Keith McGregor’s Post

**Aldi in planning reform talks with government to boost store openings** Aldi UK is in talks with the government over planning reform in a bid to speed up its new store openings. The discounter is offering investment to tackle “under-resourcing” across local authorities, which is currently leading the planning application process to take more than a year, The Grocer reported. Aldi UK’s national real estate director George Brown said he had visited No 10 last week in a LinkedIn post. The executive said: “It was a pleasure to be invited to No 10 today to discuss planning reform with Nick Williams, senior special advisor to the PM. “Obtaining planning consent for new Aldi schemes can take us over 12 months due to under-resourcing in local authorities. We will happily invest in the application process to help speed that up.” He continued: “A new Aldi store is also a significant job creator in local communities, delivering the some of the top salary levels in retail in addition to amazing benefits and great opportunities for career progression. “Yet unlike some traditional employment occupiers (such as B2 and B8) which may have far lower job density, retail is not given the same weighting in the decision making process. To unlock significant investment in the UK economy this needs to change.” The move comes after the government rolled out a consultation in July over proposed changes to planning policy, which included increasing planning application fees to improve local authority resourcing. In July, the German discounter unveiled plans to open an average of one new store a week between then and Christmas. It explained it was set to create 1,000 jobs in new stores across the UK between then and the end of the year, with roles available including managerial positions, caretakers and cleaners, and store apprentices. Link to article in comments.

The ups and downs of retail continue to shape our economy - a great deal of change is happening in the supermarkets and big-box retailer space, while the Superdry saga continues to play-out.   Here's what caught my eye:    Marks and Spencer expands partnership with White Stuff across 10 additional stores Superdry landlord M&G ditches challenge to retailer's rescue plan M&S CEO - We should have overtaken Waitrose & Partners already SHEIN to file prospectus with City regulator for £50bn London float Frasers Group hires city regulator's ex-boss Sir Jon Thompson for board role wilko to open cafes in more stores Boots UK tycoon loses £1.5bn as Walgreens share price plunges Majestic Wine partners with Gophr as it eyes biggest summer of beer sales M&S bosses pocket £5m each after bumper year Lidl GB promotes ex-Tesco exec to marketing director Frasers to relaunch WIT Fitness with founders Burberry chief marketing officer to depart UNIQLO to open flagship in London's Coal Drops Yard Tesco launches marketplace to become one-stop shop online Asda poaches Lidl COO as it brings AI in to the boardroom M&S non-exec resigns over poaching of Rightmove finance chief Sports Direct to launch membership programme and new app B&M Retail beats lockdown peak as profits boosted by new store openings boohoo hits with investor lawsuit over modern slavery breaches Morrisons pension strikes suspended after new pay offer Amazon expands grocery delivery to all customers and launches member prices AllSaints debuts premium childrenswear collection with Next Superdry CCO departs Sainsbury's introduces buy now, pay later option at Argos, Tu and Habitat Holland & Barrett partners with MRI Software for AI footfall analytics Amazon hit with £1bn damages claim from retailers over data misuse PrettyLittleThing.com introduces returns fee Waitrose snaps up meal-kit delivery service Dishpatch Co-op to close Member Pioneer programme, 766 part time jobs at risk Tesco wholesaler snaps up wine merchant Venus The Body Shop administrators set deadline for rescue bids   My story of the week: M&S bosses bumper year pay awards stood out to me. The M&S turnaround is nothing short of incredible. The rewards of this success stretch deep into many peoples' lives - rewarding the architects of this success is only just. #retail #shoppingcentres #customerexperience #cmo #ceo

It's indeed unsettling news, especially for the employees affected and the communities where the stores are located. The closure of such an iconic brand's stores reflects broader challenges in the retail industry. The consequences of The Body Shop closing its stores could include: Job losses: Around 270 head office jobs are being cut, and more than half of the brand's stores in the UK are closing, putting over 2,000 jobs at risk. Economic impact: The closure of stores and loss of jobs can have a ripple effect on the local economies where these stores are located, affecting businesses and communities. Uncertainty for employees: Those facing job losses may experience financial strain and uncertainty about their future employment prospects. Restructuring of the company: The closure of stores and reduction of staff are part of a larger restructuring effort aimed at revitalizing the brand's profitability and focusing on online sales channels and product development. Impact on brand reputation: The closure of stores and job losses may have implications for The Body Shop's reputation, particularly among consumers who value ethical and socially responsible brands. #TheBodyShop #RetailChallenges #JobLosses #EconomicImpact #StoreClosures #Unemployment https://lnkd.in/eG7cPhG6

A quick look at some of our countries leading retail news this week Woolworths Strike and Coles' Response A 17-day strike at Woolworths' distribution centres led to empty shelves and an estimated $140 million in lost sales. This disruption prompted customers to shift to Coles, which increased orders and staffing to accommodate the surge in demand. Although Woolworths has agreed to a wage increase to end the strike, the company anticipates continued impacts on sales and earnings until stock levels are restored, especially during the critical Christmas trading period. Myer's Acquisition and Financial Performance Myer is proceeding with a major acquisition of fashion brands—including Just Jeans, Jay Jays, Jacqui E, Portmans, and Dotti—from Premier Investments. This deal, valued at approximately $950 million, is expected to be finalized in early 2025 and will add 719 stores to Myer's portfolio across Australia and New Zealand. Despite this expansion, Myer reported a 26% decrease in profit and a 10% decline in pre-tax earnings for 2024, attributed to challenging economic conditions and inflationary pressures. The upcoming Christmas season is crucial for Myer to improve its financial standing. Mosaic Brands' Store Closures Mosaic Brands, the parent company of retailers such as Katies, Noni B, and Millers, announced the winding down of the Katies brand and plans to close an additional 80 stores in January, affecting 480 employees. This decision is part of a broader consolidation strategy amid financial challenges, including an estimated $240 million in debt. Administrators are seeking buyers for the group, with the deadline for expressions of interest extended to the end of December. To meet holiday demand, Amazon has expanded its network with a new robotics fulfillment center in Sydney and plans for another facility in Melbourne in 2025. The company has also hired 600 seasonal workers to support increased operations during the festive season. Business Confidence Decline The National Australia Bank's November survey revealed a significant decline in business confidence, reaching the lowest levels since the pandemic. The manufacturing and retail sectors were particularly affected by ongoing inflation pressures. Despite a slowdown in inflation, with stable labor cost growth and a slight increase in purchase costs, overall productivity remains weak, posing challenges for the retail industry. These developments highlight the dynamic nature of the Australian retail landscape, with companies navigating industrial actions, economic pressures, strategic acquisitions, and preparations for the crucial holiday shopping period. Retail Doctor Group

🇬🇧 Top #UK #retail stories from the last week, lots of press releases out from Grocers on the implications of upcoming budget related cost base rises. 📉 Asda warn of inflationary pressures and tough choices due to rising tax bills and National Insurance hikes, investing £13m to enhance customer service after a 2.5% Q3 sales decline. Asda’s market share drops to 12.5% as shoppers shift to Tesco and Sainsbury’s, increasing their shares to 27.9% and 15.5% respectively. Asda is also planning further job cuts, predominantly within IT staff, after already restructuring nearly 500 head office roles to streamline operations. 💸 Sainsbury's’s CEO Simon Roberts warns of imminent price hikes due to a projected 50% increase in National Insurance costs, as profits rise 3.7% to £503m, driven by strong grocery sales. 💸 Tesco faces a £1bn cost base hike due to NI increases over four years as rates rise to 15%, impacting its annual tax by £250m. 🚫 the ENTERTAINER pauses expansion plans, halts two store launches and head office hires, after NI hike to 15%. 📈 Marks and Spencer pre-tax profits hit £408m for the six months to October, up 17% on the same period last year. The company aims to boost its youth appeal by enlisting actress Gillian Anderson for new adverts. 🛒 Ocado Retail plans to expand its own-brand range to over 740 items in 2024, following a 12% rise in sales. 📊 Inter IKEA Group reports a 4% rise in operating profit to £1.9bn (€2.3bn), despite a 9% sales decline, citing av 15% strategic price cuts aimed at enhancing affordability. ⚠️ Homebase prepares for insolvency with Teneo amid reported losses of £84m and declining sales. CDS Superstores, owner of The Range and Wilko, acquires the Homebase brand, saving up to 1,600 jobs and planning significant expansion, amid ongoing challenges in the home improvement sector. 🛍️ Frasers Group shifts Coggles.com to an online-only model after converting its Alderley Edge store into a Flannels boutique, with plans to expand its luxury footprint. 🏬 Majestic Wine is expanding its bricks-and-mortar presence by opening a 4,400 sq ft store in Plymouth’s The Range HQ, marking its sixth new location this financial year, as it capitalizes on soaring organic wine sales and community engagement initiatives ahead of the festive season. 📈 B&M Retail reports a 3.7% sales rise to £2.6m in H1 2023, with a 2% increase in EBITDA to £274m, attributing growth to new store openings and expansion plans despite a 1.8% dip in operating profit due to higher costs. 📉 Marks Electrical Group plc sees its H1 profit halved from £1.6m to £820k amid a 9% drop in average order value as consumers shift to non-premium products. The company plans to refocus on premium offerings to drive future growth. 👥 New Look mandates four office days for BMD teams to boost collaboration, Asda mandates three-day return for 5,000+ staff, gathering momentum for sector-wide shift back to the office. Follow Kyle Monk for more insight.

More disruption and job losses in the UK retail sector. Homebase had a diminishing customer base across its remaining UK footprint as it struggled to attract and retain consumer interest. They suffered in the face of better propositions from their competition in the DIY and home improvement space and struggled to remain relevant - and competitive on pricing in recent years - and importantly had no trade business to speak of. Customer service operations were vastly scaled back in recent years too following the disastrous acquisition by the Australian Wesfarmers group in 2016. Retail is a challenging environment and it’s a case of adapt or die. Survival of the fittest. Sad but ultimately there were better, fitter and more agile competitors. #retail #management #economy

Many town centres, have been impacted by Aldi and Lidl openings, which combined with expensive town centre parking charges, have encouraged shoppers, to visit town centres less often, given both Aldi and Lidl, offer ‘free’ parking and have tended to locate in (or adjoining) new retail parks Sadly reduced footfall in town centres, whilst reducing rental values, have have resulted in town centre shops, becoming unviable, as ‘upwards only’ rent review clauses and business rates, also remain artificially high, given revaluations of business rates, are infrequent Too many out of town developments, have achieved planning consents, based on Developer funded impact assessments and perhaps going forward, the cost of the assessment should be funded by Developers, but instructed by Planning Departments, to remove the impression of bias This would also enable Councils, to use the impact study to assess what support may be needed, to avoid town centre stores from being rendered ‘unviable’ https://lnkd.in/dQTqWsz https://lnkd.in/eSuC-4gy

Looking like Homebase is about to be placed into Administration, with Teneo likely to be appointed Administrators. The Range is reportedly close to taking 75 stores, saving 1,500 jobs but there are still another 1,700 jobs at risk. Hilco Capital is the current owner, having purchased it for £1 back in 2018, however the retailer has been incurring increasing losses over the past year or so. It will be interesting to see whether the potential employee cost increases has accelerated the Administrators’ proposed appointment. Noting that the DIY market has seen a significant slowdown in the last couple of years (post the pandemic bubble). Thoughts with the staff members who will be affected. #restructuring #consumer #turnaround #retail

The Resilience of Retail is Why it Remains The ‘Cool Kid’ on the Pickleball Court 😁 Here's the scoop from our friends at IPA. Solid Fundamentals and Consumer Activity 👇🏾 - Core retail sales jumped by 2.9% in the first five months of 2024 compared to last year. Big thanks to a strong labor market and cooling inflation. - Foot traffic is booming! Restaurants, supermarkets, discount stores, and fitness centers saw increases between 5% and 9% year-over-year. Widespread Demand 👇🏾 - Multi-tenant vacancies hit record lows, and single-tenant vacancies are just slightly above their historic bottom. - In 34 of the 50 major retail markets, single-tenant vacancy rates are at least 100 basis points below long-term averages. Appeal of Middle Market Retail Properties👇🏾 - Strip centers are hot right now! With vacancies at their lowest since 2003 and offering sub-$200 per square foot pricing with 7%+ first-year returns, they're a top pick for savvy investors. - These properties are perfect for value capture through re-tenanting, thanks to shorter lease terms of 1-3 years. Backfilling Trends👇🏾 - Got a vacant space? No problem! Grocers, fast food chains, and discount stores are expanding rapidly. ALDI USA, Ollie's Bargain Outlet, Inc., and Trader Joe's Joe’s are just a few examples. - In fact, pickleball franchises and fitness centers have leased over 2 million square feet since early 2023, helping to ease the pressure from big box closures. Squinting into the Future! - Employment is expected to grow by 2 million positions in 2024, supporting consumer spending. - Limited new construction (sub-1% stock growth in major markets) means low vacancies and stable rents, keeping investor interest high. In a Nutshell: Retail assets, especially in the middle and below middle market, remains a fantastic investment. Strong fundamentals combined with robust consumer demand, and opportunities for value creation. We're in a great spot to seize these opportunities. Bring on the rate cuts ⚔️ #investmentsales #advisoryservices #retailinvestmentsales #investmentinsight #commercialrealestate #retailleasing

Waitrose owner the John Lewis Partnership cut 3,800 jobs over the past year, new filings have revealed. The number of staff working for the Partnership, which includes Waitrose and John Lewis, fell to 70,500 at the end of January, in comparison to 74,300 the year prior, The Telegraph reported. It is understood that the majority of changes to staff numbers over the past year were in Waitrose stores, following the adjustment of shift patterns last year as the upmarket retailer hoped staff would adopt more flexible hours. The grocer also set out plans to limit night shifts at some sites and offered staff voluntary redundancy at other stores. The Partnership said there were 49,600 people on average working in the supermarkets in the year to the end of January, in comparison to an average of 52,700 the year before, and across the entire group, it has around 10,000 less staff than in early 2020. #waitrose #jobcut #supermarket #retail #staff