Weekly Retail & Leisure News - 19 July, 2016
research from Verdict and British Land has revealed that 89% of
all retail sales in the UK ‘touched’ a physical store last year,
either through physical sales, ‘click and collect’ or via browsing in a shop
before purchasing online. The study sought to identify the share of online
sales that touch physical space. In 2015, £278bn of UK retail sales
touched a store, providing a 5% boost to the £266bn of retail sales
made physically. Despite the fact that the UK is one of the most advanced
online retail markets in the developed world, with internet sales accounting
for c.15% of all retail sales, this study demonstrates that the value
of the right physical space remains as strong as ever. It also highlights the
growing importance of seamless omni-channel retailing, which we explored in our
recent article, ‘Destination Retail: A
glimpse into the future’.
Further evidence of the ongoing resilience of UK physical retail came from
Poundland’s agreed £597m takeover by Steinhoff International last week. The
South African retail group said Poundland, which operates more than 900 stores
across the UK, Ireland and Spain, and employs 18,000 people, would be a
‘complementary fit’ to its expansion plans in the UK and the rest of Europe.
Last month, Poundland reported a fall in full-year profits as it admitted the
integration of 99p Stores, which it bought in September last year, had placed a
strain on its business. Steinhoff owns 40 retail brands in 30 countries,
including Bensons for Beds and Harveys in the UK.
And finally, SuperGroup has reported a 16% year-on-year rise in pre-tax profits
to £73.5m, as sales increased 21.3% in the 12 months to April 23, boosted in
part by the addition of 136,000 sq ft of new store space. Commenting on
Superdry's full year results, James Dolphin, head of Pan-EMEA
Retail Agency at JLL, said: "The impressive first half total sales growth
from Superdry was driven by the retailer's successful international expansion
across Germany, Italy and Spain and into the US, demonstrating the resilience
of retail in key global cities across the world. The retailer also has a strong
pipeline of store openings planned ahead to the end of 2017, which chimes with
the general level of demand we are seeing for the right physical space in
the right location. International retailers are increasingly focussing on measured
and balanced growth across global, mature and growth markets, as identified in
our recent Destination Retail report.”
On the impact of Brexit, Dolphin continued; "Despite the uncertainty
in the lead up to the UK's EU referendum vote in June, Superdry's results show
that consumers haven't on the whole been deterred from making purchases. While
big ticket discretionary spending, including overseas holidays, cars, home
improvements and other higher value retail purchases are more susceptible to a
slowdown in consumer spending post Brexit, mainstream retail and leisure is
likely to remain more resilient."
Please click through to access JLL’s latest UK Brexit Briefing
Note. We will also be producing a broader European perspective over the next
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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