Building Design & Construction - BDC’s Post

Really smart deal by Sainsbury's with a £130m investment in to 10 Homebase stores, taking existing retail space rather than trying to develop new… here’s why it’s a clever move: ✅ Adding 235k sq.ft. of net sales area in a single transaction - it's very hard to find new sites for supermarkets – most of them were taken by the traditional Big 4 operators during the 1990’s and early 2000’s… ✅ Development economics on brand new stores are also not stacking up (even if you could find the sites) – build costs have increased by more than a third in the last few years and coupled with wider valuation yields means it requires much higher rents to provide developers with sufficient profits ✅ Sainsbury’s expect the 10 sites to be open by the end of 2025 – 15 months from now – for new builds it would’ve taken years to get through the planning process and actually build the stores ✅ Allows Sainsbury’s to have a presence in areas they don’t currently cover… Shoppers typically won’t travel more than 10 minutes to a supermarket – they have identified 400,000 new shoppers within 10 minutes drive time of these new sites ✅ Securing the occupation of these sites when if they had been on the open market you would’ve expected competition from the likes of Aldi UK Lidl GB B&M Retail Wickes etc Having this kind of money to be investing in growth shows how strong Sainsbury’s performance is currently – they are really starting to see the benefits of all the investments that have been made in to cost cutting initiatives and the product range, which has seen them able to grow market share in one of the most competitive grocery markets in the world. Well done Patrick Dunne Jamie Cowen and the wider team 💡 https://lnkd.in/e7VtMune

𝐂𝐚𝐬𝐢𝐧𝐨 𝐬𝐭𝐨𝐫𝐞𝐬 𝐭𝐚𝐤𝐞𝐨𝐯𝐞𝐫𝐬: 𝐰𝐡𝐚𝐭 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐚𝐧𝐝 𝐬𝐨𝐜𝐢𝐚𝐥 𝐬𝐭𝐚𝐤𝐞𝐬 𝐟𝐨𝐫 𝐨𝐭𝐡𝐞𝐫 𝐫𝐞𝐭𝐚𝐢𝐥 𝐩𝐥𝐚𝐲𝐞𝐫𝐬? 🛒 The recent wave of Casino stores takeovers by French retail giants has raised a combination of both concern and optimism about the future of these stores. Indeed, these acquisitions have profound implications not only for the companies involved, but also for local communities and employees. Casino's store sales package included 288 Casino supermarkets and hypermarkets. Intermarché had agreed to take over 190 and Auchan 98. But for competition reasons, Intermarché will have to sell 25 stores to Carrefour, and there are still 26 stores for sale. 🧐 𝑨 𝒘𝒐𝒓𝒓𝒚𝒊𝒏𝒈 𝒄𝒐𝒏𝒕𝒆𝒙𝒕 In 2023, Auchan faced financial difficulties, looking for strategic solutions to relaunch itself in an increasingly competitive market. The purchase of Casino stores was part of the plan to revitalise the company. This underlines the challenges faced by the historical players in the retail sector in the face of the emergence of new consumption models and growing competition from online players. 💼 𝑺𝒐𝒄𝒊𝒂𝒍 𝒂𝒏𝒅 𝒆𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝒊𝒔𝒔𝒖𝒆𝒔 The takeover of Casino stores by Auchan, Intermarché and Carrefour is also raising social and economic concerns, especially for the future of employees and suppliers. In Montmorillon (centre west of France), 106 employees of the Casino group's Easydis logistics platform, threatened with bankruptcy, are worried about their jobs. Local authorities fear a "social tragedy" and warn of the potential repercussions for employment and economic stability. 🔍 𝑭𝒖𝒕𝒖𝒓𝒆 𝒐𝒖𝒕𝒍𝒐𝒐𝒌 With 26 Casino stores still to be sold, the question of their takeover remains a subject of attention for retail industry experts. Speculation is at its peak as to the potential buyers and the strategies under consideration to ensure the long-term future of these establishments. ↪️ To sum up, the takeover of Casino stores by Intermarché, Auchan and Carrefour represents a major turning point in the competitive landscape of French supermarkets. While these acquisitions offer opportunities for growth and consolidation for some, they also raise significant challenges in terms of integration, human resources management and the preservation of the local economic fabric. The future of these retailers will largely depend on the ability of the actors involved to meet these challenges and adapt to the constant changes in the market. _________________________ 👍 If you enjoy the news, don’t forget to ✨ 𝑳𝒊𝒌𝒆 & 𝑺𝒉𝒂𝒓𝒆 ✨ ➡️ For further articles, visit our website: https://lnkd.in/eUcpVQeq   #GreenSeedGroup #GreenSeedFrance #EnterFrenchRetail #FoodExpert #FoodMarket #Casino #CasinoTakeover #RetailRevolution #SupermarketShift

UK supermarket chain Asda has become the latest retailer to make a foray into house building after it said on Monday that it would develop a “town centre” in London, including 1,500 homes. Britain’s third-largest grocer, owned by the Issa brothers and private equity firm TDR Capital, is seeking to redevelop a 10-acre site with help from UK housebuilder Barrett Construction and Developments The proposal, which is subject to planning approval, would create a new town centre with a large Asda store, as well as 1,500 homes including 500 affordable ones, and other retail units, in north-west London. The move is a first for Asda and would represent one of the largest land deals of the last couple of years the supermarket claimed, although it did not disclose the size of the deal. It will replace an existing Asda supermarket, which will remain open while the work is carried out, in the Old Oak and Park Royal area near Acton. In 2015, the area was identified as a prime location to undergo the largest regeneration project since the London 2012 Olympic Games. Asda said it was considering other similar projects at a number of its freehold sites, in London in particular. Ian Lawrence, head of mixed-use developments at Asda, said the venture “marks a significant milestone for the business” and allowed it to maximise the potential of its property portfolio for the first time. This month, Asda refinanced £3.2bn of its debt following the leveraged buyout of the chain in 2020 as it struggles to compete with traditional rivals Tesco and Sainsbury's and discounters Aldi and Lidl GB. The supermarket’s plan comes shortly after the owner of John Lewis and Waitrose & Partners decided to scale back its own property ambitions, having in March scrapped targets to derive almost half of its profit from build-to-rent and financial services by 2030. Recommended UK housebuilding Number of new homes in England predicted to drop to half of official target John Lewis said it was still committed to the initiatives, first unveiled under departing chair Dame Sharon White, but it blamed high interest rates and inflation for the decision to remove the targets. It has faced opposition from local residents reports Financial Times The Hon Richard Evans 🇬🇧 Andrew W. Lord David Evans of Watford #uk #housingcrisis

Aldi Outlines €400m Expansion Plan For Ireland Aldi has announced that it is planning to invest €400m to open 30 new stores in Ireland over the next five years. The discounter is targeting new outlets in 13 counties, including Dublin, Cork, Sligo, Wicklow, Kildare, Galway, Monaghan, Longford, Limerick, Kilkenny, Meath, Mayo and Donegal, which will create around 1,000 new jobs. The new investment plan was revealed alongside the release of an economic impact report by Dublin City University, published to mark Aldi’s 25th anniversary in Ireland. It shows that the German company has spent €10.2bn with Irish suppliers since 1999, including €1.1bn last year. Irish suppliers now account for almost half of all sales in the discounter’s stores in the country, with the firm having reported 58% in purchases from Irish suppliers since 2019. Aldi has also made capital investments in Ireland of €2bn over the past 25 years, with the retailer supporting more than 12,500 jobs directly and indirectly. “As we mark our 25-year milestone and look back on our achievements, we’re just as ambitious for the future. Based upon projected customer growth, we expect to serve our one billionth customer in 2025,” said Niall O’Connor, Group Managing Director of Aldi Ireland. “We’re committed to playing a leading role in meeting the growing demand for new retail offerings, and by 2029 we will spend another €400m in capital expenditure on 30 new stores, adding 1,000 new colleagues. “Times may change, but our unwavering commitment to value never will, and we’re looking to the next 25 years with as much focus and excitement as ever.” Aldi also confirmed that it would continue to cut prices this year as inflation pressures ease. The company has spent €20m this year on over 400 price reductions. After years of rapid growth, Aldi’s performance in Ireland has weakened in recent times, with latest data from Kantar showing its market share slipped from 12.1% to 11.6% over the year to May. NamNews Implications: * No one doubts Aldi’s historical commitment to Irish suppliers and shoppers. * Despite their recent loss of market share… * …Aldi appears to be determined to continue their strategy in the Irish market. * The only question is how far they are prepared to go in order to regain historical momentum… #Ireland #Aldi

🛒Aldi UK and Lidl GB's expansion has been driven by new stores, although the pair scaled back on their opening plans last year. While it looks like the discounters are thriving on the surface, the fact that neither retailer report like-for-like sales or profit guidance makes it difficult to see the true picture. Retail Gazette looks at where the discounters' expansion plans stand now, whether growth has slowed and how big they could get in the UK. https://lnkd.in/e8Bh58rG #retailnews #grocery

'Aldi willing to invest in planning process at local authorities as it races to open new stores 🏦💰🌍🏞️ #AldiExpansion #Investment #RetailGrowth #LocalDevelopment. Get more insights at databoutique.com, the largest source for public data 📊💼 #RetailNews #DataInsights. by The Grocer about ALDI Italia

The Range to Acquire up to 75 Homebase Stores in Major Pre-Pack Deal The Range is poised to acquire up to 75 Homebase stores as part of a pre-packaged administration deal, potentially saving around 1,500 jobs. Reports from Sky News indicate that administrators are being appointed to facilitate the sale, with The Range set to take over not only the stores but also the Homebase brand and its e-commerce operations. Approximately 1,600 Homebase employees would join The Range under this agreement. This latest move comes after The Range’s acquisition of Wilko last year, following Wilko’s entry into administration. Once appointed, Teneo, the advisory firm managing the sale, is expected to secure buyers for an additional 50 Homebase locations. Interest has reportedly been shown by discount food retailers, DIY competitors, and other high street brands. The deal would mark the end of Homebase’s six-year ownership by Hilco, a retail investor with a history of rescuing troubled brands such as HMV. Prior to Hilco, Homebase was owned by Australia’s Wesfarmers, which implemented a company voluntary arrangement in 2018, leading to store closures and revised lease terms to improve financial stability. Earlier this year, Sainsbury's reached a £130 million agreement to purchase 10 Homebase stores, converting them into supermarkets. The potential acquisition by The Range could be a lifeline for the embattled homeware retailer, preserving jobs and providing new direction for the Homebase brand under The Range’s management.

1783: Hello Prof. Dr. Iyengar, what is the update on Asda? Asda was formed in 1965 following the merger of Asquiths and Associated Dairies, and has established itself as one of the UK’s biggest supermarket players. The grocer is renowned for its focus on everyday low prices and an extensive product assortment, operating mainly from large out-of-town supermarkets and hypermarkets across the UK. Asda was formed in Yorkshire but rapidly expanded into Southern England in the 1970s and 1980s, acquiring Allied Carpets, 60 Gateway Supermarkets and other businesses, such as MFI Group. It later sold off such peripheral businesses to concentrate on its core supermarket operations. Having lost its way during that expansion drive, Asda underwent a radical transformation under the leadership of Archie Norman and Allan Leighton during the 1990s, before it was acquired by US retail titan Walmart in a £6.7bn deal. Under Walmart’s ownership, the retailer struggled to fend off the rise of the German discounters Aldi and Lidl, which grew at a rapid pace in the UK following the 2008 financial crisis. Walmart sought to reduce its exposure to the fiercely contested British market and, after a merger with Sainsbury’s was blocked by the Competition and Markets Authority, Walmart eventually sold a majority stake in Asda to petrol forecourt tycoons the Issa brothers in February 2021. UK supermarket chain Asda has become the latest retailer to make a foray into house building after it said on Monday that it would develop a “town centre” in London, including 1,500 homes. Britain’s third-largest grocer, owned by the Issa brothers and private equity firm TDR Capital, is seeking to redevelop a 10-acre site with help from UK housebuilder Barratt Developments.  The proposal, which is subject to planning approval, would create a new town centre with a large Asda store, as well as 1,500 homes including 500 affordable ones, and other retail units, in north-west London.  The move is a first for Asda and would represent one of the largest land deals of the last couple of years the supermarket claimed, although it did not disclose the size of the deal. It will replace an existing Asda supermarket, which will remain open while the work is carried out, in the Old Oak and Park Royal area near Acton. In 2015, the area was identified as a prime location to undergo the largest regeneration project since the London 2012 Olympic Games. When we say Asda, affordable groceries, green branding and a catchy but annoying slogan probably come to mind. So you might be surprised to hear that Asda is launching into property and has its sights set on, erm, a 1,500-home urban village in north west London. Would you want to live in the Asda village? It sounds pretty dystopian to us, but it could be London’s biggest regeneration project since the 2012 Olympics. The goal is to transform Asda’s existing superstore in Park Royal into a new ‘town centre’. Indian Retail Guide

Lidl GB Outlines Plans For Hundreds Of New Stores 30th April 2024 As it marks 30 years since the opening of its first store in the UK, Lidl has announced plans to open hundreds of new outlets across the country. Lidl-StoreThis follows a year of investment in its infrastructure to strengthen its operations to support its expansion plans, including the opening of Lidl’s largest warehouse in the world in Luton. The discounter has also been enhancing its existing estate. This included the completion of an extension to its Welsh distribution centre in Bridgend, along with progress on expanding its Belvedere warehouse, which will result in its size and capacity being doubled once the project is complete. Meanwhile, Lidl has also introduced enhancements to its store estate, including the rollout of electronic shelf labels. The discounter, which has consistently been the fastest growing bricks & mortar supermarket for the past seven months, stated that it was now doubling down on its store opening programme to continue growing its market share. In the coming months, Lidl will open new stores across the country, including Bristol, Birmingham, and Berwick in Scotland. In London, where it is now the third-largest supermarket, Lidl will be opening new stores in Wandsworth, Fulham, Hoxton and Canning Town. The discounter has today published its latest list of desired locations for potential new stores. This includes cities such as Edinburgh, Leeds, Liverpool, and London, and towns from Woking and Wadebridge to Dumfries and Didcot. Richard Taylor, Lidl GB Chief Development Officer, said: “We have also been the fastest-growing bricks & mortar supermarket for the past seven months in a row. With an exceptional store network and our laser focus on operational excellence, we’re welcoming more customers through our doors than ever before, which positions us perfectly for continued expansion. “As we celebrate our 30th year, our commitment to ensuring that all households across the country have access to high quality produce at affordable prices is stronger than ever. We’re planning to open hundreds of new Lidl stores but ultimately see no ceiling on our ambition or growth potential. This is why we’re continuing to invest in new locations whilst exploring innovative routes to expansion.” NamNews Implications: *. Lidl are patently on a roll… …‘fastest growing brick & mortar retailer’… …determined to grow share by investing in geographical coverage. *. Thereby begging the question: ‘Are suppliers making sufficient effort in finding ways of accessing this incremental potential?’

Supermarket Income REIT plc has bought a portfolio of 17 Carrefour supermarkets in France through a sale and leaseback transaction for €75.3 million. It is Supermarket Income REIT's first investment in the French grocery sector. https://lnkd.in/gqpAeYUZ The purchase price, which excludes acquisition costs, reflects a net initial yield of 6.3%. The strong-performing omnichannel supermarkets are geographically diversified, with most in northern France. They have an average gross internal area of around 40,000 square feet, with a long history of successful trading. The SLB portfolio has been acquired with a weighted average lease term of 12 years (with a tenant-only break option in year 10) and annual uncapped inflation-linked rent reviews. #retail #Carrefour #France Supermarket Income REIT #Consorto #CRE #commercialrealestate #commercialproperty #retwit #follow