost for retailers to handle cash, from around 0.2% to 0.3% of value. This in turn will have an impact of profit margins for retailers, most of whom are already struggling to maintain profitability.
This pressure is going to necessitate a change in strategy by the retailers. Some are already looking at ways to change the purchase process with customers - you only need to look as far as London Transport, where contactless payment cards can now be accepted at Oyster payment points. But a further question that will need to be asked is what impact will these changes have on customer behaviour?
Will we see a point soon where the paying by cash will cost more than by card?
Probably. Or when will we see the first cashless retailer? There will still be a significant group of the population who will be reluctant to drop cash, just as there has been a reluctance to stop writing cheques. However, the cheque is almost dead and it is more than possible that cash will follow in its footsteps. Those retailers that are progressive are already looking at how to manage this transition, those that don’t will suffer the same impact as those who didn’t embrace the internet, they will possibly see reduced sales and reduced profits.
There are many new payment channels begin tried and tested including “Cryptocurrencies” such as Bitcoin and with more retailers opening up to this possibility, the face of payments is sure to change in the coming years.
Our thoughts are that retailers need to be engaging customers in the change now to ensure that when the costs do become prohibitive, it is an easy step to move to a cashless system.
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Retail Spotlight - Growth is anything but casual - Casual Dining Group |
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Posted At: 14 October 2015 16:00 PM
Related Categories: Retail, Retailers |
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The UK food and beverage sector has seen a frenetic pace of merger and acquisition activity in the past months, with private equity in particular showing a strong appetite for the restaurant sector. The Casual Dining Group (CDG), formerly known as Tragus Group, has been a key mover within this trend. Its purchase of the Spanish tapas chain La Tasca for £25m in September followed the acquisition of Las Iguanas, the 41-strong nationwide Latin-American restaurant-bar earlier this year.
The acquisitions are supporting an organic growth plan for CDG whose brands include Café Rouge, Belgo and Bella Italia. Fifty-three major refurbishments are planned within the next six months, and an additional 30 new restaurants due to open in the next 12 months. Indeed, the value of the La Tasca purchase was in its locations and CDG plans to convert up to 25 of its 40 sites into another concept, perhaps its Bella Mia Italian format. A pipeline of new openings across leisure parks and prime high street locations is also in place and supported by investment in upgrading its existing brands. Bella Italia’s brand update has sparked a big trading improvement, and a new look and improved menu at Café Rouge is underway.
This flurry of activity follows a well-reported downturn for the group involving a massive restructure for the Tragus group and the painful but voluntary sale of the Strada chain of Italian restaurants. Out of the ashes comes the phoenix and having re-established themselves as The Casual Dining Group – and reducing its debt from£258 million to £91 - million a convincing private equity-led turnaround is underway.
This is more than a question of new leadership under Steve Richards, who took the reins at CDG 14 months ago. Our view is CDG recognised the growth potential of the casual dining market – pun intended - where diners want great value, quality and fun food at accessible prices. Brands are being acquired and evolved to support this proposition. With YO! Sushi, Ed’s Easy Diner, La Tasca, Gaucho, Côte, Giggling Squid and Bill’s all reportedly up for grabs or weighing up options, the market is wide open for CDG, itself expected to consider a possible sale or IPO within the next two to three years.
The casual dining market is quickly becoming the one to watch.
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BHS – Changing its strategy for better or worse? |
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Posted At: 25 September 2015 15:20 PM
Related Categories: Retail, Retailers |
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BHS has featured in the news a lot recently, with articles concerning the funding it has secured for its turnaround and the details of that turnaround which seem to be pitting it against the likes of M&S, albeit on a cheaper scale. All the news seems to be good, but, does BHS know where it’s going?
BHS opened its revamped Watford store last week, which has been designed to showcase some of its ambitions for the future, including an enhanced food offer that offers a ‘2 Dine for £10’ meal deal in a similar fashion to M&S and others, a Claire’s Accessories concession and a new logo.
It is the enhanced food offer that BHS, under new owners Retail Acquisitions, is now using to open dedicated convenience stores having joined forces with Booker to supply its lines. Six such convenience stores are now open with plans to have 20 operating by the end of October. BHS has planning consent for 140 convenience stores within its existing estate of 171 department outlets. Given that this is an area in which BHS has held an interest for some time, this could be the way forward in changing its fortunes.
It is, however, the announcement that BHS made, in relation to opening Quiz and Ruby London concessions that has got us talking. Quiz is a young fashion retailer, something BHS is not, and Ruby London is a denim retailer with a tag-line of Premium British Style, a price point significantly higher than anything offered by Quiz and out of line with the value offer suggested by the Booker tie up for food.. Perhaps this may be a flaw in the planning, perhaps a means of testing the water in both directions or perhaps it is a sign that BHS does not quite know its target market. Whatever the rationale, maybe something in the mix gives what is needed to rejuvenate the ailing brand; only time will tell.
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Retail Update - September 2015 |
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Posted At: 17 September 2015 11:34 AM
Related Categories: Retail, Retail Statistics |
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There have been no reported administrations since our last update. Quiksilver is the only company to have reported filing for bankruptcy in the US after losing 79% of its market value this year. Its operations outside the US are not part of the Chapter 11 filing. Quiksilver said the global investment lender, Oaktree Capital Management will provide the company with the $175m (£113.73m) it needs to restructure "and fund its ongoing operations in the US and abroad".
Despite online sales recording their weakest month of growth in August since November 2012, a new study from Webloyalty is predicting that by 2019, annual shopping via mobile will be worth as much as the amount spent in more than 30,000 UK shops. The research suggests that the m-commerce sector in the UK is currently worth £9.7 billion and is expected to grow to £53.6 billion by 2024. Spend on smartphones is forecast to rise by 243.5% in the next four years, with direct spend on both phones and tablets set to climb by over 230%.
It seems that with improving consumer confidence there are lots of forecasts predicting growth:
• The UK luxury sector, including designer apparel and footwear, is expected to be worth more than £51bn by 2019, the latest figures have revealed. The sector contributed £32.2bn to the economy in 2013, 2.2% of GDP, according to a study by international consultancy Frontier Economics for Walpole, the industry alliance whose members including Burberry, Alexander McQueen and Harrods, and law firm Charles Russell Speechlys. Luxury businesses are set to employ 158,000 people within the next four years, up from 113,000 in 2013, and grow in value by 60%.
• Similarly, the UK plus-size fashion market is set to hit the £5.4bn mark in 2015, accounting for 12.4% of the overall clothing market, according to research by Conlumino. Conlumino forecasts shoppers’ spend on plus-size fashion will grow 23.8% to £6.4bn by 2019 as more retailers expand their ranges to include bigger sizes.
You can keep up-to-date with the latest trends here on SnapShop.
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Now your shopping comes to you by air. |
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Posted At: 21 August 2015 15:38 PM
Related Categories: Retail |
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With retailers continually looking at how to improve their service to customers and at the same time reduce their costs, it was no surprise that robotics would soon be involved and most noticeably, the use of drones.
Much has been said in the media about drones and their potential uses, from filming to mapping the landscape and in particular, for the delivery of shopping. With Amazon leading the way in “piloting” their use for delivering orders, the big question is will there be enough demand for this type of service?
In the UK, a number of major retailers, led by Amazon, have been exploring the potential of drones and how this might benefit their customers from lowering cost, to speeding up delivery times. However, a recent article by shopping website Give as you Live, suggests that not everyone is ready to accept this next step in the drive to provide personalised deliveries. Their survey suggests that over a third of people would be cautious about their use, citing security, safety and accuracy of deliveries as reasons for these concerns.
There is also the small issue of the size, how much can a drone carry. Domino’s Pizza clearly think that they can carry quite a bit as highlighted by the Daily Mail. Developing their own drone to deliver Pizza, this is one application that we think might have value, bringing a new meaning to the phrase “Fast Food”.
However, the key question will be how quickly will people accept this new technology? On the whole, change of this type takes time and with some of the safety concerns now receiving negative press, we think the use of drones will take a long time to fully establish itself and even then, will not have a massive impact on the shopping behaviour of customers in the UK.
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Retail Update - August 2015 |
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Posted At: 21 August 2015 00:31 AM
Related Categories: Administrations, Retail |
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There have been no recorded administrations on SnapShop since our last update. Many retailers are in fact embarking on expansion plans, both in the UK and abroad, to take advantage of an upturn in the economy, improving consumer sentiment and town and shopping centre redevelopments.
Research from Visa has revealed that spending by Chinese tourists in the UK increased by 45% in July compared to the same period last year after visa rules were relaxed at the start of the month. People from China spent £50m on Visa cards in the UK during July, overtaking French and Australian visitors to become the second highest spending tourists to the UK, according to figures from the credit card giant. Only Americans spend more while travelling in the UK than the Chinese, splashing £140m on Visa cards last month, up 16% on the year earlier.
With a number of retailers using pop-up shops to showcase new products or as a test-bed for opening a permanent store in a new location, it is interesting to read that pop-up retail is now worth £2.3bn to the UK economy and employs 26,000 people. According to Britain’s ‘Pop-Up Retail Economy’ from the Centre for Economics and Business Research, the report, commissioned by EE, found that pop-ups now account for 0.76% of total UK retail turnover, more than £200m in sales up on last year. The research reveals that the pop-up retail sector is growing at 12.3% largely due to a rise in the number of customers and an increase in average spend.
Britain’s F&B market continues to grow, with the latest figures from the Coffee Peach Business Tracker revealing that collective like-for-like sales for the managed pub and restaurant market grew 1.1% in July. The Tracker numbers show that total sales in July, which include the impact of new openings, were ahead 4.8% across the market as a whole. Within that, restaurant chains contributed a 9.2% total sales increase against July 2014, with a 12.3% increase outside the M25.
This trend is backed up by a report by Aviva, which shows an increasing demand for casual dining. Chains such as Nando’s and Giraffe are helping to revive regional high streets and shopping centres, whilst consumer demand for the likes of Gourmet Burger Kitchen, Strada and Carluccio’s remains strong and is set to continue to expand, reducing vacancy rates and pushing up rents in the UK’s high streets and shopping centres.
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Retail Update - July 2015 |
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Posted At: 23 July 2015 16:49 PM
Related Categories: Administrations, Retail, Retailers |
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There have been no administrations recorded on SnapShop since our last update. In fact, much of the news reported recently has been very positive and concerns retailers across the spectrum announcing ambitious expansion programmes throughout the UK and abroad, and retailers making their debut in the country, such as Australian stationer Kikki.K looking to take on the likes of Paperchase.
Increasing retailer confidence is backed up by soaring consumer confidence in the UK, with GfK’s latest Consumer Confidence Barometer reaching its highest level in 15 years, rising six points in the month to 7. (30/06)
The general improvement in the UK economy is also evidenced by a 32% fall in retail administrations this year. According to research by Deloitte, (07/07) in the first six months of this year, 45 retailers entered into administration, compared with 66 in the first six months of 2014. This year’s figure is less than half the total of the 95 retailers that went into administration in the first six months of 2013, signalling much improved conditions on the high street.
The proposed changes to Sunday trading hours are hoped to bring about a similar effect on the UK high streets and boost the economy even more. They have been received well by many retailers, despite some independents having their concerns regarding competition. Research from the New West End Company, which represents 600 retailers in London’s West End, found that an extra two hours of trading on a Sunday would boost central London businesses by £260m each year and provide more than 2,000 additional full-time retail jobs. (17/07)
Interesting research from the British Retail Consortium has revealed that despite a slight decline in use, cash continues to account for over 52% of all transactions.(02/07) The study found that the average value of transactions across all payment methods fell again this year as shoppers become less reliant on large weekly shops and instead make more frequent visits to a wider variety of stores. It also reveals that UK customers are increasingly embracing non-traditional methods to pay for their shopping. The use of products other than cards and cash (payment via app etc.) has expanded six-fold over the last five years but still only represents a small proportion of the payments landscape. Given the launch of Apple Pay (13/07), which allows shoppers to pay for a wide range of goods and services with their phones, it will be interesting to see what changes are highlighted in next year’s research.
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Sunday Trading hours- let the locals decide |
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Posted At: 13 July 2015 00:55 AM
Related Categories: Retail |
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On the 8th July Chancellor George Osborne announced the relaxation of Sunday trading hours. He proclaimed a new legislation that will enable local councils and their mayors to decide and set the trading hours in their respective areas, which will end the national ban on large stores staying open for more than six hours.
With two decades of strict Sunday regulations behind us, Mr Osborne wants to give power back to the local communities so they can determine their own futures. With many high streets continuing to struggle up and down the country, what can we expect from the new Sunday opening hours?
The main thought is the impact on the UK high street. With the ever growing and changing needs of today’s consumer and the growth and flexibility that online retailers such as Amazon offer, as well as click and collect and online delivery, competition is intense.
The extension of the Sunday trading hours could be a step in the right direction to further promote high street growth, opening for longer could help bricks and mortar retailers put up more competition to online retailers. The lobby group Open Sundays claims the reform could bring in £20.3 billion over 20 years to the British economy.
This may also open up further employment opportunities. In London alone, research has shown that extending Sunday trading by only two hours would create nearly 3,000 jobs, and generate more than £200 million a year in extra income.
These changes would also bring the UK in line with its international competitors; Paris has recently relaxed restrictions on Sunday trading, while there are none at all in New York. Back in 2012, regulations were relaxed for the six weeks in July 2012 during the Olympics, which resulted in 4% increase in sales, mainly in the food and clothing sectors.
Giving the power back to local council’s means that the local people will be able to adapt to local demand. However those councils and parish’s which are more traditional may decide to opt out all together. If the government really wants to promote high street rejuvenation should this not be rolled our country wide?
The question we really need to ask is ‘will people spend more, or will they just spend on a different day?’. The Olympics was a test of this approach, however its main benefactor was London and the South East. Whichever way councils decide, this change will potentially impact the whole of the UK. As the new laws take into effect, FSP will be watching developments closely.
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Click and Collect evolves again |
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Posted At: 10 July 2015 10:47 AM
Related Categories: Retail, Retailers |
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The constant need to match customers buying habits and needs together with technological advances has led most retailers to look at how customers order and in recent years to offer click and collect as an option. Together with the more traditional channels such as online and in store. Most retailers have embraced this omnichannel approach, others have been slower on the uptake. Recently, M&S reported a further expansion of click and collect to another 100 stores, proving this ever growing service is becoming more and more popular with retailers and customers.
However, the more advanced retailers are now finding that this type of strategy does present problems, not least with the affordability of such services. John Lewis has now announced that for all click and collect purchases under £30 it will charge a £2 fee, claiming that without this charge the service is not sustainable.
Whilst John Lewis aims to be at the forefront of customer service and innovation, it is now proving that being at the forefront does not necessarily mean that that it will find the best balance of services and channels from the start. Indeed, what the news clearly shows is that the need for continuing development in the retail channels has to be balanced with the investment and the potential returns from these investments.
With technological evolution driving the buying behaviour of customers it is a constant battle for retailers to keep pace. The latest changes from John Lewis are sure to attract criticism from customers and consumer groups alike, but in order to maintain a profitable business and to deliver a high level of service. Customers need to recognise the investment needed to deliver multiple channels, likewise, the retailers need to balance the service requirements against the cost involved. The question is, should John Lewis continue without charging for the lower value click and collect to maintain their position?
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Retailer Spotlight: John Lewis Partnership |
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Posted At: 07 July 2015 10:34 AM
Related Categories: Retail |
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It was announced last month that the John Lewis Partnership (JLP) has now taken the top spot of the UK’s best performing mutual, previously held by the Co-op Group. Employee-owned John Lewis is now the biggest member-run organisation, after The Co-operative Group fell down the rankings.
The John Lewis Partnership had a turnover of £10.9bn with 93,800 members in 2015, according to a report published by industry body Co-operatives UK. The Co-operative Group came in a close second having reported £10.81bn in turnover.
John Lewis continues to remain a strong leader in the retailing industry and provides continual investment in its staff and members for the long term. A strategy that was demonstrated earlier this year when JLP announced a change to the structure in its buying team, amid wider changes to its strategy following the appointment of Ed Connolly as fashion buying director in June 2014.
Not only is it re-evaluating its strategy but the business continues to innovate. Earlier this year, John Lewis launched its tech start up accelerator ‘JLAB’, to identify and develop products and services that will shape the retail experience of the future.
Run in association with technology entrepreneur Stuart Marks’ investment fund, L Marks, JLAB will offer funding and office space to up to 10 start-up businesses. At the end of the programme later this year, the winner will receive a contract to trial their innovation in John Lewis stores, and up to £100,000 in further investment.
Paving the way for retail and with further good news that is has overtaken its main competitor M&S in sales and profit, we can continue to expect that John Lewis Partnership will go from strength the strength as the growing face of retail.
It is clear that there are more changes at JLP is looking to further change the way its customers shop, but will they push too far? Look out for our assessment on the changes to its click and collect services.
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Retail Update - June 2015 |
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Posted At: 18 June 2015 16:19 PM
Related Categories: Administrations, Retail |
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There has been one administration since our last update – Sphere and Turret. After struggling with financial difficulties it was announced in May that all 16 stores across central Scotland had closed. No further news on this has been reported.
Although this year has been quiet so far on the administration front, figures from FRP Advisory reveal that over 700 shops were shuttered last year with the loss of almost 5,000 jobs as a result of high street retailers such as Phones 4u, Jane Norman and La Senza falling into administration. Just 42% of the 1,270 shops that fell into administration last year were rescued, up from the 35% survival rate for stores in 2013. Back in 2011 there was a 67% survival rate for stores that entered administration.
Following April’s highest level of consumer confidence since 2002, GfK’s UK Consumer Confidence Index for May showed a decline of three points to 1, suggesting that the public are “not too confident about economic life under the Conservatives”. It will be interesting to see what the Index reveals next month.
Internet sales continued on their upward trajectory, recording their second consecutive month of double-digit growth in May according to the IMRG Capgemini e-Retail Sales Index. Total online sales increased by 10% year-on-year in May and by 2% on April.
Interestingly, UK retail accounts for 11% of global Internet retail sales, and the UK has the highest e-commerce spend per person of any country.
Online sales across the UK, US, Germany and China will grow by £320bn between now and 2018, increasing the value of the online market to £645bn, according to research by OC&C Strategy Consultants, PayPal and Google. Their research shows that Brits are currently spending nearly £1 in every £5 of their shopping via the web and the new survey suggests that ecommerce will continue to flourish. 59% of online sales are now through smartphones or tablets in the UK, in the US this number is 45% and in Germany it’s 24%.
According to Global Blue, international spend is back to strength for 2015 following a slowdown in growth last year, with London’s West End reaping the benefits. Spend in the West End is up 4% YOY to date, following a 3% YOY decline in 2014, as shoppers from top spending nations China, Middle East and South East Asia are shown to be spending over a third (38%) more in the capital’s top shopping district.
This is in contrast to the latest figures from the Office for National Statistics for the year to April 2015 which noted a drop in tourists from regions including Europe, the Middle East and Russia and showed the UK’s earnings from international visitors fell 7% to £6.7bn during the year.
However, Global Blue is predicting a significant uplift in Middle Eastern spend across the UK as shoppers flock for the annual pre-Ramadan rush. The figures show that spend from Middle Eastern nations climbed by 43% year-on-year over the rush in 2014 and the trend is expected to repeat this year. Saudi Arabian shoppers are forecast to lead the surge with spending up by 28% year-on-year to date with the Qataris expected to follow.
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Retail Update - May 2015 |
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Posted At: 22 May 2015 13:00 PM
Related Categories: Retail, Retailers |
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Since our last update, Blott appointed administrators, shut stores and was acquired by Tinc, another quirky stationery retailer who will re-open some stores and trade them under licence for six months from the administrator.
Interestingly, Manchester became the top shopping destination outside London in the last year as retail spend in the city hit £910m, figures published by The Heart Of Manchester BID (Business Improvement District) just a month after its second anniversary on April 1 showed, demonstrating how useful BIDs can be to towns and cities when operating as they should.
London has been named as the world’s most international shopping destination, with 57.9% of international retailers present in the UK capital according to CBRE research. Last year 12 new international retailers opened in the city including US names American Eagle and Lululemon. London is followed by Dubai, which has 55.7% of international retailers present, and Shanghai, with 53.4%.
A warmer April and increasing consumer confidence saw more people eating and drinking out. Barclaycard’s Consumer Spending Report revealed that although restaurant spending was up 13% the average transaction value fell by 6.8% year-on-year, as cost-conscious consumers continue to dine out more but spend less each meal.
Consumer confidence was at its highest level since 2002 in April with the headline index remaining at 4 during the month. It will be interesting to see how the index fares over the next few months now that the election is over with.
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The growth of Costa – it keeps going |
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Posted At: 12 May 2015 16:48 PM
Related Categories: Retail, Retailers |
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Having recently announced another growth in sales by 6% with underlying profits increasing by over 20%, Costa has now been named the UK’s favourite coffee shop for the fifth year in succession. In London, the most competitive area of this market, 39% of participants said Costa was their favourite, 16% more than its nearest rival, Starbucks.
But why is Costa continuing to lead the way over its rivals? In this spotlight, we look at a number of factors that might be contributing.
Costa as a brand has a high profile in the UK, however, as a company it has continued to look at new ways to drive the business forward and engage with its customers, listening to what they want from the brand, not just from the products, but from the environment as well. In the past few weeks Costa announced the opening of a new, carbon neutral outlet in Telford – the first of its kind in the UK.
Working in partnership with Hammerson, Costa has used the latest technologies including super insulated façade and photovoltaic panels to create an outlet that meets the highest environmental targets. This is typical of Costa and its drive to give customers what they want.
Costa has also identified that it can have the best products in the best location but, without a good team to deliver service, customers will go elsewhere. With this in mind, parent company, Whitbread PLC, has established and invested in a dedicated training programme to provide apprenticeships in customer services across its brands, including Costa. Costa employs over 11,000 people and is creating around 1,500 jobs this year and over 4,500 jobs in the next three years in the UK. The message is clear, deliver great products with great service and listen to your customers, then your brand will grow. And Costa’s results are only set to grow further with 569 new coffee shops planned for the UK in the next five years and more growth planned in China, where it already has 49 outlets.
In the retail world of old, it was always said that “the customers is always right”, what Costa is doing is delivering that sentiment; it has listened to its customers, identified what is important to them and is delivering these elements.
Needless to say, Costa’s impressive performance and the acquisition of one of its franchised operations sparked a number of rumours that Whitbread was planning to offload the coffee shop chain. However, chief executive Andy Harrison said that Whitbread would continue to invest capital in brands, including £25.9m in Costa, and denied this speculation.
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Retail Update - April 2015 |
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Posted At: 24 April 2015 11:00 AM
Related Categories: Administrations, Retail, Retailers |
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Continuing the trend seen last month there have been no reported administrations on the FSP Retailer Database, signalling improved sentiment in UK shoppers. This is evidenced by GfK’s Consumer Confidence Index being at its highest level for almost 13 years at +4, having recorded a rise of eight points in just three months.
The timing of Easter this year has been credited with improving footfall across retail parks and shopping centres in a month that marked the best overall footfall performance since March 2014. In the same way, managed pub and restaurant groups also reported a much improved performance over the four-day weekend according to the Coffer Peach Business Tracker.
Not surprisingly, online sales have also grown with figures in the IMRG Capgemini e-Retail Sales Index revealing growth of 9% year-on-year in March. This meant that the index recorded only single-digit growth for each month in the first quarter of 2015 which is the first time this has happened in any quarter.
According to a Barclays report, shopping on mobile devices is expected to hit £53.6bn by 2025, up from £9.7bn currently, with mobile to account for 42% of all retail sales. However, only one in five top 250 retailers around the world say they are able to fulfil cross-channel demand profitably, a report by PwC and JDA shows. The biggest challenge is to meet customer expectations, particularly over next-day delivery. The highest costs associated with omnichannel were handling returns from online and store orders (cited by 71% of respondents), shipping directly to the customer (67%) and shipping to the store for customer pick-up (59%). Nevertheless, most planned to invest an average of 29% of their total capital expenditures for 2015 on improving their omnichannel fulfilment performance, as 71% of respondents said omnichannel fulfilment is either a high or top priority for their businesses.
In other news, research by Strutt & Parker has revealed that the amount of committed shopping development in the UK has shot up 60% in the past six months, with a total of 5.1m sq. ft. now under construction. And research from Cushman & Wakefield has shown that Russia has overtaken France as Europe’s largest shopping centre market with total shopping centre stock climbed to more than 17.7 million m2 at the end of last year, overtaking France’s 17.66 million m2 of GLA. The UK followed Russia and France as Europe’s third-largest market with 17.1 million m2.
What remains to be seen is what impact the upcoming general election will have on consumer confidence and the UK economy as a whole, and if this upward trend of increasing positivity continues.
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Retail Update - March 2015 |
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Posted At: 27 March 2015 00:38 AM
Related Categories: Retail, Retailers |
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There have been no reported administrations since our last update, and a number of new retailers proposing to enter the UK market; showing increased confidence in the UK market. This is evidenced by retail sales increasing by more than expected in February as prices dropped to their lowest level for almost 20 years.
The seemingly never-ending price wars between the ‘Big Four’ grocers and the discounters has pushed grocery inflation to its lowest level since records began in 2006, marking the 18th successive fall to -1.6%. The figures from Kantar Worldpanel for the 12 weeks ending 1 March 2015 reveal that shoppers have saved £400m during the period as a result of lower general inflation and competitive prices, particularly on everyday staple items.
Online continues on its journey to become an even bigger player in our shopping lives, with sales forecast to grow by 16.2% in the UK in 2015. Online sales are expected to account for 15.2% of all consumer retail sales in the UK in 2015, according to the international study conducted by the Centre for Retail Research. It reveals that online retailers in the UK can expect total online sales set to reach £52.25bn, vs £44.97bn in 2014.
It therefore comes as no surprise that the latest strategy to reinvigorate the UK’s high streets focuses around digital, with The Digital High Street Advisory Board proposing to implement four significant digital initiatives in a bid to transform high streets across the UK by 2020. The four objectives form part of the Digital High Street 2020 report, which sets out how town centres, and in particular small independent retailers, can benefit from integrating digital technologies into their high streets and “compete more favourably” with national and international etailers.
This transformation to digital high streets will now be much easier to achieve following the relaxation of laws around planning permission that will allow all retailers to offer click-and-collect services in store from next month. From April 15, retailers will no longer have to apply for planning permission, which costs £195 and requires store bosses to complete reams of paperwork.
DPD’s PickUp click and collect initiative is another shining example of a way retailers can embrace click and collect. Due to launch in the summer, online shoppers will be able to buy a product from one retailer and pick up from another. The scheme is intended to drive footfall to stores by providing convenient collection points. DPD is seeking to build a network of 2,500 stores across big retailers in the UK.
And finally, in other news, a study by the Royal Society for Public Health has named Preston as the UK’s “unhealthiest High Street” according to the types of businesses found there. Bookmakers, loan shops, tanning salons and fast-food outlets were viewed as having a "negative impact" on public health, while leisure centres and health services were deemed positive. In contrast, Shrewsbury was named as having the "healthiest" High Street.
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Retail Update - February 2015 |
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Posted At: 25 February 2015 11:26 AM
Related Categories: Administrations, Retail, Retail Statistics, Retailers |
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FSP’s retailer database has recorded one administration since our January update, bakery retailer Cooplands of Doncaster. Cooplands underwent a pre-pack administration process which saw the closure of 39 stores and the loss of 300 jobs. ReSolve acquired the remaining 42 shops.
Given the trend for most retail failures to occur during the first quarter of the year, one administration in February isn’t bad going. We will wait to see what March brings.
Dubai-based vegetarian fast-food franchise Just Falafel closed down its UK operations this month following a change in the company’s overall direction and strategy worldwide, although the company has not ruled out a return to the UK market.
Highlighting the ever-changing ways consumers like to shop and the evolution of mobile commerce, the Banking Moving Forward study by Experian reveals that a third of the UK population believes that credit or debit card payments will no longer be the preferred method of payment in 2020 and that paying with smartphones will take over.
Continuing this increasing trend of mobile shopping, a study by Paypal and Ipsos has revealed that mobile shopping is growing at nearly four times the rate of overall online spending in the UK and is poised to overtake traditional online shopping. They predict that mobile spend will grow at a rate of 36% from 2013 to 2016, while overall online spend will grow by 10%. Smartphone shopping only accounts for 8% of online spend, while shopping on tablets accounts for only 6%. In comparison, laptops, desktops and notebooks together account for 86% of all online shopping.
Having been the topic of many discussions over the last year, and still rearing its head in the national press, recovery on the high street still "hangs in the balance" as a huge number of town centre leases approach expiry in the next few years, Deloitte has warned. Shop vacancy rates in the North were more than twice those in the South and the situation looks likely to be exacerbated by the vast number of leases that are scheduled to expire by the end of the decade with little prospect of renewal.
The latest British Retail Consortium and Springboard footfall monitor show that Britain’s high streets suffered a 1.6% fall in footfall in January as shoppers continued to turn to out-of-town locations, which increased by 1.5% compared to the same period a year ago. Shopping centre footfall also fell by 2.6%. The BRC said the rise was a sign of "strong" consumer confidence, as it suggested that more consumers were happier to splash out on big ticket items, particularly furniture, and is evidenced by a five point rise in GfK’s UK Consumer Confidence Index.
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Retail Update - January 2015 |
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Posted At: 28 January 2015 10:00 AM
Related Categories: Administrations, Retail, Retailers |
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Since our last update, and indeed since the start of 2015, there have been two administrations recorded on SnapShop – Bank and USC – with Austin Reed announcing a Company Voluntary Arrangement and store closures.
Looking back over the past three years, the first quarter has been consistently the biggest period for retail failures, and it is believed that 2015 could see even more companies collapse:
There are several reasons why January is notorious for this - retailers who may have been struggling prior to the festive period will most likely have been given a period of grace to turn performance around. Banks and suppliers will be watching like hawks, poised to pull the plug if and when they sense that hasn't happened. The quarterly rent date occurs on December 25, and VAT is due on January 31, meaning it is a particularly punishing time for cash flows.
December on the whole marked a positive end to 2014 despite having seen its slowest month of growth since 2008. Figures from the BRC-KPMG Retail Sales Monitor show that retail sales edged up 1% on a total basis. Sales on a like-for-like basis, however, were down 0.4% as Black Friday pulled forward some festive sales into November.
New figures from the IMRG Capgemini e-Retail Sales Index revealed that online sales grew by 14% to £104 billion in 2014. The figures also show that annual online spending broke the £100 billion barrier for the first time. For 2015, IMRG and Capgemini are forecasting growth of a further 12% with total online sales estimated to be worth £116 billion by the end of the year. In the eight weeks to 27 December, UK shoppers spent £21.6 billion on gifts and bargains which was 13% more than the same time last year.
Global Blue has revealed that international spending from tourists in the UK reached the highest level on record for December in 2014, breaking the previous year’s record by rising a further 11% on the 40% year-on-year increase seen in December 2013.
Further highlighting the success of 2014, research by CBRE revealed that investment in UK shopping centres had reached its highest level in nine years. In 2014, £5.6bn of investment transactions were completed in the UK shopping centres, an increase of 33% on the £4.2bn transacted in 2013 and well above the ten-year average of £4bn per annum. 2014 saw some landmark transactions with the largest deal being Land Securities’ £656m purchase of Lendlease’s 30% stake in Bluewater.
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Black Friday & Cyber Monday: What lessons can be learnt? |
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Posted At: 03 December 2014 16:30 PM
Related Categories: Retail, Retail Marketing |
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With the chaos of Black Friday and Cyber Monday, the US retail trends seem truly embedded in the UK shopping calendar.
The retail events have had positive results for some retailers. John Lewis, for example, saw a 21.8% rise in sales over the last week. Overall, it’s estimated that British shoppers spent nearly £810 million on Black Friday alone, with The Telegraph reporting that 404,835 orders were placed by 6pm Friday evening.
In comparison, Cyber Monday wasn’t as widely adopted, with 267,370 orders logged by 6pm Monday evening. This is despite estimations that Cyber Monday would generate £650 million worth of spending from UK shoppers. Experts believe that improved delivery times from major retailers and the rise of click and collect services means shoppers are more confident leaving online orders until closer to Christmas.
Considerable negative coverage has been generated by the trend – beyond media questioning how US-led trends have a place in the UK market. In-store and online, a number of retailers were unable to keep up with the high demand; Argos, Boots and Tesco all experienced website issues due to unexpectedly high traffic volumes. Additionally, high volumes of footfall experienced by most of the four big supermarkets required extra security and police support for crowd control.
For us at FSP, it’s clear that these two US trends are being firmly adopted in the UK by retailers looking to kick-start seasonal shopping. We’re certainly intrigued to see the sustained impact on sales for retailers such as John Lewis, when compared with last year’s figures – will people spend more overall, or are they just shopping early for Christmas?
Our personal Black Friday experiences identified clear winners and losers, with Amazon – a trailblazer of the trend here in the UK – emerging well, with minimal disruption despite promotional offers. With a business record of 5.5 million orders placed on Friday globally, Amazon revealed that by engaging with customer wish lists, the organisation was better placed to predict demand. Leveraging this data is a clever yet simple way of forecasting consumer behaviour, ensuring a positive customer experience.
Compare this with less experienced online retailers such as Smyths Toys, whose back log of orders from Black Friday has led to cancelled orders due to items no longer being in stock. The result? Disappointed, frustrated customers whose trust in the brand has been damaged.
From our own personal experiences and the rolling news reports, retailers looking to tap into this marketing phenomenon must ensure they can meet their consumer’s demands, be it integrated real-time stock information online or to extra in-store security.
Ultimately, this is a great opportunity for retailers. But the lack of preparation and failure to deliver this year could disengage consumers in the long run. Lessons learned from last weekend will be key to next year’s Black Friday and Cyber Monday events.
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Retail Update - November 2014 |
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Posted At: 21 November 2014 00:59 AM
Related Categories: Administrations, Retail |
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No administrations have been recorded on SnapShop since our last update, although it has emerged that the demise of the former mobile phone retailer Phones 4U will cost the UK taxpayer £78 million.
The UK is currently gripped in a frenzy of releasing Christmas advertising campaigns as each retailer vies for customer spend, with some even deciding now is the right time to launch their very first. This is most evident in the grocery sector as competition between the ‘big four’ and the discounters continues to increase.
However the grocers try to entice shoppers, it doesn’t detract from the fact that the UK grocery market has fallen into decline for the first time in 20 years, causing some concern in the sector in the lead-up to the crucial festive trading period. According to Kantar Worldpanel sales for the 12 weeks ending 9 November fell 0.2%.
Waitrose chief Mark Price has said that the ‘big four’ could be forced to start closing doors as the industry enters its most radical phase of change since the 1950s. Analysts of Goldman Sachs agree, saying that the biggest British retailers must shut one in five of their outlets in order to survive.
There is however, positive sentiment among retailers that this Christmas will be better than last year’s. According to a Barclays’ survey of 300 UK retailers, nearly 70% believe Christmas will bring better trading than last year owing to an improving economy and healthier year of trading. This compares with 52% of retailers last year who were positive on that year of Christmas trading.
This sentiment is supported by a new study by eBay and Conlumino, which predicts that UK high streets will receive a boost this Christmas due to shoppers making three additional shopping trips each to collect parcels bought via Click & Collect. It also predicts that the average Click & Collect high street visit will drive £27 in spontaneous spending back in to bricks and mortar retail units this Christmas as three quarters of shoppers will buy additional goods and services on impulse while out collecting parcels.
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Retail Update - October 2014 |
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Posted At: 27 October 2014 00:50 AM
Related Categories: Retail |
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No administrations have been recorded on SnapShop since our last update. However, subsequent to the demise of Phones 4U in September, EE is understood to have now snapped up its mobile business for under £5m in addition to acquiring a number of shops.
Continuing the ongoing theme surrounding the future of high streets, London Mayor Boris Johnson has unveiled a £9m high street fund with hope that small businesses will take a leading role in bidding for grants to boost their local London town centres; and in Cambridge, eight new start-ups have been testing their business ideas as part of the TestTown initiative from Carnegie UK Trust, trailing innovative ways to raise footfall in the town centre.
In a startling turnaround on previous years, more independent stores opened in the last year than closed, suggesting that Britain’s high streets are not suffering as badly as analysts have claimed. Shoppers turned to local outlets in record numbers, with net openings of 432 in the last six months. That was the result of 8,662 new independent retailers opening and 8,268 shutting their doors, according to the Local Data Company and the British Independent Retailers Association.
An interesting report by Harper Dennis Hobbs, The Vitality Index – which takes into account the quality of retail provision in a centre – has revealed that Westfield London, Chelsea and Knightsbridge are the most highly ranked retail centres in terms of vitality. Canary Wharf, Brent Cross, Richmond, Cambridge, Bluewater, Kensington and Bath are also in the top 10. In terms of the least 'vital' centres, Dudley, Llanelli and Morecambe rank lowest. The London centres both attract large volumes of retail spend and are dynamic destinations, with low vacancy rates and a vibrant retail mix. Malls also tend to feature highly in the vitality ranking, owing to the fact that they proactively manage their tenant mix.
As has been widely reported, 2014 shopping centre investment transaction volumes are set to eclipse those seen in 2013. According to DTZ research, 32 centres changed hands in the third quarter 2014 for a combined total of £1.65bn. This means shopping centre investment volumes so far in 2014 have reached £4.39bn across 63 shopping centres with a further £926m under offer.
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Retail Update - September 2014 |
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Posted At: 18 September 2014 15:00 PM
Related Categories: Retail, Retail Statistics, Town & Shopping Centre Management |
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One high-profile administration has been recorded on SnapShop since our last update –Phones 4U. Having lost a key contract with EE, soon after losing one with Vodafone, and despite being a profitable business, with turnover of £1bn and underlying profits of £105m in 2013, Phones 4U says without the contracts from the phone networks it can no longer operate. All 550 stores have closed.
The ongoing debate surrounding the future of Great Britain’s high streets has taken a new turn, with a group of property experts within the Government’s Future High Streets Forum looking to pilot a town centre collective ownership scheme among landlords. The aim is to tackle the issue of fragmented ownership on the high street, which had made it difficult to implement a single cohesive strategy to improve town centres and has been highlighted as a barrier. The parties are attempting to raise around £50,000 to pilot the different ideas in two to three UK town centres, such as a London suburb, a northern town centre and a small market town.
Britain's shop vacancy rate has fallen to its lowest level since June 2010 according to Local Data Company figures, which reveal that the shop vacancy rate in August fell to 13.3%, down from 13.4% in July. This is in contrast to the leisure industry which has seen its vacancy rate increase by 0.05% to 7.7% during the month.
Shopping centre investment volumes are on track to surpass the record levels seen in 2013. Figures from CBRE show that some £3.1bn of shopping centres has been sold so far this year, comfortably exceeding the £2.7bn transacted during Q1-Q3 2013. With a further £700,000 of malls currently under offer, Q1-Q3 2014 looks set to far exceed the transaction volumes witnessed in the same period last year and moves closer to the £4.2bn transacted in 2013.
Online sales of non-food products recorded their fastest growth rate in August since the BRC-KPMG Online Retail Sales Monitor started in December 2012, growing at 19.8% when compared to August 2013. Research from Mintel backs this trend up, predicting that the UK online fashion market is expected to be worth £10bn this year. E-commerce is seeing a strong growth in sales as consumers prefer to shop on line - 17% of online spending is on clothing and footwear, up from 13% in 2011.
Interesting research from Savills reveals that new international fashion entrants have accounted for nearly half of all openings in London to date this year. Savills reports there have been 12 new international retail entrants in the London market so far this year, with a further 11 due to open by the end of the year.
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Retail Update - August 2014 |
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Posted At: 21 August 2014 12:34 PM
Related Categories: Retail, Retail Statistics, Retailers |
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Since our last update, no administrations were reported.
US leisure operator Entrepology is bringing its extreme indoor trampoline parks to the UK with a roll-out across all major cities. It has a mandate to bring the concept, called High Heaven, to 12 sites across the country. The first UK centre will open in Glasgow, where Entrepology is currently fitting out a 30,000sqft building, later this year.
According to GfK’s Consumer Confidence Barometer, consumer confidence has fallen for the first time in six months in July. Overall index score decreased by three points to -2 after crossing into positive territory for the first time in nearly ten years in June
Some interesting points have been raised over the past month in the retail property industry, and include:
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UK high streets are getting less and less empty as the economic recovery continues, even as fewer shoppers actually head for shops. The BRC and Springboard have revealed that the vacancy rate in UK town centres had dropped to just 10.1% in July.
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On the other hand CACI research shows that more than a quarter of the UK is oversupplied with retail space, yet more is being developed. CACI said oversupply would rise to 37% by 2019, with a further 32m sq ft of space across 187 sites set to come online by 2020.
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The amount of new supermarket space proposed for the UK has fallen to the lowest level since September 2008, according to CBRE. The amount of new space under construction for convenience stores and out-of-town supermarkets has also fallen 30% YoY.
The biggest spending tourists in the UK are from the Middle East - according to Global Blue. Last year, visitors from Qatar topped the list by spending an average of £288.17 on each trip to the till. This was followed by £199.87 spent by visitors from Saudi Arabia, £188.29 by UAE visitors and £189.41 by visitors from Bahrain. In comparison, the average European tourist, making up the bulk of visitors to the UK, spent just £49 per sale in the same period last year, whilst US visitors spent £65.41.
We recently posted an update on changing face of tourism and to us it appears that designer labels and high-end retail have become the new staple shopping items for tourists to take back home and show off to their friends and family. Visit Britain found that while Middle Eastern visitors want cutting edge fashion, they are not as interested in buying British food and drink
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Retail Update - July 2014 |
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Posted At: 24 July 2014 16:41 PM
Related Categories: Administrations, Retail, Retailers |
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Since our last update, another two retailers have succumbed to administration, and not for the first time:
- Jane Norman fell into administration for the second time in three years at the end of June. Owner Edinburgh Woollen Mill said Jane Norman would continue to operate through its website and internal concessions.
- La Senza fell into administration for the second time in two years having experienced difficult trading conditions. The North American operations and throughout the rest of the world remain unaffected by the actions taken in the UK.
What is interesting about the woes of these two retailers is that they were both acquired by their current owners by way of pre-pack administrations – a process that only last month underwent an independent review by Teresa Graham CBE which considered the full economic impact of the process and made six recommendations for reform by the insolvency industry. It will be interesting to see the fate of other retailers acquired in this manner over the coming months/years, and the effect this review of the process has on the industry.
July has seen three new retailers sign for their first stores in the UK – US luxury home furnishings retailer Holly Hunt, American pizza chain Project Pie and Spanish tapas operator Mas Q Menos.
GfK’s UK Consumer Confidence Index has moved into positive territory for he first time since March 2005. This mood is supported by Deloitte’s Consumer Tracker, which reveals that overall confidence was four points higher in the second quarter than the same period last year, with the North of England, Scotland and Northern Ireland recording a sharp rise of six percentage points from -25% in the first quarter to -19% in the second quarter of 2014.
New footfall figures from the British Retail Consortium reveal growing evidence of consumers changing the way they shop, as more people visited out-of-town destinations and fewer visited the high street or shopping centres in June.
Some interesting points have been raised over the past month in the retail industry that back-up the changing face of the UK high street, and include:
- The Key Note Report that estimates the UK sandwich and coffee shop market has grown by 34.9% in value from 2009 to 2013 as more consumers choose to ‘catch up’ over coffee rather than at the pub.
- The Pop-Up UK Study from the Centre for Economics and Business Research and EE has found that pop-up retail shops contribute £2.1bn a year to the UK economy, and currently make up 0.6% of total UK retail turnover. The sector is forecast to grow by 8.4% over the next year.
On a slightly separate note, but still talking about the future of the high street, Mayor of London Boris Johnston has announced a major new action plan – Action for High Streets – designed to boost London’s high streets. The plan includes up to £9m of funding being made available from the autumn.
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Retail Spotlight: Summer Success for the UK’s F&B Scene… |
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Posted At: 23 July 2014 15:00 PM
Related Categories: Retail, Retailers |
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FSP Analyst Mel Watson recently attended an IPF/BCSC seminar, where there was lots of discussion on the UK’s food and beverage scene. The sector experienced significant growth in 2011 in terms of lettings and commercial space, although interestingly this trend reversed, dropping again in 2012.
Since the beginning of 2014 however, all of the headlines have been shouting success. At SnapShop we have been monitoring the sector as reports of growth and expansion continue to make the news. Now six months in, the Great British summer is well and truly underway, bringing with it increased tourism (international and domestic) and plenty of eating out opportunities. We’ve been taking a look at a variety of F&B names who’ve caught our eye – to see how their progress reflects the wider sector trends.
JD Wetherspoon
Who they are: JD Wetherspoon, established in 1979, now operate over 800 pubs worldwide. Offering an all-day menu, and providing a nightlife scene in partnership with Lloyds Bar No. 1, these pubs appeal to a wide variety of customers with the range of day to night dining and socialising options.
What their plans are: Last year, JD Wetherspoon announced its intention to open 30 new pubs by mid-July 2014. They have in fact opened 40 new pubs since then (taking into account 5 closures) and plan to continue that expansion with further openings for the rest of the year and into 2015. The chain has also pledged to invest in creating better customer areas with the hope of further increasing their popularity; plans include developing their pub garden spaces and implementing a system to enable faster credit card approval, allowing for a more efficient service.
In the news:
• Sales and profits up at JD Wetherspoon
• Opening date revealed for Wetherspoon’s first ROI pub
• JD Wetherspoon targets 40 new pub openings
Costa
Who they are: Costa, established in 1971, now operates over 1,500 outlets across the UK and Ireland on a franchise basis. Extremely popular and in hot competition with Starbucks and Caffé Nero, Costa are recognisable by their signature deep burgundy colour theme. A staple on many high streets, Costa is also a common addition to airports, department stores, service stations and within partner retailers’ stores, such as WH Smith, Waterstones and Homebase, with products of the franchise now available in supermarkets.
What their plans are: Costa’s plans are to continue building on the success of their stand-alone offering and in-store partnerships, while also looking more widely to expand a drive-through format. This will be a new revenue opportunity for the brand, but particularly in keeping with their success so far in service stations, which will enable them to target a more diverse consumer base. Costa intends to open between 10 – 70 branches over the next couple of years.
In the news:
• Costa to launch concessions in Debenhams
• Sales and profits soar at Costa
• Costa to accelerate expansion of drive-through format
Nando’s
Who they are: Nando’s was founded in South Africa, and first entered the UK market in 1992. It offers customers a sit-down fast food experience; with the self-ordering and speed of service you would expect from fast food, but with the niceties of a guaranteed table and menu additions such as wine which go above the usual fast-food offering. Since it came to the UK, the popularity of its signature Peri Peri chicken has grown and there are now over 300 Nando’s restaurants operating here, with a Nando’s range of products also available in supermarkets.
What their plans are: As with JD Wetherspoon and Costa, Nando’s are pushing for continued growth. They are looking to increase their portfolio, targeting thriving retail and leisure locations for new stores. Additionally, Nando’s are embracing the trend towards multi-channel - focusing on digital. Their recent loyalty card re-launch has been supported by an app and clever social media activity, and they have also launched a click and collect service. We are looking forward to what exciting digital advancements the hot chicken chain will make in the near future…
In the news:
• Nando’s launches click and collect service
• Nando’s to launch at Beaconsfield services
• Nando’s joins line-up at Hereford’s Old Market scheme
Tortilla
Who they are: Tortilla is a small chain of 15 restaurants in the UK, offering customers an authentic Mexican menu. Available to eat in or take out, the food served at Tortilla is made fresh, using traditional ingredients and made in the traditional Mexican way.
What their plans are: Last year Tortilla announced plans to open between 7 and 9 new sites this year, focusing on major UK city locations, and aiming to reach 40 nationwide sites over the next few years by continuing that rate of expansion. This year they announced some of the key locations due to open before the end of 2014, which include mainstream retail locations Lakeside and Westfield shopping centres, in order to increase awareness of the brand.
In the news:
• Tortilla announces new restaurant openings
• Tortilla to join intu Lakeside
• Tortilla announces expansion plans
It is positive to see that the UK’s F&B sector’s good health is continuing, a reflection in part of the increasingly positive economy, with many different types of food and beverage businesses planning expansion or entering the UK for the first time.
In the seminar last month Street Food was highlighted as a key emerging trend, as the flexibility and variety of that style of F&B offering appeals to shoppers who are becoming bored of the mainstream chains, which is particularly the case with the younger generation for whom eating out has become a more frequent occurrence. The lower cost of street food is an added benefit for shoppers still conscious of getting the most out of their money, with the ‘fast food’ speediness of serving and casual eating as-you-go aspects making Street Food an easy food choice.
F&B is being acclaimed by many as the ‘could-be saviour’ of the high-street and certainly as a must-have element of retail & leisure destinations – including shopping and outlet centres – as an added incentive for visitors and a way of increasing visit times, subsequently increasing spend for the other retailers. However, the overarching conclusion out of the seminar was F&B hasn’t yet been proven to increase spending in other high street retail shops and shopping centre owners should not just rely on those businesses to increase overall footfall and profits. A good retail centre needs to provide an even mix of leisure, retail outlets and F&B outlets in order to provide the best possible customer experience and maximise the revenue opportunities there.
FSP can help you do that, by undertaking the research and analysis needed to determine the best retail and leisure mix for your centre, be it a high-street, shopping or outlet centre. As the UK’s leading retail business consultants, we will work with you to make the most of your retail property assets. Find out more about our services here.
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Will retailers be the winners of this World Cup? |
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Posted At: 20 June 2014 10:31 AM
Related Categories: General, Retail |
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The World Cup is now well underway in Brazil, with the big brand names in sport and beer particularly, making a lot of noise in order to capitalise on the nation’s love of football. However, retailers have been noticeably quieter… should they be doing more to capitalise on the event?
The tournament presents a huge opportunity for retailers to tap into the atmosphere and excitement of the nation and drive sales.
Analysts have estimated that fans will spend £400 million per England game, resulting in a predicted £2.58 billion boost to the economy if we reach the final, with food and drink, sports and technology leading the sales. Even if England don’t progress out of the group stage (which is not unlikely after last night’s game!), it’s predicted that football fans will keep spending as they follow the progress of the rest of the tournament. Already we have seen an impact: UK retail sales were up in May, helped by a 1.7% increase in household goods sales, which the Office for National Statistics (ONS) credited to a lift in sales of widescreen TVs ahead of the World Cup kicking off this month.
So why are retailers keeping quiet?
Retail Week has suggested that it’s because this year England fans have finally stopped hoping for any real success for England. And both results so far will have done nothing to change that!However, the opportunity presented by the event is not lost and those retailers who are agile and taking note of what’s happening down in South America, will be the ones who can take advantage of the nation’s mood. Those who are reactive and have a clear strategy for their reaction, utilising a multi-channel approach to capitalise on instant public reaction – for example, driving online sales through sharp social media activity – will be the ones who are the winners.
Also, while hope is almost lost for England fans, the cultural diversity of the UK means that there is still hope for retailers looking to capitalise on World Cup fever. Restaurants, bars and shops, particularly those in areas with significant international populations – like Bedford, which hit the news ahead of the England-Italy match because of its 20,000 Italian residents – should focus on the wider tournament in order to engage with all fans, rather than focusing on England and risk alienating other supporters, who could be the ones to ultimately bring in the most revenue.
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SnapShop Monthly Summary - June 2014 |
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Posted At: 19 June 2014 11:48 AM
Related Categories: Administrations, Retail |
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SnapShop recorded one administration in June – Lakeland Leather. Following sales being affected by low demand over the mild winter, Lakeland appointed McTear, Williams and Wood as administrator. It is understood a deal may be in place to rescue the stores, but four have already closed.
In contrast, four retailers have secured or opened their debut UK stores signalling their confidence in the UK market – Dutch value retailer Hema, US fashion retailer American Eagle, women’s fashion brand Stradivarius, and Spanish casual dining concept La Sala.
The growing confidence in the UK economy is backed up by GfK’s Consumer Confidence Barometer, which revealed that UK consumer confidence in May rose to its highest level since 2005, climbing three points to zero. GfK said the main driver of the increase was people’s assessment of the general economic climate.
In contrast to this, the UK economic recovery was dealt a blow after figures showed retail insolvencies have hit an unexpected five-year high in 2013, when almost 1,300 retailers were declared insolvent – a 12% year-on-year increase – as rapid expansion of the supermarket convenience store format drove the UK’s corner shops and traditional small retailers to the brink, according to accountancy firm Wilkins Kennedy.
Shop prices also deflated 1.4% year-on-year, the same rate as recorded in April, making May the thirteenth consecutive month of deflation according to May’s British Retail Consortium (BRC) Nielson Shop Price Index. Prices have been kept low as food retailers compete in the price war and non-food retailers keep value-for-money at the forefront.
Figures, however, from Kantar Worldpanel for the 12 weeks to 25 May 2014 reveal a slowdown in grocery market growth to 1.7% - the lowest level for at least 11 years – as supermarkets' heavy use of price cuts and promotions fail to encourage consumers to buy and spend more. According to latest figures from Nielsen for the four weeks ending 24 May, consumers spent 0.9% less money and bought 2.1% less volume at the UK's leading supermarkets than the same period a year ago.
Cost and convenience have driven a marked shift in grocery shopping across the globe, with consumers significantly more likely to make frequent, smaller grocery shopping trips, as opposed to one large weekly shop, according to new research from leading customer science company dunnhumby.
Figures from the British Retail Consortium's Online Retail Sales Monitor show that online sales of non-food products grew by 17% during May when they accounted for 18.7% of all UK retail sales. The fast growth came against a background of more subdued high street spending, the accompanying BRC KPMG Retail Sales Monitor showed. Total UK retail sales grew by 2% in May, compared to the previous year, while like-for-like sales were up by only 0.5%. Not surprisingly, footfall in May was 0.2% down on a year ago, marginally down on the 0.1% year-on-year fall seen in April, and below the three-month average of a 0.6% increase.
Looking to the future of the UK high street, leading retailers and businesses are to give their support to 29 towns in the latest stage of high street rescue efforts, that will see extra teams parachuted in and provide strategic management through the Healthy High Streets campaign led by Business in the Community and DCLG. The project aims to reduce vacancy rates by 20%, boost footfall by 10% and create 3,000 new jobs. A hundred towns are to be supported by the campaign over the coming three years.
The government has announced that pre-pack administration arrangements will be subject to greater scrutiny, having accepted recommendations made by regulation expert Teresa Graham, who was commissioned to carry out a review of pre-packs by business secretary Vince Cable last summer. The business minister Jenny Willott said today the government would introduce a range of voluntary measures, with a view to legislating at a later date “if necessary”. Last year 2,365 businesses in the UK went into administration. Of these around 600 were subject to a pre-pack deal.
Additionally, the government has issued a response to concerns raised over the health of the UK retail sector, saying it has:
• Launched a discussion paper encouraging business ratepayers to give their views on how business rates can be improved, and it is also “considering the frequency of [rates] revaluations”
• As of March 2014, the 27 Portas pilots have spent 54% of their grant funding, with a further 29% of funding committed to spend. It added: “Many pilots are still delivering their work programmes, the government would rather that the pilots spent the money in the most effective way, than rush spending to meet an arbitrary deadline.”
• In response to BIS’ lack of industry strategy for the retail sector: “Retail is a large and diverse sector with businesses of all sizes in fierce competition. Government therefore must avoid interventions that could have adverse consequences.”
Whether these proposed changes turn the fortunes of our ailing high streets around remains to be seen, but you can keep up with all the news regarding the future of retail here on SnapShop.
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Looking forward to the long weekend? Maybe not if you’re a high street retailer… |
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Posted At: 22 May 2014 12:47 PM
Related Categories: Retail |
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It’s not been too long since our last bank holiday and data from Springboard has shown that footfall in retail parks increased by 3.6% over the May Day weekend; is this a sign of things to come for this next long weekend?
The data also show that high street footfall was down 0.8% compared to 2013’s May Day bank holiday, with shopping centres also seeing a decrease of 0.2%. So what is behind this apparent surge in interest in retail parks when people have an extra day off to dedicate to shopping?
Bank holidays have traditionally been a time for DIY, and thanks to the government’s HelptoBuy scheme, more first time buyers will be investing in paintbrushes and gardening tools. The announcement that the scheme is due to be extended until 2020 has also given hope to many more potential home buyers across the country, particularly in the South-East and London, where home prices have seen the steepest increase. This optimism could have helped to drive the increase in retail park footfall over the bank holiday weekend as recent and potential home-makers browsed for and purchased household products.
But what else is driving the popularity of retail parks?
Is it what the retail parks themselves are offering shoppers? Or rather, is it what the shopping centres and high streets are not offering? Both were hit hard during the recession and have suffered slow growth since the economic downturn, exasperated by the rising popularity of online shopping - especially as the digital generation are reaching the life stages of working, earning and spending. In this context, the often more vibrant and modern atmospheres of retail parks is more of an attraction than the older town centres, especially those who are experiencing high vacancy rates.
In contrast, many retail parks offer a clear experience for shoppers, giving them a reason to visit the bricks-and-mortar stores. Free parking, a range of food and beverage offerings and leisure facilities, such as cinemas or bowling, all help position retail parks as ‘places to visit’, focusing on the wider customer experience. Added to that, large department, warehouse-style stores which offer a wider range of fashion, as well as home and household products, than you would find in a regular sized high-street unit, provide shoppers with a variety of choice which, research suggests, is what consumers want to see in a physical store. This emphasis on ‘experience’ is something evident in the popularity and success of outlet centres, where we are also increasingly seeing links with tourist attractions and sight-seeing - adding another motivation for shoppers to visit.
We will be watching with interest this bank holiday, to see how retail fares in terms of footfall. Certainly if the weather isn’t as nice this time, we expect footfall to be slower across the board as shoppers stick to their laptops and tablets rather than venture out into the rain.
As for the more general trends in terms of retail parks, shopping centres and high streets – we think that the message for all of them is clear. Customer experience needs to be a fundamental consideration when creating a retail mix. The statistics do not mean the death of the town centre, but rather should act as a focus for learning. High streets and shopping centres can learn from out-of-town parks and outlet centres, in order to maximise their own potential and move forwards into a multi-channel, in-and-out of town future.
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‘Buddy’ Brands: Look to the Long-Term… |
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Posted At: 01 May 2014 00:32 AM
Related Categories: Retail, Retailers |
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Facing increasing expense as rent prices continue to rise, the store-within-a-store concept is quickly becoming a popular and beneficial solution for retailers.
The store-within-a-store concept, also known as ‘buddy deals’ or ‘store shares’, is where a retailer hosts another brand within their retail space. Think Giraffe and Harris + Hoole in Tesco or Caffe Nero in House of Fraser.
‘Buddy’ brands often complement one another, for example adding a food and beverage offering within a fashion or grocery store as in the above examples. Adding another level of diversity, particularly with an F&B brand, allows a retailer to provide a better in-store experience – something which is increasingly important in the battle against online. This gives consumers another reason to visit your shop and stay for longer, which can boost footfall and drive engagement within your store, with opportunities for cross-selling often boosting sales for both parties.
However, these types of retailer partnerships can also result in friction between the brands, in the worst cases resulting in legal disputes – something the Government are warning brands considering such a move. Simple things such as opening hours, stock space and front of shop branding can all cause disagreements and should be agreed between the brands before a partnership is formalised to help avoid tensions down the line.
The original ‘buddy deal’ trend setters are petrol stations. With many chains providing branded food and drink such as Costa, Starbucks, Greggs and Subway, the partnerships appear to work extremely successfully in this model. However, in most cases the ‘buddy’ brands are seamlessly integrated into the petrol stations, with no separate staff or exclusive areas within the garage forecourt. We believe this concept of seamless integration is one which retailers should learn from when adopting similar partnerships.
Many argue that a good way to ensure such deals work is for the main store to own the smaller one; Tesco, for example, acquired food brand Giraffe and is a majority shareholder in coffee chain Harris + Hoole. This means that the store-owning retailer has more control over the positioning of the ‘buddy’ brand, helping to avoid competing interests and disagreements. However this isn’t always feasible, especially where the ‘buddy’ brands are successful chains in their own right. Furthermore, larger brands need to be careful not to dilute their portfolio too far, without ensuring their core offering is right – see our previous blog on Tesco’s plans for growth and our note of caution.
Ultimately the store-within-a-store concept needs to be about matching the right brands together to drive mutual benefits. Finding a balance between ensuring both companies’ target consumers match, and therefore won’t be put off by a partnership, and overlap, ideally introducing new customers to both brands, is a challenge. Retailers must question whether a ‘buddy deal’ is the right decision for their brand in the long-term, as well as considering the short-term benefits!
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SnapShop Monthly Summary - April 2014 |
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Posted At: 29 April 2014 14:00 PM
Related Categories: Administrations, Retail, Retailers |
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There were two reported administrations in April:
1. Paul Simon fell into administration after the recent flooding hit footfall and sales at its stores. Deloitte was appointed as administrator, and announced that 17 loss-making stores would close before the end of April.
2. Sit-up TV fell into administration following a significant drop in sales despite a recent approval of a Company Voluntary Arrangement with creditors. KPMG was appointed as administrator.
Following the collapse of Albemarle & Bond in March, it was announced that 128 stores had been bought out of administration by an investment group led by Promethean Investments.
Footfall in March was up 1.8% year-on-year according to Springboard/BRC data, with high streets recording a 2.6% increase, out-of-town locations up 3% and shopping centres recording a 0.5% decline. This footfall decline in shopping centres has not deterred investment, with research by DTZ revealing that UK shopping centre investment transactions totalled approximately £1.3bn – comprising 13 shopping centres – during the first quarter of 2014.
Whilst footfall was up, March’s retail sales were down 1.7% on a LFL basis due to the late timing of Easter, with total sales declining 0.3%, according to the BRC KPMG Retail Sales Monitor.
UK online sales were up 7.1% in March YoY according to ONS and up 1.4% when compared to February. With research by Planet Retail revealing that the number of UK shoppers using click & collect is set to more than double from 35% to 76% by 2017, e-commerce grows ever stronger.
In April it was announced that the Healthy High Streets campaign - a new coalition of government, retailers and business leaders - aims to create 3,000 new jobs on UK high streets, boost footfall and reduce vacancy rates. The campaign will initially focus on 100 towns and will build on the review carried out by Mary Portas.
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Retail Spotlight: Growth Continues in the Food & Beverage Market… |
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Posted At: 23 April 2014 13:32 PM
Related Categories: Retail, Retailers |
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In line with the trend we have been following since the beginning of the year, we have recently added some new retailers to SnapShop – all in the expanding Food and Beverage category!
Jones the Grocer
Who they are: Launched in 1996, Jones the Grocer is a food store which fuses the growing café scene with a premium retail offering, positioned in the upper-middle sector of the market. Part of Australian food group Senselle Foods, the brand operates stores throughout Australia, New Zealand, Qatar, Singapore and the United Arab Emirates.
What they offer: Jones the Grocer’s food products include a range of private label branded gourmet products, as well as a selection of international artisan produced foods. Products range from premium tea leaves and luxury chocolates, to artisan crackers and handmade pasta sauces.
Recent News:
• Jones the Grocer eyeing UK launch
Earlier this month it was announced that Senselle Foods is looking to bring Jones the Grocer to the UK, with a flagship food outlet in London.
Becasse
Who they are: Becasse is a French bakery and full restaurant operator, also part of the restaurant group Senselle Foods, currently trading in five countries across Asia and Australasia. It is priced in the middle of the market.
What they offer: Becasse serves French-inspired cuisine and treats.
Recent News:
• Becasse on hunt for debut UK outlet
Property Week reported this month that Senselle Foods has appointed CWM to find at least one site in London, to launch its bakery brand, Becasse in the UK.
Charlie & Co
Who they are: A leading Australian gourmet burger café, part of the Senselle Foods restaurant group, Charlie & Co pays homage to the legendary creator of the first burger ‘Hamburger Charlie’ and is positioned in the middle of the market.
What they offer: Charlie & Co serves 100% Australian Wagu beef burgers, as well as sides including their signature truffle oil parmesan fries.
Recent News:
• Charlie & Co on hunt for debut UK outlet
Restaurant group Senselle Foods is looking to open a flagship location for its burger brand Charlie & Co in the UK.
La Bottega
Who they are: Established in 2005, La Bottega is an Italian café bar and deli positioned in the middle of the market. The brand currently operates in six outlets around London.
What they offer: Home cooked food, coffee and an extensive range of premium Italian groceries and drinks to take away.
Recent News:
• La Bottega to open new concept café in Seven Dials
This May the brand will open its seventh site in Seven Dials, London, the first to be launched by the company’s new management team.
Coffee Dogs
Who they are: Coffee Dogs is a new American-inspired, bespoke hot dog and coffee concept, developed by the Fine Food Company with Network Rail. It is modelled on traditional US hot dog stalls and is positioned in the middle of the market.
What they offer: Authentic varieties of hot dogs, speciality coffee and other American favourites, including donuts and frozen custard.
Recent News:
• Coffee Dogs opens at Kings Cross
At the beginning of April it was reported that Coffee Dogs has opened its first outlet in London’s Kings Cross Station.
Soupe du Jour
Who they are: Soupe du Jour is a new restaurant and take-away concept, co-founded by Charles Paillé de Rivière and Daniel Auner. It is positioned in the middle of the market and is aiming to expand, with Shelley Sanderz, who secured the launch site, now looking to identify further sites.
What they offer: Traditional fresh soups with a modern twist.
Recent News:
• Soupe du Jour opens debut outlet
Soupe du Jour opened its first restaurant and take-away outlet in London’s Soho this month.
It is positive to see growth and expansion continuing in the F&B sector, especially with such diverse brands and offerings looking to either enter or grow in the UK. The above retailers are all clearly defined in terms of their position and product focus, bringing something new to the UK market – something to be learned from for other F&B brands considering launching here.
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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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SnapShop Monthly Summary - February 2014 |
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Posted At: 25 February 2014 13:11 PM
Related Categories: Retail, Retail Statistics |
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This month’s statistics show an improving trend on the UK’s embattled high streets.
• BDO’s High Street Sales Tracker show that like-for-like high street sales were up 8% for the four weeks to 26 January, the highest figure in three years
• BRC figures show that UK retail sales were up 3.9% on a like-for-like basis from January 2013. On a total basis, sales were up 5.4%, the strongest growth since March 2010
• Shop vacancy rates fell below 14% for the first time in four years according to LDC, although the North West still has the highest rate at 17.3% compared to the national average of 12.2%
• Footfall was up 1.6% in January according to the BRC. Despite a 0.6% decline on the high street, retail park footfall surged 5.7% and shopping centres saw a year-on-year increase of 2.4%
• January online sales grew by 18% compared to the same time last year as shoppers spent £8.1bn over the internet, according to IMRG figures.
• Consumer Confidence, measured by GfK is standing at -7, higher than it has been since September 2007
Another high street rescue plan has been unveiled by the government based on the “common factors of success”. It will be piloted from May across nine town centres, the locations of which will be revealed in the near future.
The BRC have come up with three radical alternatives to business rates, set out in a document called The Road to Reform. They suggest replacing them with a new tax based on business’ energy efficiency; doing away with the current property-based system in favour of a scheme that reduces rates for businesses employing larger numbers of staff; and the suggestion of a discounted rates bills for those paying the most in Corporation Tax.
A separate study by Deloitte found nearly three-quarters of the money spent shopping in Britain comes from just 18% of consumers, who increasingly make their purchases using mobile devices. The ‘Super Shoppers’ account for 70% of all UK retail spending, the equivalent of over £200bn in 2013, despite making up less than a fifth of the population.
February laid claim to one administration - Base Retail, which trades as Base Menswear, appointed restructuring firm Portland as administrator early in the month, citing a squeeze in middle-market menswear and excessive business rates. However, the demise of the menswear business has not affected Base Childrenswear, which is registered as a separate entity on Companies House.
Internacionale UK has filed a notice of intention to appoint PricewaterhouseCoopers as administrator before the end of the month. Keep up to date with this on SnapShop.
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Pubs and Restaurants are having a good start to 2014… |
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Posted At: 21 February 2014 13:00 PM
Related Categories: Retail, Retailers |
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An article in Peach Report last week documented that pub and restaurant groups in Britain have enjoyed a successful start to the year so far. According to the latest Coffer Peach Business Tracker, collective like-for-like sales were up 7.2% year-on-year in January and total sales, including the impact of new openings, were ahead 10.1%.
Tales of retailer expansion and new openings have been prominent in the news so far in 2014…
• Dim Sum eatery, Ping Pong, has unveiled plans to open another 20-25 sites in and outside of the capital over the next four years, as part of their organic growth plans. Currently their 8 sites are all in London, with a ninth due to open at Westfield Stratford shopping centre in March and their first outside the capital expected to open in 2015.
• Thai restaurant group Busaba Eathai confirmed plans to double its estate in the next three years, with a focus on expanding beyond London into other key cities including Manchester, Liverpool, Leeds and Bristol.
• Peace Dining Corporation has announced their launch of Japanese fast-casual restaurant, Hai Street Kitchen & Co, in the UK this March. The brand is launching at a site in London’s Leadenhall Market, with plans to open a further 2 outlets in the capital this year and reach 20 UK sites by the end of 2020.
• London-based bar operator Adventure Bars is launching a pilot Caribbean themed dining venue, Dub Jam, in Covent Garden next month, with plans to opening more, larger venues in the future.
• Restaurant chain Giraffe is to open the first of a new brand of ‘grab-and-go’ outlets at King’s Cross Square in London this month. The new Kiosk site follows their launch of fast-food offering Giraffe Stop at King’s Cross Station last year, and will offer quick service casual dining. The chain has plans to open further kiosk sites around the UK, as well as larger Stop sites at various key travel hubs.
FSP see this growth as an optimistic sign for UK retailing centres more widely: a sign of increasing offerings for shoppers beyond the retailers themselves. Looking at the longer term trend in this sector, collective like-for-like sales for pub, restaurant and bar groups were 2.4% ahead of the previous year for the 12 months up to the end of January.
A word of warning: as Food and Beverage retailers expand, they need to be aware of challenges and potential risks. Ping Pong, for example, are taking great care in finding new locations as they are using organic growth rather than financial investment, they need to choose locations carefully in order to make sure they will be successful. Looking at geographical areas which match their demographics is the right starting point, and choosing the right site within those areas will be equally important. While this is essential for Ping Pong, all retailers should choose locations which are ideal for them and their customers, rather than which seem to be the most mainstream or generally popular, in order to maximise their chances of successful expansion. FSP’s consultancy can advise on a retailer’s location strategy and help identify trading potential of new sites.
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SnapShop Monthly Summary - January 2014 |
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Posted At: 21 January 2014 11:33 AM
Related Categories: Retail, Retail Statistics |
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December statistics show that Christmas 2013 wasn’t all that it was expected to be, but at the same time wasn’t as gloomy as some had thought.
• Figures from the Office for National Statistics (ONS) show that year-on-year sales volumes were up 5.3% in December, and up 1.6% for the whole of 2013 when compared to full year 2012. Shopper spend was up 6.1% in December compared to the previous year, and up 2.6% on November.
• The BRC/KPMG Online Retail Sales Monitor for December 2013 shows that online sales accounted for 18.6% of all non-food retail sales and that as a whole, online sales for the month were up 19.2% on the previous year. Consequently it is not surprising that December 2013 saw a 2.4% fall in shopper numbers for the month as recorded by the BRC/Springboard Footfall Monitor for December 2013. The monitor revealed that the high street suffered the greatest fall of 3.7%, with out-of-town shoppers falling 0.6% and shopping centres declining by 1.5%.
• London’s West End outperformed the rest of the UK over Christmas, recording a year-on-year sales increase of 10% in December.
• Garden centres recorded an impressive festive season with sales up 12.5% in November and 5.9% in December, according to the Garden Centre Association’s Barometer of Trade.
• St Pancras International reported that the festive trading period produced solid results in a wide range of categories for retailers. Strong performing categories were: Pubs and Restaurants – up 11% on a like-for-like basis; Fashion – up 3% on a like-for-like basis; Non-Fashion – up 6.8% on a like-for-like basis; Coffee Shops - up 7% on a like-for-like basis; and Convenience Retail – up 2.5% on a like-for-like basis.
• Figures from the Coffer Peach Business Tracker reveal that the UK’s leading pub, bar and restaurant groups enjoyed a festive season boost, with collective like-for-like sales up 3.3% on last year. Total sales were ahead 6.1%.
There have been no reported administrations on SnapShop since the beginning of 2014, and indeed the number of retail administrations during 2013 fell from 194 in 2012 to 183 – the same number as in 2011 – according to Deloitte, representing a 6% decrease.
In other news, research by the Royal Mail has found that just over 40% of small online-only businesses said they would seek space in a physical store – or even open their own – during 2014, with one in 10 UK “e-tailers” saying they hoped to set up physical stores some time in 2014, as lower rents and flexible leases, coupled with more competition online, made opening a physical store more attractive.
Perhaps high street vacancy rates will continue to decline should these online-only retailers decided to take up physical space, or perhaps empty shop numbers will continue to rise when the traditional long leases signed by retailers in the 1980s and 1990s come to an end in 2015 – IPD figures show that 43% of shopping centre retail leases and 37% of all high street shop leases are due to expire within the next two years. Whatever happens, keep up-to-date with it all on SnapShop, and remember that FSP’s Leasing Support can help.
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Differentiating the best |
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Posted At: 08 January 2014 11:51 AM
Related Categories: Administrations, Retail |
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With a prophetic touch, FSP’s Christmas commentary this time last year ended with “Undoubtedly as more results are published, we will see the strength of those who already recognise that bricks & mortar are as much a support for the online process as profit centres in their own right.”
John Lewis and House of Fraser are crediting an overall increase in sales to online purchases, so it seems the only way is mobile. Interestingly, with like-for-likes up for both retailers, people must be topping up when they collect (although this could be more to do with the obfuscation surrounding like-for-like calculations)
One wonders what sort of doldrums Debenhams might be in without their online sales increasing by 27% in the 17 weeks to December 28th, and contributing 15.6% of their overall sales figure. They’re obviously just playing on swings and roundabouts, with clicks benefiting at the expense of bricks. Or are they just suffering from the squeezed middle whilst House of Fraser benefits from its designer names?
Next, on the other hand, despite also focusing on the middle of the market, is no longer plodding along, ending the year with such a performance that it has raised its profit forecast
These have been the high profile stories so far, so what of the rest? There was a general consensus that Christmas 2013 would be better. With last year’s comparable time finding Christmas Eve on a Monday, with the consequence of last minute shopping before that day being squashed into a mere six hours, achieving something better this year should have almost been inevitable. But some retailers got cold feet and started discounting before Christmas. Did this give them the boost in sales they wanted? Or was it a desperate ploy from those falling further off the pace with each passing day? After all, if you bagged a bargain before Christmas, might you now not be bothered with “sale” shopping again?
We believe that trust has played a big part this Christmas. Shoppers like retailers they can trust to deliver their online purchases, trust that what they have clicked can be collected and trust that the retailer will not renege on the deal by discounting early and devaluing their prized Christmas purchase before true sale time.
John Lewis, House of Fraser, Next and Jigsaw, didn’t betray that trust.
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Retail Update – December 2013 |
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Posted At: 19 December 2013 10:17 AM
Related Categories: Administrations, Retail |
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With Christmas fast approaching, the FSP database powering SnapShop shows us that December has been a bit gloomy, littered with administrations and store closures.
• Blockbuster administrator, Moorfields Corporate Recovery, has been unable to find a buyer for the chain. All stores are to close before Christmas.
• The wholesale arm of Aftershock London fell into administration. The retain arm trades separately and remains unaffected, although an offer for the wholesale arm is understood to have been made, which includes a stake in Aftershock London.
• FRP Advisory was appointed as administrators to Osborne Stationers and are hopeful of finding a buyer. The chain had been loss-making for a number of years.
• A-Wear was placed into receivership at the end of November, and all but four stores were closed. It has since begun closing its House of Fraser concessions as A-Wear looks to focus on its Irish retail operations.
• Barratts remains in administration, although it is understood that Pavers has made a rescue bid for parts of the business. December saw Barratts close stores throughout the Republic of Ireland and Northern Ireland.
Rent quarter day looms in January and brings yet more doom and gloom to the retail industry. Figures from the Centre for Retail Research are warning of a 15% increase in insolvency levels during 2014, predicting that the number of companies declared as insolvent will rise when zombie retailers fail to pay their rent and VAT payments in January. The first quarter of 2014 will be make-or-break for many companies.
Whilst it is tough for some, it is a far rosier picture for many, with shopping centres such as Bluewater in Kent and Birmingham’s Bullring reporting record numbers of visitors through their doors, helped by the generous discounts and promotional events.
According to PwC, 64% of 100 high street retailers have advertised promotions over the last week, a slight reduction on the 69% seen last year. However, the level of discounts offered was higher, at 42% this year compared with 36% in 2012.
Online sales in November were up 20% on last year’s figure to reach £10.2bn, marking the first time the £10bn figures has been breached in a month. This was 30% up on October, and aided by Black Friday mega-discount deals.
Not surprisingly, given the growth in online, footfall declined 2.9% year-on-year in November, with high streets recording their worst fall since August 2012 of 4.2%.
It will be interesting to see how retailers perform over the Christmas period and in the New Year, and who succumbs to administration when the January rent quarter day falls. You can keep up-to-date with all the retail news and sales figures here on SnapShop.
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Don’t stop; just shop |
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Posted At: 13 December 2013 12:13 PM
Related Categories: E-tailing, Retail, Retailers |
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Despite the continuing technological revolution, we remain social creatures. Many of the office-bound working population could work from home electronically connected to the workplace/clients/the market, but it’s not only the employer’s need to ensure employee productivity; we all need a bit of actual face (to-face) time, a chance to chat, explore ideas and gauge reactions. So, with the daily commute still very much a reality, the shopping population is regularly on the go.
Network Rail has embraced this thought and not surprisingly seen station retail sales results grow by 4.74% like-for-like from July to September 2013. Compare this with BRC’s measure of high street sales, which increased only 1.5% across the same period and it seems we still want to shop, it just needs to be ever more convenient.
Taking this a step forward, if you can bear the thought of lugging your groceries on the tube, whilst avoiding your fellow passengers armpits, swinging handbags and selfishly placed feet, then take advantage of Asda and TfL’s recently announced partnership that will see Grocery Click and Collect services at six underground stations.
At SnapShop, we’re also monitoring the move to smaller formats. Some of us remember when there was a Tesco of old on the high street. Not only is it back, and has been for a while, but others are following the lead:
• Morrisons has successfully refined its M-Local model and is moving forward with the format based around fresh food and friendly service
• The Range is understood to be considering opening smaller stores of 20,000sq ft on the UK’s high streets
• TGI Friday's is preparing to roll out smaller outlets in university towns and at stations.
• Topps Tiles is launching a trial of new smaller-format stores next year
• Wahaca is to launch a new on-the-go takeaway concept called Burrito Mama
• Wilkinson has announced plans to launch a smaller-store format
The high street isn’t dead, it just needs conveniently relocating and reshaping.
FSP’s knowledgeable consultants and vast information resources can help retailers decide on their location strategy and towns, shopping centres and travel hubs decide on their tenant mix. Just ask.
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Retail Update - November 2013 |
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Posted At: 14 November 2013 16:13 PM
Related Categories: Administrations, Retail, Retail Property, Retail Statistics, Retailers |
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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.
You can also register to receive SnapShop Monthly free for 3 months.
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SnapShop Monthly Summary – September 2013 |
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Posted At: 19 September 2013 12:43 PM
Related Categories: Retail, Retailers |
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September has seen a number of positive news stories of increasing economic optimism in the UK, not least reflected by Gfk’s monthly consumer confidence barometer for August that revealed consumer confidence was at its highest level since October 2009.
The rise of three points in August to stand at -13 showed the biggest improvement in confidence over a four-month period since 1982, with consumers more willing to spend on major purchases, rising five points to stand at -16. This is 15 points higher than this time last year.
Further news of increasing optimism can be seen in the capital, with Oxford Street alone predicting sales figures of over £5bn this year, perhaps aided by the growth in the number of visitors from the Middle East, who, according to Global Blue, spent an average of £794 per transaction in the first six months of 2013.
Even the pipeline of shopping centre development is seeing green shoots of recovery, with an extra 1.5m sq ft of retail and leisure space being created throughout 2013. The 50,000sq ft Jubilee Place scheme at Canary Wharf, and the 50,000sq ft Yate Shopping Centre will join the already opened Trinity Leeds and Whiteley schemes. Intu is also planning a number of food court refurbishments throughout the rest of 2013.
September has been a quiet month in terms of administrations with only one reported, although with the rent quarter day looming there could be many more in our next report. Administrators Duff & Phelps were appointed to DME Fashion, trading as Pineapple. It is not yet known if the stores will continue trading through the administration process.
In contrast, September saw Textiles Direct bought out of administration by Home Center Retail, the owner of which is a director of a supplier to Textiles Direct. Textiles Direct succumbed to administration earlier this year in April 2013 after a decline in turnover.
SnapShop members can log in to see what retail news is making headlines
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SnapShop Monthly Summary August 2013 |
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Posted At: 15 August 2013 14:21 PM
Related Categories: Retail, Retailers |
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Having asked, on the SnapShop Blog in July, if the UK was turning a corner in its recovery, it seems to be that all news items are stressing the point. With consumer confidence rising; the Bank of England providing stability; house prices on the up and a slight easing in inflation, the news this month has had a rather more positive sentiment than of late.
The positive news isn’t confined to the UK, as we hear this week that the Eurozone has moved out of recession with the economy growing by 0.3% in the second quarter.
Back in the UK and the government thought it had hit upon a sound idea to kill two birds, with its proposal to ease the planning rules. The idea is that town centre properties could be converted to residential use. However, these have been met with only cautious approval, with many commentators showing some support for the general philosophy, mixed with concerns as to how this would take shape.
Meanwhile the Crown Estate is doing its bit to ensure high street retailing lives on, by opening some of its prime real estate in Piccadilly to small independent retailers where pop-up shops will showcase the wares of 10 fledgling retailers, in a celebration of British products.
The latest technological innovation means that Richmond High Street in West London has become the first in Britain to introduce facial recognition payment technology, allowing shoppers to pay on their mobile phone and be recognised by their first name and picture.
In property news, preparations are underway for the refurbishment of The Mailbox in Birmingham and Intu’s plans to build a £17m restaurant quarter within Newcastle's Eldon Square shopping centre have been recommended for approval.
SnapShop records of successes and failures this month go from the excitement surrounding the UK launch of J Crew, through the reverberations of the Internacionale pre-pack which sees them taking a tough stance in rent negotiations, to textile retailer Mostyns being the only casualty in the month.
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Is the UK turning a corner in its recovery? |
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Posted At: 26 July 2013 10:51 AM
Related Categories: Retail, Retailers |
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If the positive news in the press this week is anything to go by, then yes! Whether driven by the belated arrival of sunshine and warm weather or the equally anticipated royal birth, early signs of a recovery are emerging. The SnapShop Blog now shuns the negative outlook that has been so widely reported and strikes a blow for positivity with a summary of the good news for the retail sector and the UK economy.
• British Land, one of the UK’s largest property companies, has reported that the number of retail units in administration in its portfolio has almost halved, from 0.9% to 0.5%, as a proportion of the group’s total rent. It also said demand levels for space at its schemes were encouraging.
• The BRC-Bond Dickinson Retail Employment Monitor has revealed that retail employment levels grew 3.7% in the second quarter of 2013 against the same period in 2012, delivering the best result in job creation terms since 2009, and representing the sixth quarter of job growth.
• The UK remains Europe’s largest retail investment market with a 32% market share. According to Cushman & Wakefield, volumes have risen 14% since Q1, but by a staggering 94% over the first six months of 2013 in comparison with 2012
• Official ONS figures show that the economic recovery gained traction over Q2 to the end of June with GDP growth of 0.6% - twice that seen in Q1 – leading to hopes of a sustained revival in the UK economy.
Additionally, the good weather in the second quarter of 2013 has led to a number of retailers reporting positive sales growth these include:
• Kingfisher reporting a 2.5% jump in quarterly sales to July 13, with B&Q reporting sales of seasonal and outdoor products up by a fifth – that’s nearly 40% of sales!
• Wickes has also benefited from better weather in its second half, reporting a 7.3% jump in profits. The last eight weeks of the period alone accounted for an 8.6% surge in sales.
• Fat Face is trading strongly in the start of its new financial year, helped by the summer sun boosting demand for dresses, shorts and t-shirts.
• Wetherspoon’s has benefited from the warmer weather driving people into its pubs, posting a 6.2% rise in sales for the 11 weeks to 14 July.
Whatever the reasons are behind the positivity being reported this week, it’s nice to see some optimism finally appearing. You can keep up-to-date with all the news – hopefully more positive than negative – here on SnapShop.
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Retail Update - July 2013 |
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Posted At: 18 July 2013 11:15 AM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Research by Deloitte shows that the number of retail administrations fell by 30% in the first half of 2013, with a reported 87 collapses compared to 124 in the same period last year. Since our update last month, this list now includes:
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Dwell appointed Duff & Phelps as administrators at the end of June, but was saved by its founder Aamir Ahmad who bought five stores and its online operations at the beginning of July
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Miss Sixty and Energie stores in the UK are to close after liquidators were appointed to the UK business. The nine closures include Westfield Stratford, Bluewater Shopping Centre and on Covent Garden’s Neal Street
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Ark fell into administration after June’s rent quarter day but was rescued by JD Sports almost immediately
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Modelzone appointed Deloitte as administrators. Having received no offers for the business, store closures and further redundancies are being proposed
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Nicole Farhi appointed Zolfo Cooper as administrators, who have received a large number of expressions of interest for the business
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Internacionale underwent a pre-pack administration by its former management team and resulted in the immediate closure of 18 stores
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Homebase has placed its Irish arm into examinership following poor trading in the country, and is proposing to close three of its 15 stores to put the business back on a sustainable footing. KPMG has been appointed as interim examiner which will provide protection for Homebase Ireland
In regeneration news, the third and last significant shopping centre and leisure development scheduled to open this year, has opened its doors. The 473,000sq ft New Square development in West Bromwich finally opened last weekend, after the opening was postponed from spring 2012 to July this year following delays in finalising third-party agreements with the adjacent Queen’s Square development. Primark and Tesco Extra anchor the scheme, other tenants include JD, Next, Arcadia and Bank. Figures show that nearly 100,000 shoppers flocked to the scheme during its first four days of opening.
In other news, the Commons Select Committee has announced that Mary Portas is to face questions by the Communities and Local Government Committee on her recent review into the future of high streets, Portas Pilots, Town Team Partners, and Bill Grimsey’s alternative review of high streets. The Committee also stated that the session with Portas “may inform a wider inquiry into the future of town centres later in the session”.
Following Portas’s review and the continuing demise of the UK’s high streets, alternative options for its future are being offered up. These include not only more engagement between LEPs and councils with their local retailers, but the revamping of historic buildings and more emphasis on the heritage of the local area are pointed out as key drivers of footfall and in attracting retailers. English Heritage points to Rotherham in Yorkshire which has seen a 6% increase in footfall since public funds were used to repair historic buildings. Some leading experts are calling for town centres to be shrunk, with the Government now proposing to turn retail units into housing as they intend to consult on the relaxation of planning regulations which would allow “communities to consolidate high streets”. With the ever increasing number of discount retailers and betting shops opening on our high streets, something – be it one of these proposals or a completely different idea - needs to be done to stop its demise.
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Retail Spotlight – Dwell ceases trading |
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Posted At: 21 June 2013 11:10 AM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Following a cash-flow crisis and failed attempts to find a buyer or secure fresh working capital, Duff & Phelps were appointed as administrator to the furniture chain, Dwell.
SnapShop now brings to you an overview of the retailer’s trading over the years and highlights of the collapse.
To us it looks like a typical case of biting off more than you can chew – in the last two years the retailer opened over 9 new stores and had plans to open around a hundred or so more in the future.
Financial indicator, P2 improved marginally in 2011, but not to the extent of indicating sustainable health, whilst there has been no measurable return on trading assets in the past three financial years. The latest accounts showed an over-reliance on creditors, a shortage of working capital which may have inhibited sales and despite securing a significant level of refinancing, it’s possible that new store openings at high cost locations may have resulted in the final blow.
20th June 13 - Dwell closed all 23 stores and ceased trading both on the High Street and online with immediate effect - resulting in the loss of 300 jobs. Read more
13th June 13 - Dwell insisted that it is continuing to trade as usual, amid speculation that it is on the brink of administration.
7th June 13 - Future of Dwell was close to being decided after appointing Argyll Partners to explore option.
29th May 13 - Dwell appointed Argyll Partners to explore its options, including the possible sale of the business.
28th Feb 13 - The 52 week period ending 27 Jan 12 represented a successful period, with the company generating sales growth of +3.3% to £34.5m. During 2012, the company successfully opened six new stores, increasing the number of stores to 24, and these are already making a positive contribution to the company. The stores were in Guildford, Cardiff, Leeds, Lakeside Thurrock, Staples Corner (North London) and Birmingham (Bullring).
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
14th Nov 12 - Dwell appointed Rebecca Cotterell as its new managing director, replacing founder Aamir Ahmad who stepped down from the role.
28th Aug 12 - Retailer appointed a Director of Multichannel as it seeks to improve its online offering.
1st June 12 - Dwell saw the scope for up to 100 stores as it looks for smaller, quirkier shops.
13th Dec 11 - Dwell agreed a lease on a store at St David’s shopping centre in Cardiff, which will be its first outlet in Wales.
18th Nov 11 - Dwell has bounced back into the black at an EBITDA level as sales grew in the year to January 28 despite a punishing big-ticket market.
2nd Nov 10 - Dwell signed up at Lend Lease's Touchwood shopping centre in Solihull.
3rd Sept 10 - Dwell set out a 33-store expansion plan after securing a £5m investment from a private equity firm.
SnapShop subscribers can view retailer profile, more historic news, accounts and financial standing over the years, by visiting Retailer Directory here.
To stay up-to-date with retail administrations, new retailer entering UK and news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
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Retail Update - June 2013 |
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Posted At: 20 June 2013 11:16 AM
Related Categories: Retail, Retail Statistics |
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Although June has seen no reported administrations, the future of a number of high-street brands is hanging in the balance.
• Up to 20 Republic stores face closure after the proportion of landlords willing to agree to the new, softer terms proposed by new owner Mike Ashley’s Sport Direct fell short of the 75% stipulated by the group. As a result, Republic’s outlet in The Lanes shopping centre in Carlisle is to close before the end of the month. The whole chain could still be closed.
• Embattled furniture retailer Dwell has lined up Duff & Phelps as administrator after appointing advisers to explore options for the chain, which includes a pre-pack administration and would continue the on-going demise of the high street.
• Jane Shilton’s future is also in jeopardy after takeover talks with Shoon collapsed following heated discussions between the two parties and a difficult year for the footwear industry as a whole. Jane Shilton made a pre-tax loss of £1.9m for the year to 30 June 2012, and followed the previous year’s loss of £575,000.
Following the administration of Coggles in May, it has been confirmed that the Hut Group has completed its acquisition of the company’s assets including its stock and all intellectual property. As a result, all stores have been closed as Coggles will now continue as an online-only operation within the group’s portfolio.
The iconic King’s Road Sporting Club is to close its doors after 20 years of trading, although reasons behind its as-yet-unknown closure date are unclear. It is believed to still be making a profit, and is understood that the freeholders of the property are behind the decision.
In other news, shopping centre developments throughout the UK are restarting for the first time since the collapse of Lehman Brothers, having been previously frozen amid fears that the economic conditions would dampen demand from retailers. Projects in Glasgow, Leeds, Bracknell and Bradford look set to get off the ground having signed up anchor tenants to their schemes. A total of 40% of the development pipeline is to happen in the London area, with the Battersea Power Station development finally beginning, and the redevelopment of Croydon’s Whitgift centre. Developments at Wembley, Earls Court and King’s Cross are also underway.
And finally, Bill Grimsey has launched his own alternative review of Britain’s troubled high streets after accusing Mary Portas of giving ‘false hope’. He has assembled a team, endorsed by Asda chief executive Andy Clarke, which includes Nick Hood from Company Watch, retail commentator Paul Turner Mitchell, and LDC’s Matthew Hopkinson. The report will be submitted to the three main political parties in the autumn.
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Retail Update - May 2013 |
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Posted At: 23 May 2013 16:31 PM
Related Categories: Retail |
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Today, 23rd May, marks the opening of British Land and USS’s remodelled Whiteley Shopping Park in Fareham, Hampshire. The opening is the second of only two retail centres to open this year, the first of which was Land Securities’ Trinity Leeds which opened in March. The 320,000sq ft. scheme comprises 56 shops, is anchored by M&S and Tesco, and opened with only seven vacant units – a large improvement on the tired and unsuccessful Whiteley Village Factory Outlet scheme it has replaced. Trinity Leeds itself has exceeded expectations since its debut, welcoming 2.7 million shoppers in its opening month. Let’s hope that Whiteley can do the same.
Cushman & Wakefield have predicted the Russian shopping centre will overtake the UK within the next year to become the second largest market for shopping centres in Europe. France and the UK are currently the top two in terms of existing space with 16.95sq m and 16.48sq m respectively. Russia, which has 16.47sq m, will overtake the UK as new developments are completed over the next 12-18 months.
In terms of administrations, May has been fairly quiet with only two reported. London restaurant group Scotch Steak Houses appointed Wilson Field as administrator. There is, however, confusion surrounding the current state of the business due to no details having been released. York-based independent Coggles appointed Begbies Traynor as administrator after talks to secure extra funding to aid further growth of the business broke down. Despite May being quiet, retail administrations for the first quarter of 2013 increased by 10% compared to the fourth quarter of 2012, largely due to the number of high-profile administrations at the beginning of the year. But with the next rent quarter day falling on June, there could potentially be an increase in the second quarter.
In other news, development initiative the Collective Project is to refurbish and repurpose up to 18 vacant retail units on Camden High Street in collaboration with the Conran Design Group, to launch a series of pop-ups on a six-month long rolling programme, in an effort to boost trade and reduce its vacancy rates. The shops will also operate as street level exhibition spaces for a number of art and culture events.
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Retail Update - April 2013 |
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Posted At: 18 April 2013 10:58 AM
Related Categories: Retail, Retail Statistics, Retailers |
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April has been quite quiet in terms of administrations, with only one reported that was expected. After filing its notice of intention to appoint administrators last month, Lucas Johnson was appointed to Textiles Direct after turnover declined by 20% over the past 12 months. Five stores were closed immediately, but the rest of the business continues to trade while a buyer is sought. Several expressions of interest have been received. The online business continues to trade as a separate entity and is unaffected by the administration.
One of the biggest stories in April was Hilco completing its acquisition of HMV from administrators Deloitte, saving 141 stores from closure. However, just days after HMV was rescued Hilco announced more job losses and threatened further store closures if rental reductions can’t be agreed with landlords.
Struggling up-for-sale Scottish footwear chain DE Shoes has sold five of its 31 stores to Begg Shoes and Bags, with a decision on the future of the rest of the company expected before the end of the month.
WHSmith announced it had acquired the Past Times brand from administrators Duff & Phelps, with plans to use it in a similar way to the Gadgetshop brand it acquired in 2010.
LA retailer BCBG Max Azria and sister brand Herve Leger have announced plans to open shops and concessions throughout London over the next two years, and will also look to open some designer outlet stores.
Swarovski announced strategic plans for its new Cadenza concept in the UK, which offers pieces from designers including Valentino, Roberto Cavalli and Versace, with the opening of four London stores by the end of 2013. A site in Westfield Stratford City has been secured.
Starbucks has become the UK’s first major operator to sign itself up to the concept of suspended coffees, with other coffee chains welcoming the idea.
M&S opened its very first standalone café concept at its Paddington, London, headquarters for both its staff and the public.
A total of 13 shopping centres worth £1.3bn were sold in the first quarter of 2013, representing a 169% increase on the same period in 2012, according to Knight Frank’s latest UK Shopping Centre Investment report. 11 shopping centres worth over £500m are currently being marketed, with another seven currently under offer, representing over £2.3bn.
Research from Santander has shown that some 72% of UK shoppers now regularly buy clothing and accessories from supermarkets, with 16% using supermarkets as a one-stop shop for all food and non-food items. This supports research from Kantar Worldpanel which shows that spending on branded young fashion fell by 5.1% in the under-25s category in the 24 weeks to February 13, as buying habits shift towards cheaper own-label alternatives. Menswear saw the largest decline of 11%, while womenswear fell by 2%.
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Retail Update - February 2013 |
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Posted At: 19 February 2013 10:59 AM
Related Categories: Retail, Retail Property, Retailers |
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According to new data published by BRC, January saw the sharpest fall in high street shopper numbers for two years – high street numbers were down 3.3%; out-of-town declined 7.2%; and shopping centres saw a drop of 5.2%. Average footfall for all retail locations was down 4.6% year-on-year. ONS, retail sales in January do not represent a great start to the year, but on a more positive note, online sales for January rose 16% year-on-year, according to the IMRG Capgemini e-Retail Sales Index. Notably, clothing sales soared 23% year-on-year representing the largest increase since July 2011. The Coffer Peach Business Tracker showed that pubs and restaurants suffered in January as a result of the bad weather, recording a 2.4% decline in like-for-likes, following a relatively successful Christmas. Inflation remained unexpectedly flat for the fourth consecutive month in January at 2.7%, according to ONS figures.
Cushman & Wakefield are expecting an influx of luxury international brands from Italy, France and Spain to dominate London’s prime streets this year, pushing retail rents to record levels. There are now 10 international brands for each store that becomes available on Bond Street or Sloane Street, representing a 20% increase in the last year.
A report produced by Conlumino for Hammerson – The Reshaping of Retail – suggests that retail spending is expected to grow at an annual average of 2.4% between 2013 and 2022, with 62% of this growth being generated by the over-55s. The report also forecasts that by 2020 mobile spend will account for £53.9bn of sales.
Liverpool hardware store Rapid and young fashion retailer Republic have followed Blockbuster, Jessops and HMV into administration. Meanwhile Store Twenty One is suffering severe financial difficulties and is likely to be placed into administration in the near future after it failed to pay its rent.
Capital Shopping Centres has officially rebranded itself as Intu Properties, and will invest £25m in new digital infrastructure for its shopping centres over the next three years. The group is also believed to be close to acquiring Legal & General’s Midsummer Place shopping centre in Milton Keynes.
Some highlights from this month’s retail news include:
- Victoria’s Secret expanding outside of London
- Danish retailer Tempur Mattresses to open its first European store at Bluewater
- Karl Lagerfield has begun searching for a 2,000sq ft West End flagship
Please signup for Freezone to read more and receive SnapShop Monthly for 3 months.
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Retail Spotlight – Republic collapses into administration |
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Posted At: 13 February 2013 15:37 PM
Related Categories: Administrations, Retail, Retailers |
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Following the collapse of fashion chain Republic; we bring to you an overview of the retailer’s trading over the years and highlights of the collapse
What is interesting to note from the history below is that Republic moved from refreshing brand mix by bolstering team, introducing new up-market brands and expansion in April 2012 to appointment of restructuring specialist and ultimately administrators in February 2013 indicating ever increasing importance of clear goals and strategy.
13th Feb 2013 - Republic collapsed into administration – putting 2,500 jobs at risk. It suffered poor trading results in autumn and rapid decline in sales in late January. Administrators Ernst & Young immediately made 150 staff at its head office redundant. Retailer was still offering vouchers for sale on its website today. Read more
6th Feb 2013 - Chairman Andy Bond left the retailer
5th Feb 2013 – Retailer appointed restructuring specialists KPMG to help it shed some of its 121 stores
25th Jan 2013 – It was rumoured that Republic was looking to offload up to 40% of its store portfolio, with the closure of 50-120 stores, in order to reduce costs from loss-making locations
18th Jan 2013 – Retailer was seeking rental concessions from its landlords across the UK - to switch from quarterly to monthly rent payments for around 120 stores
12th Oct 2012 – For the year ended 29/1/2012 - sales were £177.0m for the full year (2011 - £181.2m), driven both by stores and online sales. It made an operating profit before exceptional items of £6.1m. Financial health indicator on SnapShop shows movement from Healthy in 2007 to Very Strong in 2010 to Head Above Water in 2012 posing high risk
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
4th Oct 2012 – Retailer signed up for a 10-year lease for the 8,500sq ft unit GL11 at The Liberty Centre in Romford
10th Aug 2012 - Retailer was wooing higher-priced menswear brands as part of a move to reposition at a more premium end of the market
6th July 2012 - Republic stepped up its footwear offer with the launch of dedicated branded footwear departments in 25 of its larger stores
27th April 2012 - Savills has been appointed to advise Republic on its expansion and was understood to be looking for around five stores this year with a particular focus on the South East
16th Apr 2012 - Republic has appointed Fenwick buyer Les Dales as brand manager for external brands, replacing Scott Macrae
9th Mar 2013 - Republic’s new chief executive Paul Sweetenham plans to differentiate the fashion chain from its more sportswear-led competitors with a stronger trend-led brand mix
23rd Feb 2012 - Republic hired former TK Maxx boss Paul Sweetenham as its new chief executive
SnapShop subscribers can view more historic news, financial standing over the years, by visiting Retailer Directory here.
To stay up-to-date with retail administrations, new retailer entering UK and news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
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Retail Update - January 2013 |
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Posted At: 18 January 2013 00:00 AM
Related Categories: General, Retail, Retail Statistics, Retailers |
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Statistics for December look promising with overall shop price inflation remaining at 1.5% for the third consecutive month according to the BRC Nielsen Shop Price Index. BRC’s Retail Sales Monitor showed a 1.5% increase in spending in December compared to the prior year. Designer outlet Cheshire Oaks reported Boxing Day 2012 was its best day of trading in its 18-year history.
December’s online sales rose 17.5% with the sector forecast to grow a further 12% during 2013 according to the IMRG Capgemini Index. UK shop vacancy rates dropped by 0.1% in November according to the Local Data Company. Shopping centres including Westfield London, Westfield Stratford and thecentre:MK all saw significantly increased footfall over the Christmas trading period reflecting an increase in consumer confidence.
Westfield and Hammerson have finally settled their long-standing Croydon dispute, agreeing to collaborate on the scheme.
Three administrations have been reported since the beginning of 2013, following in Comet’s footsteps. Jessops failed to generate the profits it required to viably continue trading and has resulted in all 192 UK stores being closed. HMV was placed into administration after talks with its lenders failed to reach a successful outcome. A number of potential buyers have registered their interest in the chain and all stores continue to trade while a buyer is sough. Blockbuster appointed Deloitte as administrator after increased competition from internet-based providers impacted its trading. Its core business is still profitable and it will continue trading while a buyer is sought.
In news relating to UK market entrants, H&M will debut its &Other Stories concept on London’s Regent Street in the spring, Saffran will open its debut UK outlet at Manchester’s Trafford Centre, Greek jeweller Li-La-Lo opened its debut store in December at Westfield London and Microsoft is looking to open high street stores in the UK in a bid to take on Apple.
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Unintended consequences of playing fast and loose with corporation tax |
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Posted At: 03 December 2012 17:24 PM
Related Categories: Retail, Retailers |
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Suddenly the gods of international enterprise are finding themselves reaching pariah status. They might have been playing strictly by the rules, but only those of the tax regime, not those of fair play. And we British like our fair play.
Sitting supping coffee and doing your Christmas shopping at Amazon.com may have been the prospect not too long ago, but how many people will now take in the local bookstore as they bypass Starbucks? And how many more will track down their purchases on other websites? HMV and Waterstones may see a resurgence in fortunes. We may even find that, with the oh-so-easy-to-use Amazon being a no-go site for the champions of the underdog, the High Street may suddenly find it’s time for a renaissance.
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Retail Spotlight – JJB collapses into administration |
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Posted At: 01 October 2012 17:32 PM
Related Categories: Administrations, Retail |
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Following the collapse of JJB Sports; we bring to you an overview of the retailer’s trading over the years and highlights of the collapse
1st Oct 2012 – Administrators KPMG have been called in after JJB collapsed into administration, leading to the closure of 133 shops and 2,200 job losses. They sold 20 JJB stores, the brand and the website to Mike Ashley's Sports Direct for £24m, saving 550 jobs in the UK, including staff at the company's warehouse. For more information click here.
This doesn’t come as a shock to us as it had been anticipated by FSP’s retailer at risk – a multi-layered approach, earlier in July 2012.
27th Sep 2012 - Sports Direct announced to buy 60 stores from JJB Sports in a transaction that will safeguard up to 1,500 jobs
24th Sep 2012 - JJB Sports shares suspended as the struggling sports clothes and equipment retailer prepares to call in the administrators
20th Sep 2012 - sale of JJB Sports was marred after HM Revenue & Customs launched a multi-million pound tax investigation
14th Sep 2012 - JJB Sports Plc was in talks with several parties who have offered to buy it but ordinary shareholders were unlikely to see any value from a deal
13th Sep 2012 - speculation that retailer would not be able to meet quarterly payments due on September 24 were quashed so quarter-day obligations will not be fundamental to JJB’s future
30th Aug 2012 - retailer put itself up for sale after it failed to raise new funds to help revamp its stores
27th Jul 2012 – JJB’s chief, Keith Jones departure was announced
For more historic news, financial standing over the years, please visit our Retailer Directory here
The administration of JJB would be the latest casualty to hit Britain’s battered high street.
Other major administration this year include: Clinton Cards (went into administration in May and was rescued by Lakeshore Lending, a subsidiary of Clinton Card’s largest creditor American Greetings in June), Peacocks collapsed in January, Blacks Leisure, was acquired by JD Sports, also in January, by way of a pre-pack administration. In 2012 around 35 administrations were recorded on SnapShop. To stay up-to-date with retail administrations, new retailer entering UK and news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
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And Finally - Shop til you drop |
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Posted At: 21 June 2012 14:13 PM
Related Categories: And Finally, Retail |
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Travelodge has joined forces with Topshop in the first collaboration of its type. The duo has opened a combined development on Princes Street in Edinburgh. The largest Topshop in the city now has a 96 room, 4 storey Travelodge sitting on top, so you can you wake up and go straight downstairs to choose your attire for the day and when it comes to getting ready for the evening, you can pop in on your way back to your room to grab another outfit for the night’s festivities.
A spokeswoman for Travelodge said: ‘Shopaholics can now shop and snooze under one roof and with rooms from £19, there is plenty of change left to treat yourself to a new outfit.’
The two seem to be "delighted" about the collaboration so much that Travelodge even released 8,000 rooms for £19 across its 13 Edinburgh hotels.
What do you think – is it a good team up and who else can join forces within retail?
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And finally - how to win friends, influence people and steal the market share |
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Posted At: 25 January 2012 16:48 PM
Related Categories: And Finally, Retail, Retailers |
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McDonalds, the bane of many parents’ lives, is sharpening its image. Having masqueraded under the guise of a restaurant* for some time, it is now being informative – calorie count on the menu (really, it’s best not to look) – and educational. With an initiative allegedly aimed at increasing literacy and creativity amongst children, McDonalds will be including the Mudpuddle Farm series of books from acclaimed author Michael Morpurgo, in with their Happy Meal.
This initiative is likely to see McDonalds give away 9 million books over the four week period. With sales of children’s books averaging around six and a half million over the same timeframe, McDonalds will, for a very short time, become the biggest retailer of children’s books
Undoubtedly, the fact that Morpurgo is also the author of Warhorse is completely lost on the marketing chaps at McDonalds, and their intentions are singularly altruistic, but we at SnapShop nevertheless give this the thumbs up for feeding the little ones’ minds.
*Although there is no mention of knife and fork in the dictionary definition, the origin of the word is “food that restores”. Hmmmm!
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Retail Spotlight – Pumpkin Patch UK subsidiary goes into administration |
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Posted At: 19 January 2012 15:23 PM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Following the announcement of collapse of children’s store Pumpkin Patch in the UK; we bring to you an overview of the retailer’s financial performance over the years and highlights of the latest news
19/01/2012 - Pumpkin Patch has called in administrators on its UK subsidiary, this does not affect any other of the group's companies. Retailer said current economic environment in the UK and in wider Europe is extremely difficult. It’s website and social media channels have not been updated with this information
28/09/2011 - The CEO resigned after the company swung to a full-year loss, which it blamed on soaring cotton prices, soft trading conditions, and the impact of natural disasters in the region
11/02/2011 - The results of the company for the year ended 31 July 2010 showed a pre-tax profit before non-recurring items of £1,872,183 for the year and sales of £24,993,241. During the year retailer opened 3 new stores and had expected to open 3 new stores in 2011
8/07/2010 – For the year ended 31 July 2009, the results for the company show a pre-tax loss before non-recurring items of £4,842 (2008 loss of £277,892) for the year and sales of £24,076,404 (2008 £23,731,916).
Financial Health:
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
To keep a tab on these retail administrations and financial health of over 2000 retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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All White |
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Posted At: 17 January 2012 15:50 PM
Related Categories: Retail, Retailers |
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Peacocks, on the verge of administration, would be the biggest failure since the Woolworths collapse of 2008, which preceded a Christmas of Horrors for a host of retailers. This year is showing similar tendencies, but with all around them failing, or at least flailing, White Stuff has a reason to smile.
Accounts filed in December for the year to April 2011, show White Stuff continues its trend of not only increasing sales, but increasing profits too.
This headline information is supported by FSP accounts analysis, which shows strong financial health ratios just getting stronger. The best retailers know, however well you’re doing, there is no time to sit back on your laurels. The directors of White Stuff are fully aware and “remain cautious”.
Sally Bailey at the helm, recognises a dual focus which works: happy customers and happy staff. “We continued to focus our efforts into making our customers happy”, she said, whilst the company had improved its ranking in the Times Top 100 Best Companies to Work For last year. We at SnapShop like that. Meanwhile, White Stuff is capitalising on eCommerce and cross-channel selling, as well as the launch of the large format Emporium store and a dipping of toes into the international pond.
Who would have thought the Boys from the White Stuff could pull off such a coup on the High Street?!
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Retail Spotlight - Past Times on brink of administration |
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Posted At: 04 January 2012 10:21 AM
Related Categories: Administrations, Retail, Retailers |
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Following the announcement of intention to appoint administrators by Past Times; we bring to you an overview of the retailer’s trading over the years and highlights of the latest news.
18/02/2010 - Past Times was hunting for new stores and intended to ramp up its online offer
23/09/2010 - Trading successfully from 115 stores across the UK and Ireland, retailer was looking to acquire a minimum of 30 locations in 2010
22/10/2010 - The gifts retailer opened 30 pop-up shops for Christmas and hired 400 extra staff
16/09/2011 - Following successful campaign in 2010, retailer was seeking a minimum of 60 locations to open in 2011
30/12/2011 - The board of Past Times, which is owned by Epic Private Equity, confirmed that it intends to appoint administrators in the New Year, placing approximately 1,000 jobs at risk
Legally, there must be a 10-day gap between an intention to enter administration being lodged with the High Court and its starting. This means the process is likely to start during the second week of January
Retailer Profile:
Past Times specialises in developing and selling quality products inspired by important design periods throughout history. The variety of products is extraordinary, ranging from household accessories and jewellery to gifts, toys, clothes, books, DVDs and much more. Past Times was founded in 1986 as a mail order company and opened its first store in Oxford in June 1987. With products aimed at the Middle sector of its market, Past Times has over 140 stores throughout the UK and Ireland, and a transactional website.
Financial Health:
7months ended 26 December 2009
The company increased both its high street and outlet presence during the period, opening a total of 24 new stores and ended the period with a total of 120 across the UK. This included the opening of the two largest turnover stores as the company shifted focus to higher turnover stores in key locations. Store sales in the eight months to December 2009 were £32.3m, compared to £26.7m in the comparable period, an increase of 21%
Year ended 25 December 2010
The company increased both its high street and outlet presence during the period, opening a total of 35 new stores and ended the period with a total of 141 stores across the UK and Ireland. The company continues to focus on stores that are in key locations and those with high contributions, accordingly 11 stores were closed during the period.
To keep a tab on these retail administrations and financial health of over 2000 retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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Retail Spotlight – D2 Jeans goes into administration |
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Posted At: 04 January 2012 10:00 AM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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The festive period brought a spate of administrations across the high street with D2 jeans failing early in the New Year. We bring to you news highlights and information about the retailer’s performance over the years.
04/01/2010 - Fashion chain D2 became the first post-Christmas retail casualty, falling into administration
11/01/2010 - D2 was bought out of administration by its management team saving 44 stores out of 76 and 500 jobs
3/01/2012 - Store chain D2 Jeans collapsed into administration again, making 200 staff redundant and putting hundreds more jobs at risk. Administrators closed 19 UK stores - including six in Scotland - and laid off shop workers at the Ayrshire-based firm. The Scottish closures were in Clydebank, Falkirk, Glenrothes, Hamilton, Irvine and Paisley. D2's other 28 stores are being run as a going concern while a buyer is sought by administrators, BDO LLP.
As at 3/01/2012, the website has been shut – optimistically stating that it is “temporarily” out of service, whilst displaying the returns policy and list of stores which are trading.
Financial Health
SnapShop uses a well-tested and reliable score based on value added, that is, sales minus the cost of bought-in goods and services, also known as P2.
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
To view retailers profile and more information on retail administrations for 2011-12 please subscribe to SnapShop.
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Retail Spotlight - Hawkin's Bazaar in administration |
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Posted At: 04 January 2012 00:34 AM
Related Categories: Administrations, Retail, Retailers |
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Following the collapse of the owner of toy and novelty gift chain Hawkin's Bazaar brand; we bring to you an overview of the retailer’s trading over the years and highlights of the collapse.
29/06/2010 – Hawkin’s Bazaar hired a senior TK Maxx executive as its new boss as the business ramped up its expansion plans
12/04/2011 - Bristol-based surveyor Williams Gunter Hardwick was reappointed to find 60 temporary units in major towns and cities across the UK in time for Christmas trading Hawkin's Bazaar
24/05/2011 – It was announced that the toy retailer Hawkin's Bazaar will open store in St David's in Cardiff
30/12/2011 - Hawkin's Bazaar brand collapsed into administration, putting 380 staff at risk
Financial Health
SnapShop uses a well-tested and reliable score based on value added, that is, sales minus the cost of bought-in goods and services, also known as P2.
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
Company Announcement on Website
On 30 December 2011, Peter Saville, Fraser Gray and Anne O’Keefe of Zolfo Cooper LLP were appointed Joint Administrators of Tobar Group Holdings Limited and its subsidiaries (The Group).
Hawkin’s Bazaar customers in possession of gift vouchers may continue to exchange these for goods as normal in any of The Group’s stores. Those customers seeking to make returns should look, wherever possible, to visit their local store where they will be permitted to exchange their goods. Cash refunds will not be provided.
Statement from administrators can be read here.
Should you wish to stay up-to-date with retail administrations and news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
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Retail Spotlight – Barratts Priceless plunges into administration |
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Posted At: 09 December 2011 14:17 PM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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How cruel that quarter rent day is on Christmas day. When tills should be ringing, for some, there may only be the sound of doors slamming shut, including high street footwear retailer Barratts.
Following the recent news of collapse of Barratts Priceless for the second time, FSP has reviewed and updated the retailer records on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
26/01/2009 - Shoe retailer Stylo's Barratts and Priceless Shoes collapsed into administration
19/02/2009 - The Ziff family rescued 160 Barratts and Priceless shops, , the remaining 220 stores were closed
20/03/2009 - Barratts Priceless appointed property agent CB Richard Ellis to renegotiate terms on the 160 stores it bought out of administration
19/03/2010 - Footwear retailer unveiled a new look for its Oxford Street flagship store
18/05/2010 – Barratts launched its first iPhone App and had plans to roll-out click & collect, targeted SMS marketing and promotions
3/12/2010 - Barratts has appointed John Hood, former managing director of footwear retailer Brantano, to the newly created role of brand director
8/12/2011 - The consolidated results for the 18 month period ending 31st July 2010 showed an operating profit after exceptional items of £8.6m from sales of £218.5m
10/02/2011 - Barratts has increased its email conversion rates after an overhaul of its e-commerce strategy
8/12/2011 – Reduced trading, increasing competition threatened Barratts ability to pay December’s quarterly rent bill, leading to collapse of chain thereby putting 3,840 jobs at risk. Given the gloomy economic backdrop, retail analysts are not confident that a buyer for the chain will be found
From the retailer’s own website, “On December 2011, Daniel Francis Butlers, Neville Barry Kahn and Adrian Peter Berry were appointed Joint Administrators and now manage the affairs, business and property of the Companies in Administration. The Joint Administrators act as agents of the Companies and contract without personal liability. The Joint Administrators are authorised by the Chartered Accountants in England and Wales. All licensed insolvency practitioners of Deloitte LLP are licensed in UK”.
With worsening consumer confidence, the run-up to Christmas is bound to bring more pain for the retail sector - how deep that pain will go? could this be avoided?
SnapShop provides information on 2,000+ retail fascias, including the Barratts fascias: Priceless, Shellys, Bacon Shoes
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Simply having a coaxing Christmas time |
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Posted At: 01 December 2011 15:23 PM
Related Categories: Christmas, Retail, Retail Property, Social Commentary |
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Ok so it’s been a bit quiet on the blogging front recently – probably a reflection of the amount of time the team here have (not a lot) to be pondering but I couldn’t help but notice how hard shopping centres are trying to increase their footfall.
Moving on from the traditional Lights switch on, Retailer Discount days, Santa’s Grotto choirs and brass bands, here are a few of this year’s new inspiring events:
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The Oracle in Reading is hosting a Boden pop-up shop until Christmas Eve and for the customers who spend £15 or more inside the centre a free gift wrapping service is available.
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The Red Bull Formula One team will be attending an event at Midsummer Place in Milton Keynes
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Life size snow globes at Silverburn
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One New Change in London is hosting a Dickensian story teller from the Museum of London
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David Hasslehoff (AKA The Hoff) visiting Cabot Circus, plus there will be an Ice Rink in situ until early January.
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Real life reindeer in Glasgow’s Princes Square
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Charity Santa run at White Rose Leeds
It’s enough to put even the coldest of Scrooges in a festive mood (yes I sit with a few, so I should know).
So if retail information is your pressie of choice this month, FSP can be your department store – let us know what you are after and we can supply it.
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And Finally - Is there no end? |
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Posted At: 17 November 2011 00:23 AM
Related Categories: And Finally, Retail, Retailers |
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Just when you thought Apple had reached its innovative limit, it has been announced that a new iOS app will allow customers to collect items in its stores 12 minutes after ordering them via their mobile.
So, imagine the scenario: You’re in a queue. Not at the bank; you do that online. Not at the Post Office; they no longer exist in your neighbourhood. Not at the supermarket; they deliver. Wherever, with minutes at your disposal, you download this latest app, decide you need an iPod/Pad/Parsnip (sorry, the virtual vegetable has not actually been invented yet) and order away.
Let’s cut to the chase, literally, you have 12 minutes to leave your queue, jump back in your car (they may not have realised yet, but unlike Tesco, Apple do not have a store in every postcode sector), find somewhere to park and screech into the Apple Store.
Then you decide you don’t like it, it’s not your colour.
We wonder if the innovators at Apple are struggling without their leader? The telling points are:
- The app effectively allows consumers to undertake the transaction themselves and simply use the store as a pick-up point. (Apple techies no longer required, but a useful role for a Post Office)
- The service will only be available for products which are in-stock at the intended pick-up location. (If you’ve got to be there in 12 minutes and you can only have what they’ve got in stock, why not just go there and browse anyway. At least you won’t plump for something in the wrong colour.
SnapShop Verdict = unimpressive
The next app will be, of course, one that allows you to order something you don’t yet know you want. Actually, Apple have mastered that already!
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And Finally - Calling all chocoholics: Thorntons unveils world’s largest chocolate |
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Posted At: 20 October 2011 11:00 AM
Related Categories: And Finally, Retail, Retailers |
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After the chocolatier Thorntons unveiled the world's largest chocolate bar to mark its 100th birthday , the SnapShop team provides an invaluable service to all chocolate lovers by recording the sweet statistics of this bar.
Quick Facts:
• The world’s biggest chocolate bar was made in Derbyshire, weighs 6 tonne and measures 13 ft square
• It has beaten previous Guinness World Record of world’s biggest chocolate set by a Chicago chocolate maker
• The bar is equivalent to 75,000 Thorntons Chocolate Blocks
• The bar weighs the same as two elephants and is twice as tall as the average man
• On pouring day there were over 50 people involved pouring the chocolate into the mould and it took 10 hours to do it, then a further three days to cool off
• With 29 million calories, it’s not the greatest dieting aid
After its stint in the limelight, the giant bar was smashed up and sold in stores to raise money for charity. Even the most dedicated chocoholic would struggle to get their teeth into this monster bar – do you agree?
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And Finally- Lego creates VW Camper |
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Posted At: 15 September 2011 13:44 PM
Related Categories: And Finally, Retail |
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Yearning for a Volkswagen Camper Van but can't afford the real thing? The iconic Camper Van, an icon of the sixties counter-culture and loved by hippies and surfers around the world, has been recreated as a LEGO® Exclusive model. The replica of the original 1962 VW Camper (also known as the 'Combi' or 'the hippie van') has been officially licensed by the German car manufacturer for the first time.
The model includes features like V shape colour split on the front and rounded roof. It also has an opening 'splittie' safari front window, opening doors and of course instantly recognisable pop-up roof.
Even the characteristic flat-four air-cooled VW boxer engine is squeezed in above the rear axle, exactly as in the original. Efforts have also been made to reproduce an interior that is as close to the original as possible. There’s a sink unit, a bench that folds down into a bed, a folding dinette table and an opening cupboard with a mirror.
The 10220 Volkswagen T1 Camper Van is on sale from October 1, 2011 via http://shop.lego.com/ or LEGO Brand Retail Stores. Going by the pictures, what do you think? Feel free to comment
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Retail Spotlight – Walmsley sinks into administration |
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Posted At: 02 September 2011 15:00 PM
Related Categories: Administrations, Retail, Store Closures |
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Following the collapse of Walmsey Furnishings; we bring to you an overview of the retailer’s trading over the years and highlights of the administration.
01/09/11 - Furniture chain Walmsley has become the latest casualty of the consumer spending downturn after collapsing into administration. Out of 60, 25 stores have already been sold to a new owner (private equity firm SKG) by administrators from Leonard Curtis. The rest have been closed, but uncertainty surrounds the future of 200 staff. There is no information about administration on their website, which just features 25 stores, as opposed to 60.
Store Closures Summary
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Region
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Store Closure Count
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Store Locations
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North West
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8
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Ashton, Blackburn, Burnley, Farnworth, Kirkby, Preston, Runcorn and Skelmersdale
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Midlands & Wales
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9
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Bangor, Coventry, Derby, Dudley, Erdington, Hereford, Stafford, Walsall and Wrexham
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North East & Yorkshire
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11
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Castleford, Grimsby, Halifax, Hartlepool, Huddersfield, Hull, Middlesbrough, Rotherham, Scunthorpe, Sheffield and Worksop
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Scotland
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5
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Airdrie, Dalkeith, Dundee, Irvine and Paisley
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Other
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5
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Basildon, Bedminster, Bracknell, Sittingbourne and Weston
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08/02/11 - For the year ended 30th April 2010, the company operated through 65 stores. It reported a difficult year with decrease in sales and the profit for the year amounted to £158,910
26/04/10 - The Company was accused of selling sofas that left people with rashes and burns
27/01/10 - During the year ended 30th April 2009, the company traded from 69 stores in England, Wales and Scotland. Two new stores have been opened during the year and one has been relocated. The profit for the year, after taxation, amounted to £216,425
To find more information and view retailers profile on Walmsley’s and many other retailers, you can subscribe to SnapShop with membership starting from only £96 pa.
We will be updating this blog as we receive information on store closures, redundancies, acquisitions etc., so if you wish to stay informed about Walmsley furnishings please fill in your email address in the subscribe box to the right of the SnapShop Blog screen.
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Retail Spotlight - Floors-2-Go crashes again with 192 job losses |
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Posted At: 25 August 2011 14:57 PM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Following the collapse of Floors 2 Go; we bring to you an overview of the retailer’s trading over the years and highlights of the administration
25/08/11 – 35 out of 88 stores have been bought by Nixon & Hope – which was formed this month by former Floors-2-Go directors Parjinder Sangha and David Vizor
24/08/11 - Specialist retailer Floors 2 Go was put into administration. 53 stores have been closed with the loss of almost 200 jobs. It blamed increasing competition, internet sales, lack of disposable income from consumers and primarily general downturn over the last 12 months to be the reasons for collapse
14/01/11 – Retailer hired former B&Q chief Jim Hodkinson as chairman and won £3.25m cash injection from Hotbed with plans to open 60 stores in 2011. Floors-2-Go director Michael Coleman said the retailer was trading "very comfortably" but remained cautious about 2011
30/05/11 – Jim Hodkinson’s appointment as chairman terminated
04/06/11 - Floors-2-Go and Topps Tiles in dispute over email allegations about Floors-2-Go’s performance
27/05/10 – Financial Performance for the year ended 31 July 2009 - the year to July 2009 saw a profit of £853k on sales of £34m and an impressive 9% growth in LFL sales (comparing same stores trading in either Floor My Home Ltd or the previous Floors 2 Go Ltd business)
27/10/2009 – Following pre-pack administration in 2008, retailer’s management was thought to be looking for commitments from interested parties to invest should its trading continue to prosper
Floors 2 Go - Retail Profile
Established in 1999, Floors 2 Go is a nationwide chain of privately owned and operated retail showrooms that offer a selection of the latest styles in carpet, hardwood, laminate, tile, area rugs, vinyl and window fashions, aimed at the Middle price sector.
It has had a troubled history, first entering administration in August 2008. It was later rescued by founders Michael Coleman and Robert and Richard Hodges. Hodges duo bought 80 out of 132 stores, who also run competitor brand named Floor My Home - rebranded all their other stores to the Floors-2-Go fascia.
In August 2011, retailer collapsed into administration again, closing 53 stores with the loss of almost 200 jobs. However 35 shops are still trading by the sale of part of Floors 2 Go to specially formed acquisition vehicle Nixon & Hope. Senate Recovery have been appointed as administrators.
Floors 2 Go transactional website, is still operational with no mention of change of ownership.
For more information on retailer’s financial health, please subscribe to SnapShop or signup to receive SnapShop Monthly for free for three months by signing up for FreeZone here.
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Retail Spotlight – TJ Hughes store closures- Updated |
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Posted At: 12 August 2011 00:24 AM
Related Categories: Administrations, Retail, Store Closures |
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Following the collapse of TJ Hughes; we bring to you: update on store closures and highlights of the administration
 • 11/08/11 – TJ Hughes closed its Salford store after looters vandalised property and stole goods and TJ Hughes in Middlesbrough, Preston, Southend, Bristol, Kings Lynn, Newport, Ipswich and Maidstone will also all shut down between August 16th and 18th, resulting in the loss of 474 jobs
• 10/08/11 - Some 134 retail jobs were secured after the administrators announced that they have sold another two of the company’s stores (Widnes & Newcastle) to Lewis’s Home Retail
• 04/08/11 – TJ Hughes will close 22 stores by the end of 14th August resulting in the loss of 1,061 jobs
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Store Locations |
Last day of trading |
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Shrewsbury |
August 10th 2011 |
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Birkenhead, Dumfries, Dundee, Rochdale, Widnes, Wolverhampton |
August 11th 2011 |
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Stretford |
August 13th 2011 |
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Bolton, Boscombe, Burnley, Chester, Crawley, Hull, Kettering, Kidderminster, Macclesfield, Nuneaton, St Helens, Walsall, Watford, Weston-super-Mare |
August 14th 2011 |
• 01/08/11 – 4 stores sold to Lewis's Home Retail including flagship store in London Road, Liverpool, together with stores in Eastbourne, Glasgow and Sheffield
• 22/07/11 - Around 100 TJ Hughes employees were made redundant after a shock announcement that the retailer’s distribution centre in Liverpool is to close
• 07/07/11 - Administrators E&Y of collapsed retailer TJ Hughes said that it was encouraged by the strong level of interest in the retail business and its stores
• 06/07/11 – Retailer called in liquidator to sell off the stock
• 30/06/11 - TJ Hughes collapsed into administration - Sir Philip Green, Primark and B&M Bargains expressed interest in stores
• 28/06/11 - TJ Hughes filed an intention to appoint an administrator
• 28/04/11 - The retailer's chief executive Beatrice Lafon was replaced after 3 months by Bob Lister
• 21/04/11 - Anthony Solomon, who together with turnaround investor Endless invested an unknown amount in the business for a significant stake
• 15/04/11 – Endless appointed Anthony Solomon as executive chairman
• 01/04/11 – New owner, Endless made efforts to put the value department store group on a firmer financial footing
• 25/03/11 – Discount department store was refinanced and sold to restructuring specialists Endless
• 11/03/11 – Retailer refinanced using an asset based facility giving it access to working capital
• 17/11/10 - During the 52 week period ended 30 January 2010 total sales increased by £5.4m to £266.7m. Gross profit increased by £5.0m with gross profit percentage rising from 36.5% to 37.6%
• 12/11/10 - TJ Hughes has named Beatrice Lafon as its new chief executive
• 07/06/10 – Department store chain pulls sale process
• 16/04/10 - TJ Hughes put up for sale with a £70m price tag
• 21/11/09 – Retailer opens new store in Walsall
• 09/11/09 – Discount chain TJ Hughes appointed bankers Hawkpoint to advise on options including a possible sale
As at 11th August 2011 retailer’s website is operational with a closing down sale and says ”…The affairs, business and property of TJ Hughes Limited (In Administration) are being managed by the Joint Administrators, S Allport and T A Jack who act as agents of TJ Hughes Limited (In Administration) only and without personal liability”
For more information, please subscribe to SnapShop or signup to receive SnapShop Monthly for free for three months by signing up for FreeZone
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And Finally - Something for the corner of your Shopping Centre… |
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Posted At: 21 July 2011 11:59 AM
Related Categories: And Finally, Retail, Social Commentary |
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With all available reporters either covering the News International shenanigans, or taking cover themselves, the stories for And Finally are a little thin on the ground this month
In times of a news drought, ordinarily we look across the pond for some American madness; what shocked us with this little treasure is that the invention hails from good old Blighty!
Concept Shed, based in Falmouth, has unveiled the ultimate in tacky mall machines. AutoWed is a novelty wedding machine offering a quick hitch, a couple of rings and a personalised certificate for just £1. This wonderful machine plays a specially composed intro version of the Wedding March, after which, customers can select their type of union from gay, straight, lesbian or best friend forever. A truly romantic robotic voice conducts the ceremony, before customers take their vows - pressing one button for "I do" and another for "Escape". Souvenirs from this experience are a wedding receipt and two plastic rings in egg-shaped capsules. Nice!
We were very pleased to hear from Concept Shed that they came up with the idea last year and built the unit especially for Marvin's Marvelous Mechanical Museum in Detroit. That’s alright then!
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Pets At Home passion promotes growth |
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Posted At: 08 July 2011 11:54 AM
Related Categories: Retail |
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As reported in our Birding blog earlier this week, Pets At Home were growing their sales last year and we were keen to know if this was sustainable. We are now pleased to report that the retailer has proved that it is! The Pets At Home passion for its product has produced sales growth of more than 10%, with positive like-for-likes.
SnapShop clients with Pets At Home on their Favourites list will receive an alert today, highlighting this news and providing a link to the Pets At Home trading update
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Retail Spotlight - Moben, Sharps and Dolphin owner collapses into administration |
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Posted At: 27 June 2011 15:39 PM
Related Categories: Administrations, Retail, Store Closures |
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On 22nd June 2011 – Retailer launched a new ad campaign uniting its three brands for the first time. Brands will all feature the same '& You' branding in the new campaign that will communicate the group's half-price sale
On 23rd June 2011 - Homeform has filed a notice to appoint an administrator. Advisers were appointed to sell bathroom retailers Moben and Dolphin in a bid to save its Sharps and Kitchen Direct businesses
On 27th June 2011 – HomeForm collapsed into administration, putting 1,300 jobs at risk
History of Events
October 2002 - The Homeform Group, which operates Moben Kitchens, Kitchens Direct, Sharps Bedrooms and Dolphin Bathrooms introduced a new store format that brings its various brands together within a single store
March 2009 - HomeForm launched its biggest ever in-store spring marketing campaign for its three brands
May 2009 - HomeForm opened concessions in four Bhs Home stores
June 2010 – Group chief executive Tony Vicente and chief financial officer Tim Kowalski left the business amid a difference of opinion with the owners
Oct 2010 - Retailer's new chief executive (Chris Palvlosky) laid out his three-year plan to increase profits and enable an exit for owner Sun European Partners. Looking for a way to contact retailers? please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
Retailer’s Financial Health (Year Ended 28th March 2010) – HomeForm Group
Turnover in the 52 week period of trading was £151.2m (2009 £148.2m). The loss before tax was £6.0m (2009 loss £12.m).
During the period, turnover rose by 2% despite the impact of the UK recession. Through increased operational efficiencies and cost cutting, the company's EBITDA was a profit of £1.0m compared with a loss of £3.4m in the prior year.
Retailer Profile – HomeForm Group
The HomeForm Group is the UK's market-leading specialist retailer of fully fitted home improvement products through its key brands Moben (fitted kitchens), Kitchens Direct (fitted kitchens), Sharps (fitted bedrooms) and Dolphin (fitted bathrooms).
The Group's head office is at Cornbrook, Manchester and HomeForm has 160 showrooms across the UK including 83 concessions in Homebase, Bhs, Next and Laura Ashley with over 1300 employees and 1500 self-employed fitters and designers.
The HomeForm Group is private equity owned by an affiliate of Sun Capital Partners Inc.
In the latest accounts filed it was mentioned that the company is confident that as the UK economy improves and further cost savings and efficiencies are implemented, the business will be well placed to realise improved results. However, it was announced in June 2011 that Homeform Group has entered administration. It is hoped that it will be able to sell off its Moben and Dolphin brands in a bid to save its Sharps and Kitchens Direct businesses.
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Retail Spotlight – Jane Norman goes into administration |
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Posted At: 27 June 2011 15:28 PM
Related Categories: Administrations, Jane Norman, Retail, Store Closures, Womenswear Retailer |
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Following the recent news that the womenswear retailer Jane Norman has collapsed into administration; we reviewed and updated the retailer record on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
On 27th June 2011- Jane Norman collapses into administration putting 1,600 jobs at risk. Retailer closed its 90 UK stores over the weekend after it failed to find a buyer for the business. Zolfo Cooper have been appointed as administrators. At the time of writing, website had not been updated with information on how the company intends to handle online orders
On 24th June 2011 - Edinburgh Woollen Mill has entered the race to buy womenswear chain Jane Norman
On 23rd June 2011 - Debenhams bid to acquire the stock and brand Jane Norman. Debenhams wants to keep the profitable Jane Norman concessions trading in its department stores, but has no interest in its 91 high-street stores
On 20th June 2011 - Private equity firms Sun Capital Partners and Better Capital entered rescue talks
On 17th June 2011 - The management team behind Aurora Fashions emerged as an interested party to acquire beleaguered Jane Norman
On 8th June – Jane Norman managing director Ian Findlay stepped down
On 7th June 2011 - Jane Norman was put up for sale
On 15th April 2011 – Jane Norman kicked off a radical overhaul of its product and image to target a younger, trend-savvy shopper
On 1st March 2011 -Jane Norman veteran Saj Shah takes early retirement
On 6th April 2010 - Jane Norman approached Aurora non-executive president Stewart Binnie to become its new chairman
On 10th Jan 2010 - Jane Norman’s lenders are to take over the business and restructure its debts of almost £136m
On 1st May 2010 – The company drafted in accountancy company PricewaterhouseCoopers (PwC) to assess the "operational efficiencies" of the business, three months after one of its major shareholders, Baugur, went into administration
On 27th March 2009 - Sandy Goldsborough, the trading director at Jane Norman, left the womenswear retailer after just six months in the role
Financial Health for Year Ended 27th March 2010
Total sales for the period ended 27 March 2010 were £144.1m (2009 £148.8m). The gross profit margin was 56% (2009: 56%), resulting in gross profit for the period of £80.0m, a decrease of £3.0m on the prior period. Administrative costs decreased from £72.0m to £70.0m mainly as a result of the reduction in costs for newly-opened stores, and reduction in head office costs. Administrative costs amounted to 48% of sales (2009: 48%).
As a result, operating profit for the period under review was £10.6m (2009 £11.1m). EBITDA was £15.4m (2009 £16.2m) and EBITDA margin was 11% (2009: 11%).
Want to read more? Subscribe to SnapShop to download Jane Norman’s latest accounts or register online to receive information packed newsletter for 3 months.
Retailer Profile – Jane Norman
Founded in 1952, Jane Norman is a womenswear retailer with over 170 stores/concessions in the UK and has a staff of over 1,600. It is positioned in the middle sector of the clothing/footwear market, with focus on young fashion. The Jane Norman target customer is typically aged between 16 and 25 and the company is most strongly associated with dressy fashion (weekend, pub and clubwear).
It was a private limited company following a management buyout backed by Baugur in 2005. Jane Norman did not appear to have been affected by the administration of Baugur.
In May 2009 Jane Norman drafted in accountancy company PricewaterhouseCoopers (PwC) to assess the "operational efficiencies" of the business. It was announced in June 2011 that Jane Norman had been put up for sale.
In June 2011 it was announced that Jane Norman had entered administration, and 90 stores had been closed. Click here to view retailer’s profile on SnapShop
According to a recent report by Deloitte, the first quarter of 2011 has witnessed the highest number of retail administrations in two years with nearly 20 administrations recorded on SnapShop in Q1. Do you need to keep up-to-date with these trends and statistics? SnapShop, being an information tool, records just such information: retailers’ financial health, daily updated news, number of stores, head office details on over 2300 retailers and SnapShop News Alerts will keep you up to date with news about retailer administrations.
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Retail Store Closures – May – June 2011 |
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Posted At: 24 June 2011 15:46 PM
Related Categories: Retail, Retail Property, Retailers, Store Closures |
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• On 22nd June 2011 – Comet announced to close 17 underperforming stores and no new stores are planned. Retailer said margins were hit in a highly promotional trading environment in the UK and lost market share
• On 21st June 2011 - Life & Style reported closing 22 of it 150 stores and making 274 people redundant after it fell into administration earlier in June
• On 17th June 2011 – Haldanes closed all its 23 shops after the owners filed an administration order. It is expected four will reopen
• On 25th May 2011- The administrators of Focus DIY are expected to announce the closure of more than 120 stores
• On 20th May 2011- Firkins Bakery closed its production bakery in Blacklake, West Bromwich, with more than 40 workers made redundant
• On 18th May 2011- Mothercare plans to close around 110 of its high street stores by March 2013, after seeing underlying UK profits slump by 70% in the last year
For more information and up-to-date news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months
According to LDC, in the last two years retail store closures have resulted in a tripling of the shop vacancy rate to 14.5% and the number of profit warnings from retailers has increase tenfold. This could be attributed to a number of factors like significant growth of out of town retail at a rate greater than that of in town, increasing internet sales, growth and expansion of supermarkets etc.
Network Rail, however, is presenting a very different picture, with retail sales increases at its stations outstripping the high street. Whilst overall retail sales from January to March 2011 dropped 0.8% YoY, trading at train stations across the UK rose 5.17% with London stations outperforming other stations during the quarter.
At the same time it was relieving to see that Harrow council hopes to mask the effects of economic decline by creating London’s first high-tech “fake shop”, turning a boarded-up property into what appears to be a florist’s in an effort to attract independent retailers to the high street as one in five shops in north Harrow is vacant.
With the changing nature of UK high street there is a need to rethink the futures of these empty shops. To read more about FSP’s approach to attracting town centre and shopping centre occupiers, click here
Related Blogs:
Empty Shops level – Q1 2011
Empty Shops level rises to all-time high
Squeezed Middle
Retail Administrations 2010
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Retail Spotlight - Haldanes in Administration |
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Posted At: 20 June 2011 17:10 PM
Related Categories: Administrations, Retail, Store Closures |
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Following the recent news that Haldanes has collapsed into administration; we bring to you highlights of the administration:
On 9th June 2011 - Haldanes filed for an administration order, with the owners blaming the Co-op for its woes. In a statement, chief executive Arthur Harris assured that Haldanes Stores and Ruston Retail are the holding companies for the stores’ groups, and all the stores are unaffected and will remain open
On 20th June 2011 - The grocer has closed all its 23 shops after the owners filed an administration order. It is expected four will reopen
History of Events
On 6th November 2009 – Starting with four former Co-operative sites in Scotland, Haldanes Stores set up a new nationwide chain of supermarkets
On 17th November 2009 - The Company, announced the opening of its first store at Prestonpans, took over four ex-Somerfield outlets in Scotland and had plans to expand the chain
On 2nd December 2009 – Haldanes announced the acquisition of 13 new outlets across the UK purchased from Co-operative Group following its £1.6 billion Somerfield buyout
On 15th Jan 2010 - Haldanes acquired a further eight stores from the Co-operative Group, with the transfer of 245 staff
On 27th Jan 2011 – Haldanes announced the launch of a new fascia, “Ugo”, which comprised 20 of the Netto stores Asda had to sell off as part of its £778m acquisition
On 12th May 2011 – Legal actions broke out between the Co-operative Group and Haldanes over the former Somerfield stores bought from the Co-op in early 2010
For more information and up-to-date news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
Retailer Profile – Haldanes
Haldanes Stores specialise in fresh, locally sourced products, has 23 supermarkets located throughout Scotland and England and employs around 600 people across the UK
It was announced in June 2011 that Haldanes Stores Limited and Ruston Retail Limited had filed for an administration order. All stores have been closed, although it is expected that four will reopen.
Could the business have been rescued? Let us know what you think…
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FSP’s retailer of the month– Co-op: low profile or key retailer? |
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Posted At: 20 June 2011 10:38 AM
Related Categories: Co-operative Retail, Retail, Retailers, Social Commentary |
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Do you think of Co-op as a bit of a low-key, low-profile, retailer with little to offer? If so, read on…
Having reviewed the news reported on Co-operative Group we believe that the retailer has now upped its game considerably, with well stocked aisles, fresh food and pleasant staff.
With the purchase of Somerfield in 2008, Co-op became the fifth largest grocer in UK and with the recent acquisition of several London stores (including the flagship store on The Strand in February and another convenience store opening in Wembley in March), nine new stores have opened since the start of 2011 and a further 21 contracts have been exchanged. Guess what, it doesn’t end here, the retailer intends to open more than 300 new stores in the next three years, creating around 7,000 jobs, with around 50 of these properties starting to trade this year.
To crown the expansion strategy, the flagship store on The Strand gave Co-op a unique coverage across UK as it now has a food store in every UK postal area!
In May this year Co-operative Retail added 50 new products to its own brand range. Its Truly Irresistible range of premium food goods is being re-launched and revamped. This retailer seems to have understood clearly that shoppers are on a bargain hunt in this climate so it is offering 25% discount off all its new range, and will also be advertising the scheme through its sponsorship of ITV National Weather. Joining the social crowd Co-op is introducing QR codes into its food stores to help drive traffic to its website and daily prize draws will be given out to Twitter and Facebook users who mention Truly Irresistible.
Earlier in January 2011, Co-op had launched a new product range called Taste the Seasons to reflect the British seasons and urging customers to shop locally to save time to do something better.
With high unemployment figures, the UK’s largest mutual retailer has unveiled its new Apprenticeship Academy, which promises to 'inspire' young people and help move them up the career ladder. Costing £9 million, the academy will cover all areas of the Co-op’s business portfolio, including its food, pharmacy, automotive, legal and financial arms.
Members of the Co-operative Group have agreed to donate more than £3m of their annual profit-share to charities and community groups, maybe that’s the retailer’s way of sharing its success and believes in making real difference – must admit we are impressed!
But it’s not all that positive; with rival Haldanes announcing that it is taking legal action over the ex-Somerfield stores it purchased from Co-op after a ruling by the Competition Commission.
Expansion of property portfolio, increasing turnover, new product offerings, tapping multi-channel promotional strategies including proximity marketing service, launch of new services like legal advice to its customers, in-store banks, enterprise service. Now, this is what we call all-round expansion. Tesco watch out!
Not only is the Co-op FSP’s retailer of the month on SnapShop, but we believe it could be given titles like “most ethical” and “responsible grocer” of the year too.
Like what you read? Why not register to receive FSP’s information-packed newsletter from SnapShop for 3 months? Or join SnapShop and see Co-Operative’s Profile for yourself
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Retail Spotlight – Georgina Goodman goes into administration |
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Posted At: 08 June 2011 10:00 AM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Following the recent news that premium footwear retailer Georgina Goodman has collapsed into administration; we reviewed and updated the retailer record on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
On 21/01/2010 – Retailer secured a £4m private equity investment from Core Capital to fund the expansion of its London-based footwear business.
On 02/02/2010 - Following investment from Core Capital Georgina Goodman announced expansion plans and said that the investment will also be used to broaden the lower-priced end of the range.
On 07/06/2011 – Georgina Goodman hit the buffers for reasons unclear. Restructuring firm Hilco was appointed on June 2 to handle the sale of the company, which is understood to be underway with an undisclosed buyer. The company’s Shepherd Street store and website have already closed while the Old Bond Street shop remains open.
For more information and up-to-date news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
Retailer Profile - Georgina Goodman
Georgina Goodman is a footwear retailer which had two London stores (Shepherd Street and Old Bond Street), as well as a transactional website. Product is aimed at the upper middle of the market with a focus on Assured Individual fashion.
As of June 2011 it was announced that Georgina Goodman had entered administration, for reasons that are unclear. One store and the website have been closed.
Information Displayed on Website – “By Order of K Provan and M Fry, Joint Administrators of Georgina Goodman Ltd. At this moment in time, you can no longer place orders from this website.”
However, it is unclear how company aims to fulfil orders already placed and loss of jobs (if any)
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Retail Spotlight – Peter Werth & Pink Soda for sale |
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Posted At: 18 May 2011 00:53 AM
Related Categories: Administrations, Retail, Retailers |
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Following the recent news that Peter Werth and Pink Soda have collapsed into administration in May 2011 FSP has reviewed and updated the retailer records on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
• In June -10 - Greg Tufnell, MD of menswear brand Peter Werth, rescued women's young fashion brand Pink Soda from administration, & outlined plans to add more brands to his Brand Acquisitions stable
• In July -10 - Greg Tufnell who led the buyouts of Peter Werth and Pink Soda for £10m in 2008, quit Brand Acquisitions, the venture which backed the business
• In November-10 - Turnover for the year was £8.8m (2009: £11.3m) and operating loss for the year was £883,120 (2009 - profit of £988,588) - directors expected the business to return to profit in the future.
• On 13/05/2011 - Springrealm, Peter Werth’s trading company, appointed FRP administrators
• On 16/05/2011 - Peter Werth, the menswear brand, went in administration - FRP have been appointed administrators to business. Effect on sister brand Pink Soda was unclear
• On 17/05/2011 - The parent company pulled the plug on the business, forcing Pink Soda in to administration too
• On 27/05/2011 - JD Sports buys Peter Werth and Pink Soda
Retailer Profile – Peter Werth
Peter Werth is a clothing retailer that targets men and women aged 18-40 in the premium sector of the market. There is one standalone store in Liverpool and is sold through 35 House of Fraser concessions and has around 200 wholesale accounts in the UK, Belgium and Germany. The business employs approximately 70 staff.
It is aimed at the Upper Middle sector of the market with a focus on Assured Individual fashion.
Retailer Profile- Pink Soda
Pink Soda was established in 1983 by Robert Rose and David Solomon and is a womenswear retailer. There are two labels: Pink Soda Boutique, which launched in 2001 and sits at the designer end of the market, and Pink Soda, which launched in 2004 as a younger, slightly more accessible brand. Both are sold successfully to department stores and key boutiques worldwide.
Pink Soda fell into administration towards the end of 2008 but was bought out by Greg Tufnell, managing director of Peter Werth.
In May 2011, Pink Soda went into administration - Jason Baker and Geoff Rowley were appointed joint administrators.
There is no information on website about administration and its impact on deliveries but according to Brand Acquisitions managing director Peter Lynes “It is business as usual. As it stands, the view is autumn will be impacted as little as possible. For the most part we will get through this quickly and out the other side with a stronger brand than we have gone into it with.”
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Retail Spotlight - Focus in Administration - Updated |
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Posted At: 06 May 2011 10:10 AM
Related Categories: Administrations, Retail, Retailers |
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Following the recent news that Focus has collapsed into administration on 5th May 2011 FSP has reviewed and updated the retailer record on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
• On 7th March 2011 - Disposed of six stores to Asda in a bid to raise funds
• On 15th March 2011 – Focus wins an agreement from most of its landlords to carry on paying monthly rents
• On 4th May 2011 – The Focus DIY chain said it intends to go into administration.
• On 5th May 2011- Collapsed into administration putting 3,919 jobs at risk. Administrators blamed low consumer confidence and a very weak housing transaction market that impacted on Focus and placed considerable pressure on sales and margins
• On 6th May 2011 - Owner of The Range, has publicly revealed interest in buying Focus DIY's stock and stores.
• On 6th May 2011 - Kingfisher bought 31 Focus DIY stores from administrator Ernst & Young
• On 11th May 2011 - Administrators received a “fantastic level of interest” in the business as it seeks offers for a sale
• On 17th May 2011 - Wickes agreed to acquire up to 13 leasehold properties and associated colleagues from the administrators of Focus for £ 8.4 million
• On 20th May 2011 - B&M Bargains acquired 11 Focus stores
• On 23rd May 2011 - administrator Ernst & Young hired restructuring specialists (Gordon Brothers) to begin liquidating stock
• On 25th May 2011 – administrators are expected to announce the closure of more than 120 stores with the loss of up to 3,000 jobs
This appears to be the largest retail administration of 2011, and follows the collapse of Oddbins, British Bookshops and Stationers and Alworths. Highlights of retail news are reported in SnapShop Monthly. Find out what SnapShop is all about and receive SnapShop Monthly for free for three months by signing up for FreeZone here
It is apparent that Focus is not accepting any online orders, on the website it said “Following notification of an event of default under the senior credit facility, and a realisation that there were no alternatives that could be explored any further, Focus Directors have come to the conclusion that to protect the interests of creditors they have no choice but to seek protection through filing a notice of intention to appoint administrators.”
For more information and up-to-date news please subscribe to SnapShop online at any time.
Retailer Profile - Focus
Founded in 1987, Focus is a DIY retailer with over 170 stores in the UK positioned in the middle sector of the DIY market.
Focus trades off 8.2m sq ft of selling space (1.9m sq ft of which is outdoor), with average store selling area of 32,000 sq ft. Its target market is located in market towns of 20,000 to 80,000 population or edge-of-urban areas.
Cerberus bought Focus in June 2007 who has since performed a strategic review of the business. As a result, a CVA was agreed in 2009 on the agreement that it’s 20 or so 'dark stores' (non-trading buildings) are disposed of before the end of the year.
In May 2011, Focus DIY fell into administration Ernst & Young were appointed as administrators and is looking for a buyer for the group and its stores.
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Retail Spotlight - Blue Inc |
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Posted At: 13 April 2011 00:29 AM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Following the recent news that Blue Inc has taken on 46 The Officers Club stores after the latter fell into administration in March 2011 FSP has reviewed and updated the retailer records on SnapShop . Below is a summary of the retailer profiles and highlights of the acquisition:
• On 29th March 2011 – The Officers Club fell into administration for the second time in just over two years, leaving hundreds of jobs at risk.
• On 29th March 2011 - Blue Inc bought 46 stores out of administration, in a deal thought to be worth about £5m. The deal was announced, the same day The Officers Club appointed Grant Thornton as its administrator.
• On 31st March 2011 – It was announced that stores bought are expected to add between £25 and £30m of sales to Blue Inc’s turnover, bringing its revenues up to about £80m.
Retailer Profile - Blue Inc.
Established in 1912, Blue Inc. is a menswear retailer with over 140 stores in the UK with annualised sales of £80m. It is positioned in the Lower Middle sector of the market with a focus on Young Safe fashion, and brands stocked include Kickers, Base and Ben Sherman. 80% of store offering is own brand, and Blue Inc Woman is available in selected stores. Blue Inc is the trading name of A Levey & Son Ltd which was bought by Marlow Retail in January 2006. In November 2010 it was announced that the retailer is seeking retail units with a sales area of 2,500 to 4,000 sq ft in cities and smaller to mid-sized towns.
Retailer Profile - The Officers Club
The Officers Club was established in 1998 and has since grown to become one of the largest independent menswear retailers in the UK, with around 110 branches (before administration) nationwide. The offering was situated in the Lower Middle/Value sector of the markets with a focus on Family Safe fashions; however, a refocus of the business in the last 5 years now sees it targeting the "fashion savvy males” in the 16-25 year-old market.
More information and analysis is available to SnapShop Members. You can subscribe to SnapShop online at any time.
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Retail Administrations - 2010 |
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Posted At: 21 March 2011 17:00 PM
Related Categories: Administrations, Retail, Store Closures |
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A comparison of the retail administrations in 2010 with those in 2009 has confirmed the view that there has been a steep fall in number of companies filing for administration in 2010. There were 32 retail administrations in 2010, versus 72 in the comparable period of 2009.
The retail industry showed healthy signs of recovery in 2010, with this dramatic drop of 44% in the number of companies falling into administration.
Administrations reported in previous issues of SnapShop Monthly summarised below:
· November 2010 - Speciality Retail Group went into administration this month, wiping out three high street names in the process: Suits You, Racing Green and Youngs Hire
· October 2010 - Fifi and Ally is the only reported retail casualty
· August 2010 - Two retailers hit the buffers with Confetti and Asco Supermarket, turning up its toes completely and going into liquidation
· July 2010 - Out of Town Restaurant Group hit the buffers, following allegations of fraud
· June 2010 - Two administrations, but in true Phoenix fashion, both Antler and JAG Communications resurrected through pre-pack
· May 2010 - Two administrations were Faith and Lab Sport
· April 2010 - Two Administrations, in the form of Envy and Saltrock
· March 2010 - Three Administrations which were Irish bookseller Hughes & Hughes, Jean Scene Ireland Ltd and Norfolk-based Riva Shoes
· February 2010 - Retail Administrations include Diamonds & Pearls, Designer Room, Ethel Austin and sister Au Naturale and the Fads, Textyle World and Leveys brands, owned by Divalimit
· January 2010 - six retail administrations, including Adams, D2, Wesley Owen, Natural Kitchen, Ellie Louise and Happit; three of these appear to have been pre-pack administrations, while the others, aside from Adams, have also been rescued.
These statistics tally up with the views of chief executives of Debenhams, New Look and Kingfisher who have predicted that the UK will not suffer from a double dip recession. All three give reasons for hope, with international, multichannel and product innovation hotspots in the industry.
For up-to-date information on store closures/retail administrations please subscribe to SnapShop.
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Waterstone’s Vs. Amazon |
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Posted At: 11 March 2011 00:33 AM
Related Categories: Future of Retailing, Retail, Retailers, Social Commentary |
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Gone are the days when, if you wanted to read a book, you either bought it with the choice of hard or soft backed, or you went to the local library.
With the internet came Amazon and many other internet book retailers, with their super-cheap new and second hand books and speedy delivery (most of the time).
The humble book shop that you had to actually physically visit faded into the background with Waterstone’s experiencing dreadful Christmas results in 2009 and failures in its supply chain costing the then managing director his job.
The most recent news relating to book stores is that Russian investor Alexander Mamut has directed Credit Suisse to advise him on a potential acquisition of Waterstone’s.
Mr Mamut holds a 6 per cent stake in HMV (Waterstone’s parent). Many observers did not think the businessman would consider making a bid for the book retailer with no clear business benefits.
One reason however could be that in fact Mr Mamut’s aspiration to own the chain stems from an intellectual ambition, rather than a financial one, in the same way that other oligarchs collect Premiership football teams.
In my opinion, Mr Mamut buying the Book store would be a positive thing.
I enjoy visiting a store, browsing through books, visiting the café if there is one.
One significant difference between online stores and bricks and mortar is that you don’t have the helpful staff available.
They can recommend books, order in obscure titles or even recommend a book similar to something you have already read. The reason Waterstone’s has all these benefits is that genuine book lovers work in store who have actually read the books and can give real advice.
Amazon may be able to use clever queries to sell you similar items or possible items you may be interested in due to your shopping activity, but this will never compare to a real life person giving a recommendation based on the fact they personally really enjoyed a book.
Some believe that physical shops will only survive in city centres and affluent locations as the market moves online, and books become increasingly available to download.
This may be the case, and if this is the future then businessmen such as Alexander Mamut saving book stores as a hobby rather than a business acquisition can only be a good thing?
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Only in America… |
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Posted At: 18 January 2011 16:35 PM
Related Categories: Retail, Retailers |
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Starbucks has announced plans to offer a new 'Trenta' coffee size option.
The new ‘Trenta’ size will hold 913ml, almost a litre of coffee or as I discovered nearly as much as a bottle of medium sized squash.
Given America's love of super-sized portions, it is not surprising Starbucks have introduced the new enormous cup size.
Trenta is from the Italian word for 30 (relating to the US amount of fluid ounces the drink contains).
The enormous drink will go on sale in 14 US states this week, and will be sold throughout the country later this year.
Only conventional iced coffee, iced tea and iced tea lemonade will be sold in the new cup size. Starbucks have released the new drink partly in response to customer requests posted online and partly in response to employee suggestions.
This new product size comes weeks after the news that Starbucks will be re-branding its iconic logo and mugs in preparation for further new product launches including ice cream and beer.
As yet there are no plans for Starbucks to sell the ‘Trenta’ coffee cup in the UK.
Would you welcome the super-size coffee or stick with a Venti?
Statistics:
o One ‘Trenta’ cup will equate to around four standard sized cups of coffee.
o A Starbucks ‘Trenta’ iced coffee would probably contain nearly 400mg of caffeine,
o The heavy caffeine user category is 500 to 600mg of caffeine a day.
o The drink will contain 90 calories un-sweetened and 230 calories sweetened
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Out-of-town, in-town and e-tailing |
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Posted At: 23 December 2010 13:00 PM
Related Categories: E-tailing, Future of Retailing, Retail |
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In response to a query, raised on the SnapShop website, about the trends in retail sales between town centres, out-of-town and e-retail, FSP's Managing Director, Geoff Nicholson, writes: The share taken by e-tail is monitored both by ONS and by IMRG. They use different metrics and with adjustments, they broadly tell the same story – the market has grown quickly but is still quite small, i.e. less than 10%.
The in-town/out-of-town split is more difficult to find but is much more significant. FSP has done quite a lot of work, using the development of space and average sales densities, to track the increasing share of the out-of-town market. The greatest push is coming from the supermarkets and their increasing proportion of non-food sales.
FSP has published some top-line results, tracking the market share change over the last 10 years and a projection for the next 10 years. In broad terms, FSP expects the non-food market share of in-town retailing to drop from around 64% in 2000 to around 42% by 2020.
FSP has worked on a number of town centres that are being strangled by edge-of-town developments, particularly large supermarkets. It is surprising that the scale of the change has attracted so little comment or political attention. I can only presume this is testament to the power of the supermarkets.
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Is the deficit reduction programme good for retail? |
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Posted At: 20 October 2010 00:18 AM
Related Categories: Retail |
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I was interested to read in a letter to the Daily Telegraph the other day that various captains of industry were wholeheartedly urging the government to cut fast and deep. I was interested because the undersigned included: Will Adderley (Dunelm Group); Robert Bensoussan (L.K. Bennett); Andy Bond (ASDA); Ian Cheshire (Kingfisher); Charles Dunstone (Carphone Warehouse Group); Ben Gordon (Mothercare); Stefano Pessina (Alliance Boots); Sir Stuart Rose (Marks & Spencer); Joseph Wan (Harvey Nichols); Simon Wolfson (Next). Employing nearly half a million workers and generating nearly £60bn of revenue between them, they must surely have a handle on business in the UK?
Interestingly, Sir Terry Leahy (Tesco), whose empire employs a similar number of people and generates similar revenue to the sum of the above, was not a signatory.
I asked Geoff Nicholson, our MD, for his view. You can see what he had to say on the FSP website here
NB revenue and employee statistics available from SnapShop's Accounts Analysis.
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2009 Review |
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Posted At: 04 January 2010 16:44 PM
Related Categories: Administrations, Future of Retailing, General, Retail, Retailers, Social Commentary |
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If you’re anything like me, you’ll be thoroughly confused as to how it can be January 2010 already. 2009 seems to have gone by in a blur of drama and change for the retail world, as the industry struggled to stay afloat in the difficult market conditions.
January was perhaps the most traumatic month, as the final Woolworths store closed and SnapShop record 20 – yes 20 – retailers falling into Administration!
On the flip side of that of course are new market entrants, which also saw a decline in 2009. Falling from 110 in 2008 to 79 between January and December 2009, they struggled to offset the losses felt on the high street.
Interestingly, some retailers who may have been destined to die managed to breathe new life into their lungs by persuading landlords to agree to a CVA. Focus, Blacks and Flannels all took advantage of this rarely-used opportunity.
Though many property developments slowed down as redundancies in the sector increased in abundance, Aberdeen’s Union Square, Bath’s SouthGate scheme and the St David’s 2 shopping centres in Cardiff all opened successfully and continue to trade well.
And finally, towards the end of the year, we though Christmas was doomed as a veil of white snow fell across the country, creating panic and pandemonium amongst the hundreds of men who had left their Christmas shopping till the last minute – again! John Lewis was on hand, however, to provide a bed for those stranded at their High Wycombe store when the blizzards hit – aaaw!
It may not have been the best year, and it may not yet turn out to be the worst, but those who got through it are likely hoping for some reprieve in 2010, so here's hopping they get it!
Also in 2009…
- Co-Op completed its £1.5bn acquisition of Somerfield
- Primark was hit with more controversy over questionable ethics at some of its suppliers
- JJB Sports and Chris Ronnie got into a right old spat, ending with his suspension and a subsequent investigation into his dismissal
- Iceland’s economic crisis threw Baugur into turmoil – it eventually put its stakes in House of Fraser, Hamleys, Aurum and Iceland into Administration in February
- HMV ventured into new things, opening a cinema above one store, Orange concessions on the high street and taking stakes in various music venues
- New Look relocated their head office from Dorset to London
- Jimmy Choo collaborated with H&M
- Best Buy ramped up its UK entrance plans
- And importantly, M&S won its £3.5m teacake tax battle, to determine that teacakes were in fact cake and not chocolate-covered biscuits as they had been taxed for
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Biggest stories of 2008 |
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Posted At: 06 January 2009 16:52 PM
Related Categories: General, Retail, Retail Statistics, Retail Suppliers, Retailers |
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Happy New Year to all our readers, and welcome to the first SnapShop Blog post of 2009! As is [to become a] tradition with these things, we’re going down the ‘a year, in retrospective’ route. So without further adieu, here’s a not-so-quick review of the hottest stories of 2008 (from a retail industry perspective, anyway).
1. Freshest in our head is the demise of the largest pick n mix chain in the world, Woolworths. I can’t remember which witty journalist coined the aforementioned pick n mix phrase, but it does sum up, in essence, what poor old Woolies became. With today marking the closure of the last few stores, it’s with a furrowed brow that we bid goodbye to the golden child of the 1990s. At least you won’t be alone…
2. From perfume to media, to childrenswear to savil row tailors, the sheer numbers of retailers being affected by administrations and closures in 2008 was immense.
Our Managing Director, Geoff Nicholson, comments as follows:
“I think we will have to deal with the factor that has hit all business – the move from it being not only smart, but de rigeur, for high performing businesses to have as much debt as possible. As long as debt was freely available, at reasonable rates of interest, it seemed a no-brainer. However, when the availability of credit dried up, as it did throughout 2008, the rules of the game suddenly changed. Now, trying to service debt, if you’ve still got the loan, or to renew it if the term has come to an end, is somewhere between impossible and very expensive.
Thus, when we look at retail failures, there are two basic causes:
-Retailers, such as Woolworths, whose retail proposition was un-compelling. Loads of the fashion retailers are likely to fall into this category but also some of the household goods retailers.
-Retailers with financial problems – retailers backed by Icelandic money are a particular case of a general problem – who can’t renew their debt funding. Not all of them are poor retailers; the problem is with the lack of credit.”
If you say so, Geoff! Moving onto something less depressing!
3. 2008 saw fuel prices rise to record levels, peaking at a UK average of 119.5 pence per litre in July. The knock on affect of the rise was felt across the retail industry, with transportation costs pushing up the cost of food, in particular.
One savvy PR department did see the silver lining, however, by giving away £20k worth of petrol at a London station to promote its new computer game… much to the chagrin of local moaners!
Thankfully, though still high, prices have returned to a much more reasonable 83.9ish ppl.
4. Next to grab our attention was the opening of 4 major regional shopping centres in 2008, namely; Highcross Leicester, Cabot Circus Bristol, Liverpool One and White City, London.
Liverpool One and Highcross hit the 1m visitor mark in 2 weeks, White City notched up 2m in 3 weeks and Cabot Circus clocked 2 million visitors in its first month of trading.
5. Though Christmas may be over for most of us, the retail world will likely remember Christmas 2008 for a long time still to come! Spurred on by plummeting consumer confidence and desperation to get us handing over the green, a raft of top name retailers slashed their prices in half in the most vicious pre-Christmas discounting seen in recent memory! Great news for us, not so great for the profit margins.
6. Not strictly retail, but still important, 2008 and its inherent gloom brought the car industry across the world to its knees. By November, production in the UK was down by a third, Honda pulled out of F1, and Nissan, Vauxhall and Ford announced short-time hours for its remaining workers. Luxury brands are expected to suffer next, as demand for extravagant cars such as Jaguars and off-roaders subsides.
7. Where to start with the economic news of 08! VAT cuts, inflation rates, income tax rebates…its all, quite frankly, beyond me, but obviously worth a mention.
8. And last but by no means least, Sir Phillip Green/Iceland/Baugur. This is what I understand;
September 08
The Icelandic economy starts to collapse. Glitnir bank is handed over to receivers along with Landsbanki and Kaupthing. All 3 are nationalised.
October 08
Icelandic Prime Minister Geir Haarde says that Iceland's banks might have to sell stakes that they hold in foreign companies…Icelandic banks hold significant stakes in a number of Baugur's retail chains, including House of Fraser, frozen food supermarket Iceland, Oasis, Principles, Mosaic and Jane Norman.
Coface pulls credit insurance for Baugur suppliers.
Baugur quashes speculation that it will suffer as result of the nationalisation of Icelandic bank Glitnir and the administration of Stodir. Chief Executive Gunnar Sigurdsson say that Baugur's facilities with its banks are solid.
It’s rumoured that the management teams of several Baugur-backed businesses are looking at buying back their chains.
Rumours that Sir Philip Green would buy Baugur’s debt from the Icelandic banks and the Icelandic government under the deal start. Alchemy Partners are also rumoured to be interested.
Baugur do not deny that the assets owned by the banks are up for sale, but do deny that an administration is on the cards.
November 08
Jon Asgeir Johannesson says that a quick fire sale of assets controlled by the Icelandic government would be impossible before Christmas.
Baugur chief executive Gunnar Sigurdsson has said the Icelandic investor has no intention of altering its portfolio of brands and that it is 'business as usual'.
Sir Philip Green buys Baugur's 28% stake in Moss Bros, which is later sold to Simon Berwin.
January 09
Rumours for the New Year is that Baugur are on the brink of receivership, despite claims that the Icelandic government would not allow such a travesty! (Really, how much does Geir Haarde care about retail...)
So, it’s been a rocky year, and although I’m sure there must have been some good news out there, it certainly wasn’t hot and I was unable to recall it! 2009 will continue on a similar trend, so I’m sure next years review will be just as, erm, exciting!
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Share & Share Alike. |
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Posted At: 19 December 2008 16:00 PM
Related Categories: E-tailing, Future of Retailing, Retail, Retail Suppliers |
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This year, why not give the gift of shares. Seriously. Stick with me here. It’s a hot tip and not at all boring.
Founded by former banker Helen Brown, Catwalk Genius is an e-tailer and crowd-funding site that enables commoners like you or I to purchase shares in designers for just a tenner. Each designer has 5,000 shares available, and you can buy as many as you like in exchange for discounts and dividends. There are currently just under 30 designers listed in the ‘Back a Designer’ section, 11 of which are available to fund, and most items in the collections are also available just to buy, should you so wish.
My favourites designers to date are Black Heart Bunny, DAD and Ostwald Helgason, because I consider the products attractive in that a) I would wear them, and b) I can see them selling…therefore giving me, as an investor, a return. Or, it would, if those particular designers were available to back…which brings me to some issues I have with the site:
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It’s not overly obvious how you buy the shares. (You find a designer, check for the little pink love heart symbol which denotes that shares are available, click on the name and then click on their names again to go to their profile page where shares can be bought – took me a few attempts to discover this)
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You can hardly call some of the collections ‘collections’. Tom Florian Atelier lists 1 bag on his product page, while Tatty Divine looks more like the former than the latter, listing plastic keychains and dress-up shades with exorbitant price tags. But hey, what do I know about fashion? Apparently “the work for sale on the site is edited and directed by [a] virtual panel of fashion industry experts”…so I guess these things are ‘cutting edge’, not ‘over priced’…
But, it is a fledgling site, so there are bound to be gremlins, and I hope that it does take off once all the kinks are ironed out. I love the idea of Catwalk Genius and genuinely think that it’s important for us to back home-grown talent, so well done to the people sticking their neck out there are creating new concepts like this one.
Some other examples of crowd-funding schemes that I liked include;
- ArtistShare - a service for musicians to fund their projects outside the normal recording industry
- BeerBankroll - a community managed brewing company
- greedyorneedy.com – focuses on fulfilling as many everyday wishes for as many everyday people as possible
- laraghfinance.com - raises funding for businesses so they can execute their business plans.
- nvohk - an eco-friendly clothing company
Maybe something like this would make a great Christmas gift for a friend or relative who you’ve ran out of ideas for; there are lots of these things to choose from and some ultimately very worthy causes out there to support.
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Retailing In Lapland! |
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Posted At: 07 December 2008 10:18 AM
Related Categories: Retail |
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The idea of a blog based around retailing in Lapland made me giggle. Lapland has this magical appeal for anyone who’s ever been a bright-eyed 6 year old leaving mince pies and carrots out for Santa Claus and Rudolf on Christmas Eve.
When I picture Lapland at Christmas in my mind, I think twinkling snow, log cabins and big burley Finnish men dragging fluffy-looking green Christmas trees behind them in the snow. I don’t think it’s actually like that, though, no matter what Thomas Cook might tell you. For a start – and I’ve only just discovered this – Lapland is DARK at Christmas! Some websites say no sunlight, other sites say December averages between 4 and 5 hours of daylight per day. Whatever, I like nighttime and I’m sure the revontulet (aurora borealis to you and me) is stunning, but I don’t think that would do much for my S.A.D, thanks!
Oh and it’s COLD. I knew it would be cold (its 1299.1 nautical miles from the North Pole for Christ’s sake), but I don’t think we can really grasp the concept of -40°C here in England. I thought it was chilly when scraping my car this morning, but I can’t even imagine what kind of heavy duty de-icer and scraping would be needed at minus 40! Or what kind of crazy military-style car would even work at that temperature!
Anyway I digress. Retailing. Well, there isn’t really a lot to say. From what I gather, it’s quite a sparse place, and not really the type of environment conductive to skipping up and down the streets on a day long shopping spree. From what I can see, there is one shopping centre, in Pyhä, which has a supermarket, post office, laundrette, sports shop, coffee shops and some souvenir stores. Souvenir stores and sports shops made up the majority of what I could find in the area, so unless you’re going to ski, shopping probably isn’t going to be that thrilling. Lapland is also quite expensive. One website I saw said that shopping in Lapland can be nearly twice as expensive as in England, which I suppose isn’t really surprising considering how valuable resources must be in such a far flung place.
For tourists, traditional gifts include dolls, wooden carvings, woollen hats and gloves and reindeer skin rugs, and Lapland is one of the only places in the world you can sample reindeer-based dishes like reindeer hash (you used to be able to get reindeer meat in Ikea, but some group or other complained, so now you probably can't)
I’m sure it’s a beautiful place, and many people take their families around this time of year (tourism brings in €94 million worth of business to Lapland’s retail sector per annum!!) but honestly, unless you’re into skiing, photography, cultural learning-type breaks or eating weird stuff, I’d stick to seeing Mr Claus at your local shopping centre if I were you. It’s cheaper, warmer and there is much less risk of having to explain to your kids why Rudolf is ‘asleep’ on the side of the road!
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On the Second Day Of Christmas.....we had a Christmas Sale |
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Posted At: 02 December 2008 12:55 PM
Related Categories: Retail |
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Writing this slightly in advance has its drawbacks. For example, just then, I wanted to start with some catchy journalist-type statement like ‘hot off the press’; however, by the time you read this, M&S embarking on another 1 days sale – mere days after its original ‘one-off’ sale – will not be hot off anyone’s press. It’ll probably have been forgotten, unless they go crazy and start having ‘one off sales’ every other day up until Christmas eve, in which case, I expect everyone to be lambasting the ‘previously respected’ retailer for selling itself short, of some shiz.
Anyway. Yes. Last week, Marks and Spencer held their first pre-Christmas sale event for 4 years. Prices were slashed by 20%, and shoppers flocked. So they’re doing it again. Fair play. House of Fraser, Debenhams, Woolworths and Selfridges are due to follow suit (although I don't suppose Woolworths had initially anticipated including all their shops in their sale!)
We are hooked on sales – always have been, always will be (boxing day, anyone?) – but this is the first year in a long time that we’ve perceived them as a necessity. I genuinely feel that most believe they would not be able to afford Christmas without these sales, which actually, is completely ridiculous when you consider that sale mentality makes you buy more than you would’ve had the items not been on sale in the first place (because you are getting a bargain, you are tempted to buy more, and you blow your budget, basically).
And I always question how much of a bargain you are actually getting at a sale anyway. Everyone knows Marks and Sparks is more expensive than your average store (don’t deny it, it just is), so I suppose you have to wonder; are the products actually better, and do they therefore cost more to make, or are M&S just making a better margin on a product of standard quality? I don’t suppose it really matters; M&S still have the luxury of being seen as a reliable brand, and so is in a perfect position for Christmas shoppers and gift givers. While you might not buy your mum some Tesco Belgian chocolates, I bet you’d feel alright about giving her some Marks’ ones…
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Westfield London: Shopping Heaven or Hell of a Centre? |
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Posted At: 07 November 2008 15:00 PM
Related Categories: Retail, Retail Property, Town & Shopping Centre Management |
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Well, I jumped on this bandwagon and visited the new Westfield development in London, along with all the other curious people with notepad in hand, rather than wallet!
What can I say? It’s big! But then that’s no surprise as we already knew we were betting the largest in-town shopping and leisure destination in Europe.
The food court area was very much the centre of scheme and was very busy when I arrived at 2pm – possibly all those people updating their notepads, rather than weary shoppers taking a break! Certainly very few of them had any bags.
Sadly, much of The Village is not yet open and Louis Vuitton, the one they have been harping on about for ages, will not open its doors until March 2009! Also, rather curiously, the House of Fraser department store is at the end of village and unless you come from Shepherds Bush station you could easily miss it.
The size of the centre is daunting and there’s probably some psychological theory which states that after a certain point, the success of the centre is in inverse proportion to its size (the retail consultants at FSP can probably get their heads round this better than I), but with the retailers clustered in merchandise groups e.g. jewellery all together, your shopping trip can perhaps be accomplished without having to trawl the whole 1.6m ft2 of it to find what you want!
Along with a load of retailers you probably never heard of – which, like Golden Point and Yamamay, are already featured on SnapShop – there are the old favourites, like Clintons, Beauty Base and Superdrug. Curiously, the location of these established retailers, which seem to be geared to the less well healed visitor, is an area which they have cleverly made to feel like the old part of the centre as if it was already there (weird)!
My verdict is that Westfield London is well worth a visit. Its big, there are some interesting new retailers and some favourites that have upped their game. However the lack of retailers open in the village was a disappointment and the frankly run of the mill department store offer means Selfridges won't be shutting up shop any time soon!
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Caffè Americano, Caramel Macchiato, Espresso Ristretto. But Italy this is not. |
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Posted At: 17 October 2008 15:19 PM
Related Categories: Future of Retailing, Retail |
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I am a recent coffee convert. I’m not ashamed that I never used to like coffee...sometimes I still think it tastes like licking tree bark…but now, mostly, I’ll go with it.
I think it has something to do with growing up. When I was younger, I used to envy those people sitting at the back of Caffe Nero with their laptops, supping away at their soup-bowl-sized mugs of brown. And the thought of running for the tube with a green and white paper cup in my hand….well, that was the epitome of cool. Be that as it may, it didn’t change the fact that I just didn’t like the flavour of the stuff. So what changed? Well, I discovered posh coffee, that’s what.
Gone are the days of replying ‘just a tea please’ in a bonafide coffee shop (why the hell are you here if you’re not drinking coffee!? they think). Now I can say - with confidence – “a Grande Caramel Latte please”, hand over my £6.95 (joke!), and head to the back sofas to sit with the rest of the smugs (all puns intended – snobs, mugs…coffee mugs…get it? Bad, I know).
And so it is that Britain’s coffee shop boom takes hold. In my town alone (population just over 80k), we have 6 shops specialising in coffee, not including cafes, pubs etc. 6! List them – honestly – how many different high street coffee shop brands can you reel off the top of your head? You never thought about it before, did you? Nero, Costa, Starbucks, Revive, Ritazza, Primo, Republic, AMT; if you’re well travelled enough you’ll have been to them all without even realising that Britain’s coffee shop industry was buoyant enough to support them all at once. And support them well!
Britons drink 70 million cups of coffee daily, with retail sales rising from £632m in 2002 to £680m in 2005. The biggest growth has come from coffee shops which specialise in stronger espresso-based drinks, such as lattes and Americanos, and its thought that this sector can be worth around £1 billion a year. A small, daily purchase of a common, insignificant drink means nothing in the scheme of things, right? Wrong. It’s not just a cup of coffee now, is it?
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How far can we knock consumer confidence? |
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Posted At: 01 August 2008 11:13 AM
Related Categories: General, Retail |
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GfK NOP have reported a further drop in consumer confidence, to a level not seen since the UK was heading into the last recession, but how much can this be credited to a true reduction in our confidence, and how much to a thinking that our confidence should be lower, because everyone keeps talking about the credit crunch and the falling house prices. Surely we would be considered abnormal if we told GfK NOP that we expected our own personal financial situation to improve and the economic situation to do likewise?
Maybe, rather than asking consumers and receiving regurgitated news, we should look to their actions instead. 42% of GfK NOP respondents say they have changed to buying supermarket own brands rather than branded goods and 28% have switched to a discount supermarket, however, the iPhone – not exactly an essential - went on sale in the UK on Friday 11 July and by the end of the weekend, one million had been sold!
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Our Favourite Shops |
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Posted At: 30 July 2008 17:20 PM
Related Categories: Retail |
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Inspired by Retail Weeks ‘100 shops to visit before you die’ article, a quick-fire poll of our office shows the true nature of todays shoppers, no holds barred!
Unsurprisingly, fashion was a main priority with us girls; Dorothy Perkins, Warehouse, H&M and Office fared quite well and positives cited include a good fit, fair price and uniqueness.
For me, Boots wins hands down; the Boots Advantage Card has been a staple of my wallet arsenal for the last 6 or 7 years and you just can’t argue with something for nothing.
Less favoured were Pilot and Zara, which received a particularly scathing report from SnapShop Manager, Heidi, after a trip to the High Wycombe store yesterday! Zara take note; stapling your security tags through belts rendering skirts impossible to try on will not win you any points with us!
Although the FSP office is a bit oestrogen heavy, the men did their best and came up with worthy additions such as Cotswold Outdoor, Waterstones and West Mersea-based fish restaurant The Company Shed (trust the men to be thinking of their stomachs!).
Top ranking independents include; Wave Games in Taunton (surfwear), Williams & Griffin department store in Colchester, and small gift chain Dickens and Dolphin, Marlow branch.
While they may not be ‘must see’s’ in the eyes of many, it’s still nice to know that there’s still such a thing as an ‘old reliable’!
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Driving Us Crazy |
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Posted At: 15 July 2008 10:22 AM
Related Categories: Retail, Retail Property, Town & Shopping Centre Management |
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In the same way that more rats have been “spotted” since fortnightly bin collections were introduced, trips to out of town shopping centres are allegedly declining since petrol prices started rocketing. It’s always much more newsworthy to hang your story on something that’s already making headlines.
Yes, petrol (and, even more so, diesel) is increasing in price at a disturbingly fast rate and yes, Jo Bloggs may well be giving serious consideration to whether her journey is necessary, but is this really impacting on out of town retail centres? Isn’t it more to do with the fact that we have less time to ourselves and better ways to use it? Being time-poor is a much surer way of focussing our minds to get what we need in the most economical way, than actually being cash-poor.
A more substantive point is that the FootFall figures over a number of years have shown no correlation with retail sales; so why are we getting so excited about a drop in pedestrian flow? And is the drop of any major proportions, or just one in an ocean? Despite John Lewis recording a decline in weekly sales figures at out of town stores, House of Fraser has reported sales in regional centres were up more than the rest of their estate. Selective reporting of this information has focussed the attention on only one side of the story.
It should also be noted that commentators refer to “out of town” retailing but all the evidence is drawn from regional shopping centres. Most out-of-town retailing is in relatively local retail parks. These are not generally covered by Experian et al. Referring to regional shopping centres as out-of-town is merely muddying the water and adding to confusion.
It seems highly dubious to be stating that people are abandoning their cars anyway – the school run is certainly still alive and well! According to the RAC’s annual report on motoring (2008)*, stress and fuel prices are not yet pushing motorists off the road. Nine in 10 motorists say Britain remains a car dependent society (92%). Over half (51%) expect gridlock in the next 20 years, while 73% of motorists say they would find it very difficult to adjust their current lifestyles to being without a car. Astonishingly, one in 10 drivers admit they now never walk anywhere!
So don’t abandon your plans to expand your store portfolio in out of town centres just yet! FSP can help you see the light in this gloomy tunnel.
* http://files.the-group.net/library/aviva/client_upload/File/RAC_Report_on_Motoring_2008.pdf
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The Evolution of UK Retailing |
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Posted At: 23 May 2008 14:27 PM
Related Categories: Retail, Retail Statistics |
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Have UK retail conditions got easier or more difficult in the last 12 months?
The question is raised by a discrepancy in figures for the number of UK retailers going into administration. Figures from Deloitte show that the number this year has fallen 43% on the previous year. In contrast, analysis of the SnapShop database shows a substantial increase in retailer administrations.
An obvious explanation of the discrepancy is that SnapShop covers just 2,300 of the largest UK retailers while the Deloitte data covers retailers regardless of size.
The evidence is surely that retail conditions have got more difficult. For years operational costs have been rising faster than sales. In response, sophisticated and powerful retailers have focused on building their gross profit margin. Globalisation and supply chain management have successfully reduced costs to the retailers. Tesco for example claims that their food price increases have been less than 2% even while ONS figures show average food price increases of around 8%. The supermarket explanation of the difference is that the ONS measure excludes items on special offer. Hmm
Now, however, there are new considerations. In the wake of the credit crunch, the value of sterling against the euro has fallen 14%. Global inflation is a pressing issue and labour costs are rising in the key supplier economies. The gap between the rise of commodity and retail prices is, according to the ONS, now wider than for 20 years. For example, annual wheat prices have risen 57% while retail prices for bread and cereals have increased 8.5%.
These changes favour the large retailers with sophisticated financial management systems for forward buying. For some years they have been squeezing out independent retailers. The evidence from SnapShop is that the impact has now reached the middle and smaller sized multiple retailers. The outlook for the retail offer is for a reduced diversity unless offset by the arrival of large overseas based retailers.
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M&S – How to reward £1bn of profit |
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Posted At: 20 May 2008 13:00 PM
Related Categories: Retail |
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M&S find themselves in a fix. £1bn of profit for the first time in 10 years, but bonus targets not met. Despite slightly reversing the trend of the last two quarters, the trading conditions are tough – even John Lewis found that 80% of its stores recently reported negative figures year on year. Our very own retail talking head, Geoff Nicholson, was asked to comment on Radio 5 Live – a challenge to put him on his mettle, not having seen any other comment.
Geoff’s view is that for M&S this is not a sparkling performance, although without the internet sales that proved to be The Partnership’s salvation, it’s not bad. But £1bn of profit is definitely worth celebrating, whether targets have been met or not. So M&S has balanced the missed targets by confining the staff bonus to store staff and then at only 4%, compared with 10% last year.
With the situation being variously reported as “M&S axes staff bonuses” to “M&S to reward store teams following £1 billion profit”, it’s no surprise that M&S seem to have tied themselves in a knot whilst trying to keep their balance.
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Born to shop or bored of shopping? |
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Posted At: 14 May 2008 10:32 AM
Related Categories: Retail, Town & Shopping Centre Management |
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How much longer will people travel to shopping centres when:
a) one shopping centre is interchangeable with the next
b) we can buy everything we need on the net
c) fuel costs a fortune?
Why indeed do we shop? With leisure time at a premium, why do we drive long distances to join hordes of others milling around a shopping centre, to buy something we don’t need, to replace the previous thing we didn’t need, which will now go to landfill, along with the plastic bag in which we carried home the new version?
There is no denying that most people get an adrenaline surge from spending money and treating themselves to something new, but do we need to spend so much time doing it?
The relationship between a loyal customer and a favourite clothes shop is intimate. After all, your clothes are your next of skin. Maybe as in all intimate relationships what we crave is a degree of familiarity to make us comfortable and relaxed –fruit and veg at the front of the supermarket and menswear tucked away upstairs – with a degree of surprise to excite and delight us. Familiarity alone breeds contempt as M&S discovered before Sir Stuart introduced the unfamiliar in the shape of Per Una and Limited Editions.
So by the same token, shopping centres also need to be simultaneously familiar and intriguing. Then we will feel both at home and a twist of excitement.
If a shopping centre doesn’t provide an experience we want to repeat, it will end up living only with those hardened credit bashers who are seriously born to shop. The rest of us, bored by its familiarity will seek our thrills elsewhere or satisfy our needs more efficiently online.
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