In the High Street investment market as previously reported by JLL's Retail Capital Markets Team, there continues to be a lack of stock in the market but we are still witnessing broad demand for both prime and secondary assets. Having said that, all the signs indicate that high street yields have stopped compressing and have now plateaued.
In positive news for the sector, British luxury brand Burberry reported faster than expected sales growth in its financial first quarter but warned a strong pound would hit this year's profits. Burberry reported retail revenue of £370m for the three months to June 30. LFL sales increased 12%, compared to an 8% forecast. Burberry continues to pursue its global flagship strategy, which is focused on optimizing significant brand opportunities in the most influential markets worldwide.
Additionally, HMV has reported UK sales of £470m in its first full year since being bought out of administration by Hilco. HMV's total group sales for the year to June 30, were £700m, including operations in Canada and Ireland. The quarter to end of June, UK LFLs increased 9.2% while in-store conversion rates improved form 24.2% to 28.1% as shopper embrace the reborn retailer. In the year, the retailer has trimmed its store estate, launched apps and opened a new Oxford Street flagship.
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
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