Retail
After a strong recovery post-lockdown, Kenny Wilson, CEO of footwear brand Dr Martens has said he can see the company doubling its global store portfolio in the next five years. The brand currently operates just 122 stores across the world, which put the business in a strong position when parts of the world went into lockdown due to the COVID-19 pandemic. Wilson said “We feel that for a brand as big as Dr Martens, 122 stores globally is a relatively small number. Would I envisage that we’d try and build that to 1,000 stores? No, I wouldn’t, not in the modern world. However, I could envisage Dr Martens doubling the number of stores over the next five years. There are a lot of cities around the world where we don’t have a store today. Major cities that we’d still like to be in”
Discount giant Aldi has made a public pledge to remove over 74,000 tonnes of plastic packaging from its product ranges over the next five years in a commitment to reduction of single use plastics. Items affected include swapping plastic wrapping on toilet rolls with paper, removing the second lid from creams and yogurts and replacing plastic packaging on food with cardboard.
Superdrug has extended its ‘Be Kind’ initiative, initially focused on reducing online trolling across its social media communities to ‘Be Kind, Shop Kind’ in a bid to reduce aggression against its staff. Aggression and bullying towards staff has increased 21% year on year during the pandemic as customers react badly to social distancing measures and rules about usage of face coverings.
Embattled department store Debenhams is the latest retailer to announce significant job cuts in a bid to reduce its cost base. 2,500 roles that had been on furlough until recently across its stores and warehouses will be lost, adding to the roles lost already this year. In total, a third of Debenhams roles will have been cut as the business faces deeper challenges brought about by the pandemic.
WHSmith has asked landlords for rental cuts as the effects of the pandemic continue to be felt by the books and stationery retailer. The business has drafted in a property advisor to help to renegotiate rent cuts from landlords across its 575 town centre stores and 560 units in travel hubs such as train stations and airports which have seen significant reductions in footfall. If negotiations fail it is likely WHSmith will have to launch a CVA in order to reduce costs. A spokesperson for WHSmith said “Like all retailers, WHSmith has been impacted by Covid-19, and footfall remains depressed,” WHSmith said. “We are working collaboratively with the vast majority of our landlords.”
Fashion brand Select announced it plans to launch another CVA, which is the third in as many years. The business has not been able to pay any rent since lockdown started. The retailer is working to secure rent cuts on its 180 UK stores
Luxury department store Selfridges has moved into cycling with the opening of its first electric bike shop within the Oxford Street flagship store. The Bike Shop will sell e-bikes, clothing and other equipment. With many still avoiding public transport, the popularity of cycling as a form of transport has spiked, especially in the capital.
High street stalwart Argos has announced that it will stop printing its famous catalogue after 50 years as the move towards online shopping makes them obsolete.
LEISURE
With many avoiding international travel due to the growing list of countries facing quarantine regulations, costal and country hotel have reported close to 100% occupancy for the whole of August. People are booking longer stays and are spending more during their break, which extends further than the top UK staycation destinations such as Cornwall and Devon. Managing director of Luxury Family Hotels, which has properties in locations including the New Forest, Bath and Cornwall, said his venues have 94%-96% occupancy for August. In a statement he said "We're seeing this up until the end of the school holidays, then we have quite strong business for the first two weeks of September before we go back to our familiar booking patterns. I do think a lot of people are waiting to the last minute to book because there's so much uncertainty out there."
Restaurants in London’s Soho have called to keep the alfresco revolution which saw Westminster council close several streets across the area to allow restaurants to serve more customers at outdoor seating. The move has been hugely successful and has gone against the low reopening rates seen across central London.
OpeningS and closures
Wren Kitchens has opened its 95th UK showroom at St John’s Retail Park in Wolverhampton. Lidl has reached the milestone of its 100th shop in London with the opening of a new shop in Beckton. William Hill to close 119 betting shops, the betting chain says it does not expect customers to return in the numbers seen before the pandemic.
PROPERTY
Manchester’s Trafford Centre has been put up for sale after landlord intu fell into administration in June. The centre, which is considered to be intu’s top asset was last valued at £1.7bn and is being sold by investment bank PJT Partners and CBRE.
Five prominent property trade bodies have joined forces to call for more support for the sector in the face of the COVID-19 pandemic. UKactive, BRC, British Property Federation, Revo, and UKHospitality have suggested a ‘property bounceback grant’ which would see the government covering half of the unpaid rents across the sector. The group say this move would help to avoid more job losses and would temper fraught negotiations between occupiers and landlords.
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