retail
Ikea is set to adapt its out-of-town stores to double as e-commerce distribution hubs. The furniture and homeware retailer has earmarked €1bn of the €3bn investment for London stores. Tolga Öncü, retail manager at Ingka Group, said that the move would lead to faster and cheaper deliveries, with lower emissions.
Leisure
Northern burger brand Fat Hippo could arrive in London, with further potential expansion plans for Wales and Scotland. The group has six restaurants in the North and Midlands, including Newcastle, Leeds, and Nottingham. It also operates concession stands in Manchester, Sheffield and Edinburgh. Further sites are planned for Glasgow, Edinburgh and Cardiff, with another site confirmed for Birmingham.
Property
Landsec has announced an improved performance from its ‘major retail destinations’ portfolio. Its new operating model has helped its major locations grow like-for-like sales by 1.1% last year compared to 2019/2020. Occupancy has risen to 93.2%. Major retail destinations, comprising shopping centres and outlets, make up 16% of Landsec’s total portfolio. Landsec said: “Inflation is putting further pressure on low-margin stores… Conversely, prime destinations are getting stronger. For many leading brands, online and physical channels are now viewed as firmly inter-connected, so we have seen existing brands upsize, new brands opening stores as they move from nearby locations to benefit from higher footfall, and digital-native brands opening physical stores to grow customer connectivity and experience.”
Tesco has agreed a deal with office rental company IWG to host workspaces within its stores. The first trial will begin at the Tesco Extra store in New Malden in south London. It will cost £93 for a membership of five days a month and £216 for a whole month, with access to private desks, co-working spaces and meeting rooms. If the trial is successful, the concept could be rolled out to other Tesco branches.
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