retail
The John Lewis store in Sheffield is one of eight sites the department store plan to keep closed, even after lockdown lifts fully. The closures are a response to the rise of e-commerce reducing the need for a physical presence on high streets. Executive board member Pippa Wicks said in a statement: “We and the council decided that the [Sheffield] store was not appropriate for the catchment.” John Lewis later clarified that it alone had decided to close the store.
The Competition and Markets Authority are likely to approve the Issa brothers’ takeover of Asda. The brothers planned to merge Asda with their existing petrol stations, along with acquiring Asda’s 323 sites. This led to concerns that petrol prices would rise significantly in some areas, leaving the CMA reluctant to approve the takeover until the investors offered to sell 27 of their sites. The Issas said in a statement: “Over the course of the past 10 days, we have been working constructively with the CMA to offer remedies to address the CMA's competition concerns. We are pleased to confirm that the CMA has indicated it has reasonable grounds to believe the proposed remedies are acceptable.”
Pret A Manger is set to open a series of shop-in-shops at Tesco supermarkets. The Pret concessions will serve food prepared onsite, as well as the chain’s selection of hot drinks. Chief executive Pano Christou said: “Instead of Pret following the skyscrapers, for us it’s about bringing Pret to the people.” The partnership with Tesco is a response to the drop-off in commuters to cities such as London and the expectation that working from home is set to continue.
Leisure
Prime Minister Boris Johnson has confirmed that indoor hospitality in England will reopen on the 17th of May as part of the third phase of easing lockdown restrictions. In Monday’s press conference, the PM confirmed that pubs and restaurants will be able to welcome groups of up to six people, or two households, to dine indoors. Hotels and B&Bs will also be allowed to reopen under next Monday’s rules. Wales and Scotland have also planned to lift restrictions on the 17th, but are expected to confirm the date this week.
Hospitality brand The Other House is set to launch two properties in London. The Other House, a collaboration between real estate investment advisors London Central Portfolio and Dutch pension provider APG, is set to offer a new brand of hotels comprised entirely of suites. Each property offers 200 one-bedroom suites, which can be connected to form two-, three- and four-bedroom suites. The brand has acquired sites in South Kensington and Covent Garden, both set to open in spring 2022. Chief executive Naomi Heaton said: “Our mission is to create spaces that enhance the overall guest experience and completely reinvent how people stay, providing a renewed sense of space, place, ownership and engagement."
Wendy’s has announced its expansion plans for the UK as it returns to the country for the first time in 20 years. The American burger chain ran 10 UK restaurants in the 1990s, which shut down due to high operating costs. They plan to return with a site in Reading in June, which will be followed by outlets in areas such as Oxford, Stratford and Croydon. A spokesperson for Wendy’s said: "The UK launch will spearhead a European-wide expansion as Wendy's looks to build on strong growth on the other side of the Atlantic, where the brand last year dethroned Burger King to become the #2 player in the US hamburger market."
Property
Ikea is in talks to take over the former site of Topshop’s Oxford Street flagship. The Swedish furniture and homeware retailer said it had drawn up a list of 40 major cities across the world to “introduce their vibrant, urban destinations”. They had previously been interested in other Oxford Street sites, including one left vacant by BHS.
Plans for the extension of Fulwood Central retail park in Lancashire have been greenlit by Preston City Council. The plans include a mixed-use scheme of retail, commercial and co-working space, along with a food hall. Austringer Capital’s letting agent, Stephen Perrett of Cheetham & Mortimer, said: “The large amount of new housing being developed around north Preston places the scheme in the heart of the customer base and this has led to strong interest from national and regional retailers, and leisure operators for phase two.” Work is due to start in summer 2022, with completion scheduled for 2023.
One of the largest mixed-use developments in Leeds is on sale for £33m. St Johns Centre, currently owned by the Cromwell Property Group, comprises retail, office and leisure facilities. Knight Frank’s Leeds office has been tasked with marketing St Johns. Graham Foxton, an investment partner with Knight Frank in Leeds, said: “We are very excited about the sale. Cromwell have been a worthy custodian of the scheme over the last six years and whilst St Johns has been a big part of my life and the most of the rest of the population in Leeds given its dominant location in the city centre, I am very keen to see the next stage of its development.”
Windsor Yards shopping centre has been bought by AEW Investment Management on behalf of Windsor’s Urban Retail Estate Strategy. In collaboration with the Royal Borough of Windsor and Maidenhead, AEW is engaging with local stakeholders in a bid to revive Windsor Yards. Nick Winsley and Charles Royle, Joint Portfolio Managers of UREF at AEW said: “Town centre high streets such as this in Windsor have undergone significant changes over the past 15 years driven by the continued closure of retail units, and the pandemic has only added to this fundamental shift… Windsor Yards is an excellent opportunity to acquire real estate in a prime location with the potential to transform the site into a modern development that can better meet the needs of Windsor, its visitors and its community.”
This week marked a series of shopping centre acquisitions across the UK. A private investor has bought The Swan Centre in Kidderminster, Worcestershire; Buckinghamshire County Council have acquired the Friars Square shopping centre from Patrizia; and a new joint venture between Quadrant Repurpose and LaSalle Investment Management has acquired Hersham Green Shopping Centre in Walton-on-Thames.
Openings and closures
Richard Falk, former head chef at the Dairy, is to open his first restaurant, Fork, in East Sussex; pub and bar operator New World Trading Company has announced the opening of its new brand The Furnace in Sheffield; Peruvian restaurant Andina is to open a new flagship site in London’s Shoreditch next week; celebrity chef Gino D’Acampo has partnered with Innside by Meliá to create a series of restaurants and bars inside its hotels, with the first launch at the Innside Manchester; Mark O’Rourke is set to open four new sites for his Fino Tapas brand, in Lancashire, Kendal and Chester; New York restaurant Sunday in Brooklyn is to open its first UK restaurant in Notting Hill; Big Mamma Group, the team behind Gloria and Circolo Popolare, are to open their biggest restaurant yet, Ave Mario, in Covent Garden.
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