retail
PM Boris Johnson has confirmed that non-essential retail will be allowed to open when lockdown ends on December 2nd. He will replace the national lockdown with a strengthened Tier system of restrictions, which will see tougher measures in areas with higher infection rates. Non-essential retail will remain open even in Tier 3 areas, which will come as a huge relief to retailers planning on making up for lost time during the golden quarter.
Edinburgh Woollen Mill brands Peacocks and Jaeger have appointed administrators as both continue to be hit by the challenges brought about by the COVID-19 pandemic. Combined, the brands operate 299 stores across the country employing around 5,000 staff. An Edinburgh Woollen Mill spokesperson said in a statement: “In recent weeks, we have had constructive discussions with a number of potential buyers for Peacocks and Jaeger but the continuing deterioration of the retail sector due to the impact of the pandemic and second lockdown have made this process longer and more complex than we would have hoped.”
Patisserie Valerie has agreed a deal with Sainsbury's which will see its products sold in 250 of its stores. This is the first partnership for the patisserie brand which faced troubles after an accountancy scandal in 2018. Products will be available in select stores from December 2nd.
Leisurewear brand JD Sports is considering making a bid which could save troubled department store Debenhams. JD Sports is said to be interested in ‘snapping up cheap space on the high street’ alongside acquiring the Debenhams website, which is one of the UK’s most popular shopping sites.
Stalwart footwear brand Clarks have had its CVA plans approved which will result in the retailer moving to mostly turnover-based rents and will open the door for investment. However, not everyone is happy about this news, with Revo boss Vivienne King and Melanie Leech both speaking out about the news with Leech calling it “everything that is wrong with UK insolvency legislation”.
Marks and Spencer will keep most of its stores open to midnight in a move to manage Christmas shoppers in a COVID secure way. A spokesperson has said that the move will ensure colleagues and customers have the time and space they need to social distance as shoppers stock up on last-minute food and gifts.
Healthy QSR brand Leon is considering a CVA as it announced that the second lockdown had seen sales fall by 70% compared to last year. The slower than expected return of workers into city centre locations has caused issues for fast food brands since March.
Leisure
Nightclub operator Deltic which operates the Pryzm and Bar & Beyond brands has said that it faces collapse if it cannot agree a rent-free period with landlords or find a buyer for the business. All 52 venues owned by Deltic have remained closed since March and with no information on when nightclubs might be able to reopen issued from the Government, Deltic is unable to plan for a grand reopening.
Property
British Land is planning to dispose of £650m in retail assets over the next 12 months, according to a statement from new CEO Simon Carter. He also spoke of potential plans to focus on mixed-use schemes and roll these out outside of the capital. He said “To take off elsewhere, we would want to be comfortable around regional economic growth in those areas. It’s not impossible, but we’ve got loads of opportunities in our development pipeline in central London. We will absolutely keep a really open mind about it; we’ll look for those fundamentals, but there is no big timeline.”
Nikal has agreed plans to fund a new £38m Premier Inn in Birmingham. The hotel will contain 235 rooms, a bar, a Block Steakhouse restaurant and 5,000 sq ft of retail units. Development director at Nikal, Darren Jones said: “We are so pleased to have concluded this deal bringing together willing stakeholders - Birmingham City Council, Whitbread, LaSalle Investment Management and our contractors McAleer & Rushe. We are delighted to see our vision and that of our architect, Stephenson Studio, come to fruition with this phase of Exchange Square completing in Autumn 2022.”
Openings and Closures
Modular budget hotel concept Qbic is opening a Manchester site - its second UK hotel next year, having launched in London seven years ago; The Pony and Trap in Chew Magna, Somerset, has announced it is to launch a second location in South Bristol.
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