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Retailer View - Weird Fish |
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Posted At: 08 January 2019 17:19 PM
Related Categories: Retailers |
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Lifestyle retailer Weird Fish was established in 1993 with a simple mission: to produce well priced, well made and distinctive clothes that became instant feel-good favourites.
Airbrushing techniques saw Weird Fish create its first t-shirt collection in 2003 – unique, funny Artist T-shirts that still appeal to today’s customer. And in 1994, the iconic Weird Fish Macaroni™ was created using slow-spun, triple-twist fabric, that looks like its namesake. Weird Fish sold its millionth Macaroni product in 2013.
Having primarily operated as a mail-order business and in independent retailers since its inception, Weird Fish launched online in 2005 and 2006 saw the opening of the first Weird Fish shop. Today there are over 1,400 Weird Fish clothing stockists across the UK including the likes of Debenhams, Cotswold Outdoor and Blacks. Additionally, there are 15 dedicated Weird Fish stores with many situated in popular holiday destinations in counties such as Dorset, Devon, Cornwall and Yorkshire.
2017 saw Weird Fish open a new design concept in Scarborough. In keeping with Weird Fish’s coastal-inspired roots, the design of the store featured a fun nautical theme and tranquil colours and formed the beginning of a planned series of store re-designs for Weird Fish. The new format aimed to bring Weird Fish’s physical presence up to the same level as its online operation. Data from online buying behaviour is used for positioning ‘buy the look’ displays in store, which use the current top-rated items from the online shop and is updated on a monthly rolling basis.
Having reported continual gains in annual sales since Pragma started monitoring Weird Fish in 2007, the advance of the business in 2017 was recognised by the industry with Weird Fish winning the Drapers award for ‘Best UK Multichannel Business Under £25m’.
April 2017 saw the company undergo a management buyout and has since seen Weird Fish continue to invest in its product ranges and expansion of the retail estate. This continual investment and unique offering is what makes Weird Fish stand out from the crowd, and should help it on its way to continued growth in the forthcoming year.
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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 - November 2018 |
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Posted At: 15 November 2018 16:54 PM
Related Categories: Future of Retailing, General, Retailers, Store Closures |
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Continuing the pattern of the year, and starting to sound like a broken record, the retail world is still rather gloomy.
The high street continues to suffer retail losses; bakery chain Peyton & Byrne, Evans Cycles and listed butcher Crawshaws Group all fell into administration but have subsequently been rescued. This week alone has seen the demise of 50-year old bridal chain Berketex Brides, which fell into administration with the immediate closure of its stores. Almost 1,000 retail businesses fell into administration in the year to September 2018, the highest number in five years.
As many as 85,000 jobs have disappeared from the UK high street so far in 2018, according to figures from the Office for National Statistics. The first six months of the year saw 80,000 jobs lost, with a further 5,000 thought to have been lost between July and October.
However, as autumn gives way to winter and retailers turn their attention to the all-important Christmas trading season, there is some better news to be had;
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Spending by retailers on Christmas advertising is set to hit a new high of £6.4bn this year [Advertising Association], having risen nearly 50% in eight years
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London’s New Bond Street has been named as the most expensive retail street by rental value in Europe, new data from Cushman & Wakefield shows
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UK apparel and footwear spend via online-only retailers is set to soar by 67.4% over the next five years, reaching £7.5bn in 2023 and accounting for over one-third of online clothing and footwear sales by 2023, a new report by GlobalData claims
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The number of independent retailers in the UK is forecast to creep up 0.3% by 2023, surviving because they can be more nimble than big businesses in the face of change, according to the research by American Express and GlobalData
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Westfield London has been named as the leading UK shopping centre by the Trevor Wood Associates’ shopping centre guide, overtaking Westfield Stratford which has been number one for the last six years
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Black Friday sales in the UK are expected to reach £1.54bn, with shoppers set to spend 13% more than 2017. Online spend is estimated to total £8.1bn during peak activity between 19-26 November [IMRG]
And finally, October’s Budget revealed a £675m pledge to create a “Future High Streets Fund” to support councils in drawing up plans for the transformation of their High Streets, allowing them to invest in the improvements they need and to facilitate redevelopment of under-used retail and commercial areas into residential.
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Retailer View - Benito's Hat |
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Posted At: 14 November 2018 16:57 PM
Related Categories: Retailers |
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Founded in 2008 by Ben Fordham, Benito’s Hat is a Mexican-style restaurant chain serving a menu of burritos, tacos and salads.
Having opened first site outside of London at Oxford’s Westgate shopping centre in October 2017, which trialled a smaller A1-focused restaurant format, Benito’s Hat now operates six London locations and another shopping centre location at Leicester’s Highcross. The new concept has opened growth opportunities for Benito’s Hat in new locations that were unable to support a full concept restaurant.
Michael Pearson was appointed Benito’s Hat MD in November 2017 as founder and chief executive Ben Fordham exited the business to pursue new opportunities.
Given the well-documented challenging nature of the casual dining market coupled with the worrying figures that 1,123 restaurant businesses have filed for insolvency in the first three-quarters of 2018 alone, the news that Benito’s Hat had secured investment for expansion in August 2018 was welcome.
The £1m investment to expand in London and across the UK came from existing investors, with the majority provided by Calculus Capital, and will support a 3-year growth plan that will focus on both larger full concept restaurants as well as smaller A1 units. There is also the potential to expand the brand through franchising in the UK and overseas.
Kicking off the expansion plans, Benito’s Hat will open in St Albans in December 2018 and at the O2 Arena in early 2019.
Now at 10 years old, Benito’s Hat has the opportunity to succeed as consumers look for something different than the mainstream operators, seeking experience as well as value for money.
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Retail Update - September 2018 |
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Posted At: 24 September 2018 00:16 AM
Related Categories: General, Retail Statistics, 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 Faucet Inns’ Nordic-inspired restaurant group KuPP entered in to administration with the closure of two sites, and Saltrock Surfwear was acquired by Crew Clothing in a pre-pack deal saving 25 stores. Many other retailers teeter on the edge, not helped by the anticipated rise in business rates that is to come.
However, as the summer sun gives into autumn, there is some better news to be had;
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Instagram has unveiled two updates to its retail offer: expanding the Shopping function into Stories and introducing Shopping to the Explore tab, helping to fuel online shopping
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According to Visa UK’s Consumer Spending Index, household spending rose 0.4% in August up from a 0.9% drop a in July, buoyed by back to school spending and continued good weather
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The restaurant industry is starting to pick up once again after a troublesome two months of extreme hot weather led to dwindling sales, according to Coffer Peach Business Tracker analysis. Collective like-for-likes at managed pubs, the main benefactors of the warm climate, rose by 0.2% against August last year. Meanwhile restaurants experienced a year-on-year uptick of 1.4%
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The UK womenswear market grew by 3.2% to £28.4bn in 2017 according to a research by Mintel, which surveyed over 1000 female shoppers from the UK aged 16 or more. Mintel also forecasts British women to spend £29.4b in clothing this year, and the sales of womenswear to grow by 14% between 2018 and 2022
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The government has decided to adopt ‘Agent of Change’ principles into planning legislation in a move that will support longstanding bars, pubs and clubs facing noise complaint issues from new developments in their area
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New findings from Ipsos show that more overseas shoppers buy from the UK than any other European country. “Cross-border merchant research” on behalf of payment provider PayPal found that 14% of global online shoppers had bought from the UK in the last 12 months, making the UK the largest online exporter in Europe
And finally, three out of four retail transactions are now made by card according to new data from the British Retail Consortium. Its latest annual Payments Survey reveals that more than three quarters of transactions now are made digitally. Cash payments dropped by 1% year-on-year, now accounting for just 22% of the UK’s total retail sales, which rose 4.3% to £366bn in 2017.
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Retailer Spotlight - everyone needs a place to Lounge |
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Posted At: 17 September 2018 18:25 PM
Related Categories: General, Retailers |
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In the current retail climate where food & beverage retailers seem to be suffering, café, bar, and restaurant group Loungers is bucking the trend, having embarked on an ambitious and rapid growth strategy.
Founded in Bristol in 2002, by a trio of longstanding friends, Alex Reilley, Jake Bishop and Dave Reid, Loungers has undergone rapid expansion since its early days.
Their idea was to provide customers with a ‘third space’ between work and home to meet, chat, eat and drink – a more attractive and appealing alternative to the surrounding local pubs and coffee bars. And it seems to be proving to the case.
Loungers’ first sites were launched in city suburbs and towns with high residential densities, with the aim of providing places closer to home that people can enjoy.
In its most recent results published with Companies House for the 12 months to 23 April 2017, the business saw revenues climb from £68.5m to £91.8m in the year to 23 April 2017, representing a 34% rise in net sales. Loungers opened a further 20 sites in this financial year alone, giving it the confidence to continue expanding throughout the country.
Loungers was named as the fastest growing UK pub group in terms of turnover in 2017 according to data from The Morning Advertiser’s sister title MCA.
Four new locations opened last month alone. Orsino Lounge in Newton Abbot, Devon launched on 1 August following a £665,000 refurbishment, followed by an opening in Biggleswade, Bedfordshire. The third, Chesterfield, began operations on 8 August, with the fourth site opening in Didcot, Oxfordshire, on 22 August.
Lounger’s 100th site, the Sorrento lounge in Moseley, Birmingham, opened in March this year, and the group is on track to reach 140 sites by the end of 2018.
Loungers also operates the Cosy Club bar and restaurant brand, which currently has 22 sites and has plans to open up to five each year.
Having outperformed much of the hospitality sector over recent years, it is clear that Loungers’ core philosophy encompassing more than just the delivery of food and drinks through the offer of all-day value for money in a ‘home-from-home’ environment and atmosphere is working.
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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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Retailer Spotlight – Hobbycraft continues to grow |
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Posted At: 13 July 2018 14:18 PM
Related Categories: Retailers |
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Arts and craft retailer Hobbycraft continues to defy the current retail gloom, having reported its eighth consecutive year of sales growth.
In the year to February 2018 Hobbycraft saw growth across all sales channels as revenue increased 6.4% to £168.5 million. Online sales soared 21.5%, and now represent 9.8% of total revenues. Four new stores were added to the estate, taking the total to 90 throughout the UK.
Although targeting a specialist type of customer, Hobbycraft’s Club scheme, with 3 million members, demonstrates that this is a loyal customer base, and one that has helped the retailer to reach new heights.
Offering exclusive discounts and events for its members, Hobbycraft can encourage shoppers to visit stores with demos and workshops, turning branches into “social centres for craft”.
Hobbycraft’s strategy is to focus on “customers and value propositions”, and to build its customer base through a “greater understanding of their preferences and deliver a more targeted proposition”. This social approach is noticeable on Hobbycraft’s website, where it offers a selection of ‘How To’ guides and has the potential to add user-generated content such as photographs and videos.
The positive performance figures come at the end of Archie Norman’s tenure as chairman. Having been in the role for four years, former Tesco UK CEO, Matt Davies, was recently appointed to the role.
Let’s hope the good fortune continues.
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Retailer Spotlight - Whistles continues a good song |
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Posted At: 29 June 2018 14:00 PM
Related Categories: Retailers |
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In a retail world currently full of negativity, it is pleasing to read that contemporary high street retailer Whistles is targeting 33 new store openings throughout the UK and Ireland.
Plans for the roll-out come as Whistles continues its turnaround strategy, which sought to reduce its loss-making outlets, direct costs and overheads having reported a loss of £6.1m for the 52 weeks to 30 January 2016.
Whistles attributed its £6.1m loss to the cost of launching menswear, expanding in the US and re-platforming its website; all positive moves for the future, requiring an injection of capital. Shortly after this, Whistles called in advisers at KPMG to prepare for a sale of the chain, and subsequently South Africa’s Foschini Group acquired a majority stake in March 2016.
In its accounts filed in December 2017 for the 62 weeks to 1 April 2017, Whistles reported total sales rose by 18% to £68.9m and that it had reduced its pre-tax losses to £3.7m for the 62-week period.
At the time, Foschini said the acquisition will provide “significant investment” for Whistles and opportunities for the brand to continue to develop its online presence, grow its retail portfolio, and accelerate international expansion.
Now, Whistles has appointed Brasier Freeth to find units of between 800 and 1,500sqft, and said that “attractive and quirky properties will be considered”. Whether this includes any store relocations remains to be seen, but this news will provide a definite boost for the property lying vacant in the wake of store closures throughout the country.
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Retail Update - May 2018 |
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Posted At: 30 May 2018 00:53 AM
Related Categories: General, Retailers |
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Much like last month, the retail world is still rather gloomy. Insolvencies in the retail industry show no sign of slowing with a 7% year-on-year increase, although the number of CVAs has decreased by more than half over the last five years.
However, there is some better or interesting news if you look hard enough for it.
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New figures suggest British customers are collectively spending upwards of £2bn a year on regular deliveries of goods from snacks and drinks to beauty products highlight the growing importance of subscription services to the UK retail market
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MPs are to investigate how to revive the British high street as part of a cross-party parliamentary inquiry. The Housing, Communities and Local Government Committee will examine the future role of the high street in contributing to local economies, what the high street will look like in 2030 and if councils have the correct planning and licensing tools to help areas flourish
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CompareTheMarket is moving into the restaurant sector with a reward scheme powered by discount dining platform Tastecard. Meerkat Meals will launch in July, and – like Tastecard – will offer two-for-one meals at major UK chains
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The latest Deltic Night Index shows consumer spending on late-night leisure has risen 6.9% year-on-year to £59.40. The Index revealed that 56.4% of British consumers are going on a night out at least once a week – up from 54.5% this time last year. This figure rises to almost 70% among 18 to 30-year olds (69.3%)
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According to CBRE, London is the most-targeted European city for retailers looking to expand overseas. The research found that 49 new retail entrants debuted in London in 2017, putting it fourth globally behind Hong Kong, Dubai and Taipei
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Research has revealed that British consumers spend more than £10,000 on lunch meal deals in their working lifetime, with a third buying a lunchtime meal deal twice a week, and 14% buying one more than three times a week
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Primark is poised to take the title of the UK’s top clothing retailer from M&S. M&S has held the highest percentage of the country’s clothing market for over two decades but has been steadily losing market share to rivals since 1997. According to Globaldata, M&S’s market share peaked in 1997 at 13.5%, and has since nearly halved to an estimated 7.6%. Primark has seen exponential growth, rising from 4.7% in 2008, to an estimated 7% in 2018, hot on the heels of M&S
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Online sales grew by 11.7% in April, compared to the same time last year, and accounted for 17.3% of all retail sales, according to the ONS. But ecommerce sales were down by 0.4% compared to March in which online sales grew more strongly than the trend, but store visits fell amid snowstorms
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Retailer Spotlight - Heron Foods |
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Posted At: 22 May 2018 13:00 PM
Related Categories: Retailers |
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In a time when retail chains throughout all the different sectors are struggling comes the recently reported news that discount grocery retailer Heron Foods is expanding.
Having started out in Hull in 1972, Heron Foods has grown to a chain of over 250 stores operating primarily in the North of England. 53 of these stores were added to the portfolio when Heron Foods acquired the Cooltrader chain from Iceland.
Heron Foods has had a pretty successful history, and its financial statistics aren’t in bad shape either. In 2014 Heron Foods was ranked 12th by turnover in The Grocer magazine’s survey of the top 50 independent grocery retailers based on turnover in the year to 31st March 2014.
All of this combined made the family-owned Heron Foods an ideal acquisition target, so it should have come as no surprise when, in August 2017, B&M Bargains splashed out £152m to buy the chain. At the time of acquisition, B&M said the combination of the two retailers could deliver a “value proposition” in an expanding sector of the grocery market and outlined plans for expansion. Indeed, the combination of the two large value players makes them a force to be reckoned with.
Fast-forward nine months to a grocery market where the biggest players are downsizing their store portfolios and colossal mergers are being discussed, the value sector is thriving as evidenced by the continued growth of Aldi and Lidl. And it is here where Heron Foods stands to gain, with the plan to expand into the South of the UK with the opening of 30 new stores in 2018, and what we are sure will be many more.
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Retail Update - April 2018 |
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Posted At: 24 April 2018 00:20 AM
Related Categories: General, Retail Statistics, Retailers |
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With the sun now shining we are expecting a light at the end of this gloomy tunnel, but for now, we’re still seeing what seem to be almost weekly reports of another CVA. Coupled with the Beast from the East hitting footfall and retail sales harder than expected, and retail profit warnings rocketing to a seven-year high in the first three-months of the year, that light still seems some way off.
Amongst the doom and gloom, there is some better or interesting news if you look hard enough for it.
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Consumer confidence grew in March, thanks to overall economic growth and prospects of wage increases “finally” outstripping inflation. Overall shopper sentiment climbed three points to -7 this month, according to GfK data
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Amazon is now the fifth biggest retailer in the UK accounting for £4 in every £100 spent in retail in the UK last year
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Savills research has found overseas expansion of luxury brands spurred on Europe’s leasing activity in the global luxury retail market, with London and Paris leading the way. US retailers with aggressive expansion programmes were behind the growth, up from 36% in 2006 to 38% in 2018
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The Future of Fulfilment Vision Study from Zebra Technologies forecasts that same-day delivery will be the norm by 2023, and also suggests a significant minority foresee two-hour delivery by 2028
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There was a net increase of 16 bakery stores in 2017, with 76 sites opening and 60 closing. Cafes and tearooms recorded one of the strongest performances, with a net increase of 30 stores
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Restaurants and pubs continued to outshine other sectors in March with year-on-year growth rising by 7.2% and 7.7% respectively according to Barclaycard data
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European consumers spent 4.4% more on groceries in the last quarter of 2017, making it the biggest increase in six years, according to new figures from Nielsen. whose retail performance data figures covered 21 European countries
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Online retail sales made via smartphones grew 18.9% year-on-year in December 2017, while sales on the device increased from 36% to 41% between 2016 and 2017. In contrast, the research from online retailer Mobiles.co.uk found desktop orders fell from 47% to 45% year-on-year in December 2017 and tablet sales decreased from 17% to 14% during the same period
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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 - February 2018 |
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Posted At: 20 February 2018 17:15 PM
Related Categories: Administrations, Retail Statistics, Retailers |
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The start of 2018 has been a rocky one for retail.
• Restaurant insolvencies increased by 20% in 2017 with 984 entering administration, up from 825 in the previous year, according to accounting and advisory network Moore Stephens, who also said the last 10 years have seen an “unprecedented” level of openings creating an “over restauranted” market
• January saw a raft of closures among both casual dining and independent restaurants, including a CVA of Jamie’s Italian and Byron and the administration and subsequent closure of Square Pie
• The latest figures from the Coffer Peach Business Tracker show Britain’s managed-pub and restaurant chains saw collective like-for-like sales 0.6% ahead in January despite widespread doom and gloom
• Similarly, nearly a fifth (19%) of clothing retailers in the UK are showing “early warning signs” that they are at risk of going insolvent, according to Moore Stephens. Out of 35,078 fashion retailers, 6,580 were found to show early signs of financial distress, such as a large fall in revenue or poor payment history
• According to the latest data from Kantar Worldpanel, total physical entertainment sales dropped 8.8% in the 12 weeks to January 14, with video dragging down the average with a 21% drop. Physical music sales also saw a decline of 5.8% but the resurgence of vinyl sales helped offset the decline - now accounting for 10% of physical music sales
• Sales across UK retailing have been largely flat in January, the latest ONS figures show
• Ecommerce saw a slowing in growth from 19.1% this time last year to 9%, accounting for 16.5% of all retail sales, down from 18% in December
• According to the annual ‘Shopper Stock Take’ report from Shoppercentric, shoppers are adjusting their buying habits – over a quarter (26%) of UK shoppers report having noticed prices increasing a lot, while 56% say they have seen small spikes. Consumers primarily put these increases down to the state of the economy (54%) and Brexit (50%), although the exchange rate, cost of ingredients and ‘greedy’ companies are also blamed by a fair proportion of shoppers
What remains to be seen is how the rest of the year pans out – FSP and SnapShop are on hand to keep you up-to-date and provide assistance to you and your centres.
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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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Unreserved Western Europe Expansion For Polish Retailer, Reserved |
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Posted At: 19 January 2018 14:50 PM
Related Categories: Retailers |
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Reserved is taking its Western European expansion seriously, marking its UK debut by taking the 32k ft2 former BHS unit on London’s Oxford Street. The retailer, owned by LPP is already a household name in native Poland, where it has gained a reputation for trend-conscious and affordable fast fashion. This month’s spotlight will look at its goals for the UK and Europe and how well placed they are to achieve them.
On a recent site visit to the Oxford Street store which opened in September 2017, FSP analyst, Tish Hewitt noted the industrial layout of the store amplified by its concrete floor and complemented by a series of metal racks. The stock range was good and well merchandised making use of tables, racks and models – most comparable to the layout we are accustomed to in Zara. The store offers a range of Menswear, Childrenswear and Womenswear, the latter being described by its co-owner Piechicki as a “more feminine” alternative to retailers like H&M.
Building on the success of its Oxford Street store, Reserved has made its expansion plans clear. Harper Dennis Hobbs has been appointed to assist in finding new locations, with an initial focus on key large cities and regional shopping centres. Its online platform was launched on the same day as the Oxford Street opening and aims to more firmly establish the brand in the UK to support the retailer’s ambitious expansion plans.
Financially, Reserved are in a strong position. In the first half of 2017, its parent company reached 3bn Polish Zloty in turnover (£639m), a 15% increase on the same period the previous year (profits also doubled in this time). Reserved itself produced a 14% year-on-year increase in revenue. To meet the requirements of its planned expansion in the UK and Western Europe, LPP has plans to open another logistics centre and a head office in Gdańsk.
Looking to the future, Reserved is likely to pave the way for LPP’s other brands to enter the UK. This has already been evidenced by homewares retailer, ‘House’ which is making its UK debut in spring 2018 with the view of expanding across cities and shopping centres in the months to come. Keep an ear out for Cropp, Sinsay and Mohito as we are sure they are just around the corner too.
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Retail Update - December 2017 |
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Posted At: 14 December 2017 17:17 PM
Related Categories: General, Retailers |
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With all the stats pointing towards a dismal Christmas trading period, and inflation hitting six-year high, one could be forgiven for planning hibernation and wait until things improve. But it isn’t all doom and gloom in the retail world. Here are some highlights from the past month to cheer you up;
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Two large shopping centre owner mergers have surprised the retail world – Hammerson announcing the acquisition of intu and Unibail-Rodamco acquiring a majority share of Westfield
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Pubs, bars and restaurants across the UK enjoyed an uplift in business in November following flat trading over most of the last six months
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Findings from ecommerce data expert PCA Predict have revealed that on average in 2017 Mondays generated the biggest ecommerce traffic in the UK
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This year’s Small Business Saturday achieved record spending across the UK, estimated to have topped £748 million
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YouTube released its list of the top 10 Christmas adverts this year, with John Lewis’ Moz the Monster edging out on top
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In 2016 vinyl sales hit 3.2 million, rising 53% on a year prior – this year, according to the BPI, sales are on track to top 4 million marking the highest level of sales since the trade body’s records began in the 1990s
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Amazon loses its crown as the UK’s favourite retailer to M&S Simply Food, according to an annual survey of 13,000 British shoppers
In the meantime, we wish you all a very happy Christmas and prosperous New Year and look forward to bringing you more retail news and developments 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 - October 2017 |
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Posted At: 20 October 2017 14:12 PM
Related Categories: Retail Statistics, Retailers |
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FSP’s SnapShop brings you a snapshot of the UK retail environment for the last month.
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September saw administrators appointed to Basler, Greenwoods Menswear and Just For Pets. Of the three, Just For Pets has been subsequently rescued by Pedigree Wholesale
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September’s online retail sales recorded the third-strongest growth rate so far this year, up 14% year-on-year, according to the latest figures from the IMRG Capgemini e-Retail Sales Index
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Almost half of consumers (48%) aged 25-34 find location-based marketing appealing, according to a survey by Hammerson. Interestingly, women and young customers are most receptive to new forms of marketing technology, including personalised promotions, virtual reality and virtual mirrors
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Pubs, bars and restaurants in the UK saw like-for-like sales fall 0.9% in September as consumers rein back on spending, the Coffer Peach Business Tracker reported
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High street footfall was in decline for a third consecutive month throughout September, dropping 1.2% according to Springboard and the British Retail Consortium
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A record 39.7 million visits from overseas are forecast to takes place this year, up 6% from 2016 – largely driven by the 16% fall in the value of the pound. The figures, which also outlined that spending during 2017 is expected to increase 14% year on year to £25.7m, were announced in the VisitBritain/VisitEngland annual review
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Around £10bn is expected to be spent through mobile devices in November as UK retailers prepare for the Black Friday shopping event, figures from Salmon suggest. The majority of online orders were made via mobile on Black Friday (51%) last year
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Retailer Spotlight - The Card Factory sends mixed messages |
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Posted At: 11 October 2017 11:51 AM
Related Categories: Retailers |
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It’s been mixed messages from the Card Factory, as it opened its 900th store last week. Its Epping Forest Shopping Park store follows an aggressive roll-out programme for the high street chain, opening around 50 new stores every year in the last 10 years.
Falling shares make a lacklustre greeting
This milestone follows the budget card retailer’s disappointing interim results. Pre-tax profits tumbled by 14.1 % to £23.2m in the six months to July, despite sales rising 6.1% to £179.6m, in line with the company adding 30 new shops and extending its range of personalised gifts online.
The weaker pound, rising wage costs and decline in high street footfall have all been cited for contributing to the results. Chief executive, Karen Hubbard, also said that profitability over the half year was impacted by “some of the important investments we are making in the business for longer term growth.”
Customers first
The cut-price retailer, which opened its first store in Wakefield in 1997, has said that customer feedback is "profoundly anti" higher prices and told analysts that it was unable to pass on rising costs to shoppers. It currently sells cards at 29p, 59p and 99p each.
The company has promised to find ways to cut costs rather than raise prices. Karen Hubbard said, “Rather than putting prices up, we want to drive down costs of getting products to our stores.”
Looking ahead, this means Card Factory profits will continue to be squeezed, alongside tight cost-control measures.
A multichannel future
Despite falling profits, Card Factory increased its interim dividend by 3.6% to 2.9p and announced a £15.2m special dividend. This means a total £246.5m has been returned to investors since its stock market listing in 2014.
Card Factory has also confirmed plans to grow its online business - Website sales rose 30% last year, while its gettingpersonal.co.uk gifting business grew sales by 5%.
With high street footfall declining, and the fastest growing channel in the UK greetings card market being online, Card Factory is right to invest more in its multichannel offer. Analysts have commented that Card Factory has a way to go before it can compete with established players in the online personalisation card category, with Moonpig.com and WH Smith-owned funkypigeon.com key threats.
Card Factory employs around 6,500 people and also hires around 6,000 seasonal staff each year.
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Retailer Spotlight - No child’s play for Toys R Us |
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Posted At: 26 September 2017 00:10 AM
Related Categories: Retailers |
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Toys R Us, the world’s largest toy store chain, has filed for bankruptcy protection in the US and Canada. The company, which employs 64,000 people worldwide, has run up £3.7bn of debts, as it struggles to compete with the “unrelenting competition from e-commerce and big box retailers.”
Adapting to the transformed retail environment
Toys R Us’ story mirrors that of the wider retail environment. Bricks and mortar retail is struggling to keep apace, with growing levels of debt and the competition from e-commerce. The group has been particularly affected by online competition, which offers greater choice, convenience and is often better priced. Both Amazon and Walmart have heavily discounted toys in a bid to claim Toys R Us customers. What’s more, its large network of stores has been an expensive burden.
Investor pressure
The group has confirmed that once the bankruptcy process is complete, it will no longer be owned by Bain Capital, KKR & Co and Vornado Reality Trust. In fact, investor pressure has been cited as one of the key causes of the store’s collapse, with reports blaming its private equity ownership; Toys R Us spent more than $250m a year servicing $5bn in long term debt. A public sale enabling creditors to convert their debt into equity has been mooted.
A turnaround strategy
According to chief executive, David Brandon, Toys R Us’ turnaround strategy marks a new chapter in the store’s 60 year history. Investment in both marketing and technology are a focus, with Toys R Us revamping its older, larger suburban stores, pushing to improve experience and customer service. This includes offering children the opportunity to try out toys in store.
At the same time, the group will reduce some of its other stores and close non-profit-making ones, instead opening smaller stores in urban areas. Staff pay rises, reduced delivery times and improved customer service are all within the strategy.
Business as usual
Toys R Us has said that the majority of its 1,600 stores are profitable and its non-US business aren’t affected. This includes the UK, where it employs more than 2,500 people across its 110 stores. The group plans to open more shops in the UK, four before Christmas in High Wycombe, Sunderland, Blackburn and Craigleith, Scotland. It’s also revamping its flagship shops in Bristol and Brent Cross shopping centre.
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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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Retailer Spotlight - Leon reimagines roadside eating with Roadchef |
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Posted At: 21 August 2017 10:25 AM
Related Categories: Future of Retailing, Retailers |
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As growth in the UK’s F&B market starts to slow, some are asking whether the bubble has - or is about to - burst. With operators like Ed’s Easy Diner and Handmade Burger Co going into administration, players are approaching the market with far more caution.
At the same time, we’re seeing innovative partnerships as the industry looks to create new ways to grow. Leon’s deal will Roadchef is one such example, with the upmarket, healthy fast food chain announcing plans to open outlets along UK motorways this summer. More are in the pipeline over the next five years.
Tapping into the motorway network
Roadchef, which operates 30 service area sites across the UK, with around 52m motorists visiting every year, has chosen its Norton Canes on the M6 and Strensham South in the M5 locations as the first to house Leon restaurants. Customers will be able to purchase Leon’s popular dishes such as the Moroccan Meatball Hotbox, Fish Finger Wrap and the Original Super Salad. The deal will see nearly 60 jobs created at both service stations.
Leon and Roadchef’s partnership follows a similar venture by Pizza Express and one of Roadchef’s main competitors, Welcome Break. It is part of Roadchef’s drive to offer UK motorists a wider choice and to reflect the diversity of the high street.
Simon Turl, CEO of Roadchef said: “We scoured the market for a brand that would complement our existing offering and Leon, with its impressive naturally fast food credentials, stood out. We are thrilled that Leon has chosen Roadchef as the partner to introduce its brand to the motorway network, our two companies share a people focused culture and we are confident that our customers will be impressed with what Leon has to offer.”
Taking on the greasy spoon?
From Leon’s perspective, the agreement supports its aims to provide a nutritious alternative to traditional fast food chains, using healthy ingredients that are quick and easy to prepare.
Leon managing director John Upton explained: “We’re thrilled to be working with Roadchef and taking Leon onto the motorways of Britain. At Leon we want to help everyone eat well and live well. We have always said we want Leon to be where it was most needed – either on the high street or easy to find when you’re out and about. This new partnership with Roadchef will help us provide fun, fast, fresh Leon food to the millions of people who use our motorways every day.”
Leon’s international growth strategy
Leon was founded by John Vincent, Henry Dimbleby, and chef Allegra McEvedy in 2004. The group currently operates 47 sites in the UK and earlier this year, secured £25m in private equity to power its international growth. Leon has already opened two stores in the Netherlands with plans to expand to the US next. Its 2015 revenues rose by almost 50% £36.9m. Its 2016 results will be posted next month and the FSP team will share insights on these.
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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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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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Retailer Spotlight - Mountain Warehouse Scales New Heights |
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Posted At: 14 June 2017 11:51 AM
Related Categories: Retailers |
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UK outdoor clothing retailer Mountain Warehouse has posted record profits for the year to 28 February 2017, marking 20 years of uninterrupted growth. The group reported sales up 30.8% £184.4m and pre-tax profits up 22pc to £19.8m from £16.2m last year.
Mountain Warehouse opened 41 new stores this year, bringing the total up to 262 from its first shop in Swindon. Its UK openings in the past year included stores in Winchester, York, Chester, Oban in Argyll and Bute, Fowey in Cornwall, Oakham in the Midlands, Salisbury and Sherborne.
It has plans for 40 more outlets, getting closer to its plans for a 300-strong UK store portfolio.
Overseas expansion is a significant part of the business’ growth strategy; international sales doubled and accounted for a quarter of revenue last year, with 70 international outlets. Overseas expansion will include North America, Poland, Czech Republic and Germany. Online sales accounted for 25% of overall sales.
Mountain Warehouse recently entered the "athleisure" market with its workout gear store Zakti, launched in 2015. There are currently four Zakti outlets with plans to open more this year, including an outlet in Swindon, where Mountain Warehouse started. Diversification into running and cycling products as well as children’s summer clothes has proved successful.
Mountain Warehouse founder and chief executive Mark Neale said: “We started with a single shop in 1997 and, 10 years later in 2007, we had around 40 stores with sales of about £20m. “The downturn in 2008 allowed us to start growing really quickly when stores became easier to find and customers were looking for fantastic value. We passed 100 stores in 2010 and have been on a steep climb since then, with online and international playing a bigger and bigger part in the business.”
This successful retailer would certainly be an attractive proposition, should founder, Mark Neale, ever decide
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Retailer Spotlight - Coconuts drive a record year for Pret a Manger |
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Posted At: 17 May 2017 15:58 PM
Related Categories: Retailers |
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Pret A Manger could be offering more free coffee to customers as sales reached another record year in 2016. The cafe chain reported sales rising 15% to £776.2m in the year to the end of December, with like-for-like sales rising 4.8%. It opened 50 new shops, 31 of which were in the UK, bringing its total up to 444.
It’s in the mix
A commitment to innovation in both product and formats has been credited for this strong performance. Pret says its new soup ranges led to a 16% increase in soup sales.
Its move into even healthier ingredients is also proving popular, with customers responding well to its two Veggie Pret stores in London. Sales of dairy-free coconut milk-based products mean that Coconut Porridge accounts for one in five porridge sales in the UK.
A shift in patterns
The killer statistic is here: Pret sold 16m croissants last year, making it its most popular product worldwide. Importantly, almost 60% of sales now fall outside lunchtime, as eating habits shift to healthy snacking. With 18% of sales coming from products launched in the last year, the company cited its ability to adapt to changing consumer tastes as helping to support performance.
Pret also donated three million food items to charity during 2016, while the Pret Foundation Trust raised £1.8m. Pret attributed effective marketing for its brand’s success, in particular its "random acts of kindness" scheme where employees give away free cups of coffee – 1.7m in total. Investing in in-store experience and social media to speak regularly with customers has proved a winning marketing strategy for the brand.
International Expansion
Pret has been at the centre of the risks to its business post-Brexit if EU immigration is curbed, as just one in 50 of the applicants for jobs at the firm is British. The company has looked at proactive recruitment efforts, particularly on social media, to attract more UK job applicants.
Despite this, international expansion remains robust. US sales rose 14% per cent, rising above $200m (£155m) for the first time, with nine stores opening in 2016, with five in France, three in Hong Kong, one in Shanghai and one in Dubai. Its increased focus on transport hubs is also working with 16% of sales now coming from airport and train station outlets.
CEO Clive Schlee said the company will continue to focus on the menu innovation, service and food quality mix that make up its “freshly made food and fast proposition”. “We look forward to opening our 500th Pret shop in the next 12 months and furthering our measured expansion in both existing and new markets. We will of course continue to focus on the essentials: menu innovation and the quality of our ingredients, opening new shops in top class locations around the world, and above all, recruiting and engaging our wonderful teams.”
See you in the coconut porridge queue.
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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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Retailer Spotlight - Premier League Results for JD Sports |
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Posted At: 13 April 2017 00:57 AM
Related Categories: Retailers |
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JD Sports is leading a sprint finish on Britain’s high streets as it announces an 81% leap in profits for the the year to 28 January. As other retailers continue to struggle with a weak pound, wage increases and the pull of online shopping – now accounting for 40% of all fashion sales - the group saw pre-tax profits rise to £238.4m last year.
The group’s success has, in the main, been attributed to the ongoing boom in the athleisure market, and its ability to capitalise on this, mainly through the strength of its relationships with sports brands. Its exclusivity deals with the likes of Nike, Adidas and North Face, helps to attract customers, despite competition from its online rivals. It also means the group can charge higher prices. Like-for-like sales grew 10% over the year.
JD Sports now has 900 outlets in the UK with the “clear strategic focus” of its international expansion playing a key part in the group’s growth. It opened 54 stores across Europe last year and a further two stores in Malaysia. Its first store in Australia is due to open shortly. With a highly digitally-aware customer base, the company plans to continue to invest heavily in the brand's online presence.
Looking ahead, JD Sports’ CEO Peter Cowgill has cautioned on the impact of Brexit. “Whilst we must recognise that there are external influences which may impact the latter part of the year, notably inflationary pressures arising from Brexit, the board remains confident in the robustness of the JD proposition and believes that the group is well positioned for further profitable growth,” he said.
The results also showed that both JD Sports’ Blacks and Millets businesses delivered positive results for the first time since being acquired. The acquisition of Go Outdoors is set to strengthen the brand’s position in the competitive outdoor market even further.
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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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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 - January 2017 |
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Posted At: 23 January 2017 00:17 AM
Related Categories: Retail Statistics, Retailers |
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2016 has certainly been a tumultuous year both in the UK and abroad, with major decisions having taken place surrounding the UK’s exit from the EU, and indeed the election of Donald Trump as US president. Both of which are likely to have significant impacts on the UK and the spending power of its consumers, but that remains a tale for this year as events surrounding both unfold over the forthcoming months.
2016 has had its highs and lows in retail; from the demise of BHS in May – the row over its administration still rumbles on as costs continue to escalate; to the launch of several new retailers and concepts in the UK – Duka, Griddle & Shake, Coffika, Typo, Ribs & Burgers, Jurlique and Maison Kayser to name a few; proving that the UK is still a great place to invest. Figures from Deloitte show that 92 retailers went into administration last year, down 4% on the 96 that failed in 2015.
Online sales soared in 2016 rising by 16%, fuelled by soaring mobile shopping rates and strategic Black Friday purchasing. Data from IMRG revealed that £133bn was spent online shopping in the UK during 2016, a 16% rise on 2015. This was boosted by a 47% rise in the number of transactions made by on mobile phones. However, sales via tablets fell by 3%. IMRG is forecasting a 14% growth in sales for 2017.
Consumers continued to spend out on leisure activities, resulting in the UK and Ireland cinema box office achieving its best-ever results in 2016, amassing £1.32bn to beat the previous record set in 2015. According to figures released by the box-office tracker comScore, the total for 2016 was 1.45% higher than the previous year, which finished at £1.31bn.
Entertainment retail sales also reached an all-time record high in 2016 as digital services like Spotify, Apple Music and Sky enhanced the industry. Figures from the Entertainment Retailers Association (ERA) show that entertainment retail sales reached £6.3 billion in 2016, up 3% on 2015 which was a 53-week year, and taking in over £1 billion more than in 2012. Digital sales of music, video and games encourage this growth, with the video market becoming a majority digital market for the first time. Non-physical sales also account for 57% of music revenues despite vinyl maintaining a healthy resurgence up 56.4% from 2015.
2017 certainly has a lot to live up to if it wants to surpass the records set in 2016. Whatever happens, you can be sure that SnapShop will keep you up-to-date.
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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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Retailer Spotlight - Patisserie Valerie has its cake |
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Posted At: 05 December 2016 00:46 AM
Related Categories: Retailers |
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This month we’re looking at Patisserie Valerie, who, with 21 new stores opening last year, has been making headlines with record results.
The high-end bakery, known for its luxury, continental style cakes and patisserie, opened its first outlet in London in 1926. Today, the chain has more than 115 outlets across the UK and Ireland with an ambitious regional roll-out programme. Its latest store opened last week in Dundee as part of its plan to grow its presence north of the border.
Owner, Patisserie Holdings, saw sales hit £100million for the first time this financial year, its 10th consecutive year of revenue and profit growth. How has this F&B brand achieved growth at this rate? The introduction of afternoon tea two years ago has certainly helped the group notch up sales, accounting for £2.3million this year, up from £1.2million in 2015. Over 33,000 afternoon teas were sold over the course of the year.
Patisserie Valerie chairman Luke Johnson, the Pizza Express founder and serial entrepreneur, puts the brand’s success down to the offer being an “affordable treat” while addressing “large and growing markets”. Additionally, the brand is looking forward to a flood of US tourists coming to Britain next summer, as they make the most of a plunging pound.
However, looking ahead, Johnson says uncertain macro-economic times will put pressure on the company’s supply chain. Like other F&B brands, Patisserie Valerie anticipates higher ingredients costs for its wide selection of cakes and pastries; it’s reported the chain had pre-purchased many of its ingredients, including coffee to January 2018, ahead of the Brexit vote. Additionally, the chain cites the National Living Wage as the biggest cost pressure. It has mitigated this through a new staff rostering method. Staff hours have been rescheduled and the number of part-time workers reduced in favour of more full-time employees.
With record figures - revenue was up 13.3% to £104.1 million in the year ending 30 September, with pre-tax profits jumping 18% to £17.2 million- the future still looks sweet for Patisserie Valerie.
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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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Retail Update - September 2016 |
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Posted At: 20 September 2016 10:54 AM
Related Categories: Administrations, Retailers |
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No administrations have been reported since our last update; in fact many retailers seem to be announcing ambitious expansion plans along with those making their debut in the UK such as Australian retailer Typo.
August has been a pretty buoyant month for retail;
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Data from the Office for National Statistics has shown that sales dipped by 0.2% in the month, indicating that the EU referendum result have had minimal impact on consumer confidence. The ONS said that the underlying pattern for the retail sector over a longer period remained “one of solid growth"
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Figures from the IMRG Capgemini eRetail Sales Index revealed that online sales grew fast in August, with shoppers spending £9.8bn over the internet. That’s 16% more than in the same month last year
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Glorious summer weather has seen pubs outperform restaurants according to figures from the Coffer Peach Business Tracker, which saw like-for-like sales across managed pubs and restaurant groups grow 0.6% in August, following on from 0.3% growth in July. According to the analysis of sales at 34 firms, pubs saw like-for-like sales up 1.2% compared to a 0.4% decline in casual-dining sales
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GfK’s Consumer Confidence Index rose by five points in August to -7, after dropping by the fastest rate in 26 years in July following the Brexit vote
In other news from the high street;
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According to the British Retail Consortium’s (BRC) annual Payments Survey, cash was used in less than half of all retail transactions across the UK last year, with the use of cash falling to 47.15% of all retail transactions in 2015, compared to 52.09% in 2014.
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The Spotlight: Retail Revolutions report, published by Savills and intu, has revealed that shoppers in Newcastle and Birmingham spent more on fashion over the last 12 months than those in any of the UK’s other major cities, with an average spend of £304 and £313 per head respectively. Meanwhile, shoppers in Bristol spent the least, at just £184 per head
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Cushman & Wakefield's UK Shopping Centre Development Report forecasts that new retail space from shopping centre openings and revamps will reach a four-year high in 2017. More than 2.7m sq. ft. of additional floor space is under construction and due to open next year.
All things point to the fact that – for the time being at least – consumers in post-Brexit, pre-exit UK are still willing to spend, with retailers still expanding and evolving to meet the changing needs of their target market, and shopping centres are still being built. Perhaps the death of the high street has been exaggerated, as some recent reports have suggested. FSP aims to keep you up to date with all of the latest news from the high street.
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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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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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Retail Update - July 2016 |
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Posted At: 21 July 2016 16:16 PM
Related Categories: Administrations, Retail Marketing, Retailers |
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A lot has happened since our last update – 52% of the UK decided we would be better off out of the EU; BHS has started closing stores as no buyer has been found; Taking Shape has shut all UK stores and appointed a liquidator to its UK subsidiary; My Local fell into administration; and, Store Twenty One is looking to close 82 stores having had its CVA approved.
Brexit has certainly ruffled feathers throughout the UK as a whole. GfK ran a one-off Brexit special online with 2002 respondents between 30th June and 5th July 2016, in which GfK’s Consumer Confidence Barometer core Index fell 8 points to -9. All of the key measures used to calculate the Index fell. This long-running survey dates back to 1974, and there has not been a sharper drop than this for 21 years (December 1994). It will be interesting to see how this Index fairs over the coming months as plans start to emerge surrounding the future of the UK and our position in Europe.
In other news, over 30 new towns have applied to Business in the Community’s programme to revitalise high streets, including Falmouth, Falkirk, Barrow-in-Furness, Huddersfield and Maidstone, bringing the total enrolled to 100. The programme, which launched in 2014, aims to increase footfall by 10%, reduce the number of vacant properties by 20% and stimulate the creation of new jobs.
A study of 30,000 consumers by British Land and Verdict has found that 89% of all UK retail sales in 2015 touched a store through physical sales, click & collect or online sales browsed in store. The research found that this boosts physical retail by 5% and further demonstrates how physical and online complement each other, something that we at FSP have always maintained.
Internet sales continue on the upward trajectory, seemingly unfazed by the Brexit decision. Shoppers spent 17% more online in June than they did at the same time last year, and IMRG said that it had so far detected only a short blip after the poll. While smartphone spending soared, growing in June by 69% year-on-year, sales made over tablets grew by just 0.4%.
Finally in environmental news, Oxford Street is set to be pedestrianised by 2020, with all traffic banned as part of mayor Sadiq Khan’s plans to tackle air pollution.
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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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Retailer Spotlight – Mountain Warehouse |
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Posted At: 17 May 2016 14:25 PM
Related Categories: Retailers |
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Since its humble beginnings nearly 20 years ago, Mountain Warehouse has embraced the changing face of physical and digital retail to become a familiar face on the high street and specialist in outdoor clothing and equipment.
Its latest full year results show that Mountain Warehouse has continued to outperform its own expectations, generating increased profits for the fourth consecutive year. Not a bad effort when you consider that the high street retail environment is not overly inviting at the moment. So what has Mountain Warehouse done to defy this?
On the back of opening new stores in the UK and expanding its offering to include a new range of children’s clothing and activewear line for women, Mountain Warehouse has quietly been building up its presence overseas. There are now 23 shops in North America, as well as two in Germany, 10 in Poland and three in Ireland, in addition to its 191 UK stores. Mountain Warehouse also trades on Chinese etailer Alibaba’s Tmall platform. There are plans afoot to make international account for half of Mountain Warehouse’s business – it now accounts for about a fifth.
Mountain Warehouse has gone from strength to strength over the years since its incorporation, listening to its customers to develop its multichannel offering and rapidly expanding its store estate and product offerings, while keeping its prices affordable to all. Mountain Warehouse has been so successful that it is now considering a £200m IPO, and has hired advisers to explore this opportunity that could see it reduce some debt and continue on its expansion plans both in the UK and abroad.
Mountain Warehouse is definitely ‘one to watch’, and one FSP will be looking at closely as a retailer that seems to be getting it right.
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Retailer Spotlight – Shoon |
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Posted At: 26 April 2016 17:20 PM
Related Categories: Retailers |
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Shoon – a little-mentioned footwear retailer in the press over the past year – has been making headlines in recent weeks having worked quietly to return to profit. FSP takes a look at this retailer and the changes it has made to get this far.
Not without its chequered past, Shoon has suffered with a number of spells in administration and changes in ownership since its incorporation in 1982. Most notably was when retail veterans Ken Bartle and Peter Philips bought Shoon in January 2014 to continue its turnaround following an administration two years earlier. However, just one year later, the ‘for sale’ sign was again hoisted above Shoon due to Philips suffering ill health.
Shoon was subsequently acquired by businessman Mark Pinnock in April 2015. In May 2015, Pinnock took the decision to file for a Company Voluntary Arrangement in order to restructure the business and protect the core parts of the business which were healthy. Shoon’s CVA proposal was then approved by more than 80% of unsecured creditors, resulting in some store closures, and rent concessions affecting the Brighton, Kingston, Reading, St Albans and Tunbridge Wells stores.
Now one year on from the CVA, and Shoon is making a “small profit” and sales are up 2% to 3% on last year, and there are plans to open a further three shops this year in southeast England. Pinnock has his eye on six stores in other locations across the UK for 2017.
In Shoon’s case, the CVA route was the right direction to take to ensure its survival, and it seems that the hard work undertaken to restructure the business is paying off, and means that the high street doesn’t lose another valuable retailer.
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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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Retail Update - March 2016 |
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Posted At: 29 March 2016 00:27 AM
Related Categories: Administrations, Retail Statistics, Retailers, Store Closures |
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The past month has seen a bit of turmoil on the high street, although no administrations have been recorded on SnapShop.
BHS proposed a CVA at the beginning of March which was subsequently approved this week to enable it to reduce rents in 40 loss-making stores as it looks to continue to trade through its turnaround plan.
Beales also filed for a CVA at the beginning of March for 11 of its 29 stores, seeking a rent reduction of 70% on 11 stores for 10 months while it negotiates with landlords. The other 18 stores – including its flagship in Bournemouth – are unaffected.
Recent weeks have seen plans to extend Sunday trading hours rejected by MPs, meaning that all will stay the way it has been on the high street. Many see this as a victory, while others see it as a disappointment. FSP can see both sides of the coin, and we wonder whether this is something that will be addressed again in the future as we move further into the digital world.
With the news that Google is bringing Adroid Pay to the UK soon, Barclaycard research has shown that contactless spending in 2015 soared by 188% in pubs and bars. The category experienced the third biggest rise in 'touch and go' transactions over the past year behind public transport (532%) and pharmacies (207%). Contactless spending in fast food outlets was also up 108%. Restaurants witnessed a 104% increase and caterers, ranking 10th on the list, saw a 96% uptake in the speedy payment method. This is definitely something to watch in the coming months.
Another addition to the ‘ones to watch’ list, is that a wave of American retailers is predicted to cross the pond and use London as a launch-pad into European expansion. Research from BNP Paribas has forecast that brands such as Michael Kors, America Eagle Outfitters, Henri Bendel and Tory Burch, as well as new market entrants, will be among the US retailers drawing up expansion plans, seeking to capitalise on the buoyant consumer environment in the UK.
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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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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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The Weird and Wonderful |
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Posted At: 21 December 2015 17:14 PM
Related Categories: Retailers |
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With 2015 coming to an end and Milk Tray thinking its new possible additions to the infamous box of chocolates will appeal to health conscious consumers – wasabi, kale and beetroot we decided to take a look back over the year at other weird and wonderful ideas retailers had to appeal to a wider audience.
M&S, in an effort to boost its fashion credentials and halt declining sales, introduced dedicated in-store personal stylist roles in four flagship stores to model its Autograph outfits.
Calendar Club became the first in the UK to open a shop dedicated entirely to Halloween when it opened in the atrium of the Galleries shopping centre in Bristol, and the first to create this type of Halloween installation in a shopping centre.
Not only has Tesco widened its range of gluten-free products in time for Christmas, it has also delivered free mince pies to homes around the UK to help people get into the festive spirit.
A number of unusual retail partnerships were announced in the year, such as
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eBay and Argos, which saw eBay roll-out a parcel drop-off service where consumer sellers can drop-off their sold items at Argos stores nationwide.
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Asda launched a Decathlon concession in its Watford store, signalling the beginning of supermarkets changing strategy to make use of excess space.
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Ikea in talks with BHS to house one of its smaller-format order-and-collection stores at BHS’s Oxford Street site.
2016 looks set to have its fair share of innovative product launches and tie-ups as retailers look increasingly to improve their trade.
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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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Retailer Spotlight – Joules |
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Posted At: 09 December 2015 00:25 AM
Related Categories: Retailers, Womenswear Retailer |
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Time for celebration at Joules
Lifestyle retailer Joules has had an extremely successful year, and in FSP eyes is a very fitting finish to 2015’s Retailer Spotlight series.
Having posted record full year revenues in 2014 Joules went on to report a successful Easter trading period leading to further increases in full year 2015 that saw total revenue rise 22% to £117 million.
This growth in total revenue has come as a result of further growth in the US and German markets, although some 91% of Joules’ turnover is generated in the UK. In June, Joules received an additional credit facility that will allow it to fund further growth in Europe and North America.
On top of making senior promotions to drive this growth, Joules continued opening stores in the UK and celebrated the opening of its 100th outlet in Dublin. This opening marked the first full-price store for Joules in Ireland. Shops in Harrogate and Sheffield’s Meadowhall followed, and Joules has plans to open a further 12 shops in the UK and Ireland next year across various locations, including market towns and shopping centres, maximising its exposure to target customers.
Joules has definitely been one of the success stories of 2015 and looks set to continue its march throughout the world next year. It certainly has the strength in its management team and financial resources to pursue the growth plans laid out and the multichannel capabilities to grab an ever increasing slice of the online market.
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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 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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Fat Face: growing home and away |
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Posted At: 16 September 2015 00:25 AM
Related Categories: Retailers |
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Casual clothing brand Fat Face has announced ambitious growth plans as it expands into the US market. This is the business’ first venture outside the UK and Ireland. With 216 shops in the UK and Ireland, it reflects a new strategy, with a record £9m invested in improving its IT and distribution network as well as growing its UK footprint. Fat Face was founded by Tim Slade and Jules Leaver, in 1988, who started by selling sweatshirts to fellow “ski bums”.
Now firmly established as a market leader in the UK, Fat Face plans to open its first US store in Portland, Maine, this November. This was despite suffering a “bruising” autumn last year, where the warm weather hit sales of coats and knitwear, pushing down profits by 7%, against a 2.7% rise in sales to £205.4m. This translated as sales in established stores falling, with the top line being supported by new store openings and an 11% rise in online sales. This shows how retailers are increasingly reliant on online businesses to support their physical presence.
Fat Face is looking at two stores operating in the US before Christmas with an additional three opened by next May. Chief executive Anthony Thompson has confirmed the business aims to have around 10-15 stores in 18 months. It’s recently launched US website shows shoppers appear to be buying similar items to their UK counterparts. With a similar climate to the UK, the East coast of the US is considered the best place for UK clothing retailers to enter this marketplace.
Last year, Fat Face was obliged to abandon flotation plans as investors lost interest in retail stocks after a surge in IPOs. However, it secured £180m in new finance last year after the float plans were ditched and is now focusing on its five-year growth schedule.
Fat Face joins other UK retailers looking to enter the US market, including Primark which opens its first store in Boston next month. Boden, the online and catalogue retailer, has also announced plans to open more physical stores in the UK and its first US outlet following three consecutive years of growth.
Closer to home, last week the brand confirmed plans to open an expanded Exeter branch, its largest UK flagship store to date.
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Retailer Spotlight- Pretty Green |
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Posted At: 28 July 2015 00:54 AM
Related Categories: Retailers |
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Pretty Green, the men’s fashion brand and high-street chain founded by Oasis frontman Liam Gallagher, has announced a profit for the first time since launching six years ago. With stores in the UK and Japan, sales reached £15.1 million, up 38%, generating pre-tax profits of £43,000 in 2014, compared with a £2 million loss a year earlier. It is anticipated these results will make a strong case to support the company’s recently announced fundraising drive as it looks to continue its expansion both in the UK and internationally.
The results show growth came from both retail sales and its wholesale business, which sells through various department stores and independent retailers across the UK.
Originally launched in 2009, the menswear brand aims to “unite people through a love of music and fashion” essentially targeting the iconic founder’s peer group. Despite disappointing financial results. Pretty Green has consistently been recognised for its ongoing innovation as a brand committed to authenticity and relevancy for its customer base. Customer experience drives much of this.
In 2010 Pretty Green won Drapers menswear Brand of the Year Award, followed by the "Best E-tail Marketing Award" in 2011. In 2009 it announced expansion into Japan and more recently has announced further growth of six concessions in House of Fraser stores across the UK.
Other innovations include launching the virtual fitting room Fits.me on its online store. Aligning fashion and technology, Pretty Green has seen its online conversion rates soar since deploying the virtual fitting room solution, enabling customers to get a real feel for the style and brand.
2012 saw the introduction of one-touch payment technology “Simply Tap” into its new mobile store, enabling easier customer use through this enhanced e-commerce solution. With mobile technology fast becoming the leading method for retail purchases, Pretty Green is paving the way for its customers to be more connected and engaged with the brand, as it shares its ‘rock and roll, I want it now’ attitude.
Furthermore, Pretty Green has used Simply Tap to sell accessories via Facebook and exclusive tickets to music-themed events. Another innovative use of Simply Tap was Pretty Green’s launch of pop-up virtual record stores in its shop windows, in association with Universal Music. Through the ‘Vinyl Revolution’, the brand captured the resurgence of vinyl and the role of the record store as the epicentre of personal style.
The online pop-up shop is open 24 hours a day via all the Pretty Green high street stores allowing customers to choose from a dozen hand picked records, through the online app.
Speaking about the virtual record stores, Pretty Green’s Brand Director Nigel Grant said, "Through our label we strive to bring style, culture and music from past decades firmly into the future. We feel that by providing the virtual vinyl outlets in store is a further complement to our brand and ideals."
With web sales accounting for more than 20% of total revenues, online has played a key part in Pretty Green moving into profitability. It’s a part of the business we’ll watch with interest as this brand moves into its next growth phase.
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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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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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Waitrose: Pushing back on traditional discounting |
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Posted At: 23 June 2015 00:00 AM
Related Categories: Retailers |
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It seems that Waitrose is hitting back at discount rivals such as Aldi and Lidl by announcing a price cutting initiative for its loyal customers. The scheme allows customers to choose where their discount goes each time they shop. Waitrose is offering this initiative for a limited time over the summer months and will offer a selection of almost 1,000 products for its customers to choose from. Will they continue the scheme after the summer?
This initiative comes on the back of Waitrose being pushed out of the top 6 big supermarkets by rival Aldi with Aldi targeting its middle-class shoppers by offering more luxury items including alcohol and exotic foods.
In light of this, it seems that Waitrose is listening to its customers’ needs, by offering a unique proposition. By giving its customers the power to target discounting (within certain limits), Waitrose is adapting to the needs of the consumer, rather than the other way around which is often the case in retail. This will potentially start a trend which will see other retailers adapt their loyalty schemes to give customers greater choice.
Source: http://www.waitrose.com/home/mywaitrose/pick-your-own.html
It seems that most retailers are not this flexible; however as Waitrose wants to regain its loyal customer base it seems that enticing them back with favourable discounting could be a massive step forward. Where some retailers, such as Tesco, offer discounts on shoppers’ frequent purchases, this new approach by Waitrose means that customers could benefit from discounts on items they would not normally buy as well as others.
This is certainly a new way to approach discounting in the ever increasingly competitive grocery landscape, it will be interesting to see how the big four, indeed even the discounters react to this new move by Waitrose.
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Retailer Spotlight: Wagamama |
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Posted At: 15 June 2015 00:58 AM
Related Categories: Retailers |
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Over the past few years, the changing habits of the UK population have evolved with the demand for more exotic flavours increasing constantly. Typifying this trend is Wagamama, the Japanese-style noodle eaterie chain, founded in 1992 by Alan Yau. With over 150 restaurants on the UK high streets, in shopping centres and in outlet centres, Wagamama offers a complete pan-Asian food experience defined by speed and value.
More recently, the restaurant is showing strong signs of growth and investment with its recently announced plans to open up to 40 new restaurants and refurbish over 100 over the next three years. Wagamama made the announcement as the group opened the doors on its new flagship restaurant on Great Marlborough Street in London. A point of departure for the brand, the flagship site is trialling a new Japanese style breakfast menu, tapping into a new market.
The new flagship site is expected to serve as a model for the way in which Wagamama's other existing sites are refurbished. The famous canteen-style benches will remain however there will also be further areas and booths to allow customers to stay for longer, recognising the demand from its customers for more of a dining experience
The restaurant has also announced further plans to open in Staines, Trowbridge, Intu Trafford, Bedford Riverside Walk and Gatwick Airport. The investment has been underpinned by strong annual results with an increase in turnover of 12.8% and profits increasing by 0.7%.
Voted 6th in the CGA Peach Brand Track Top 10 pub and casual dining brands for customer satisfaction, Wagamama’s approach to its unique customer dining experience has proved successful. Combined with high quality “fresh lively food (with soul)”, it also meets the ever changing needs of its customers. As Simon Cope, global brand director explains, “Kaizen, the Japanese practice of continuous improvement, is the inspiration behind our improvement project – standing still is going backwards. The opening of Great Marlborough Street marks the start of one of our biggest renewal and opening plans to date.”
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M&S – Has It Turned the Corner? |
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Posted At: 28 May 2015 14:45 PM
Related Categories: Retailers |
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Recent media reports have shown that Marks and Spencer has finally seen a return to profit with underlying profit before tax rising by 6.1% to £661.2 million while group sales edged up 0.4% to £10.3 billion.
These profits are being attributed to the positioning of its Simply Food range, however its fashion and general merchandise have also returned to profit..
With reports that M&S is going to continue to expand its Simply Food range with a predicted one thousand stores by next year, is M&S on the right track to keep profits soaring?
With much publicised changes in their key management team, the company has long been trying to change the perception of its brand and widen its appeal. However, what has been clear in the past few years is that it has not listened to its customers, as we explored in our previous blog. Is this change in fortunes evidence that it is listening to its customers and is now building a strong platform from which to re-establish itself as a fashion leader in the UK as well as a leading food retailer?
Core to every retailer is its understanding of its customers and what they are looking for from its products. Most retailers undertake ongoing research, looking at the customers and their competitors to understand how the market is changing. This is not solely focused on products, but also the retail environment, how and where customers want to shop, do they want to shop online or are they after the complete retail experience. With M&S online sales down by 2% over the year this is indicative that the new company website presented a bigger challenge for its customers than originally thought.
Many have long been of the opinion that M&S doesn’t understand its customers, for several years fashion sales have not been successful and digital engagement with customers has lagged behind competitors such as John Lewis In recent news. However, since the Rag trade brothers Neal and Mark Lindsey were brought out of retirement to help change the shape of the fortunes of the M&S clothing range, this investment seems now to be paying off.
The big question now is will this work and allow M&S to continue its revival?
FSP is the leading expert in retail, both in the UK and internationally, with vast experience in pre-acquisition, retailer location strategy and market and retailer analysis. For more information on any FSP services, contact us on +44 (0) 1494 474740 to find out more.
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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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Retailer Spotlight: Hotel Chocolat |
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Posted At: 30 March 2015 00:58 AM
Related Categories: Retailers |
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Founded in 1993, Hotel Chocolat has been in the spotlight recently as it overtakes rival Thorntons’ profit figures for the first time ever.
Hotel Chocolat originally set out as a small brand which aimed to provide consumers with a better choice of chocolate than those available in supermarkets. Set apart as one of the world’s few chocolate makers to grow cocoa, the Hotel Chocolat vision was to connect this with luxury chocolate making and retailing. The brand has grown to include a restaurant, hotel, beauty range, and plantation spa in Saint Lucia. Such is its success, it now has a UK portfolio of 81 stores, 35 concessions in John Lewis and 10 cocoa bar-cafes.
In the six months to December 2014, Hotel Chocolat reported a 144% increase in profits, to £8.2m, arising from sales of £47.2 million which were up 9.5% on the previous year. This news came after Thorntons issued a shock profit warning for Christmas as two UK supermarkets significantly decreased orders for the brand’s products. In the six months to January 2015, Thorntons reported profits of only £6.6 million from sales of £128.2 million.
Hotel Chocolat co-founder and CEO Angus Thirwell commented that he believes the brand has tapped into Thorntons’ market share due to Hotel Chocolat’s strategic store locations, particularly in train stations where commuters feel inclined to treat themselves to and from work, especially if trains are delayed.
Thirwell has also vowed that despite Hotel Chocolat’s growing popularity, its products will not be sold in supermarkets, and instead will only ever be available at concessions in higher end stores such as John Lewis.
Hotel Chocolat’s promise to provide better quality chocolate and its positioning as the healthier luxury option against competitor chocolate brands has clearly resonated with UK consumers. Breaking into the US market however has proved difficult, and having closed its first stores in New Jersey and Boston, Hotel Chocolat is currently re-assessing its strategy in this market. With retail partnerships driving international expansion we will continue to monitor this brand with interest.
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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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Retailer Spotlight: Holland & Barrett |
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Posted At: 09 March 2015 12:56 PM
Related Categories: Retailers |
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Holland and Barrett has recently announced plans to expand its head offices in Nuneaton with the creation of 30 new jobs following a period of sustained success. Retail Week reported that the health food and nutritional supplements retailer will also be adding 40 new roles across different departments in the business over the next six months, alongside 200 new jobs in its stores nationwide.
The move follows a record six years of consecutive growth for the company, with last year seeing 7.5% growth. A key milestone for the business was the opening of its 1,000th store in the Trafford Centre, Manchester in October 2014.
Supporting this growth is the evolution of socio-economic factors including a more health conscious population where fitness and eating right is playing a more important role in consumer spending. The growth of the “health pound” has seen Holland & Barrett focus on this market as well as reach out to a younger audience, through greater adoption of social media in its marketing campaigns. For example Holland and Barrett’s “weird and wonderful” range featuring its snail gel products directly targeted a younger, more health literate demographic through its unconventional products and relevant brand ambassador in Louise Redknapp.
Other ways the retailer has targeted younger consumers include 2013’s “Shake- A- Whey” protein shake bar at its store in London’s Leadenhall Market. Designed to accommodate the life-style of City workers, the bar - which opened at 7.30am for early morning commuters – allowed shoppers to mix their own protein drink to take away or fill up a bottle to drink later.
A readiness to adopt new technology is responsible in no small part for the brand’s growth. In-store this includes piloting iBeacon technology, and online, launching a Click and Collect service prior to Christmas, further developing its omni-channel offering and capitalising on its extensive property presence. This was underpinned by a heavy investment in a website re-brand.
Trialling alternative store sizes has proved a successful strategy for Holland & Barrett, opening a 7,000 sq ft superstore to expand its frozen food and beauty product last autumn, alongside its expansion into free-from and ethical beauty products. At the same time, the company announced plans to strengthen its European presence with 70 new branches; this will include 40 stores in the UK and Ireland, and 30 in Holland and Belgium opening between October 2014 and September 2015. CEO, Peter Aldis, has hinted at possible expansion across Asia.
Holland and Barrett has rapidly positioned itself as a retailer ready to understand and respond to consumer needs as the change in customer buying behaviour expands a significantly growing market opportunity. We look forward to more innovation from this brand.
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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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Foyles: The revival of the book |
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Posted At: 21 January 2015 00:49 AM
Related Categories: Retailers |
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The decline of the physical book market came at a particularly difficult time when the recession hit, affecting much of the high street. Independent shops, particularly, were badly affected as it coincided with the rise of e-books and devices, such as the Kindle. Since that time, the number of bookshops, both chain and independent, has declined by 9.5%, with approximately 2,547 bookshops currently still trading.
2014 bucked this trend with physical book sales seemingly making a comeback, especially bookseller brand Foyles, as outlined in our Christmas Sales Report. However, this means that e-book sales did not do as well as hoped during 2014’s festive trading period, suggesting the e-book novelty is wearing off. Everyone who wants an e-book now has a solution that suits them, whether they own an actual e-book device, or use an e-reader app on their tablets or mobile devices.
The recession saw consumers become much more cost-savvy, making the most of cheaper digitalised music, films and books. So as we move away from the recession, Christmas 2014 was the chance for consumers to spend more on themselves and their loved ones. We saw a move towards people giving physical, tangible presents at a slightly higher cost, because they were slightly less concerned about money.
As a result, 2014’s festive trading period saw Foyles report an 11% year-on-year growth, reflecting industry trends. Waterstones also reported strong sales figures, up 5% year-on-year.
Foyles’ financials for the end of 2013 were not as positive as hoped for. However, it seems that this financial year is improving, with October sales up 15.4% and 11% in the run up to Christmas (see below).
Foyles, established in 1903 by brothers William and Gilbert Foyle, is an independent book seller dedicated to upholding a cultural pastime on British high streets. Foyles is deeply rooted in literary culture, with many chapters in the brand’s lifetime reflecting the changing face of traditional book selling throughout the decades.
Today the brand has six outlets (5 in London and 1 in Bristol) which pride themselves on giving customers a traditional book shopping experience with a 21st Century twist. Foyles’ stores have theatres, writer and publishing events and in-store cafes… what more could any passionate reader want!
To this day, the brand is still independently owned by the Foyle family and has proudly received awards such as Bookseller of the Year, Chain Bookselling Company of the Year, National Bookseller of the Year and Children’s Bookseller of the Year.
With plans to expand, Foyles is clearly confident that the growth of the physical book will continue throughout 2015, with even higher sales to be reported this time next year. However, we need to remember that any sale increases for physical book sellers are on the back of previous severe declines, meaning the market still has much more potential to grow. The physical book and e-book markets are still very competitive and 2015 will be very interesting!
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Retail Update - December 2014 |
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Posted At: 18 December 2014 15:12 PM
Related Categories: Administrations, Retailer At Risk, Retailers |
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With Christmas fast approaching, it is pleasing to note that other than Mexx – which had very little UK presence left following financial troubles in 2008 and has now been declared bankrupt – no administrations have been recorded on the FSP Retailer Database since the demise of Phones 4U in September. However, Austin Reed teeters on the brink, having appointed Deloitte to work on a strategic review of the business after it made a £1.29m loss in the year to January 2014. Owner Darius Capital Partners is thought to be in discussions with the auditor over a company voluntary arrangement.
Confidence has certainly showed a marked improvement since Christmas 2013, with research by IGD forecasting that spending on Christmas food and drink will increase by 1.2% this year to £20bn. The study also stated that £1bn will be spent via online; that £1.5bn will be spent via discounters, and that only three out of 10 consumers are planning on doing a traditional ‘big Christmas shop’.
Supermarket price wars have continued to intensify over the course of the year, with Aldi and Lidl making record market share gains as the traditional ‘big four’ grocers battle to keep afloat and attract consumers.
November saw the fastest month-on-month growth in online sales in the 14-year history of the IMRG Capgemini e-Retail Sales Index, rising by 37%. Year-on-year, online sales increased by 20% to mark the biggest growth rate in 2014 so far. The figures show that in the year-to-date online retail sales are up 15% and following a strong start to December with Cyber Monday, this figure is expected to reach 16% at the end of the year. Overall, an estimated £12.1 billion was spent online in November, with an average basket value, excluding travel, of £78, attributed in the main to this year’s Black Friday sales success – sales were up 44% in the week commencing 23 November alone, compared with the previous week.
Staying with the online growth trend, the numbers of click-and-collect orders are forecast to surge by 49% over this year’s Christmas period according to Barclays research, representing a rise of 5.7 million consumers.
In other news, Hereford's multi-million pound retail complex - The Old Market - has been crowned as the UK's best new shopping centre at the BCSC Gold Awards, London is to see more than 10m square feet of retail space in new developments with new shopping centre sites including Croydon, Battersea and Earls Court and extensions at Westfield London and Brent Cross malls helping to accelerate the supply of new stores, according to the latest Colliers Central London Retail Health Check report.
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Retailer Spotlight: Cath Kidston |
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Posted At: 10 December 2014 10:29 AM
Related Categories: Retailers |
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Cath Kidston was first opened by its eponymous owner, in 1993, in London’s Holland Park, originally selling vintage style fabrics and wallpapers. The brand, over the last 21 years, has gradually developed into a renowned British retailer, selling fashion accessories, clothing and household products in its distinctive floral and vintage patterns.
Cath Kidston is now sold in over 60 stores across the UK and Ireland and has a global portfolio of over 170 stores across France, China, Hong-Kong and the UK.
The History of Cath Kidston
It was recently reported that Cath Kidston has stood down as Creative Director, after 21 years of building up the brand and seeing it take off in the UK and Asia. Cath Kidston will remain as a non-executive director and an investor in the brand. She has planned her role replacements carefully within the company, to ensure a seamless transition, following her leaving the company officially last Friday, 5th December 2014.
20th November 2014 - Cath Kidston returned to Glasgow's Silverburn shopping centre for a second year, with the opening of a pop-up store which will trade through to at least January 2015.
31st July 2014 - Cath Kidston signed up to open at Birmingham's Grand Central development for September 2015.
22nd July 2014 - Cath Kidston sold a stake in the business to private equity firm, Baring Asia, as expanding in the continent was a key strategic priority.
4th July 2014 - Cath Kidston’s chief executive Kenny Wilson confirmed the company was in 'active discussions' with three buyers for a potential £250m sale.
20th January 2014 - Cath Kidston enjoyed the biggest jump in consumer awareness across all brands in its sector over the last three years.
23rd December 2013 - Cath Kidston delivered another year of strong growth, with turnover increasing by 18% to £105 million. Additionally, the company recorded a net profit of £15.7 million, an increase from 2012’s £13.6 million.
6th December 2013 - Cath Kidston opened its largest store in Piccadilly, the heart of Central London.
13th August 2013- Cath Kidston's floral-print handbags and homeware generated high sales in China, Japan, Thailand and Korea, helping the designer reach annual sales of more than £100m for the first time since it was founded in 1993.
12th August 2013- Cath Kidston’s EBIDTA jumped 13% to £21m as group sales broke the £100m barrier for the first time, climbing 19% to £105m!
11th June 2013- Cath Kidston marked its 20th anniversary with the announcement of a new flagship store in London’s Piccadilly.
11th January 2013- Cath Kidston saw a total sales uplift of 24% during December 2012. In the UK, sales climbed 23.5%. In this time, the brand also introduced a click and collect service, accounting for 10% of all online sales
9th January 2013- The financial results for the period ended 1 April 2012 showed a high level of growth and increased profitability, with an increased turnover (29%) and increased operating profit (10%). The company planned to further increase its retail portfolio, grow mail order and web sales, increase average order values, and encourage repeat visits.
Cath Kidston: A niche brand turned mainstream
Following the latest news that the brand’s founder has left the company, there has been some speculation as to what will happen to the brand in the New Year. The company has reportedly invested significant amounts of time and money into creative resources to ensure continuity of the brand’s 'distinctive handwriting' that is well-known and loved amongst the British market particularly.
Cath Kidston is a great example for the use of pop-up stores and concessions. The brand uses these techniques regularly to trial geographical areas and particular shopping centres globally to see first hand if demand is high enough to justify a permanent store.
We feel this steady and carefully executed growth strategy is a key factor contributing to the brand’s growing success. By investing in their own first hand research and taking the time to gauge if an area is financially viable through pop-up stores and concessions in larger stores, such as John Lewis, Cath Kidston have been able to grow its retail portfolio successfully, without major a dip in profit due to costs associated with store openings.
The company is reported to still have a lot of potential in China, South Korea and Spain in particular. In addition the use of pop-up stores and concessions will be incredibly useful in their approach to integrating into new countries and continents to gain their own first hand research on the new markets they plan to target.
We think this is a great way of utilising the power of pop-up stores and concessions, and has aided in the phenomenal growth of the niche brand, particularly over the last five years!
What do you think is in store for the brand in 2015?
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Retailer Highlights: Netto |
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Posted At: 18 November 2014 11:25 AM
Related Categories: Retailers |
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This month has seen the Netto and Sainsbury’s partnership launch with their first store opening in Leeds. Netto, founded in Copenhagen, Denmark, is a discount retailer operating in several European countries and is looking to re-enter to UK market.
The History of Netto in the UK
Originally, Netto was in the UK from 1990 to 2011. In May 2010 Netto announced that it would sell its UK stores to ASDA for £778M. 2011 saw the rebranding of 147 former UK Netto stores to Asda complete, increasing Asda's smaller store portfolio. However, under the Competition commission requirements, Asda distributed 27 of the stores to Morrison's and 20 stores to the Haldanes group, which went into administration in 2012 after their venture failed.
20th June 2014- It was reported in June that Sainsbury’s has entered into a joint venture with Netto that will see the launch of 15 Netto stores by the end of 2015. Both Netto and Sainsbury's will invest £12.5m in the venture, with the first store due to open later in 2014.
26th June 2014- Netto appointed Tom Hampson as its UK marketing director ready for their re-launch in the UK. The new Marketing Director’s job will help the discount retailing tie up between Sainsbury’s and Netto. Tom Hampson originally worked for Sainsbury’s over an eight year period.
30th June 2014- It was reported that Netto had pinpointed where it wanted to open 15 trial stores for its UK launch in late 2014. Netto planned to target an area of the North of England roughly 120 miles in diameter radiating from Leeds and stretching west to east from Liverpool to Hull, and north to south from Richmond in North Yorkshire to just north of Nottingham.
6th November 2014- Sainsbury's and Netto opened the first of 15 stores with Netto in Moor Allerton in Leeds. If successful, the next stage of the joint venture will see the new format rolled out across the country.
Does the UK need anymore discount retailers?
The UK supermarkets’ war has been a long one which isn’t showing any sign of letting up. Recent discount retailer entrants, Aldi and Lidl, have made a big impression on UK consumers. Despite the growing confidence in the UK economy, consumers are realising that they can still get quality products for lower prices, regardless of their shopping budgets, saving money on daily essentials to be able to spend elsewhere.
It’s a significant trend that retailers are going to have to watch for, especially as we move into 2015. Consumers are becoming ever-more savvy in finding the best deals with the internet at their disposal, and because they’ve had to do it through the tough economical times, it’s become second nature to search out the best quality for the lowest price.
Per Bank, chief executive of Netto’s owner Dansk Supermarked, commented, “At that time [2010] the thinking was that discount was only for those on low incomes. Now it is for everyone. Everybody wants value for money”. The brand certainly believes there is room for them in the rapidly growing discount market, as do Sainsbury’s, and this relationship could prove extremely successful on both sides. Netto benefits from Sainsbury’s understanding of the UK market and what customers here want, while Sainsbury’s gains a potentially significant slice of the discounting market.
Netto’s affiliation with Sainsbury’s was a wise choice and can stand them in good stead, especially given that they are the only one of the four big retailers not currently in the media and critics’ firing line. However, Netto will have to be creative in competing with Lidl and Aldi, the up and coming names in the UK’s supermarket sector, as well as those well-loved and well-established at the top of the food chain, Waitrose and M&S. Netto’s choice to enter the UK market comes at a very interesting time, with competition in this market currently extremely tight, and the brand will need to make a stand out impression to set it apart.
And what will this mean for the rest of the players on the UK’s grocery scene? Those focusing on their offering rather than competing seriously on price are likely to remain unaffected: the likes of M&S and Waitrose at the top end of the market have a clear strategy and offering focusing on their customers and quality produce, rather than low prices, which is so far proving successful. It is the retailers stuck in the middle of the market who will suffer, Asda, Tesco and Morrisons, who are losing out to those at the top on quality and to those at the bottom on price. One more discounter in the mix can only be bad news for them.
How do you think Netto will fare against its competitors? Subscribe to the SnapShop Blog to get the latest retailer updates.
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Retail Spotlight: Smiggle |
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Posted At: 03 November 2014 00:38 AM
Related Categories: Retailers |
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Smiggle is an Australian based stationery retailer currently selling in over 1000 stores across Australia, New Zealand, Singapore and South Africa. The retailer’s efforts are concentrated on creating fun kids’ stationery with an average target market of ages 6-14 years with great “pocket money prices” (average selling price is £3.50). However, the fun and vibrant stationery retailer is proving popular with all ages and Managing Director of the group John Cheston claims that, really, the brand is suitable for anyone who “has the zest for life, enjoys fun and humour and wants to stand out.”
The retailer’s aim for the next 12 months is to work on its expansion into the UK including a fully integrated e-commerce website and commencing a five-year store expansion programme. Smiggle is sure that its focus on colour, fun, in-store interaction and new products every week will ensure the brand does extremely well in the UK. Smiggle is anticipating its well planned and executed five year plan will lead to success, aided by the UK market being very similar to the Australian market and the UK’s online market being more mature.
For the brand’s official timeline, see below.
On 14th October 2014 - Smiggle joined intu Bromley as part of the centre’s improvement programme. The retailer has completed a deal on a unit adjacent to H&M, as it establishes itself within the UK retail market.
8th October 2014 - Smiggle makes plans to launch its UK transactional website in January 2015. Smiggle's UK web presence currently consists of a microsite on the retailer’s Australian website, but now the stationer is planning to roll out a standalone website. The Managing Director of Smiggle predicts that the company’s online sales could be higher in the UK due to a more mature online market.
Additionally, Smiggle plans to roll out up to 300 stores in the UK. There were plans for 30 stores by July 2015, 50 by December 2015 and an additional 50 each year in subsequent years. Smiggle plans to focus on clusters of stores and is currently in the process of building up clusters in the Southeast, but has plans to build a cluster of stores around Manchester in 2015.
6th August 2014 - Smiggle plans to open 10 new stores before Christmas in high profile locations including the Bullring, Westfield London and Meadowhall.
30th April 2014 - Smiggle signed a deal to open one of its first shops outside London, at The Friary Centre in Guildford, as part of its plans to open 200 stores nationwide.
9th April 2014 - Smiggle signed to open a store at Crawley's County Mall, close to WH Smith and opposite Primark. The new store was part of Smiggle’s expansion in the UK.
2nd April 2014 - Smiggle opened its first store outside London at Brighton's Churchill Square.
20th February 2014 - Smiggle opened its first UK store at Westfield Stratford.
24th January 2014 - Smiggle announces its plan to open its first store in February 2014, as part of plans to open 20 stores this year.
4th October 2013 - Smiggle announced plans to open 200 to 250 stores in the UK within the next four to five years. Smiggle group general manager John Cheston said the UK will "unquestionably" be the specialist’s biggest market globally and is in the midst of hiring a UK team.
So, the question is how is a retailer selling stationery doing so well, less than a year after breaking into the UK market? As mentioned above, a well planned and implemented strategy is behind this retailer along with a very profitable base back in Australia, having been acquired in 2007 by an Australasian fashion company called The Just Group.
Additionally, in an interview with the Managing Director, John Cheston, he claims that Smiggle do not compromise. Whether it be on the shopping centre, high street, the size of the unit and the brands adjacent to the unit, Smiggle will only open stores it feels can 100% bring return on investment and continue to go on and be profitable.
Smiggle also sounds like it has done its target market research into the UK and has found that the potential market has many similarities to the Australian market where it is already very profitable, with every one of their stores making profit.
Its pricing strategy also matches its target market, a consideration that many of its competitors will not have considered. With an average selling price of £3.50, this reflects the pocket money its target market may receive from parents and guardians.
And finally, Smiggle’s in-store and on-line convergence concept is spot-on in terms of the current retail market. At FSP we regularly comment on the importance of creating an experience for customers. Smiggle does just this; from the interaction of its staff to its points of sale with customers, whilst the experience isreflected in its website games and fun activity functionalities. The retailer fully integrates its brand values and communicates this so effectively, giving consumers a consistent positive experience.
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Retail Spotlight: Phones 4 U |
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Posted At: 22 September 2014 00:24 AM
Related Categories: Administrations, Retailer At Risk, Retailers |
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Founded in 1987 by the Caudwell Group, Phones 4 U was the UK's fastest growing independent mobile phone retailer with more than 690 stores across the UK and Northern Ireland, and an online shopping facility. On 26 September 2006, the business was sold for a sum of £1.46 billion to private equity firms Providence Equity Partners and Doughty Hanson, before later being sold on again to BC Partners in 2011.
It was announced last week that Phones 4 U is the latest high street name to succumb to administration. Looking more closely, it seems that while the major mobile phone retailer was still a profitable business, with turnover of £1bn and underlying profits of £105m last year, losing key contracts with EE and Vodafone meant that the company could no longer operate.
So, this is an unusual retail administration situation. We’ve taken a look back at the trading history of Phones 4 U, to see how the brand evolved.
On 17th September 2014 - it was reported that Dixons Carphone offered to hire the 800 people who work in Phones 4 U concessions at its Currys and PC World stores after Phones 4U went into administration two days beforehand.
15th September 2014 - Phones 4 U fell into administration after loosing their key contract with EE, soon after losing Vodafone, announcing plans to close its 550 stores
8th September2014 - Phones 4 U owner BC Partners started exploring new options for the retailer following Vodafone’s decision to not renew its contract with the firm.
4th September 2014 - The ratings agency, Moody’s, warned clients that the mobile phone retailer was under review for a downgrade, because of its debts and the loss of the Vodafone deal.
2nd September 2014 - Phones 4 U revealed that network operator Vodafone would not be renewing its contract agreement, leaving them with only one mobile network partner - EE.
19th August 2014 - Phones 4 U announced it would be looking for over 100 new stores as it prepared to close its concessions in Currys, following the merger of Currys’ owner Dixons with Carphone Warehouse.
18th July 2014 - Phones 4U launched an ad campaign entitled ‘For the future you’, developed by adam+eveDDB. The campaign was designed to highlight the knowledge that Phones 4u can provide to customers in-store; helping customers choose a phone that suits them.
22nd January 2014 - Phones 4 U owner, BC Partners, started looking at options for Phones 4 U, including a float.
31st July 2013 - The Manchester Arena was renamed the Phones 4 U Arena after the brand agreed a five-year sponsorship deal.
22nd January 2013 - Phones 4 U launched a mobile network business called LIFE Mobile later in 2013 that used the 4G services being rolled out by EE across the UK under a wholesale arrangement.
12th November 2012 - Phones 4 U appointed Johnson Fellows to handle its UK store portfolio, consisting of more than 650 outlets.
8th October 2012 - Phones 4U recorded a rise in pre-tax profits from £87.6m in 2010 to £113.4m in the year to December 31, 2011. Sales rose from £746.2m in 2010 to £773.3m in 2011 driven by sales of high value smartphones.
This is not a typical retailer’s slide into administration, as we have seen in other cases such as with La Senza and Internacionale. Instead, what we’ve seen with Phones 4 U is how vulnerable many of our retailers still are, whether it is obvious or hidden beneath an apparently successful exterior. Until this year, Phones 4 U showed all the signs of a business coping with the competition and challenges of the current high street and in particular within the mobile phone sector. With a significant store portfolio, strong online offering, a concession deal with Currys and the launch of a new mobile network business – the signs were positive.
However, the loss of three significant deals in 2014 undermined that success with huge impact. Currys owner, Dixons’, merger with Carphone Warehouse in August saw Phones 4 U facing the end of their in-store concession deal with Currys; Vodaphone decided to not to renew their contract agreement at the beginning of September; and two weeks later 4G network operator EE followed suit, leaving Phones 4 U alone, and stuck. This goes to show how fine the line is between success and failure for our retailers, even as the economy continues to recover and our high streets to stabilise. Phones 4 U chief executive David Kassler summed it up: "A good company making profits of over £100m, employing thousands of decent people has been forced into administration."
The lesson to learn here is one of strategy and future proofing. As a facilitating business, Phones 4 U relied on their partnerships and without these they didn’t have a viable proposition. Even the most seemingly successful brands need a contingency plan.
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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 Spotlight: La Senza |
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Posted At: 14 August 2014 00:57 AM
Related Categories: Administrations, Retailers |
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During its short trading life, La Senza had planned to expand its collection of stores, and elevate the brand to the ‘biggest, young fashion, lingerie retailer’. However, the company has dipped in and out of administration twice in the last three years, and, with no prospective buyers on the horizon, appointed administrators PricewaterhouseCoopers are attempting to sell the company to other retailers. Read on for FSP’s overview of the brand’s trading history and highlights of where the cracks started to show.
Reading into the details of this case, it seems that those with authority over the La Senza brand gave too much attention to planning its expansion, rather than concentrating on the offering available at its existing stores. At the end of 2013, La Senza placed a significant amount of investment into refurbishing existing stores, continuing to promote and expand the Pinkberry frozen yoghurt brand and seeking other brands to migrate to the UK marketplace, in spite of being placed into administration in the previous year. It appears that the company missed a trick to centre its resources on its existing assets, putting on hold its plans for the expansion of this brand and others.
On 18th July 2014 Drapers reported that more La Senza stores were due to close in the following few weeks, including the Bluewater, Brighton, Cambridge, Canterbury, Cardiff, Derby, Edinburgh, Kingston, Leeds Trinity, Maidstone, Northampton and Silverburn Glasgow branches. Although there had not been any formal redundancies made, it was thought that the closures would affect 130 staff in total. The company was expected to experience a gradual wind-down although administrators PwC were looking to sell the remaining stores.
16th July 2014- Since La Senza went into administration on 1st July 2014, 75 members of staff have been made redundant through the closure of 6 stores.
8th July 2014- Reports say PwC were looking at the sale of La Senza’s 55-store portfolio.
4th July 2014- 752 jobs were at risk due to the potential closure of 55 UK La Senza, and 3 Pinkberry sister stores.
3rd July 2014- La Senza was unlikely to sell as a whole, due to retailers competing to select its best stores. Alshaya UK, which bought the La Senza UK business in an all-inclusive deal in 2012, unsuccessfully tried to find a buyer early in the year.
1st July 2014- La Senza was placed in administration for the second time in two years. Theo Paphitis was interested in acquiring La Senza stores for his own brand, Boux Avenue to increase its profile.
14th February 2013- La Senza planned to double is store presence over the successive 5 years, with new look stores and a focus on the younger customer; aiming to become the UK’s biggest young fashion lingerie retailer.
21st September 2012- La Senza made a loss of £594,302, which was expected as this was the first period of trade.
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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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Retailer Births and Deaths: Q2 Update |
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Posted At: 15 July 2014 00:34 AM
Related Categories: Administrations, Retailers |
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Which new names have we seen join the UK’s retail market and which retailers have fallen into administration over the last quarter to June 2014?
We’ve seen new retailers across the growing market of Food. From drive-through coffee to wine bars, there’s a lot of new names to learn in the F&B sector at the moment as international brands make their UK debuts or new retailers start up. In the ever more competitive grocery arena, discounter Netto joins the lower end of the market alongside the likes of Aldi and Lidl – which can only mean more pressure for those squeezed in the middle, like Tesco. Fashion is another sector seeing a trend of new names – a sign of growing consumer confidence as widespread terror over the state of the economy fades?
Four retailers have fallen into administration in this quarter, across fashion, TV and home furnishings. The trend is clear: those retailers who aren’t adapting to the changing shopping climate in the UK are struggling and won’t survive the competition.
In some cases, like for Paul Simon, a large part of the problem was failing to adopt an effective online offering – with their transactional website inefficient and not cost-effective. When their stores were hit by a drop in sales as a result of the flooding this year – having a strong web presence could have helped balance things out. As it was, they couldn’t weather the storm. In other cases, the problem lies fundamentally with the in-store offering as with Jane Norman. The fashion retailer has struggled for several years in the challenging and competitive sector, finally succumbing to administration for the second time in three years due to lack of a turnaround in-store, although its website will likely continue trading.
Ultimately it comes down to ‘customer experience’: both online and in-store – you can’t ignore either channel anymore – creating a unique and positive experience for your shoppers is imperative.
Let’s look at the Q2 births and deaths in more detail…
April
A balanced month: in April we saw two retailer births, while two fell into administration…
IRO
Who they are: IRO is a French young fashion brand, operating across the USA, Europe and the UAE, positioned in the upper-middle sector of the market. It currently operates concessions within department stores in the UK, including Selfridges, Harvey Nichols and Harrods.
What’s happening: IRO will make its standalone store debut this summer with the opening of a flagship store in West London. Cushman & Wakefield have been appointed to find more suitable locations around the capital as the brand looks to expand further.
In the news:
o IRO to open flagship store in Brompton Cross
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 offers a range of traditional fresh soups with a modern twist, and is positioned in the middle of the market.
What’s happening: The brand opened its debut outlet in London’s Soho in April and is aiming to expand further, with Shelley Sanderz, who secured the launch site, looking to identify further ones.
In the news:
o Soupe du Jour opens debut outlet
Paul Simon 
Who they are: Established in 1990, Paul Simon is a home furnishings retailer, which at its height operated over 50 stores across London and the Home Counties as well as an online shop.
What’s happening: In April Paul Simon fell into administration due to issues with its online offering and the floods earlier this year which hit in-store sales. Deloitte, appointed administrator, initially said the company would continue to trade while a buyer was sought, but later announced the closure of 17 stores by the end of the month. In May, Lewis Home Retail acquired seven Paul Simon stores, while eight others were closed – followed by the announcement that the remaining 22 stores would also close by mid-June.
In the news:
o Paul Simon to close all 22 remaining stores
o Lewis Home Retail acquires seven Paul Simon stores
o Deloitte to close 17 Paul Simon stores
o Paul Simon falls into administration
Sit-up TV 
Who they are: Founded in 2000, Sit-Up TV is a television retailer with three auction-style shopping channels: bid.tv, price-drop.tv and speedauction.tv. In its earlier years it appeared in The Sunday Times 'Fast Track 100' list as the fastest growing large company in the UK and for two consecutive years it was named in the Financial Times’ 'Top 50 Creative Businesses' list.
What’s happening: In April, Sit-up TV collapsed into administration after seeing a significant drop in sales at the end of the first quarter. Its TV channels Price Drop and Bid TV have both ceased transmission, with its online shop also closing and over 200 employees losing their jobs.
In the news:
o Sit-up TV enters administration
May
A quieter month: in May one new retailer emerged…
Muzz Buzz 
Who they are: Muzz Buzz is an Australian drive-through coffee concept, currently operating 60 stores across Australia. Hand-made coffee is served fresh to drivers alongside a full ‘food to go’ offering, with stores designed to be easily accessible and highly efficient.
What’s happening: The UK company, a joint venture with the Australian parent, is planning an ambitious regional roll out across the country, with initial expansion focused in the Midlands and the first units set to open there this year. The chain is eventually looking to open up to 200 stores across the UK, which comes as they are also looking to expand their Australian store portfolio to more than 200 over the next five years.
In the news:
o Muzz Buzz plots UK regional roll-out
June
An exciting month: in June five new retail names entered the market and two faced administration…
Stradivarius 
Who they are: Stradivarius is a womenswear retailer, focusing on young individual fashion, which currently operates in 60 countries worldwide, including Ireland.
What’s happening: The brand is set to open its UK flagship store at Westfield Stratford City before the Autumn, following the successful launch of a UK e-commerce site last year.
In the news:
o Stradivarius to open debut UK store at Westfield Stratford City
Humble Grape 
Who they are: Founded in 2009, Humble Grape is an independent wine merchant and tasting event group, specialising in high-quality boutique wines from small, family-owned vineyards and wines imported directly from France, Italy, Spain and Australia.
What’s happening: In June, Humble Grape announced plans to expand onto the high street and open 60 franchised “experimental” wine bars by 2020. The first will be located in London’s Shoreditch, with a wine bar and retail offering aiming to enhance the customer experience through technology.
In the news:
o Humble Grape to become 'Starbucks of the wine world'
La Sala 
Who they are: La Sala is a Spanish restaurant-bar operator positioned in the upper-middle range of the market, making its debut in the UK ahead of plans for wider expansion here.
What’s happening: In June it was announced that La Sala had secured its first UK site on the Chigwell Road in London – it’s first venture outside of Spain. A second location, possibly in west London, is under consideration while further sites are still at planning stage.
In the news:
o La Sala secures debut UK site
Netto
Who they are: Netto is a discount supermarket founded in Copenhagen and operating across several European countries. The chain has operated in the UK before: between 1990 and 2011 Netto operated across the country, but in 2010 sold their entire UK store portfolio to Asda, which re-branded all stores to the Asda fascia by the end of 2011
What’s happening: Last month, Netto’s return to the UK in a joint venture with Sainsbury’s was announced, with 15 trial Netto stores expected to open here by the end of next year. They are targeting an area of the North of England for the comeback, with the first store planned to open there before the end of 2014.
In the news:
o Netto outlines area for 15 trial stores
o Netto appoints UK marketing director
o Sainsbury's launches joint venture with Netto
Open
Who they are: Open is an own-brand value fashion concept from JD Sports Fashion Plc, announced in January this year. Prices are expected to be similar to H&M, New Look and Primark, and the clothing range will be more fashion forward compared to JD Sports’ sportswear. This is not the first time JD has pushed the Open fascia; fingers crossed it works well this time.
What’s happening: The first Open stores are set to open in various locations across the UK in September.
In the news:
o JD Sports to launch first Open stores in September
Jane Norman
Who they are: Founded in 1952, Jane Norman is a womenswear retailer focusing on young fashion, operating 65 stores and concessions in the UK as well as having an international presence through franchises and concessions. Jane Norman fell into administration in June 2011, before Edinburgh Woollen Mill rescued 31 stores.
What’s happening: In June it was announced that the struggling retailer had fallen into administration for the second time in three years – with store closures looking inevitable, although its website and international concessions look likely to continue trading.
In the news:
o Jane Norman falls into administration for second time in three years
Lakeland Leather 
Who they are: Lakeland Leather is a womens and menswear retailer, which has traded since the mid-1960s when it opened its first store in Ambleside and now has 22 stores across the UK, including a number of factory outlets and an e-commerce platform.
What’s happening: In June Lakeland Leather collapsed into administration, which the retailer blamed partly on the mild winter which saw sales of certain product ranges struggle. With over 200 jobs at risk, it is understood that a deal may be in place to try and rescue some of the stores, although four have already closed.
In the news:
o Lakeland Leather calls in administrators
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Retail Spotlight: New to SnapShop – Retailers Heading to the UK |
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Posted At: 19 May 2014 14:00 PM
Related Categories: Retailers |
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A variety of retailers have announced plans to expand into the UK market over the last couple of months, many of which we have recently added to SnapShop. Here’s a taster of who we can expect to see hitting our high streets…
Image source: www.vecteezy.com
Muzz Buzz
Who they are: Muzz Buzz is an Australian drive-through coffee concept, currently operating 60 stores. Hand-made coffee is served fresh to drivers alongside a full ‘food to go’ offering, with stores designed to be easily accessible and highly efficient.
What their plans are: In a joint venture with their Australian parent, the UK company is planning to open its first units in the UK in mid-2014.
In the news:
• Muzz Buzz plots UK regional roll-out
Potbelly Sandwich Shop
Who they are: Launched in Chicago in the ‘70s, Potbelly Sandwich Shop is a middle of the market sandwich and snack food offering, operating over 300 sites in the US. Taking its name from the 19th century ‘potbelly’ stoves which communities gathered around, the brand has an emphasis on freshness and value.
What their plans are: Having already expanded through franchising into the Middle East, Potbelly is looking to do the same into the UK.
In the News:
• Potbelly seeks UK franchise partnerships
Earthbar
Who they are: Launched within Los Angeles health clubs and expanding to standalone stores, Earthbar offers a range of power smoothies and healthy salads and soups, in addition to selling a variety of health supplements and vitamins.
What their plans are: In May 2014 Earthbar announced that they are looking to launch in the UK through a franchise partnerships model.
HEMA
Who they are: HEMA is a Dutch discount retail chain which started life as a dime store in the 1920s and offers a range of clothing, beauty, home and garden, and food and drink products at the lower end of the price scale. Since the 1990s, HEMA has expanded into neighbouring countries, and currently has a presence in Belgium, Germany, Luxembourg and France, as well as the Netherlands.
What their plans are: In March this year, HEMA announced the opening of their first UK stores this Summer in London, with further expansion into the UK planned.
In the News:
• HEMA plans UK launch
• HEMA to open first UK stores this summer
It’s positive to see a great variety of retailers looking to enter the UK market, both newer and more-established names. With this seeming surge, particularly within the F&B sector, which we are seeing significant growth continuing in, it is vital for brands entering the UK to make sure their offerings are well-defined and that they have the right growth and location strategies to maximise the opportunities presented by this market.
As leading UK retail business consultants, FSP offers a range of services to retailers to help drive their success. Find out more.
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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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SnapShop Monthly Summary - March 2014 |
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Posted At: 27 March 2014 11:35 AM
Related Categories: Administrations, Retailers |
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Two administrations have been reported on SnapShop since February.
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Pawnbroker Albemarle & Bond appointed PwC as administrator after its lenders told the board they were unable to support the turnaround plan for the business, which was hit by the falling price of gold last year leading it to report large losses. All stores will initially remain open while a buyer is sought for the business.
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As reported last month, Internacionale did succumb to administration with the appointment of PwC. It had been hoped to keep all stores open while a buyer for the business was sought, but as of March 24, eight stores had been closed with the loss of 91 jobs.
Shopper confidence is improving on the high street, as shown by IGD research which reveals confidence is at a three-year high. Confidence has increased most rapidly outside London, with 20% of northern shoppers saying they will be better off this year compared to just 8% in 2011. Shoppers still remain cautious, however, embracing ‘savvy shopping’ habits developed during the recession.
Next month will see the roll-out of pop-up shops across Old Street, Piccadilly Circus, Baker Street, and St James’s Park tube stations as Transport for London uses its vacant retail space for new purposes.
Figures from the British Independent Retailers Association and LDC reveal that 44 independent shops opened every day in 2013 as small businesses replaced contracting big chains, which closed an average of 16 shops a day.
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Making informed decisions to better your brand offerings to consumers |
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Posted At: 10 March 2014 00:50 AM
Related Categories: Retailers |
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It’s no secret that High Street retailers, both small independents and larger corporations, are struggling in the current post-recession economy. The rise of digital and e-commerce also means that many retailers need to re-consider their offerings to customers, taking into account particularly ease of use, convenience, quality and pricing.
A great example of this currently is Superdrug. The retailer celebrates its fiftieth birthday this year, and to mark the occasion they are due to open up three new store formats. The new formats are initially trial based but if successful, will be rolled out across the UK.
The first concept is a beauty store, initially opening in Cardiff, offering cost effective, quick and easy beauty treatments. These will include eyebrow threading, manicures, pedicures and so forth. Superdrug bosses claim they have identified a lack of these stores on the current High Street and there is strong customer demand for such stores. If this trial is successful, Superdrug will look to open between 20-50 beauty stores in the UK.
The second concept is pharmacies within doctor’s surgeries, again offering convenience to customers. Superdrug realise their in-store pharmacies are not convenient for every type of customer, only those willing to travel into town centres. By offering this service they are widening their potential shopper reach by demographic and geographic location.
The third concept Superdrug will be trialling are well-being stores, aiming to strengthen their competitive positioning against Boots. These stores will offer healthcare services, such as consultancy and health checks.
The above multi-million pound format investments will also include bright and colourful store designs, allowing Superdrug to stand out against all other competitors on the High Street. Superdrug claims the designs will resemble ‘candy stores.’
In addition to the above store formats, new technologies are also being trialled at various other Superdrug stores. These technologies include: magic mirrors that take pictures of customers, allowing them to change their hair colour, aiding in the decision process. It is also looking to expand its own-brand products and also integrate smaller, more ethical suppliers into their in-store and online offerings.
Significant changes to retail offering like the above can be daunting for a brand, especially when the market is so uncertain and success isn’t guaranteed. There are multiple factors to consider when making decisions to make sure that they are the right ones for you and maximise your chance of success.
However, in light of the competition from online and out-of-town retail, innovation on the high street is needed. Retailers need to think creatively about their offerings and positioning to give shoppers the reason to visit them. Cutting-edge market research and consumer insight from FSP can inform your decisions, including on location strategies and retail offering, to ensure you are maximising current opportunities and develop in an innovative, but relevant, way in the future.
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Retail Spotlight- Internacionale Collapses into Administration |
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Posted At: 04 March 2014 13:15 PM
Related Categories: Administrations, Retailers |
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Despite previous plans to expand the brand’s awareness and consumer reach, Internacionale have officially gone into administration after months spent battling closures across the UK, with PwC appointed as administrators. Read on for Snapshop’s overview of the brand’s trading history and highlights of where the cracks started to show.
At SnapShop we wonder if the struggling retailer has focused too much energy into plans for expansion, at the expense of developing its offering in existing stores. From early 2013, despite news of redundancies and store closures, the brand was still promoting its plans to expand in the UK and overseas. Perhaps an opportunity was missed to pause these plans and instead concentrate on ensuring existing stores and retail offering were right.
On 28th February 2014 Internacionale went into administration, appointing PricewaterhouseCoopers to handle the process. Despite Internacionale’s bosses’ attempts to implement a turn-around strategy for the brand, shareholders made the decision to enter administration early due to continued poor trading and increasing debt pressures. Around 1,000 jobs are under threat currently and suppliers of the retailer have been counting potential losses, totalling what is understood to be £12m for unsecured creditors.
Administrators have said that they are looking to keep the retailer trading for as long as possible and, while there is no guarantee that staff, suppliers and landlords will be paid for debts, PwC have said that any new contracts agreed will be honoured.
24th February 2014- Internacionale filed to appoint administrators.
23rd February 2014- Internacionale were poised to file for administrators to be appointed, due to bailiffs arriving at stores over unpaid rent and rates.
17th February 2014- It was revealed that over a third of their staff were made redundant, including several head office staff, in an attempt to cut costs and save the business. It was also revealed that one store in Swansea had been closed. Speculation mounted over the retailer’s future.
2nd August 2013- Internacionale bosses fought to keep stores open for the run-up to Christmas, arguing that the surge in sales could save the struggling brand.
15th July 2013- Internacionale went on a mission to find rent-free spaces and negotiate cheaper rates from landlords in order to be able to keep staff and stores open.
12th July 2013- Internacionale were bought out after threatening to fall in administration. As a result however, eight stores were closed and 1,550 staff had to be transferred or offered redundancy pay.
25th June 2013- Internacionale teeters on the brink, filing a notice of intention to appoint administrators.
19th June 2013- Plans were unveiled for a full store re-fit at Crawley’s County Mall, as part of wider initiative to increased brand awareness and appearance among customers.
22nd April 2013- Despite redundancies earlier in the month, Internacionale bought a new unit at St. Stephen’s Shopping Centre in Hull as part of an expansion plan.
9th April 2013- Against the background of expansion plans, this is when the cracks initially started to show for the brand, as eight redundancies were announced with members of Internacionale’s buying and merchandising team losing their jobs.
21st November 2012- Internacionale signed a 10-year lease for a bigger unit at The Centre at Livingston, as part of the previously mentioned wider initiative to expand.
9th November 2012- Internacionale announced their new TV advertisement launch. News also confirmed that 150 stores were to be opened in the UK and branches overseas were planned by March 2013.
29th August 2012- Internacionale’s second launch for their e-commerce site took place, as a development of the first website launch.
24th July 2012- Internacionale posted their business review, outlining that 15 stores had been opened, but four of the weaker stores were closed, resulting in an increase in trading figures. Plans for expansion were also outlined.
17th July 2012- Internacionale joined Festival Place and announced new store plans to offer clothing for girls aged 8-15 years.
3rd May 2012- Internacionale launched their first e-commerce website.
SnapShop subscribers can view Internacionale’s retailer profile, related news, accounts and historical financial standing, by visiting Retailer Directory.
Subscribe to SnapShop to stay up-to-date with retail administrations and receive the latest retail news. Register for a free trial of the service and to receive an information pack here.
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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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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 – October 2013 |
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Posted At: 17 October 2013 16:00 PM
Related Categories: Retailers |
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October has shown further signs of increasing optimism in the UK retail industry.
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Research from Deloitte shows that during the first nine months of 2013, the total number of businesses entering administration fell by 16.4% when compared to 2012. Of this, the retail sector saw a drop of 9.6%, from 175 appointments in the same period in 2012 to 142 in 2013.
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Quarterly ONS figures show retail sales have grown by 1.5% between June and September, representing the fastest growth since the start of the recession in March 2008.
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According to research from Verdict, fourth quarter retail spending is predicted to grow 2.2% to £88.4bn, with 3.2% growth forecast for the clothing and footwear sectors.
Indeed, since our last update in September, we only have two administrations to report. Collectables Retail appointed KPMG as administrators following sustained difficult trading, and Robbie Williams filed for voluntary bankruptcy to his men’s clothing line Farrell.
The UK retail property market also seems to be benefiting from this increased optimism, with research from DTZ revealing that during the first nine months of 2013, shopping centre investment transactions broke through the £3bn mark to reach £3.1bn. The transactions involved 52 shopping centres in comparison to the 29 centres transacted during the whole of 2012 which totalled £2.5bn.
Backing up the data is the aggressive expansion plans being announced by a number of UK retailers, both for the UK and internationally, and some retailers launching their debut UK stores ahead of further planned openings throughout the country.
SnapShop members can log on to see who’s new to the UK market and who’s on the expansion trail.
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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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Out With The Old; In With The Old |
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Posted At: 13 September 2013 00:00 AM
Related Categories: Administrations, Retailers |
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The recent news of Mostyns falling into administration for the second time less than a year after it was sold through a pre-pack deal, got the SnapShop team thinking about just how widely they have been used since the start of the financial crisis in 2008.
According to figures from the Insolvency Service, around a quarter of all administrations in 2011 were pre-packs. Around 85% of these were sold to parties, namely directors, already linked to the business.
Examples of retailers to use pre-pack deals over the past year include:
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Dreams which was acquired by Sun European in March this year in a £35m deal
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Internacionale was sold in a pre-pack deal to its former directors in July this year
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Walmsley Furnishings fell into administration for the second time in 18 months in November 2012 after a previously negotiated pre-pack deal failed to revive the business
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United Carpets was acquired by its holding company just hours after entering administration in October 2012
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Town Centre Restaurants immediately completed a sale to its existing management following the appointment of Zolfo Cooper as administrator in June 2012
It’s no wonder pre-packs are now one of the most controversial topics in UK business, with Mostyns and Walmsley Furnishings mentioned above both failing again after undergoing a pre-pack administration, and Internacionale now asking for rent concessions from its landlords in an effort to keep stores open until Christmas.
Supporters say pre-packs are a quick rescue of the company, securing jobs and providing a boost to the economy. On the other hand, critics argue that pre-packs often allow incompetent directors to resurrect their business through a buy-back, effectively “stitching-up” unsecured creditors to the business who lose out in the end.
Whether good or bad, the usage of pre-packs is rife throughout not just the retail industry, but the UK as a whole. It remains to be seen if there are actually any advantages to a retailer of the process, especially if the company fails not once, but two, three or even four times before the directors admit defeat.
Keep on top of the ever changing retail environment with SnapShop
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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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Is There Anything Tesco Can’t/ Won’t Do? |
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Posted At: 16 July 2013 15:21 PM
Related Categories: Retailers, Social Commentary |
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This month Tesco signed a deal to rent out the upstairs of its Stockton store to budget gym operator, Xercise4less, as part of its plans to downsize its larger stores.
The Yorkshire-based budget gym chain agreed a partnership with Tesco which will see large-scale gyms created within Tesco stores around the country.
With this latest venture, is there anything Tesco doesn’t or rather, won’t, do?
A quick look on the Tesco website shows that Tesco offers not only groceries and some of the more obvious goods, but also:
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Electricals appliances/ accessories (washing machines, cookers, cameras, tablets etc…)
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Home and garden furniture and equipment
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DIY and car accessories/ equipment
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Sports and Leisure equipment
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Banking
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Mobile phones and contracts
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Insurance
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Travel
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Opticians
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Photography (Posters, mugs etc… can be created)
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Floristry (with Interflora)
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Tesco compare – their own price comparison site
The list feels endless, and with a “cash for unwanted gold” service, there is undoubtedly no end yet in sight.
According to Retail Week, the grocer is already planning to open its restaurant Giraffe into some larger stores, as well as its coffee chain Harris & Hoole.
Tesco is also in talks with Sports Direct with a view to sharing mezzanine space at three of its hypermarkets, forming part of a new strategy to reduce floor space at its bigger stores as demand for many non-food items moves online.
Tesco offers everything you could possible need, as well as much you don’t, all in one place, in store or online, but what are the alternatives if your customers don’t want to be suffocated by the omnipresent supermarket, and what can be a limited choice due to their ever-increasing offering?
A quick look at SnapShop reveals:
Sign up to SnapShop to find the retail life beyond Tesco
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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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97p Land |
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Posted At: 15 May 2013 16:31 PM
Related Categories: Retailers |
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Poundland has cut its prices to 97p in a bid to undercut its 99p rivals. Is it really an effective tactic or does it conflict their entire branding?
The retailer has rolled out this new strategy in its East Ham, Dudley and Chelmsley Wood stores where there is direct competition from other low-cost stores.
Jim McCarthy, Poundland’s chief executive, told Retail Week that the move was part of the company's "competitor response" strategy.
He said: “It is those early weeks [when a rival opens] that are very important and if you can pop the balloon early we find that doing that rather than nothing at all is helpful“
Effectively it is 3% price slash per item and is perhaps bigger than some of the percentage cuts promoted by Asda/Tesco/Sainsbury’s. But seriously, is it something to get excited about? If you are like me, and don’t like to carry pennies, it might put you off.
Maybe this is something charities can be happy about, as the increased loose change might end up in their pots! What do you think?
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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 - March 2013 |
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Posted At: 21 March 2013 10:12 AM
Related Categories: Retail Statistics, Retailers |
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The much-anticipated Trinity Leeds shopping centre opens its doors today, 21st March, with over 120 stores, bars and restaurants. The centre has been designed to be one of the most digitally advanced shopping centres in the UK with free wi-fi, assistants with internet-connected iPads and large video walls operated by gesture recognition.
Otherwise, March has been a fairly quiet month with no reported administrations. Textiles Direct has, however, filed a notice to appoint administrators although this has yet to materialise.
Adding new product categories and formats is a way to differentiate from the rest of the high street. Burberry and Dior have announced plans to expand their luxury offerings in the UK with the opening of standalone beauty boutiques for their perfume and cosmetics collections on the back of the success of Chanel’s first beauty boutique in London’s Covent Garden.
Aurora Fashions has announced a big shake-up of its operations, splitting out Coast from the wider group and rebranding to Fresh Channel, over the next 12-18 months.
Waitrose has announced it is to open gardening shops outside 41 of its stores, and Next is to expand its Home & Garden format with the opening of its third outlet in Camberley.
Bluewater reported strong trading in February with a 6.7% rise in sales across its retailers, outstripping the increase delivered across the whole of the retail sector in February.
February’s online sales increased 13% year-on-year according to the IMRG Capgemini e-Retail Sales Index, with nearly all sectors reporting double-digit growth. Average spend, however, hit its lowest levels since October 2008. IMRG predicts that UK cross-border e-tail sales will reach £10bn during 2013, with sales across Europe predicted to reach €36bn.
A new report compiled by the New West End Company and Heart of London Business Alliance expects London’s West End spending to surge 25% to £12.5bn driven by Asian and US tourist shopping in the area.
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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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SnapShop Favourite News in 2012 |
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Posted At: 20 December 2012 00:00 AM
Related Categories: Retailers |
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SnapShop members follow their favourite retailers. In 2012 the most clicked news items from our SnapShop Alerts were:
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ASOS - Cocosa raids ASOS executive
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Victoria’s Secret - Opened its first UK store
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Guess - Added to its senior management team
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Blacks Leisure Group - KPMG appointed as administrators
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Krispy Crème - Expansion continues
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TJ Hughes - TJ Hughes plans to open 11 stores
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MBT - The UK arm of MBT fell into administration
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Sports Direct - Mike Ashley pushed Gilesports into administration
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ALDO – Brought its Call it Spring fascia to the UK
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Irregular Choice - Secured two new UK stores in Leicester city centre and in Camden
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Jack & Jones - Bestseller continues UK expansion
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Republic - Savills has been appointed to advise Republic on its expansion
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YO! Sushi - Plans to double the size of its UK portfolio by 2017
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Waitrose - Will up its store count to 600
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JoJo Maman Bebe - Plans to open 12 stores this year after like-for-like sales rose
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Costa - Opened 16 coffee shops in the two months before Christmas
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Jigsaw - CEO resigns
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Moda In Pelle - Is embarking on an aggressive retail push
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Jamie's Italian - Opened a new restaurant in Greenwich
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Clintons - New chief exec to re-brand Clinton Cards
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Crocs - Opened around 150 new stores this year
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Sony Centre - 16 Sony Centre operators fell into administration
ASOS made the top, with news that online retailer Cocosa poached a top ASOS executive to lead its business.
SnapShop allows you to keep up to date with everything that is happening in retail, whilst keeping tabs on key retailer developments.
For more information, or to discuss the changes, please contact Heidi Roberts on 01494 474740 or email snapshop@fspretail.com
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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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And Finally - Come on, keep up! |
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Posted At: 15 November 2012 00:52 AM
Related Categories: And Finally, Retailers |
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SnapShop has not had, for some time, an "only in America!” story, but you won’t be surprised to hear that it was an American who crashed his car into a house (having consumed a little more than is sensible) and offered the shocked family some pizza.
He’s obviously not up with the times; the thing nowadays is pizza and a film (good thinking Domino’s! - Ed). A further tie up with the new Morrisons online venture and we can ensure, this side of the pond, no-one is out and about, under the influence and in possession of pizza.
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And Finally - Surreal |
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Posted At: 19 September 2012 17:21 PM
Related Categories: And Finally, Retailers |
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We have learnt on SnapShop this month that Ann Summers has launched a reality app to enable customers to virtually try on underwear.
Having tagged along with the FSP crew to BCSC last week, the SnapShop team is fully aware that the evolution of Shopping and Town Centres is heading towards greater emphasis on leisure and F&B, but how about this; a whole host of entertainment doing virtually anything – trying on clothes, creating hairstyles, adding the perfect body double to your own head. And then how about virtually spending a fortune, whilst not touching your bank account? The opportunities are endless, but let’s hope Ann Summers goes no further with augmenting reality – some things are best left to the imagination!
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Who's next? |
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Posted At: 27 July 2012 16:36 PM
Related Categories: Retailer At Risk, Retailers, Social Commentary |
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JJB Sports…
Based on FSP’s multi–layered approach* to identify retailers at risk, which includes early signs like key staff changes, management re-shuffles and departures, to medium term dangers like decreasing market share/profits and store closures and re-enforcing that with financial information like gross profit and cash flow in its simplest form provide the navigation tools for a business.
While the rival Sports Direct has continued to make progress, these warnings are clear and have been around for some time:
• £24.7m loan from Bank of Scotland,
• fall in revenue from on-going retail operations for the 52 weeks to 29 January 2012 by £78.7m (21.7%) compared to the previous accounting period as a result of store closures
• like-for-like decrease of 13.1%
• rapidly falling P2 score indicating Very Worrying financial health
And now, the news that chief executive Keith Jones is stepping down with immediate effect is the latest in a chronicle of incidents (read woes!).
Over several years JJB has had three fundraisings and avoided administration twice. We wonder if the new chairman, US retail veteran Robert Corliss, has a turnaround strategy?
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
*As the performance of any business varies because of its size and sector, the FSP Retailer Risk prediction methodology can only be used as a rough guide to retailers in trouble. Financial Health is one guide in Retailer Risk
Elsewhere on the high street, Clinton Cards administrators have announced all remaining stores are to close by the end of the month, the government has announced a further 15 town centres that have been accepted into the Portas Pilots scheme, Max Studio have signed up to London Designer Outlet at Wembley, Vivienne Westwood is to open a store in St. Davids Shopping Centre, Cardiff, Juicy Couture has opened its new flagship store on London's Regents Street and is replacing its store on Bruton Street.
For more up to date news on retail administrations, new retailers and expanding retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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What to do in Brent Cross |
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Posted At: 14 May 2012 15:19 PM
Related Categories: Retailers, Social Commentary, Town & Shopping Centre Management |
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I might do a little bit of flag waving when the England team plays, and maybe a little bit of jumping up and down (at least metaphorically, if not physically) when the England team score a goal, but beyond that my interest in football is negligible on any scale. From this uneducated perspective, I am aware of two types in football; those that support Manchester United and those that don’t. However, whatever the type, fashionista is not a term universally applied to football supporters. Football strip is slippery, primary coloured and in the most part, unflattering. Quite frankly it looks good only on, well, athletic premiership footballers. And even then only when there really is nothing else to wear.
Arsenal supporters, who, by definition, are not Manchester United supporters, are presumably an untapped market of loose-walleted beings completely oblivious to the sartorial inelegance of the red and white kit. The club knows its market and is eager to please, relieving its fan-base of a little more cash in the process. In case you missed it, Arsenal Football Club has announced it is to open its first flagship store in a major retail location after securing a 2,270 sq ft first floor unit at Brent Cross Shopping Centre.
According to Retail Week, the shop has been benchmarked against sports brands to produce trendy merchandise. In red and white presumably? Narrows the market a little!
However, Brent Cross is, according to the Arsenal press statement, located in a traditional heartland of Arsenal support. Phew! Fortunately, Brent Cross has a substantial amount more to offer those who prefer their trendy merchandise in a delicate shade of blue or green.
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Growing Old Gracefully |
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Posted At: 12 March 2012 17:28 PM
Related Categories: Future of Retailing, Retailers, Town & Shopping Centre Management |
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Age. Sometimes having lots of it is good – think cheese, whiskey, doctors (no one wants a young doctor), and sometimes its bad – old cars, for example, are quite unreliable.
When it comes to retailing, I guess the jury is still out on whether age really matters; take Woolworths, 100 years of experience couldn’t save them. People were fond of them, sure, most of us had grown up stealing pick n mix from the local Woolies*, but fondness doesn’t pay the bills.
On the flip side there’s ASOS, just ten years old and turning over £165m. And catering to the most fickle market of them all; youth.
So, is it a big deal? Probably not to most. Knowing that Forfars has been baking since the 1500’s isn’t going to influence me when purchasing a pasty, and I won’t be going to D&A over Specsavers purely based on their ‘oldest opticians’ boasts, but it does provide some comfort to see ‘old faithfuls’ when visiting an unknown town or city.
I sometimes wonder if, in ten years’ time, there will be any grandma and grandad retailers left on the high street at all. As companies get taken over, department stores get purchased and renamed, and others simply fail to move with the times only to disappear, more of the old gets pushed out and more of the new comes stomping its big noisy neon feet in.
Life is moving quickly and trends have become fads – is the key to the future keeping things fresh and new, or will our inability to incubate brand loyalty encourage the manufacture of poor quality, throwaway products? And will we become ‘less British’?!
These things have to be considered. They should be considered. When you dismiss M&S as too ‘fuddy duddy’ and nip on over to Superdry, are you destroying English heritage or are you creating new?
I’m not sure, but I don’t see many retailers striving gain for loyalty; it seems like ‘sell, sell, sell’ to me, and to hell with longevity. Keeping things new and interesting isn’t bad, not at all, but it would be a shame to keep loosing traditions, bit by bit.
What do you think…? Comment below.
*Not me, of course, other miscreants
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Welcome to the Madhouse |
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Posted At: 08 February 2012 17:33 PM
Related Categories: Administrations, Retailers |
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Stocking brands like Calvin Klein, Nike and Lee Cooper at discount prices one might assume Madhouse would work well in the current climate, but their past has been anything but rosy; think rocky and you’re on the right track.
If you look back over just the last couple of years, it is not hard to spot the in-out in-out administration pattern
The original company, Cromwell’s Madhouse, had already fallen into liquidation in the summer of 2007, then 56 stores were saved from closing in February 2009 by Deluxe retail
And to top it all Madhouse fell into administration at the beginning of February and it was announced on Tuesday of this week they had been saved by an unknown! (in phoenix pre-pack style, SnapShop suspects the current owners)
Other big names doing the Administration Hokey Cokey include
Adams Kids
Au Naturale
Envy
Ethel Austin
Floors 2 Go
Officers Club
Past Times
Puccinos
To ensure our customers are kept up to date with all retailer status changes, we at SnapShop have created a nifty device called Alerts, enabling you to keep your eye on all new and expanding retailers, as well as administrations. To learn more, why not take a look at the Demo or speak to one of our friendly team
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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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Christmas Sales Commentary |
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Posted At: 24 January 2012 14:56 PM
Related Categories: Christmas, E-tailing, Retailers |
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The retail story of 2011/12 Christmas is less about sales and more about survival. Sales generally were better than in snow-struck ’10/11 but the number of retailers going into administration has been the highest since the ‘08/09 crisis. Few of the failures have been a surprise and sadly there is still a queue of struggling retailers.
The hard work and ingenuity of retailers maintained sales over Christmas but at the cost, at least in some cases, of squeezed margins. Financing the investment in the new technology that is driving market development and growth is challenging for all retailers, but especially for those struggling to service their existing debt. The threat of pure on-line to physical retailing is turning out to be less than envisaged a few years ago. On the other hand, the importance of all retailers having an effective on-line offering becomes ever more apparent.
Meanwhile, the knock-on effect on retail locations is still unclear. Retailing will continue to thrive beyond the 30 to 50 UK locations of interest to global retailers but its format and nature are not yet clear. That ultimately will be driven by the nature and scale of local demand. The challenge for asset managers is to be able to identify which of their occupiers is at risk, either corporately or because the rent to turnover ratio is unsustainable. Knowledge is indeed power and using that power effectively will mark out the best managers.
To access fully analysed Profit and Loss information including Financial Health indicators, along with downloadable officially filed company accounts and for regular updates on weekly, monthly, quarterly, half yearly and full year results, including total and like for like £ and % sales results, please subscribe to SnapShop
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Retail Spotlight – Peacocks calls in the administrators |
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Posted At: 19 January 2012 15:34 PM
Related Categories: Administrations, Retailers, Social Commentary |
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Despite reporting a like-for-like sales increase of 17% over the Christmas period, Peacocks’ problems ran much deeper – after months of struggle, Peacocks calls in the administrators making it the biggest retailer to collapse.
19/01/2012 – Peacocks collapsed into administration putting over 9,600 jobs at risk. Joint administrators from KPMG are trading the company while they look for a buyer. The Bonmarché business, which employs approximately 3,800 staff, has not entered administration and continues to trade
17/01/2012- Peacocks boss attempted to put together an eleventh hour rescue deal to save the retailer as the company's advisers filed a notice of intention to appoint an administrator, after talks to restructure £240m of debt failed
09/12/2011 – Peacocks was considering closing up to 200 stores, as it was seeking to reduce its debt burden
28/11/2011 - Goldman Sachs was in talks to take control of the chain and was in discussions to become the majority shareholder as part of plans to reduce Peacocks’ £240m debt pile
19/09/2011 - Peacock lenders appointed KPMG to conduct an independent review of the business
28/04/2011 - Allan Leighton was in talks to become Chairman of Peacocks, for a potential sale or flotation
18/04/2011 - Fast fashion chain launched a higher-priced collection of catwalk-inspired clothing with retail prices between £35 and £38
01/10/2010 - Peacocks cancelled plans for a sale as it failed to attract what it considered to be acceptable offers
31/08/2010 - Peacocks hired Goldman Sachs, and was looking at selling the chain for an estimated £500m-£600m, or refinancing the business
18/06/2010 - Chief executive Richard Kirk confirmed that a strategic review of the business has begun that is likely to result in the sale of the value fashion chain
26/04/2010 – Owners were considering a sale or refinancing of the value retail group
20/04/2010 – Value retailer relaunched its website
11/01/2010 – Retailer reported cracking Christmas, like-for-like sales rose 8% in the eight weeks to January 2, with a 17% spike in December and early January. Total sales over Christmas rose 13%
16/12/2009 - Peacocks has taken a 10-year lease for 7,800 sq ft at £25 per sq ft at Newbury Retail Park in Newbury
4/11/2009 - Peacocks took 7,000 sq ft shop at Thornfield’s 1.6m sq ft The Rock scheme in Bury, Greater Manchester
9/01/2009 - Peacocks outlined plans to buy up to 50 shops from failed competitors
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
SnapShop subscribers can find more information like store numbers, quarterly and annual sales and latest news on the Peacocks Group and Bonmarché here.
Elsewhere on the high street, Pumpkin Patch UK arm went into administration while Primark’s sales surged over Christmas, ASOS reported strong Christmas trading, Q4 sales jump at ebay. For more up to date news on retail administrations, new retailers and expanding retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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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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Coffee Time |
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Posted At: 02 December 2011 14:35 PM
Related Categories: Retailers |
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Brains, a Welsh brewing company, is not necessarily the first name that springs to your mind when considering the proliferation of coffee shops on the High Street, but it seems that the good people at Brains have applied their mind to development opportunities and made a wise investment.
Coffee #1 is not necessarily the first name that springs to your mind when considering a cup of coffee on the High Street but believe me, they know their beans. To their regular customers it’s no surprise they won the 2011 Café Society “Best UK Coffee Chain” award. Maybe that’s why Brains decided Coffee #1 was a good investment opportunity. With a reported turnover of £5m and a store opening programme of two or three per year, the Welsh coffee house has expanded since first opening in Cardiff in 2001, to a chain of 15 outlets in Wales and the South-West.
Under the guiding hand of James Shapland, with a lively website, a good presence on the social networking scene, a very loyal customer base, and now the investment of a multi-million pound solid British company, Coffee #1 will be a force to be reckoned with on the UK High Street.
Not being based in the right area of the country, the SnapShop team has not had the pleasure of Coffee #1 yet, but we like what we’ve heard and we know where to go when we’re next out west.
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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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Retail Investigation - Best Buy axes 11 UK stores |
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Posted At: 07 November 2011 16:48 PM
Related Categories: Retailers, Store Closures |
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Following the recent news about the closure of 11 Best Buy stores the SnapShop team investigates what could have gone wrong? Is the market shrinking or did the concept just not appeal to the target market. Was the retailer thwarted by a global recession or can the failure be attributed to the cultural differences in how people like to shop here in UK or is it to do with the competition from discounters and online rivals?
When Best Buy initially laid plans to expand in UK in 2008, it had aimed to open 80 Best Buy stores across the UK by 2013 – but in the subsequent 3 years, things proved to be very different.
During its first full year of its operation the business lost £62.2m. In June it was reported that the retailer was on the verge of stopping further European expansion due to weak consumer demand and changing shopping habits. Roger Taylor, Carphone Warehouse’s chief executive had estimated that it would cost about £40m to exit property leases on Best Buy UK’s 11 stores. In February 2011, Best Buy closed stores in China and Turkey. It is now exploring ways to reintroduce the brand in China after it failed to get the right connection with the customer.
With decreasing disposable incomes, it seems shoppers have cut spending on discretionary items like electrical goods, but is this the case across the sector? SnapShop information shows a mixed picture:
Dixons Retail reported margins and underlying profit before tax, at £85.3m, maintained for the year ended 30 April 2011. Total underlying group sales down 2% to £8,154.4m (2010 £8,320.0m) and over 80 megastores across the group, including 40 in the UK and 25 in the Nordics were reformatted by peak 2011.
Homebuy achieved a turnover of £24.8m and an operating profit of £974,000 for the year ended 17th September 2011. On the other hand, Ask Electronics sales fell only by 6% for the year ended 30th April 2010, group operating profit fell from £388,925 to £227,088.
For the year ended 3rd July 2010, Superfi turnover fell by 1.2% and the company recorded an operating profit of £21,509 (2009 £152,043).
Anthony Chukumba, an analyst with BB&T Capital Markets said that Best Buy has made mistakes, by announcing its expansion plans so openly giving rivals the opportunity to respond. Dixons opened a series of megastores by combining its existing Currys and PC World outlets not only imitating Best Buy's strategies but often targeting similar locations, said the analyst.
The store closures puts 1,100 store jobs at risk, but the firm said it hoped to find the "large majority" alternative work. The closure of the Best Buy shops is not expected to bring to an end the Best Buy tie-up and it is expected that Best Buy will continue to supply gadgets to be sold in Carphone Warehouse shops.
For more up to date news, analysis and statistics on Best Buy and over 2000 UK retailers, 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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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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Retail Spotlight – Hub goes into liquidation |
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Posted At: 29 September 2011 14:34 PM
Related Categories: Administrations, Retailers |
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This week we heard news that R3’s Business Distress Index indicates that one in ten retailers believe they will enter administration over the coming 12 months, whilst Hub became the latest casualty as Rent Day loomed.
Following the collapse of the mid-market variety chain; we bring to you an overview of the retailer’s trading over the years and highlights of the collapse:
5/03/2010 – Poundland co-founder Dave Dodd revealed ambitions to develop a national 200-store mid-market variety chain. Dodd had plans to increase shop numbers to 30 by the end of 2012.
23/04/2010 – Retailer was looking to open its first two stores in Hark Group's Telford Shopping Centre in Shropshire and at Capital Shopping Centre's Arndale Centre in Manchester
16/07/2010 – Hub signed for the 10,000sq ft Telford store which opened at the end of August
5/08/2010 – Hub implemented an EPoS system that will support its expansion
26/11/2010 – Owner Dodd said that both shops were "trading very well" and said the retailer has "the potential for substantial growth".
6/12/2010 – Retailer announced second opening will be the 13,000sq ft flagship store in Manchester's Arndale centre.
28/09/2011 - Hub has collapsed ahead of the rent quarter day on 29 September. In total, 57 jobs across the firm’s head office and four branches have been lost.
Retailer Profile
Poundland co-founder Dave Dodd revealed ambitions to develop a national 200-store mid-market variety chain designed to be a general merchandise equivalent to TK Maxx. Merchandise included hardware, homewares, stationery, gadgets, greetings cards, electricals, toys, confectionery and fashion accessories.
There were four stores located in Manchester, Telford and Stafford. The first store in Telford opened in 2010.
It was announced in September 2011 that Hub had collapsed into administration.
As the 29/09/11 retailer’s website has not been updated with this information with a mention of retailer seeking to open new stores across England and Wales.
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September Rent Day Looms. . . |
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Posted At: 28 September 2011 12:16 PM
Related Categories: Administrations, Retailers |
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As the quarter rent day approaches on Thursday, SnapShop asks just how many retailers are going to hit the buffers this time? The March and June quarter days have already contributed to the collapse of high-profile retailers including Habitat, TJ Hughes, Jane Norman and HomeForm Group.
With sluggish high street sales, clothing sales volumes dropping, supermarkets raging an all-out price war to attract customers and consumers’ level of discretionary spending falling, coupled with a climb in the rate of inflation, there is a high chance that this day could trip a raft of retailers into financial collapse.
And it's not just the big retailers with multiple stores spread around the country that need to worry – the first victim of the quarter rent day is Hub, launched only last year by Poundworld co-founder Dave Dodd, which only had three stores on its collapse.
SnapShop is a useful tool for looking at the financial health of retailers, so keep a close eye here for all the latest news of retail administrations (and other news that’s not so gloomy) around this very important (and scary if you are a retailer) date.
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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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The only way is preppy |
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Posted At: 18 August 2011 15:00 PM
Related Categories: And Finally, Retailers |
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Oh no! Reality TV seems to have upset the aspirations of Abercrombie & Fitch. With a tight control of its merchandising and awesome marketing – how many other brands in the UK can claim national recognition with only one store? – A&F are slightly upset that their image is being tarnished by a certain Mr Sorrentino – he of the rowdy, hard-partying cast of MTV reality show Jersey Shore.
Well aware of the power of symbolism, A&F don’t want to go the same way as Burberry (uniform of the chav a few years ago) and Adidas (what else does one wear whilst rioting?!) and are seeking to persuade Mr Sorrentino to change his wardrobe.
The BBC have reported that the company “are deeply concerned that Mr Sorrentino’s association with our brand could cause significant damage to our image”
With A&F pushing their price point even higher in the UK, it’s going to be a nightmare for them if the cast of TOWIE sign for the next series, then take in Burlington Gardens on their shopping spree. With Mr Sorrentino being offered a financial incentive to change his t-shirt, perhaps the TOWIE guys will see this as one way of supplementing their appearance fee!
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Retail Insolvencies in Q2 2011 |
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Posted At: 28 July 2011 15:00 PM
Related Categories: Administrations, Retail Statistics, Retailers, Store Closures |
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According to recent report by PwC, the number of UK Company insolvencies fell in the second quarter but warned that corporate failures could rise in some sectors as consumer spending remains weak.
In total, 3,531 UK companies became insolvent in the second quarter, a 16% decline from the 4,216 failures in the first three months of the year, according to an analysis by PwC.
Some of the administrations noted on SnapShop for first half of 2011 were long-established high street chains such as Oddbins, Moben, Dolphin, Focus DIY, Habitat and Jane Norman, as well as some newer names like Georgina Goodman and Life & Style. Over the previous quarter, the number of retail administrations has gone down by 7% in second quarter of 2011 compared to first quarter of 2011 - a significant number of them were household names.
At the same time it was interesting to know that number of new retailers entering UK have increased by nearly 33% in Q2 2011compared to Q1 2011 along with an increase in number of retailers rescued in Q2 2011 compared to that in Q1 2011.
We were asked, if this is because landlords are working harder to help retailers? Well, yes and no. Landlords are well aware there aren’t too many retailers knocking on their doors. And some rent is often better than nothing also as Q2 takes in the period after the retail doldrums of February and March. Retailers having survived Q1, hope for better times. But Midsummer Quarter Day, rent day for the Third Quarter, is a day of reckoning.
Alongside this there was an affirmative research published by LDC showing no change from the occupancy level seen at the beginning of 2011, LDC suggests this is due to regional variations and a high volume of betting shops, supermarkets and charity shops opening across the country, and it also points to an improvement in the opening of independent stores.
Do you need to keep up-to-date with these trends and statistics? Please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
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Forget about the price tag |
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Posted At: 01 July 2011 12:27 PM
Related Categories: Retailers |
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The best thing since sliced bread seems to be, ummm, unsliced bread! Luke Johnson – finger in many entrepreneurial pies – has recognised this and is throwing his money behind Gail’s Artisan Bakery. With bread made from only the requisite ingredients: flour, water, salt and yeast, Gail Stephens hit on a formula that London chefs were crying out for – one which her ancestors could have told her was the only way! – and has now developed into a bakery and café concept with good expansion plans.
After years of the white, sliced, plastic wrapped loaf – courtesy of the Chorleywood baking process - Gail’s type of bread may be an acquired taste, but there are many keen to acquire that taste. Except, maybe, clients shopping at the other end of the scale, where the price tag is important.
SnapShop has today added Poundbakery. We all know the Pound shops work – there are 30+ retailers recorded on the FSP database whose names begin with Pound! Applying it to baking, with plans to take on Greggs, is almost a no-brainer. After all, except at Gail’s you can generally buy bread for £1. Poundbakery, like the supermarkets, even boasts of baking from scratch, but then the Chorleywood process introduced speed, enabling a loaf to be made from scratch in as little as 113 minutes! At Gail’s some loaves are left for 72 hours to rise – an appreciable difference, recognised in the quality, taste and price.
When it comes to bread, what’s your bag? Perhaps read this first, then decide: Chorleywood Baking Process
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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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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 –V8 Gourmet enters administration |
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Posted At: 20 June 2011 10:10 AM
Related Categories: Administrations, Retailers, Store Closures |
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Following the recent news that V8 Gourmet has collapsed into administration; we reviewed and updated the retailer records for group’s holdings on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
In January 2009 - Gourmet Restaurants Group - the firm behind The Bombay Bicycle Club and the Tiffinbites and Vama Indian Restaurant chains was bought by entrepreneur Anoup Treon
In August 2009- Celebrity Big Brother winner Shilpa Shetty announced a 33% stake in V8 Gourmet Group.
In Dec 2010 –Group instructed property agent Cedar Dean Gilmarc to sell 10 Bombay Bicycle Club outlets
In March 2011 - V8 Gourmet entered emergency talks with its lenders and investors after HM Revenue & Customs petitioned for it to be wound-up after falling behind on its debt repayments to Indian bank ICICI
In May 2011 - The Bombay Bicycle Club and Tiffinbites curry houses have been rescued from the brink of collapse for the second time in under three years
In June 2011 – Group collapsed into administration again despite receiving last minute backing from new investors. Investment group Calleon stepped forward to take on the business’ debt at the last minute, but despite best efforts. Joint administrators Nimish Patel and Finbarr O’Connell of Re10 are continuing to trade the business as usual. At present no changes are to be made, and administrators are working hard to secure the jobs of all 264 employees.
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 – V8 Gourmet
In January 2009 it was rumoured that Gourmet Restaurant Group were about to go into administration, however the group was bought by entrepreneur Anoup Treon in the same month. Gourmet Restaurant Group was rebranded V8 Gourmet Ltd.
The group, which operates 17 restaurant and takeaway sites across the Bombay Bicycle Club (BBC) and Tiffinbites brands, as well as catering arm Khana by Vama, Silk.
According to the most recent accounts filed with Companies House, the group made a pre-tax loss of £2.6m in 2009, with sales of £10.4m. It is thought V8 Gourmet was making a loss of £200k a month. V8 Gourmet Ltd entered administration again in June 2011.
Retailer Profile – Tiffinbites
Tiffinbites is an Indian restaurant offering faster, healthier dining with 4 outlets and concessions in Harrods & Selfridges across London. Tiffinbites and the Tiffin tin designs it uses for its takeaway service are trademarks of V8 Gourmet Ltd. It was announced in June 2011 that V8 Gourmet Ltd had entered administration. All outlets will continue to trade as normal.
Retailer Profile – Bombay Bicycle Club
The first Bombay Bicycle Club restaurant opened in Clapham 20 years ago and serves Indian cuisine. There are two restaurants in Balham and Holland Park and 15 home delivery kitchens which take orders via telephone or over the internet and deliver to set area in London. In July 2008, Bombay Bicycle Club became part of the Gourmet Restaurants group having been sold by Clapham House Group in July 2008.
It was announced in December 2010 that V8 Gourmet have instructed Cedar Dean Gilmarc to dispose of 10 outlets predominantly in London. In June 2011 that V8 Gourmet Ltd had entered administration. All outlets will trade as normal.
Related Blogs:
Life & Style in administration
Georgina Goodman goes into administration
Peter Werth & Pink Soda for sale
Focus in Administration – Updated
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Retail Spotlight – Life & Style collapsed into administration |
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Posted At: 10 June 2011 15:17 PM
Related Categories: Administrations, Retailers, Store Closures |
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Following the recent news that the fashion and homewares retailer Life & Style 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:
6/04/2010 – Life & Style Retail Limited was formed when Ethel Austin (comprising of 90 stores), the value chain and Au Naturale, was sold back to Elaine McPherson for a second time for an undisclosed amount by administrator MCR
19/05/2010 - Elaine McPherson, the former owner of Ethel Austin, has secured an injection of funds to launch Life & Style
04/01/2011 – Retailer signed a 10 year lease for an for an 8,700sq ft unit in Gallions Reach shopping park in Beckton, East London
08/01/2011 – Retailer reported to be on the brink of collapse after just over a year in existence
10/06/2011- Life & Style collapsed into administration and SKG Capital (headed up by entrepreneur Chris Althorp-Gormlay), the private equity business, is thought to be the frontrunner to acquire the retailer. Its banks appointed RSM Tenon as administrators. Loss of jobs (if any) was not clear.
21/06/2011 – Life & Style is closing 22 of it 150 stores and making 274 people redundant as administrators RSM Tenon continue talks with potential buyers.
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 – Life & Style
Life & Style was born from the ashes of Ethel Austin and Au Naturale, when the value chains assets were rescued from administration by Elaine McPherson in March 2010. It is a fashion and homewares chain which consists of over 90 former Ethel Austin stores. McPherson wanted to grow the business to 200 stores over the next two years.
It was positioned in the Lower Middle/Value sector of the market with a focus on Classic Safe fashion.
Related Blogs:
Georgina Goodman goes into administration
Peter Werth & Pink Soda for sale
Focus in Administration - Updated
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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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Swimwear Launch by Sainsbury’s |
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Posted At: 04 May 2011 14:00 PM
Related Categories: And Finally, Retail Marketing, Retailers |
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We are beginning to witness some creative marketing strategies by retailers. Following on from Bare Shoppers discussed in And Finally last month, we now hear that Sainsbury’s has launched a daring campaign for its TU beachwear. Models showed commuters the new bikini collection today on London’s Westminster Bridge.
News was unveiled soon after it was revealed in new data from Kantar Worldpanel Fashion that TU is currently seventh largest by volume, behind Marks & Spencer, Primark, Asda, Tesco, Next and Matalan. It has a 3.3% share of clothing, footwear and accessories and is gunning to become one of top five clothing retailer.
Swimwear and kaftans are forecast to be big sellers for Sainsbury's, with the retailer already seeing over 100% sales uplift in the category, which has expanded this year to offer hundreds of styles at prices starting from just £5.00. The new multi-million pound womenswear campaign premieres on TV today.
With all these outstanding performances we are sure to face great difficulty in selecting winner of our FSP Marketer of Year Award.
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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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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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The Shrinking Cadbury Bar |
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Posted At: 10 February 2011 12:53 PM
Related Categories: General, Retailers, Social Commentary |
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The famous Dairy Milk bar has been reduced in size by 20g allegedly for “economic reasons".
Cadbury has said that it had to reduce the size of the bar in order to avoid price increases.
The resulting downsizing means that a previously 140g bar of Dairy Milk (RRP 99p) is reduced to 120g with two squares also being removed.
Reasons for reducing bar sizes include:
· The price of cocoa is on the rise
· Healthy eating concerns promoting smaller portions
Cadbury also defended its decision by suggesting the new, thinner bar would “enhance the eating experience”.
However there are brand risks that could result from the decision, especially if the changes are not completely transparent.
Consumers are increasingly savvy thanks to social media sites where thoughts and opinions can be broadcast in an instant, and often directly onto a brand’s public profile page.
One of our more seasoned team members remembers a hullabaloo when a similar thing happened to the Crème Egg. Ever decreasing chocolate bars do not, however, result in no chocolate bars; they result in a new product – witness the Walkers “Grab Bag” of crisps and the snickers “Duo”. More content, heftier price and the resultant health concerns So reducing the size of a chocolate bar might seem a quick fix with justified reasons of overhead costs increasing etc… but the consumer perception can be very different resulting in severe repercussions for the brand.
Other Shrinking Products include:
· GU's 'Cheeky Pots' of chocolate desserts are now 45g, compared with a previous weight of 50g. The retail price has not changed
· Haribo’s Liquorice Favourites have gone from 175g to 160g.
· Pots of Muller Rice used to be 200g but now are only 190g
· Malteser bags now have fewer chocolates in them with the price also staying the same.
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And Finally - John Lewis staff teach police politeness |
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Posted At: 25 January 2011 00:43 AM
Related Categories: And Finally, Retailers |
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Following a survey which revealed that some police officers answer mobiles while talking to people or had inapt ringtones, officers are being sent to a John Lewis department store - to learn how to be polite to the public.
Superintendent Nadeem Butt from Greater Manchester Police came up with the idea to ask the store for help because their staff are so polite. He said: "The main thing is that John Lewis treats customer service as a skill. You could be the best salesperson in the country but you still have to have regular training."
Officers from Supt Butt's force will receive their politeness training from the John Lewis store in Cheadle, Greater Manchester. They will be trained to be more professional and considerate when dealing with victims of crime and witnesses. They are being taught to spend more time listening to people, to keep victims updated on the progress of inquiries.
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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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What is Tiger doing right? |
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Posted At: 13 January 2011 10:11 AM
Related Categories: Retailers |
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At SnapShop we regularly review our retailers to check the information we hold is still correct. I’m currently looking at Tiger. Ever heard of it? No, neither had I other than as a name on our database. But Tiger is quietly making waves.
Tiger is a value variety goods retailer which originated in Denmark and was brought to the UK in 2005 by Philip Bier. He is the local partner, sharing the business with Zebra A/S in Copenhagen.
With 8 UK stores at present, Tiger is continuing its store roll-out programme in Essex and elsewhere after securing a £350,000 Enterprise Finance Guarantee loan in 2010 from banking partner Lloyds TSB Commercial. It is currently looking to acquire three further sites in London. “Our plan is to have 18 stores by the end of 2011 and 40 by the end of 2012,” says Bier, who even includes a page on his website devoted to his store requirements.
Seems there is a space in the UK high street for the kind of retailer you’d never wax lyrical about but which serves some basic needs. Where did Woolworths go wrong?
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Animal – a customer service success story |
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Posted At: 06 January 2011 00:00 AM
Related Categories: Retailers |
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What does Christmas bring except over-indulgence and credit card debt? Returns of course! Retailers must hate this time of year, with some having to devote whole counters to queues returning their unwanted gifts - the “sell it on via eBay” faction not yet forming the majority.
With an unwanted gift from Animal clogging up the kitchen work top, no local Animal store and no eBay account, what was I to do?
I contacted the support service via the Animal website and before long had an email from Customer Service in Poole who advised me to call the store and arrange to send it back. This was not a situation the store were used to handling, but with assurance from Head Office and Tony Pryce Sport – who manage a number of the Animal stores – the very helpful assistant manager assured me I could return the unwanted gift and he would call me on receipt to arrange a refund or exchange.
The service was prompt, efficient and painless for me. This level of customer service is not always seen in retailers, so top marks to Animal. But this is also a sign that Animal have recognised a key factor in moving forward – the importance of embracing the multi-channel format. This has made my life easier and I will have no hesitation in shopping at Animal again.
Which retailers win your vote for customer service?
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Fourth time, not so lucky |
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Posted At: 01 October 2010 11:26 AM
Related Categories: Retailers |
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Retail Week report that GIVe has closed its Regent Street store. Having a space on the "Iconic Shopping Mecca" that is Regent Street just didn't seem to provide the right sort of 30+ woman. Seems the Bluewater store might be heading the same way. Makes me wonder how Benetton and Gap are faring so well, similarly located and targeting the same type of shopper, according to FSP's Customer Segmentation, but we, at SnapShop, are not surprised having been underwhelmed at the start.
A quick check of SnapShop shows that George Davies' company S'Porter is behind GIVe . Through FSP's monitoring of retailers on Companies House and analysis of financial health, we know that S'Porter's accounts to 2009 are overdue. Is it more than just a lack of 30+ women on Regent Street or is George losing his golden touch?
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Home Retail Group Results |
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Posted At: 10 September 2010 13:30 PM
Related Categories: Retailers |
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Home Retail Group, owner of Argos and Homebase, announced grim results yesterday which will most likely lead to a fall in profits in the first six months of the year.
FSP’s Managing Director, Geoff Nicholson, was invited to comment on these results on Radio 5 Live yesterday morning. Geoff made the point that although the results were not good, the market is extremely tough generally. Introducing the item, the presenters jested that if there are books to be burned (not a practice to be condoned), then the Argos catalogue would be one of the first choices. Geoff countered by pointing out the practical synergistic benefits to Argos of having complementary channels to market – catalogue, website and physical stores.
Keep up with the news on Home Retail Group and all your other favourite retailers, by adding them to your Favourites List and receiving regular alerts.
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Nothing Better To Do? |
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Posted At: 22 July 2010 00:15 AM
Related Categories: Retailers |
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Architectural foodsmith Sam Bompas spends much of his time fiddling with food. He and his mate Harry Parr particularly like Jelly - www.jellymongers.co.uk – and have obviously found a niche market of people with more money than sense and a distinct lack of realisation that it all goes the same way. However, they seem to be having fun and their jelly architecture is quite awesome in an absurdly frivolous way
Anyway, Sam’s taken a sideways step from jelly to jam and, with the realisation that the WI pretty much have the market cornered, has had to do a little bit of lateral thinking. Young Sam bought a hair belonging to the late Diana, Princess of Wales, from eBay, infused it with gin and combined it with milk and sugar. Hey presto, a jam that retails at £5 a jar. Currently only available at The Surreal House art show at the Barbican, but with a retailing trend for quick start, short lived pop-up shops, maybe in a shopping centre near you soon.
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A Vision in Green |
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Posted At: 21 July 2010 11:21 AM
Related Categories: Retailers |
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Back in March of last year, we pondered the idea of Liam Gallagher joining the long list of celebrities believing that the susceptible public would buy things just through association. OK, we’re converted. Seems he’s making a success of it and having to pop up a shop to cope with demand. Having scrolled through the comments on the Pretty Green site, seems that the inarticulate are defo gonna try and get down (sic). Shame you can’t respond to their enquiries as to whether you’re actually going to be there Mr Gallagher, or whether your temporary shop really will be gone again soon? I actually doubt that myself. Association sells, and there’s nothing like a perceived end to focus one’s mind. And then there’s the good old band-wagon – how many new openings at the moment are not pop-up?
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Roches, Faith, onward, the World! |
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Posted At: 13 July 2010 00:28 AM
Related Categories: Retailers |
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In trawling the FSP Retail Database to ensure SnapShop is up to date, I’ve noticed a bit of trend towards world domination by . . . . . Debenhams!
Some while ago, Debenhams took over the Irish Department store retailer Roches, but this wasn’t a new thing, even then. Brown’s of Chester were swallowed up on the 1970s. And not just in the UK either, with Magasin du Nord of Denmark now part of the group.
But not content with gobbling up independents, Debenhams is making headway with absorbing concession retailers too. When Mosaic Fashion hit the buffers in early 2009, the newly created Aurora Fashions washed its hands of Principles and Debenhams scooped up the brand name and stock. And just recently, Faith, following a very rocky history, has followed a similar path and Debenhams has picked up the pieces of concessions already trading in their stores.
Where next? With Morrisons and Peacocks taking a lead in dressing your spuds, should we be looking out for Tesco and Debenhams signing a pact for world domination?
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Bossy Boots and Spoil Sports |
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Posted At: 07 May 2010 16:57 PM
Related Categories: Environmental, Retail Suppliers, Retailers, Social Commentary |
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So, Poundland and B&M have been selling Boots’ products on the sly then eh? Tut tut. Although, not really, because it was completely above board and everyone involved was aware…anyway…
Apparently a couple of students from Aberystwyth University uncovered the ‘labeling scam’ - as its being called - after buying a body sculpting cream from their nearby Poundland and discovering a rogue label underneath the existing (why would a ‘couple’ want body sculpting cream? Was the girl just too afraid to break the story alone or what?). For some as yet unknown reason, the label was removed and the Botanics branding was revealed, causing the nation to step back and take a collective gasp of horror! Or not, because no one cares – probably due to some small election thing that’s happening, or maybe just because it’s massively irrelevant to most people, who knows.
So, what most people would have done is keep it to themselves – they bagged a bargain right? At the most, they should have maybe told a few friends to get in on the action. It was clearly not in anyone’s interest for this story to be leaked, and I am dismayed at the fact that they decided bypass both of these options and go to the papers, probably motivated by the thought of some, ahem, monetary remuneration, for their story. Honestly, is everything for sale now? Why couldn’t they just be happy that they’d been lucky enough to discover this amazing cost saving tip?
Yes, I’m sure at least one of Boots’ many millions of customers will be outraged to hear that they’ve been ripped off, but that same customer is probably a) not even in Poundland's demographic and b) a bit naïve anyway, since I find it hard to believe that any creams cost anywhere near the £8 that Boots were charging for the product in question to make. (Said customer should’ve watched Gok Wans beauty tests – they’re all basically the same, no matter how much they cost).
The only people who have lost out here are the consumers, because I’m sure that this practice will now be stopped. Boots were right to sell off their excess produce rather than dumping it the oceans like many others would, and the company to whom they sold it would have clearly had to ask their permission to rebrand it. Poundland have confirmed that the supplier have an agreement with Boots, so they were obviously completely aware of where this ‘excess’ stock was going, and have used the ‘should be going abroad’ line to save face.
What I find more interesting than this silly labeling story is the ingenuity of the Poundland business model, and the way they have been able to offer many openly-branded products at such a low price, completely legally without compromising on quality.
Rather than being painted as ‘criminals’ maybe the two retailers involved should be commended on their ability to ‘think outside the box’ in an effort to recuperate some cost, provide the customer with a lower priced item and for attempting to save the environment! Honestly. Some people spoil it for everyone!
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Hot Topic |
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Posted At: 05 February 2010 16:44 PM
Related Categories: Retailers, Social Commentary |
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You know, I can’t even remember how I stumbled upon this gem of a blog topic yesterday; I must have read something throughout the day that lead me down the long dark path into researching…self heating food products
Stick with me here.
You must remember those little coffee cans you used to be able to get at the supermarket – you pop a button in the bottom, give it a shake and hey presto you’ve got third degree burns and lovely nice hot coffee…? Yes, well, you can get food that does that now you know. Whole meals, in fact!
Actually, it seems like there is a whole sector out there based on the innovation, production and retailing of self-heating products, and its not a new thing. Self-heating food was first produced for mountaineers and explorers in the 1900s, and they even appeared in the rations available in the Second World War! Fascinating.
And it’s not just cans. Oh no. One particular company that I came across in my research has to get special kudos, for they have invented…wait for it… self-heating cups, fondue kits, ‘containers’, business lunch (??!) and 3 course meals. Bargan Innovation Production Group, if you’re interested. I wish we could post pictures on the SnapShop blog, because the picture of their self-heating 3 course meal is amazing.
As far as I could see, these meals were not in stock at any of the outdoor retailers on the high street, which is just barmy. Surely this sort of stuff would be great for the novice/lazy camper or unfussy festival goer? Blacks, Millets, Go Outdoors (they have pouches, but not the self-heating container bit I got with mine); none of them had what I was looking for. I’m sort of convinced that offering these a bit cheaper/as part of a festival/summer camping kit would be a great hit. Ok, so this is mainly my desperate attempt at linking this topic to retailing, but you know, its products like this that get peoples attention. I’d never heard of such a thing until stumbling upon it, and I’m sure the majority of non-hardcore-outdoor-types will feel the same – “I don’t know why, but I want some!” – so why aren’t they in stores? A bit of innovation might shake this sector up – especially when we all know you can get a tent just as good from Wilkinsons and Tesco, these days.
Finally, if you’re interested, a review of the products that I tested…
I ordered sausage and beans in a can from Hotcan and an All Day Breakfast pouch from Autochef.
The Hotcan was definitely the easiest of the two products to use, the cheapest (by 1p – both cost around £4), and the contents were edible. The method for activating the magic chemicals inside involves sticking a metal spike (included) into some holes and standing well back. It kind of sounded like the can might explode – some bubbling and hissing with rising steam was observed – but all was well! The contents didn’t get hot enough for me personally, but it was plenty hot enough to give you a nice hot meal in an emergency. All in all, 4/5 for the Hotcan I think.
The Autochef breakfast was a bit too fiddly for me to recommend in an emergency. The food itself comes in one pack, while the separate heating pack has to be activated with water (provided). You put the food in the hot pack and voilla! Although, be warned, the pack gets very hot and is not protected by cushioning as the can – actually, it got so hot I moved it out of the carboard box I’d stood it in into the metal sink, concerned that I may set the office on fire! Not only that, but leaning over to smell it (not sure why!) resulted in a nose scolded by the steam for intrigued JC, who also burnt her finger on it! I’d not be confident using this in a tent, or anywhere remotely flammable, although I’m sure it wouldn’t be on sale if such things could occur. The contents – pretty much the same as the beans and sausage, with the addition of some tofu-esque omelette and tasteless bacon bits. Alright, but you’d be better off with the straight sausage/beans combo. 3/5 for Autochef.
Bit of a random blog, I give you, and really only loosely related to retail, but interesting all the same, I hope!
Next mission; to find somewhere that still sells self-heating coffee/tea!
PS: One of our Directors did suggest he’d take 3 week old dead squirrel over our offerings, but frankly, that’s just a negative attitude!
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Christmas Sales Report |
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Posted At: 08 January 2010 11:58 AM
Related Categories: Retail Statistics, Retailers |
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The first round-up of our reported Christmas Sales was issued today, showing positive increases across all sectors for which results have been issued.
The clear leader this year as well as last, was clothing and footwear. Supergroup, parent of ‘now’ brands Superdry and Cult Clothing, have reported the best results so far, at almost a 30% LfL increase.
Online also performed well, with Dominos, M&S, Ocado and Shop Direct Group (operators of woolworths.co.uk) all reporting over 15% total sales change for the Christmas period.
To view the SnapShop Christmas Sales Report, click on the Newsletters tab from the menu bar logged when logged into SnapShop, or sign up to SnapShop FreeZone to get access to this report, and the next 3 updates.
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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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Old News |
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Posted At: 30 November 2009 17:18 PM
Related Categories: Retailers, Social Commentary |
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B&Q can teach us all a thing or two. I’m not talking in terms of sales performance – indeed, they were 4.5% down in the last set of results. No, I mean when it comes to employee relations.
A few weeks ago, B&Q celebrated the birthday of its eldest employee – Mr Sydney Prior, 95. He began working for the retailer at the tender age of 76, and works as a store greeter at their store in New Malden.
In fact, over a quarter of B&Q’s store employees are over 50; I don’t know of any other retailer who can boast statistics like that, do you? It’s an especially surprising thing to hear when you have the ‘hip’ Abercrombie & Fitch’s of the world worrying about employee image so much, and one that I highly commend.
Other B&Q staff incentives include featuring them in their advertisements for the last 12 years; launching a staff bonus scheme; and dishing out some Kingfisher shares.
Its nice to see a retailer realising the important of staff incentive and motivation for a change - and choosing to make head office staff redundant over shop floor workers – though unfortunate for the unlucky 40 or so who lost their jobs – is a refreshing response to the challenges of this tough market.
Well done B&Q – an encouragingly realistic view of the world at last.
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First Quench in Administration |
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Posted At: 30 October 2009 15:55 PM
Related Categories: Administrations, Retailers |
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First Quench Retailing, the UKs largest chain of independent off-licences, fell into Administration today.
The board confirmed that KPMG had been appointed, and that the business is current up for sale as a going concern.
First Quench Retailing was formed by the merger of Whitbread owned Threshers and Allied Domecq owned Victoria Wine in August 1998. This bought together Threshers Wine Shops, Drinks Cabin, Wine Rack and Huttons with Victoria Wine Cellard, Haddows, Martha’s Vineyard and The Firkin, most of which were rebranded to various “Thresher…” fascias.
It is thought that non-executive director John Cleland may lodge a bid for a scaled down version of the business.
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Borderline |
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Posted At: 09 October 2009 16:55 PM
Related Categories: Administrations, Future of Retailing, Retailers |
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I’m concerned about the UK arm of bookseller Borders.
When you read as much retail news as I do – in other words, lots – you start to pick things out. Sometimes its good things – the turnaround of New Look into a fashion behemoth, for example, but as is the nature of the UK press, you more often pick up on worrying signs...and Borders have started flashing on my radar.
Some Borders headlines from the past few months:
What do you see? Whatever it is, I doubt it’s good.
The first headline, in my opinion, is the most worrying; historically, retailers start turning to landlords in the weeks coming up to something desperate – like CVAs.
Focus entered into their CVA just 8 months after begging Landlords for monthly payment terms, while JJB had a similar history before theirs.
I wouldn’t want to be put in a similar financial category as either of those retailers, would you?
Borders seem to have exhausted most other attempts at a turnaround; no one wanted to buy the chain back in June, when a corporate finance house was appointed to assess sale options (a MBO in July doesn’t count); no one really cared about the proposed re-vamp (I say proposed because I’ve seen no evidence of it); and closing stores didn’t seem to help either.
Moreover, I question some expansion decisions the company have made in recent months. I’m not sure moving away from your core product line in times of troubles is a good idea – especially not when you’re extending to such things as online dating! You’re a book seller Borders! Stop trying to compete with those who can – and do! - do it better!
I don’t know, maybe its not desperation, maybe they just have a nasty case of Amazonitus, but whatever it is, it doesn’t seem particularly well informed to me, and I don’t think the signs are good at all. Dr SnapShop is predicting some very bad news on the cards for poor old Borders UK in the not so near future.
Tell us what you think; should Borders concentrate on rectifying their existing problems, or is moving out of the dwindling book market the only way they can survive? Comment below, by choosing “Comments” from the links!
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Regent Street GIVe |
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Posted At: 01 October 2009 12:49 PM
Related Categories: Retailers |
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Having only just posted a blog about GIVe, into my inbox popped a review of the first store by one of our very own FSP consultants. Read on.....
I visited GIVe on Regent Street this morning to take a look at George Davies' latest brand. Initial impression? Underwhelmed!
The range looks very disjointed with only 1 or 2 of each item on a rail. This lack of depth somehow lessens the impact of individual styles. Closer inspection reveals that the shop is merchandised by size within individual story groups and sizes are 1,2 etc in Roman numerals with signage to relate them to traditional 8 10 etc. So if it’s not on your size rail they don't have it - plus and minus for this (saves frustration of not in your size but surely restricts overall choice?).
The staff were strangely muted beyond hello and size explanation - surely there should be lots to talk about with this new retailer?
The clothes are OK but with no real sense of the much trumpeted affordable luxury and quite a few signs of the per una effect - appliqué on the skirt hems, belts included - that feeling that once the garment was finished someone said "I think it just needs something else".
Overall the look is pretty safe, with very little that stood out. Possibly the headline pieces have been snapped up or are lost within the wider range. Included in the things I noticed most were:
- some fine merino knits (á la Jigsaw and at similar price)
- lots of tailored trousers (instore alterations - a strong plus)
- a couple of black lightweight suits (not great fabric)
- some heavier knitwear across 3 colour palletes
- some interesting accessories.
Perhaps my expectation was set too high but there was nothing very different given by GIVe
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King George |
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Posted At: 01 October 2009 10:44 AM
Related Categories: Retailers |
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The undisputed king of the successful high street brand is so proud of his fourth incarnation that he’s crowned it. Yes, King George, with his pretentions to monarchy, has crown-like coats of arms emblazoned across his new website, and a right royal take on his name. George the Fourth (G IV quatrième concatenated) may have been better monikered as TAKe as he finds yet another way to relieve the poor unsuspecting shopper of her money.
Jealous? Well, maybe a little. After all, how can a middle aged jowly man have such a hold over the fashion conscious younger woman? But such is the way of the world and if King George can add a little life to the currently lacklustre high street, then all to the good. Especially as he seems to be promising a level of customer service which has disappeared from all but the very high end stores.
With GIVe already expanding rapidly, there'll be one on your high street soon.
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Super Massive Black Hole |
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Posted At: 29 September 2009 00:53 AM
Related Categories: Retailers |
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Poor old Blacks. Its not looking good for them is it, really? Just days after appointing administrators to its Sandcity division, it’s been rumoured that they are seeking a Company Voluntary Arrangement in a final attempt to turn things around.
The board division has been sinking (excuse the pun) for some time now, and attempts to sell back at the start of the year failed.
Our Financial Health Progression, based on BIS P2 health scores, shows a steady decline in Blacks Leisure Group's financial health from 2005 onwards, and in more recent months, things have gotten worse and worse. There has been a myriad of negativity reported in the press (profit warnings, banking covenants breaches) and bizarre attempts to rescue the chain (launching up-market fascias - ALS, anyone?!) have failed.
I suppose hindsight is a wonderful thing, but I believe the downfall of Blacks Leisure can be blamed on 2 basic things; their customer base is unreliable and they failed to review their SWOT analysis; their strengths remained the same but became outdated, they failed to grasp opportunity with both hands and the threats became too many...
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Product offering
Skate and surf fashion culture has declined from mainstream visibility in recent years, having had its hay-day in the 90s/early naughties
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Unstable factors influencing supply/demand
Bad weather, fluctuations in things such as the music industry, and recessions can all affect Blacks customers in a positive or negative way. For example, in 2006, there was no Glastonbury festival, instantly removing a potential 150,000 people from the customer pool
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Price positioning
Failure to respond to pressures from competitors; Tesco and Wilkinson’s have both increased market share in the outdoor sector, with both offering a much lower base price on basic essentials such as tents. While it is true that Blacks’ target customer is typically more affluent, there is no reason a lower-priced range couldn’t have been introduced to capitalise on the growing festival market – known for its dump and go attitude to camping accessories – 4. Failure to recognise opportunities
So what is the future? If the CVA is agreed to, around 80 Blacks, Millets and Free Spirit stores could be lost, along with up to 400 jobs. A sale of its 11 O’Neill stores currently in Administration is unlikely, considering no one wanted them back in February, and if the loss-making stores aren’t disposed of, Lloyds won’t waive the covenant breach that is soon likely. A lot of ‘if’s’’ in there, isn’t there.
Whatever happens to Blacks, I hope they remain in some way or another; there would be a huge gap in the market without them, and its not one that I really want to see Tesco fill – because lets face it, if anyone will jump at the chance, it will be them, and Tescopoly is already big enough, thanks.
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Marks & Vultures |
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Posted At: 22 September 2009 10:33 AM
Related Categories: Retailers |
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It’s a sad fact of life that most things have an expiry date; people, animals, foods and businesses. And when we/they/them expire, the remains are recycled – or at least assimilated into something else. In the case of businesses, I suppose it’s natural that when one company falls to the wayside, the useful bits are picked up by the lucky survivors…but some partnerships just make you go “eh?”
Case in point, Marks & Spencer…and pick n mix. M&S made no bones about the fact that they were adding pick n mix to the confectionary line because the closure of Woolworths had left a gap in the market, but I really have to question why they thought they would be the natural choice to fill it?!
Maybe perceptions have changed, but I’m under the impression that M&S has a fairly loyal customer base who like knowing what they’re going to get when they drop in and say “hi”.
I just wonder if any consideration for the existing customers, ranges or demographics was made before the decision to introduce pick n mix was made.
I don’t think anyone – customers new or old – would think ‘oh yes, I know where to get some pick n mix, Marks and Spencer will have some’! See what I’m saying? You’d go to Wilkinson’s or a cinema, or somewhere you associate with sweets – not posh M&S!
And yes I know its not just them, WH Smith are guilty of jumping on this one too, but I’m beginning to wonder if M&S are trying to make a living off other peoples success… for you see, they’ve also announced a foray into the personalised greetings card market!
I don’t think it’s a coincidence that this announcement was made just one week after market leader Moon Pig posted a double in pre-tax profits YoY, do you? I just don’t see where these things fit in, or what the point is in trying to take on a well established brand such as Moon Pig for what would essentially be a drop in the water to M&S in terms of profits?
Perhaps someone else can shed some light, because I certainly can’t work it out!
Shameful if you ask me.
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Coffee Chaos |
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Posted At: 10 July 2009 17:17 PM
Related Categories: Retailers |
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Last October/November time I wrote a blog about how great the coffee industry was, and how it was worth £x billion. Now, it seems, I am eating my words, for the cracks are starting to show, and what we expected to happen finally has; people are sacrificing their coffee in a bid to save some cash.
Poor old Coffee republic UK fell into administration this week, closing bars in Manchester, Richmond, Staines, Cheshire, Canterbury and 5 in London, and Starbucks are on the closure path too.
Share your thoughts below; I for one have stopped spending frivolously, and I do consider coffee a frivolity.
Sad times.
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Rearranging the Deck Chairs on the Titanic |
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Posted At: 10 July 2009 16:12 PM
Related Categories: Finance & Investment Management, Future of Retailing, Retail Property, Retailers, Town & Shopping Centre Management |
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A quick Google for the term “Save Our Shops” throws up 220,000,000 results in 0.29 seconds. The top results come in from The Evening Standard – championing the capitals independent shops; BBC iPlayer – re-running Mary Portas’ “Save Our Shops” series; and, interestingly, the Portsmouth Today newspaper site – which is covering the issue locally. These are just the top of the pile, for the list of people championing British retail in a vain attempt to rejuvenate the high street is seemingly endless. But why did it come to this?
We all know there is a recession going on – whether it is affecting us or not – but the problems were there before they were compounded by the current financial crisis. The rise of the clone town was being rebelled against; rents were increasing and people were aborting in-town shopping efforts in favour of the easier out of town retail park experience; all issues closely intertwined and ones that we are now facing the consequences of. And so the golden era of “build it and they will come” is well and truly over. If only the planners had listened sooner…
It’s not really fair to blame developers though. Developers, after all, respond to economic indicators which are essentially fuelled by our actions.
An element of greed is at play on both parts, but we should take some responsibility instead of blaming all and sundry.
It wasn’t just the banks – of Iceland, America or the UK - or Labour, Gordon Brown or Tony Blair – that got greedy, it was everyone.
Our celebrity obsession began to influence the decisions and aspirations we made and had; we became a consumer culture, punching well above our weight, and it was unfortunate that there was no ‘Big Brother’ around to say no when we asked for “more sir”. We got given credit that we couldn’t repay; we bought things that we couldn’t afford; and we artificially inflated the growth of the economy to breaking point. Quite literally. So, as an investor, a bank, a developer, why wouldn’t you take advantage? If the statistics are telling you to build, you build, and as our gold plated wallets got larger, so did the developments. Some may say that regeneration and development proposals became so large that town centres could no longer accommodate them, so they were sent elsewhere…somewhere ‘out-of-town’ (sure, it was all political). The clue is in the name. At the end of the day. it’s vain to argue that the capacity is there to support two healthy shopping destinations in one place. In most case, it wasn’t, and the survival of the fittest came into play.
At present, 65% of comparison goods shopping is done in town centres, 45% elsewhere; in 10 years time, it is expected these figures will do a flip turn. Basically, some town centres will die. Will we be upset? For a while…but people don’t like town centres – why would they? They’re not practical, and they’re full of people who hate shopping, so what will we be losing? A sense of community? Not really – when was the last time you went shopping and everybody knew your name? Its sad, but its industrial evolution, and at present, it doesn’t look like it can be avoided.
But, we can try. There are some cool initiatives in place – some councils and regeneration schemes, for example, are planning to buy up empty shops and letting them at a reduced price; resident-owned shops are springing up in an effort to revitalise ‘community spirit’; and entrepreneurs like Red or Dead footwear founders Wayne and Geraldine Hemingway are thinking up new, cheaper ways to bring retailers back to town centres, with things like their rent-free pop-up shops.
All is not lost, but a long hard look at the future is most certainly needed; jumping up and down screaming “save our shops” is not enough. Bandwagons are all very well and good, until the wheels fall off...
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This Town Is Nothing But A Ghost Town |
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Posted At: 23 June 2009 15:39 PM
Related Categories: Future of Retailing, Retailers |
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I was saddened by the news that Brinker International has closed all of their UK restaurants – officially confirmed at the end of last week – not least because this means the demise of one of my more recent favourite restaurants, Chilis.
Chilis was what I supposed can be described as a tex-mex style restaurant, offering the usual classics such as chilli cheese fries, burgers, quesadillas, and New York strip steaks.
I know you can get that stuff everywhere, but you know, sometimes you just find a place you like and roll with it. And besides, it was a bit more 50’s than, say, TGIs (I remember it having a black and white chequered bar floor, at least!) and I love all things 50’s.
I’m sure I’ll get over it, and it may even prompt me to visit some of the better, more classic American diners peppered across the UK. (The 50s American Diner, Swadlincote, Derbyshire; Nelsons Diner in Newbury, Berkshire; Woodies or JJBs, both in Brighton; or one of the Ed’s Easy Diners across London and the south.)
Hopefully, this sad news will also give some still-existing chains food for thought; if even an American giant like Brinker have given up the ghost, perhaps it’s become more important than ever to offer value for money, good service and a reason for your customers to return.
Interested in who you’re competing against? The advanced search features on SnapShop enable existing or prospective retailers to identify competitors and to keep up to date with the latest industry news. For more information about SnapShop, sign up for our FreeZone information pack, take a look at the demo or email one of the team.
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Give Me Some Credit |
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Posted At: 28 May 2009 15:10 PM
Related Categories: Finance & Investment Management, Retail Suppliers, Retailers |
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Although several major retailers now have finance arms, more than you think are embroiled in the race to lend us their cash.
Can you name which retailers offer credit cards? That’s credit cards, not store cards…
Tesco? Yup. M&S? Certainly…struggling? You’ll be surprised who else offers them; HoF, Sainsbury’s, Asda, Waitrose, Homebase, Bhs, Argos, Post Office, Debenhams, Sky and most recently…play.com!
Last week, it was announced that Play.com had launched its own credit card through MBNA, with an APR of 15.9%. As well as being a bona fide credit card – as in, you can use it everywhere, unlike a store card, which limits you to a store – it also offers a points reward scheme for avid spenders. In fact, if you spend £150 within 90 days, you’ll get 1,500 ‘points’! A tempting offer in the first instance, but when you look a bit further, you realise that that’s just a £15 reward! And what’s more, its fifteen extra pounds you have to spend with them. Doesn’t sound as rewarding as, say, Dorothy Perkins’ £5 voucher, 20% discount and free £7 top, now does it?!
Play.com chief operating officer Stuart Rowe said: "We are very excited about the launch of our Play.com Credit Card this year. The Play.com card will be another way of rewarding our customers for their ongoing loyalty."
What he really meant to say was "We are very excited about being able to legally trick people into spending a load of money with us for very little benefit to themselves but a whole load of massive money dollars for us! Har har, SUCKERS!”
Although, disclaimer time, 15.9% APR is quite good and I’m sure people who go for a play.com card will already be patrons of play.com anyway. Phew.
Anyway, fact is, I don’t understand why so many retailers are queuing up to give us money (if you pass the stringent credit checks – i.e don’t need it). I mean of course I understand, but I just think it’s a little irresponsible, and not what a retailer should be concentrating on at all. Sell me stuff, don’t be my bank manager…my finances are for me and him to worry about, thank you very much amen.
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Not So Bazaar |
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Posted At: 14 May 2009 11:26 AM
Related Categories: Retailers |
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This morning, while researching a different blog about cashmere childrenswear, I stumbled across something infinitely more interesting; the recent sale campaign from M&S. And it’s a good one…
Old Magic & Sparkle have decided to rewind time with an absolute stonker of an advertising campaign; a penny bazaar-style sale, set to launch next week.
The 125th birthday celebration will run from Wednesday to Friday, and will see 2 million products (a line of 20) on sale for 1p.
Beat that Poundland.
Marks & Spencer was founded with just £5 in 1884, and by 1915 there were over 100 stores offering haberdashery, hardware, household goods, toys and stationery at a fixed price of 1 English pence.
On offer in next weeks sale are socks, ties, cufflinks, purses, sweets and leisure items like beach balls; to my mind, that covers all the original categories, don’t you think?
Not only do I love the idea of penny bazaars and secretly hope they were a more enchanting experience than going to today’s 99p Store, I also happen to think this is an absolutely stroke of genius and take my hat off to M&S for donating all proceeds to their 125 Charity Challenge fund when lets face it, they really didn’t have to.
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Cheryl Cole for under £1... |
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Posted At: 09 April 2009 15:43 PM
Related Categories: Retailers |
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Just a short blog to keep things ticking over while we try and dig ourselves out from under the mounds of work that have buried us recently! Usual service will be resumed shortly!
The outlook for the Easter bank holiday long weekend looks grim. In my neck of the woods, the forecast currently sits at rain, rain, sun, rain. I suppose 1 out of 4 ain’t bad, though, and should the sun shine on Sunday, I expect a 99p bikini might come in handy...
Single price point variety retailer 99p Stores has launched a range of 2 piece bikinis priced at – surprisingly – just 99p. The range comes in eight different colours and is apparently part of a “Cheryl Cole for under a pound” range, which also includes a cowboy hat and flip flops.
A 99p bikini. Seriously. I am having a hard time getting my head around this one (no pun intended). My personal speculation of course…but how poor does the quality of the garment have to be, and how many miles does it need to be flown for it to be possible to make any profit at all on a garment retailing for 99p?
Apparently “the bikinis are made in the Far East and we [99p Stores] only use ethical factories in accordance with local laws and health standards", says 99p Stores Communications Director and Co-Founder, Hussein Lalani. I suspect the last 9 words of that sentence are ambiguous on purpose, but that’s all I’ll say on the subject!
As great as I think the 99p/pound shop concept is, I’m still not entirely convinced that I’ll be rocking a 99p bikini this summer; I’d be scared of it falling apart, if nothing else! I will, however, continue to get some bits and bobs from 99p Store, and am quite happy that poundland snobbery is being snubbed out!
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Put Yer Money Where Yer Mouth Is |
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Posted At: 19 March 2009 14:36 PM
Related Categories: Retailers |
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It’s no secret that our 21st century society is obsessed with celebrity. There are countless magazines, websites and even TV channels dedicated to spying on their lives, and the advent of the blog has propelled celeb-spotting to a whole new level. But it’s not just about watching them, its often about being them. And that’s where celebrity product lines, endorsements and advertising comes in.
As a nation we spend millions every year buying celeb-endorsed paraphernalia. Whether its clothing, mobile phones or even cars (Celine Dion…Chrysler…eh!?), most of us are influenced by the media enough that we will – consciously or not – at some point buy something linked to a celebrity in some way. There’s nothing wrong with that – I have some oversized shades that I’m well aware would look even more ridiculous had they not been ‘approved’ first by Jackie O, and now by pretty much every A-lister under the sun (see what I did there!) – but sometimes, you just have to question things. Katie Price (aka Jordan) launching equestrian-wear? Fern Britton advertising Ryvita? Liam Gallagher designing a clothing line…?
That’s right, the enterprising Mr Gallagher – famed for his style (not) has this week revealed that he will be ‘designing’ an “up-front straight talking, classic clothing range…”. Mmmkay. Apparently Pretty Green “will include classic designs across footwear, denim, knitwear, jackets, trench coats, parkas, t-shirts, hats, scarves and accessories; all subject to Liam's final approval.” So, er, he’s not actually going to be designing them then?!
So many things about this venture leave me speechless, and wondering who will buy the products? (I can’t imagine your average Oasis fan is that bothered about how they look) How will it be distinguishable from the rest of the, er, jeans and parkas out there? And when, in the name of God, did Liam Gallagher become a style icon!?
Honestly. It’s rare that I genuinely do not see the link between celebrities and what they put their names to (in a marketing sense) but this time I am utterly stumped. I thought the Gallagher’s were famous for being ‘well ‘ard’, for being from Manchester and for having big eyebrows, not for the way they wear their Manolos! Victoria Beckham he is not, and Victoria Beckham I just don’t want him to be!
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Is the name 'Brighthouse' ironic? |
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Posted At: 02 March 2009 15:00 PM
Related Categories: Future of Retailing, Retailers |
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Is the name ‘Brighthouse’ ironic? Because I can’t imagine your house will be feeling very bright once you’ve stocked up on useless crap and are hit with massive weekly bills that you can’t afford to pay…
I’ve had a bit of a bugbear with Brighthouse for a while now. I suppose its not just Brighthouse – many hire purchase stores operate the same lack of morals, sorry, I mean business models – but Brighthouse are the ones in the press. One of the ones doing well at the moment. One of the ones making a fast buck off the back of this whole banking disaster. And that’s why I mention them in particular.
Apparently formerly called Crazy Georges (presumable crazy old George came up with some crazy old payment terms and some more crazy people called George came and entered into these crazy agreements with crazy George and his crazy company), Brighthouse offer a way for people with poor credit to buy stuff. DING DONG, first alarm bell right there. I am aware that there are a number of reasons one might have a bad credit rating, but feel fairly confident in saying that mostly, its just cos they spent more money than they were able to pay back.
So that’s my first issue; it’s actually irresponsible lending. You don’t have to have a credit check, you just have to be able to prove your address and that you have an income and give them some references, who must promise to give them your new address should you move and *cough* fail to do so.
My second issue; the APR. Typically 29.9%, it’s actually not that bad, compared to the rates offered by similar ‘poor credit’ lenders, but it’s still not great, and there are hidden extras to pay…
Case in point: 1x Phillips 42'' Ambilight TV. Google Product Search brings it in at £868.70 (not even the cheapest price). Brighthouses cash price? £999.13.
According to the example on the website, over 156 weeks at £9.22 per week plus APR, the total ends up at a whopping £1438.32. But if you have the ‘optional’ service cover, which you pretty much have to have, because, er, they nearly always make you, the total looks a lot different…£2213.64. Isn’t that over 100% interest?!
These figures are on their website, so they’re not even being shy about the maths, yet people continue to go there and plough their money into products they just do not need. A comfortable sofa is nice, and a big shiny laptop really wouldn’t go amiss, agreed, but the products Brighthouse ‘sell’ are complete luxuries and actually, companies like this offering aspirational products to those who haven’t aspired to be able to afford them are just as responsible for our £x trillion worth of bad debt as the banks themselves.
Turnover at good old BH was up 18.7 for the quarter ended 28/12/2008. I can almost see their smug faces, grinning through the shiny storefront windows, reflected in the perfectly polished plasmas. Gets my goat it does, and there’s nothing that anyone can do about it.
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Charity Shop Chic |
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Posted At: 18 February 2009 11:45 AM
Related Categories: Environmental, Retailers |
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Charity shops date back to the 19th Century, when the Salvation Army began running second hand clothing stores to provide lower class urbanites with cheaper clothing. Their popularity increased during the Second World War as the efforts to raise money for the fight increased, and the first ‘modern day’ charity retail unit was opened by Oxfam in the 1940s. There are now over 7,500 across the UK, aiding charities such as the aforementioned Oxfam, British Heart Foundation, Bernados, Cancer Research and Help The Aged, amongst others.
While essentially the same ethos remains– selling contributed products and donating the profits to the specified cause – the nature of charity shops and their consumers has changed over the years.
Think charity shopping is all about tolerating that weird old person smell, and scrabbling through unorganised rails of lavender knit? Not really…
And as for the consumer…well, while 94% of the British public believe that charity shops are a good way to raise funds, and 78% have donated goods, historically, few would admit to having bought their wardrobe in the jumble. Until now…
Charity shop shopping has gone chic.
Reported in the news this week, £2,000 worth of Jimmy Choos left at an Oxfam store in Woodbridge, Suffolk, over the weekend. Unfortunately, it was just too far for me to travel, but never mind, it appears this isn’t a unique case! A quick Google brings up tens of stories about designer clothing being donated to charity shops across the country – shoes, clothes, accessories, you name it – and low and behold, the organisations in charge are catching on.
Oxfam now has three designer boutiques in London, specialising in second-hand designer clothing and items reworked by up and coming designers. And although the clothes in this boutique retail for more than items in traditional stores, the ‘charity shop chic’ trend is spreading across the country, with celebrity donations increasing the profile of the industry.
Coleen Rooney, Gwyneth Paltrow and Kate Moss have all donated items in the past, and apparently scouring the charity shops of wealthy suburbs is an age old secret of fashionistas on a budget. Having never been aware of the phenomenon before now, I feel slightly protective over my discovery, but nevertheless here are my top five shops in which to swag a bargain;
There are lots of articles on the web that containing lists like this so I won’t go on, but it is a genuine shock to me that you can find this stuff in those shops! Good job, celebrities and rich folk, more Jimmy Choos for meeee!
Finally, it goes without saying, a rebirth in popularity may be happening, but these stores still need people to donate – and not just designer goods either. The Association of Charity Shops website can help you find the shops in your local area, and provide guidance on what to donate.
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Costa Del Save |
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Posted At: 10 February 2009 00:21 AM
Related Categories: Retailers |
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To be honest, I don’t really remember much about Kwik Save. I remember the logo was red and white, and once seeing a line of ants marching up and down the sweet shelves (no joke)…but other than that, all I know is what I was told, and the reputation it had amongst my age group was not good, to say the least!
To put it into context, when I was a teen, Aldi had just opened the first massive shed of cheap German greatness in our town; Asda was a little less discount and I didn’t know anyone who bought food from Marks and Spencer! Needless to say, we were, and still are, a very working class community…but not quite as working class as poor old Kwik Save!
If you shopped a Kwik Save, you didn’t let anyone know it. The speed at which you carried that KS shopping from the car to your house was almost faster than that of light, and own branded products were quickly decanted into indistinguishable containers, the packaging to be discarded….
Ok, so that might be a bit of an exaggeration, but you get the idea!
I suspect this dismal reputation, alongside the aforementioned inclusion of ants in some sweet products, was a large aid to the chains eventual demise…which we all thought was final…until now.
It appears the red and white behemoth has made a return!
Where, exactly, do you think a resurrected Kwik Save could survive? The Internet, maybe? The Internet does has everything, but no, its not there. Or London, cos, you know, London is the place to be? Nope, guess again. Perhaps a place across the seas…where the tired and weary can go to feel young and beautiful once again…somewhere like…the Costa Del Sol? Indeed, good old ‘Save has been resurrected in Torremuelle, on the coast of Benalmádena, Spain.
Peter O'Toole, a former director at Irish grocer Musgrave, bought the rights to the name from the administrator and opened a 5,000 sq ft store in 2008. An expansion plan is apparently on the cards, and O’Toole says he wants to open at least 10 stores in the next 18 months through franchising.
Apparently it’s proving popular with expats, who can get the British produce they miss…not unexpected, as the Costas newest residents have a few things in common; neither are willing to grow old gracefully and both favour a fetching combination of red and white!
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Financial Health Warning |
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Posted At: 30 January 2009 11:13 AM
Related Categories: Retailers, Town & Shopping Centre Management |
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The consultants at FSP have been looking at the financial health of retailers and I thought I'd share with you their view of retailing At Risk.
Analysis by retail business consultants FSP shows that the financial accounts of 40% of multiple retailers, with a combined total of almost 13,000 stores, are Very Worrying. By linking these store locations, FSP has produced the first geographical assessment of the impact of At Risk retailers on towns and shopping centres. While the analysis identifies some regional and size related drivers, locally more complex factors are at play.
Companies have been identified as Very Worrying by applying the DIUS Wealth Creation Efficiency Ratio to the financial accounts of over 600 multiple retailers. All the recent failures of multiple retailers, bar one, had previously been classified as Very Worrying. The Very Worrying category includes all companies whose Value Added (sales less cost of bought-in goods and services) is less than the cost of staff and depreciation. With basic operating costs not being covered, these retailers are At Risk without continuing investment.
See the full press release, including Town Centres most At Risk here.
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Who ate all the pies? |
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Posted At: 12 January 2009 16:32 PM
Related Categories: General, Retailers |
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There really could be no other title for a blog about Greggs and good sales results, although come to think about it I don’t recall ever having a proper pie from Greggs? Steak bakes and mince pies sure, but not a proper round short crust pie? Please correct me if I’m wrong, it’s been a while since my conscience has allowed me to go through those pale blue doors!
Anyway, defiant against the gloom, Greggs posted like-for-like sales results of +5.3% for the four week Christmas period, adding to a half year increase of 6.6% on total sales.
The strength in Greggs lies in people’s stupidity. I have proof of this: MacDonalds have reported record figures for the year, while Dominos have posted an 18.4% increase in sales in the 12 months to the end of 2008.
...now, call me cynical and everything, but since when did McDonalds, Greggs or Dominos provide a financially viable alternative to getting off your fat arse, buying some bloody vegetables and a cheap cut of meat, and sticking it in the oven for a few hours?
A large Big Mac Meal; £3.59. A stew pack of veg, stock cubes and some chicken breast pieces, £3.53 (Sainsbury's). A Big Mac Meal feeds one, this chicken casserole would feed 4.
Its not even about nutrition, it’s about a lack of understanding of the value of money. If living on my own and managing my own resources has taught me anything, its that you can stretch your money far and wide as long as you keep a grip on the way that you are spending.
Add up all those sausage rolls (which, by the way, used to be 40p and are now almost double that price!) and milkshakes, and you’ve probably traded away a days worth of healthy food for a few hours worth of full stomach/sugar rush.
I’m not saying that you can’t have a sausage roll for Christ’s sake, but I am suggesting you remember that age old phrase “it all adds up”...
Unless, you know, you want to forget about the credit crunch, in which case fair play, continue as you were (and order me a medium Pepperoni Passion while you’re at it!)
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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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Mum Says Its Just Magical! |
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Posted At: 17 December 2008 15:40 PM
Related Categories: Retailers |
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Unfortunately, getting a ‘research day trip’ to Hamleys signed off was too difficult, so I’ve had to rely on my spectacular imagination and some hardcore internet research for this blog. Even with all my resources, it’s quite hard to write about a place to which you’ve never been, so I’m just going to imagine Hamleys is that big store (FAO Schwarz apparently) that Tom Hanks goes to in the film ‘Big’. Here goes…
For a store that was established over 200 years ago, has carted deliveries around – literally – by horse, suffered fires and closures along the way, and been bombed no less than 5 times, Hamleys isn’t doing bad, is it?
Hamleys founder, William Hamley, was born in Bodmin, Cornwall, and opened the first incarnation of Hamleys - Noah's Ark – in 1760, just before the industrial revolution of 1780. Before the IR, many people made their living within agriculture, craftsmanship or from manual labour, and I’m guessing that merchants like William Hamley were more likely middle class than working. Even within the middle classes, I can’t imagine there were many men around in the 18th Century who were toy shop owners, especially not in Cornwall, so it was only natural that Hamley would move his operation to London, which remains the home of the brand to this day.
Its not just one store though. Oh no….aside from the flagship on Regent Street, there are stores in 4 of the 5 terminals at Heathrow Airport, at Stanstead and Manchester Airports and at St Pancras International; concessions within House of Fraser stores in Glasgow, Belfast, Birmingham, Manchester and London; an outlet store in Swindon; a 3-storey site in Jordan and a 32,000 sq ft shop in Dubai! Sometimes, it seems, it pays to follow your dreams…
And that’s exactly the point of Hamleys, I think. It’s a dreamland, for kids and grownups alike. People like to play; on their own, together, in massive groups and across seas through the Internet, so why wouldn’t everyone love a store dedicated to messing around and enjoying yourself?
If you ever get to go to Hamleys – and everybody should (myself included) – then this is what you can expect across 7 floors of amazingness:
- Basement: geek games, like Lego, trading gards and computer game stuff courtesy of Game.
- Ground floor: stuffed and soft toys
- 1st Floor: board games, science stuff and a sweet shop
- 2nd Floor: Young childrens toys (preschool)
- 3rd Floor: Girly things…dolls, arts & crafts, dress up..pink stuff
- 4th Floor: Crafty-type things; model kits, remote controlled things and scalextric
- 5th Floor: and if you manage to get them this far…boys toys! Action figures, cars and things, and importantly, the café!
Personally, I think a Harry Potter floor would be a worthy addition (I suppose it could share with other films, if it had to) but other than that, it all seems spiffing.
Keep the dream alive, do some of your Christmas shopping with Hamleys this year. The world would be no good if all stores were sensible…
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Can you do all your Christmas shopping in one supermarket? |
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Posted At: 10 December 2008 00:47 AM
Related Categories: Retailers |
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With many supermarkets moving to position themselves as lifestyle brands, an important question has to be asked…can you do all of your Christmas shopping in one store? Not a department store; a supermarket. Case study here - because Britain is covered with them – Tesco.
Lets see. The average Christmas check list goes as follows: food/drink, presents, travel, party dress, cards/gift wraps.
Food
Turkey, stuffing, vegetables, gravy, xmas pud, nibbles and alcohol. We know that you can get all of that at Tesco, so that’s one tick.
Presents
Kids, mum, dad, gran, granddad, brothers, sisters and friends (for the sake of…being able to do the post…I’ve been incredibly stereotypical in the gifts I’ve chosen for some of my fictitious family…)
For the kids, Tesco Direct provide action figures, dolls, gadgets, games, music and gift experiences. Check. (Tesco Direct DOES count, as there are TD kiosks within some Tesco supermarkets now)
For dads, there are things like cheeseboards, power tools, cigars, clothing – the trusty socks – and beers of the world. They’ll probably do for Granddad too, but if not, there are 11 paperback Alan Titchmarsh titles currently in the online book store to keep even the greenest of fingers happy (since my granddad had several allotments, I now assume everyone’s granddads have the same!)
Mum and gran…tonnes of perfumes/toiletry gift sets, makeup, books, clothes, kitchen appliances and homewares for the ladies (told you it was going to be stereotypical).
Brothers and sisters – see above, really, and include the top 20 chart CD, book and DVD offering, available in most Tesco Supermarkets.
For your friends, the sky is the limit. Literally. If you’ve surrounded yourself with people who like to throw themselves out of planes, a gift experience might be perfect; if you and your buddies like to hang out in McDonalds’ car park shining your bonnets, a range of car accessories will help you out; and if you just like to get drunk and/or play Scrabble, well Tesco’s got your back there too….
The experiment is looking good so far…what else is on the list?
Travel
Petrol, diesel, insurance – travel and car - walking, biking – check. Unfortunately, I’m not aware that you can buy train/plane tickets from Tesco yet, but give them time!
Party dress
Yes yes yes
Cards/gift wrap
Certainly
And pretty much anything else you can think of, including the kitchen sink, is attainable from Tesco this year. I can’t decide if it’s great, or absolutely terrifying, but it is indeed possible to do your shopping in a single store this Christmas. What are you waiting for?
Readers; how many stores do you hit at Christmas? Online, high street, indies…what’s your poison? And how long do you spend doing the dreaded ‘Christmas shopping’?
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Gobble Gobble Gobble |
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Posted At: 08 December 2008 14:59 PM
Related Categories: Retailers |
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Its no secret that what with this Credit Crunch and everything, retailers are fighting tooth and nail for every penny they can get out of us; BOGOF’s, discounts, and loyalty schemes are all over the place at the moment, and across all merchandise categories imaginable. In food, the nature of discounting intrigues me. Why is it that supermarkets are able to offer, say, 3 joints of meat for a tenner on a one week promotion, and then stick the prices back up to a fiver each for the rest of the year? Surely this means that we are being ripped off the rest of the time? I can’t imagine the supermarkets have that many loss leaders, so it can only be that the price of the meat etc is no where near the price we pay for it on an everyday, general, basis? Interesting.
Being Christmas, the current supermarket marketing focus is on Christmas dinner. Christmas dinner is the one and only meal that I, like most, will not compromise on; I always demand sausage meat be stuffed in the bird (I’ve no idea why, since on an every day basis I don’t even eat sausages unless they’re Quorn ones!), my dad always wants lamb as well as cockerel (which we have instead of turkey) and my brother always asks for those devils on horseback things. But since I still go to my mothers for the holiday season, I’ve selfishly ignored the fact that all of these whimsy’s have to be paid for! How much does an average Christmas dinner cost, though?
According to mysupermarket.co.uk, the traditional Christmas meal will cost 7% more at Tesco and Asda this year, at £67 and £64 respectively, with the price of turkeys alone increasing 25.6% per kilo! £65ish is ambitious, by anyone’s standards. I’d say you can bump that up to £20 per head for Christmas 2008, and that doesn’t include the additional types of meat that my family have alongside the bird (at least 3). £20ph is not bad for a 4 course meal - you’d pay double that at a restaurant on the day – but when you consider we will have between 6 and 10 people around the table, it starts to get ridiculous, and discounts become important.
So what do the supermarkets have to offer?
Morrison’s are going down the old loyalty route, offering customers a £20 voucher when they spend over £40 per week for 4 weeks between November and December. Tesco are offering ‘all the trimmings’ (turkey, stuffing, potatoes, sprouts, carrots, gravy, Christmas pudding, custard and mince pies) for £7.93 per head, Netto are going one better at £6.47 per head, and I’m not really sure whats going on over at Asda! So, as always, there are bargains to be had.
As a side note; those of you who suffered a bout of nose turn-uppery when I mentioned Netto: ‘in a blind tasting by 150 people, Which? ranked both Netto's and Aldi's pies ahead of Tesco Finest's pies, Watirose All Butter pies, Sainsbury's Taste the Difference version and Harrods' Luxury pies, all of which are more expensive’. So there!
Go and get your bargains on! (And if anyone is splashing out on one of these – a TEN bird roast – please can I come to dinner?)
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Save Our Woolworths! |
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Posted At: 26 November 2008 00:16 AM
Related Categories: Retailers |
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The government’s budgetary shenanigans this week are aimed at getting people back out and spending their money – this logic defeats me when I’ve seen my weekly shopping bill rise by about 30% recently, a cost which will be largely unaffected by the reduction in VAT, it’s therefore STILL the case that I have much less money to spend this Christmas than I might have envisaged at the start of the year – and as with most things in the press, say it often enough (we’re heading for a recession, we’re heading for a recession…..) people will start to believe it. So maybe there are some out there who will suddenly believe themselves better off, but even they will have a “once bitten, twice shy” philosophy and will be looking for value for money. M&S may be thrusting a “one day only” sale at us every week, but everyone knows that for value for money, be it on household staples, school uniform or Christmas presents and glitz, Woolies is the place to go. A feature of just about every High Street, it’s the kind of place we might not recommend to a friend and we wouldn’t go out of our way to visit, but we’d miss it if it wasn’t there. Damned right we would! Surely, just like the odd High Street bank here and there, Woolworths needs saving?
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Dedicated Follower Of Fashion |
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Posted At: 22 September 2008 16:52 PM
Related Categories: Future of Retailing, Retailers |
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Reuters USA posted an interesting article last week about the slow in sales at traditional teenwear brands American Eagle Outfitters and Abercrombie & Fitch. These two brands in particular have been dominant in the teen apparel market of the States for a number of years, with their results usually giving a good indication of how the market is performing.
But things seem to be a-changing! As always, I think music can say it best…in 1999, LFO liked girls who wore Abercrombie & Fitch…while in 2008, Scouting For Girls like a girl who looks like them girls in Vogue. I think this conveniently highlights my point.
The increased focus on fashion for teenagers, driven through TV (The Hills), film (Bratz: The Movie) and magazines (Teen Vogue) is causing a shift in the tastes of young shoppers from the casual jeans and t-shirt styles of Abercrombie to the leopard print and leather loving fashion seen at, say, H&M.
As always, what happens in America is echoed over here in Blighty (what is it they say, America sneezes and Britain gets a cold?). The once popular Bay Trading has posted continuously poor results over the last few years; former value favourite C&A has disappeared from the UK (although they maintain a strong presence overseas) and New Look have severely ramped up their catwalk rip-offs over the last ten years. The ultra-hip Topshop and aforementioned H&M, however, got them some famous designers and celebrity endorsements to push their fashion credentials and have reaped the benefits with record results becoming a norm.
Personally, it worries me. I used to be quite happy roaming the streets (not literally) in my raggedy jeans, and I now get the distinct impression that the girls I see in town on a Saturday wouldn’t be seen dead in stonewash denim (not until next season, anyway – hot tip for you there ladies!), let alone an elasticated waist (my first pair of jeans – green denim, no less – were elasticated)!
It does make me sad, because being a young teenager should be all worrying about GCSC grades and how much you hate your parents, not chastising yourself for forgetting skinny is out and bootcut is in...
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Take A Break From Scientific Research |
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Posted At: 11 September 2008 14:10 PM
Related Categories: General, Retailers |
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The main focus of the news this week has been about this ‘big bang’ research that’s been going on over in Geneva. For those of you that have actually been in a black hole over the last few days, some scientists are trying to recreate the first billionth of a second after the earth’s creation by whizzing some protons around tunnels underneath the Alps.
This, in my opinion, is valid research; sure, a few nutters (ok, ‘rival scientists’) around the world thought that the experiment might bring about the end of the world, but as it goes the machine was switched on and we are still here, so hopefully the study will bring about some valuable results when its all said and done.
Some research that I don’t feel is as valid, however, is the 9 months that it took Asda to figure out that a combination of oats and honey would provide a biscuit that’s able to stand up to the rigorous ‘dunking’ habits of the British nation.
Apparently inspired by comedian Peter Kays infamous “dunk me! Again!” sketch, Asda spent 9 months – yes, 9 months – testing their recipe against competitors’ best sellers, such as McVities Ginger Nuts, Digestives, Hob Nobs and Rich Tea. Well, any fool will tell you that you don’t dunk a Rich Tea! They’re like kitchen towel – in taste, texture and absorbency – however I would’ve thought a Hob Nob would hold its ground? I digress. Point is, I was taught how to make flapjacks at school when I was about 13, and it took me about 3 seconds to deduce that the ultimate dunker recipe would consist largely of the main flapjack ingredients of oats and honey. So why did it take Asda – the chain that brought us such gems as ‘Asda Whatevers’ (Love Heart sweets stamped with words like Minger, Chav, Proper, Bothered and Whatever) – so long to figure this out?
Apparently some of the testers were construction workers, so maybe this has something to do with it? You see, the cookie has been designed as an oblong for the maximum mug-biscuit fit ratio, and honestly, when was the last time you heard of a builder getting the measurements right first time!
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Give A Little, Earn A Lot |
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Posted At: 29 August 2008 13:10 PM
Related Categories: Retailers |
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Newly inducted member to the British Retail Consortium, Aldi, is on an aggressive expansion drive as thrifty shoppers push up its profits.
Aldi currently has over 400 stores in the UK and plans to increase this number threefold; Buying Director Tony Baines says the group will continue to build a store a week until it achieves 10% grocery market share – bold claims and impressive confidence, but is it justified?
Since its introduction to the UK in 1990, Aldi’s reputation has been quite up and down. I remember the days of being in school and wishing hard that no one ever found out my parents shopped in Aldi! It was generally seen as the place where impoverished people shopped...and you know kids, God forbid your bread isn’t Kingsmill, your trainers aren’t Nike and your bag isn’t Adidas! But this reputation hasn’t harmed the deep discount retailer; its been growing profitably for over 50 years and Karl and Theo are in the top 20 of the Forbes Billionaire rich list!
Turnover last year was up 12%, and footfall to its UK stores increased 25% in just 3 months this year (March – May)! So aside from playground jokes, the reality is that Aldi represents great value for money and will become more and more popular as the credit crunch goes on. With 6 varieties of fruit and vegetables priced at 69p each week, more awards than you can shake a stick at and weekly special buys selling like hot cakes, all competitors can do is read it and weep.
All classes are out for a bargain but I have to ask…though we’re not kids anymore, I wonder if we’d still take along our Waitrose bags, just in case anyone saw us!
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Excuses Excuses! |
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Posted At: 22 August 2008 14:33 PM
Related Categories: Retailers |
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John Lewis revealed a fall in sales today - with a 4.2% drop for the week to August 16th - and was on hand with another corker of an excuse: summer exam results and the Olympics are distracting shoppers, apparently!
The SnapShop team have been noticing John Lewis’ penchant for contradictory claims for quite some time now, so I decided to put them together to highlight just how silly it’s really getting! Sack your PR woman, JLP, she clearly doesn’t understand continuity!*
Chronologically, running from January to August (roughly month on month), here’s what JL had to say on the back of announcing its sales results:
Negative sales: "the weather was cold”
Negative sales: “sunny weather keeping shoppers away”
Negative sales: “bad weather, mothers day and televised sport”
So…John Lewis prefers warmer temperatures, yeah? Let’s keep reading…
Negative sales: “school holidays and dropping temperatures”
Positive sales: “17.3% weekly rise helped by cool, wet weather”
I’m confused, they like the cold, then? Not exactly…
Negative sales: “unseasonably cold weather affected sales in many branches” as well as the London Marathon!?!
Negative sales: “comparisons against the previous year were tough, because the equivalent week was sunny”
Ok, ok, so it is sun that encourages John Lewis customers to spend some cash!? Er, wrong again.
Positive sales: “unsettled weather drove footfall and boosted sales by 9.3% for the week ended August 9”
And the most recent ridiculous statement to be issued, as mentioned above…
Negative sales: “summer exam results and the Olympics were a distraction for its [John Lewis’] customers”
I think what we’ve established here is that hot, dry, cold, rainy weather with no sports or national standardised testing make the perfect conditions for a top week of sales over at old JL!
I can only assume that JL shoppers have social lives, a cultural interest and relatively bright children; what are they thinking?!
*Not really, I’m sure she’s very good. And maybe not even a she. Maybe a he or a they. Phew, covered
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Trinny and Susannah Undress the Obesity Crisis |
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Posted At: 13 August 2008 11:15 AM
Related Categories: General, Retailers |
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This blog is going to be a bit controversial and a bit undecided, I warn you now. There are 2 opinions on the matter of Plus Size Fashion and I happen to agree with both!
Last night, I caught Trinny and Susannah’s ‘Undress The Nation’ on ITV1, which this week was focused around the fashion options available to plus size women. You have to say plus size really, you can’t get away with fat, obese or unhealthy on TV. Don’t get me wrong, I myself am certainly not, by any stretch of the imagination, skinny; in fact, a couple more dress sizes and I’ll be limited to ‘larger lady’ collections too. So, you see, its not like I’m trying to be biased or offensive…the difference is, I’m also not trying to say I’m normal or ‘fabulous’, as one women kept repeating on last nights show. I am overweight and unhealthy and I, granted, most of the time do not look good in current fashions! So what should I do? Should I stick to the dreaded ‘tent tops’ and wide leg trousers, should I wedge myself into a white pair of skinny jeans and deal with my highlighted lumps and bumps in the name of fashion…or maybe I should just lose some weight? No real answer to this question was truly given last night – possibly, because there is no answer or possibly, because ITV was too afraid of offending someone, who knows.
Trinny and Susannah have their heart in the right place (I’m a big fan, actually); they tried to get some young designers from the London College of Fashion to create their ‘big girl’ models some fashionable, flattering clothing, but I have to say they failed. All that was really offered were a few square neck pencil dresses in different colours, primarily of the same design. I don’t want to wear that every day either, thanks.
The retailers did their bit and joined in on the debate; Elvi and Evans turned up, as expected, along with a small number of representatives from other retailers such as Monsoon, but most were defensive about their collections and decision to stop at a size 16.
Even the retailers who offered an 18 and above got criticism; it was suggested that simply making one design in a wide range of sizes wasn’t enough and it should be adapted for the larger ladies unique figure.
One representative (from a retailer whose name I’ve forgotten, I think it was Zara) said it would take a whole new design, a whole new template and a completely separate production line to do this…so, a whole separate retail operation then? Like, maybe, Evans (part of Arcadia), for example?
I agree here that it really isn’t financially viable for the majority of fashion stores who already make quite enough money serving “size 10 freaks” (the [irresponsible] words of a woman on the show, not mine!) to add bigger sizes, and you have to wonder if getting the retailers to make bigger clothes is really the way forward. I don’t think it is. How about getting people to loose some weight?!
I know that there are legitimate reasons for obesity and I know that it’s bloody hard to shed the pounds, but trust me – and this is from one who knows – you’ll feel much better getting into that Topshop size twelve than if you had stayed big and waited for the Topshop ‘Big Is Beautiful’ collection*.
You might look alright in plus size clothing, but (and this is purposefully clichéd) you really won’t feel alright on the inside, and that’s what really matters.
*not a real collection!
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Retailer Profile: Gap |
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Posted At: 11 August 2008 15:41 PM
Related Categories: Retailers |
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Welcome to the first of what will hopefully become a new bi-weekly feature on the SnapShop blog!
In these Retailer Profiles, I hope to give you an overview of some of the worlds biggest and best retailers. If you have an idea of who you’d like to see featured next, please email me or post a comment below!
This week, we look at Gap.
Company Overview
Gap is an international retailer of menswear, womenswear and childrenswear with over 100 stores in the UK. It is positioned in the mass sector of the clothing/footwear market, with focus on individual fashion.
Gap UK is a subsidiary of Gap Inc., which operates a variety of brands such as Old Navy, Banana Republic and Forth and Towne across various territories.
Company History
1969: Gap established in San Fransisco
1970: Second store in California opens
1974: Own label merchandise launched
1975: Discount stores launched. You & You acquired.
1976: Company goes public on New York and Pacific stock exchanges
1977: Gap launches “Fashion Pioneers”, “Eaton Hill” and “Foxtails” labels and sub-brands “Brands” and “Logo”
1980: “Brands” and “Pants %ff” chains incorporated into “Tagg’s” chain.
2004: Gap founder Donald Fisher retires as Chairman and is replaced by Sebastion Gravano.
Launches, Failures and Successes
Over the years, Gap have tried and tested a number of different concepts and formats, some of which have been a resounding success and some of which, well, fell dead in the water!
Failures (to date)
Gap Warehouse
Brands
Hemisphere
Pants %ff
Pottery Barn (sold off)
SuperGap
Taggs
You & You
Forth & Towne
In August 2005, it was reported that Gap was to target the over 35’s with the launch of new chain Forth & Towne. The first of the new stores opened in the suburbs of New York, with around 20 stores following in the coming months. 18 months after its launch, however, Gap announced it had decided to close the chain to focus on its other brands. Some attribute the failure to the departure of Gap Inc. chief executive Paul Pressler, however sales continued to fall and the official story said the company was not "demonstrating enough potential" as a long-term investment
Successes (to date)
Gap
Gap Outlet
GapKids
babyGap
GapBody
GapMaternity
Love Me Gap
Love
Banana Republic
Piperlime
Old Navy
Starting life in around 1994, Old Navy is the more price conscious, fashion driven chain from Gap. Expansion and new launches including online exclusive collections have continued since the beginning, and online sales at the end of 2007 were particularly good. More recently, Old Navy has suffered along with its parent company, seeing sales plummet by 27% YOY (07-08), however there are no signs of another Gap chain biting the dust just yet with overseas expansion continuing.
Sales figures
Following the recent trand for negativity, Gap saw like-for-like sales fall back 11% in July 2008. Gap's net sales were down 5% to $998 million (£517.5m) for the four weeks ended August 2. Gap's international comparable sales, which include its UK stores, fell by 9% over the period against an 11% uplift in July 2007. Gap chief financial officer Sabrina Simmons said: "In July, we focused on clearing through remaining summer product and preparing our stores for fall deliveries. We're pleased that we delivered merchandise margins significantly above last year." Gap's second quarter sales for the 13 weeks ended August 2 also fell 5% to $3.5 billion (£1.8bn), with like-for-like sales down 10%. International comparable sales in the second quarter were down 6%.
Controversy
Most of the large name clothing retailers have, at one time of another, been accused of using child labour in their overseas production factories and Gap are no exception. In 2007, a British newspaper reported discovery of children as young as 10 sewing clothes for clothing retailer Gap Inc. in a factory in New Delhi.
Gap responded quickly, saying the factory was being run by a subcontractor who was hired in violation of Gap's policies, and none of the products made there will be sold in its stores.
"We appreciate that the media identified this subcontractor, and we acted swiftly in this situation," Gap spokesman Bill Chandler told The Associated Press on Sunday. "Under no circumstances is it acceptable for children to produce or work on garments."
Gap are known for its campaigns for social justice, so it appears that no one is safe from the claws of the British press – don’t worry Primark, you’re not the only ones!
Other, more ridiculous news stories, include;
Gap being sued by a 16 year old over “back to school adverts” in 2003*; A mother suing after her sons pants (which happened to be from Gap) set fire on a camping trip and Gap Inc settling a class action suit charging the retail clothing company with violating California labor laws by requiring employees to buy and wear Gap brand clothing and accessories while on the job (I wonder if those well-dressed folks at Dorothy Perkins get a clothing allowance...).
*After watching a Gap advert depicting children at school twirling around, jumping up and down, and generally enjoying themselves to a funky beat in the background, the prosecutor went to school full of high hopes for much new-style free soul dancing, community spirit, and trendy clothing in the new year. Unfortunately, his hopes were not realised and his efforts to start said joviality resulted in him receiving a punch in the face from an older student. The prosecutor is quotes as saying “When I got to school, there was no music in the playground coming from a mysterious source, and no-one was dancing. It was a shambles. I mean, what is this? And look at this uniform? My granny wears cooler stuff than this, dawg!";
For more information about Gap or any of its brands, visit SnapShop or the Gap website.
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