by Cheetham and Mortimer
Preston Trade Park.
Unit of 5,391 sq. ft. adjacent to Howdens, Benchmarx, Euro Car Part and The Bathroom Showroom. For further information all Barrie 0161 828 8797
by Cheetham and Mortimer
4,380 sqft Unit in a Prime Pedestrianised Location in Sale town centre on a To Let or For Sale basis.
For further information contact Stephen Perrett on 07836 339 350
by Cheetham and Mortimer
The Filaments – A brand new mixed-use development comprising 376 apartments ideally situated next to Salford Central station.
Available October 2020 Should you be interested in the retail/leisure accommodation please call Conor Mulloy 07841661990
by Cheetham and Mortimer
Acting for family office clients of Glenbrook, we are pleased to have concluded the purchase of this retail park investment. Originally, it was presented for sale at the beginning of 2018 with an asking price of £5,200,000 but investor sentiment became tainted by the malaise of the retail sector. The investment was eventually acquired for a price of £2.825m and it is expected to generate a running return of approximately 10% for the new owners.
At first glance, it is easy to dismiss this type of product. However, there is much to commend. The scheme dominates the local market and has a flexible planning consent. The occupier profile is convenience orientated and includes representation from such reputable retailers as Home Bargains, Pets At Home and Iceland. All the tenants report satisfactory trading performance and the passing rents are perceived to be sustainable. Comprising a site area of over 3 acres, and a car park for over 200 vehicles, it also includes land for additional development.
Unfortunately, the scheme lost Poundstretcher following their recent administration but there is already strong occupier interest from a replacement traditional retailer. Hence, the investment offers a stable income with asset management potential. For letting opportunities, please contact Barrie Cochrane (07778 159924)
by Cheetham and Mortimer
John Lewis has always been viewed as the “bellweather” for the retail sector and their latest trading update merely reinforces the fact that the viability of traditional high streets and town centres up and down the country is being challenged more than ever before. There is a temptation to attribute short term financial performance to the cost of combating the coronavirus pandemic but the truth is that Covid 19 has simply accelerated an ongoing transition to digital platforms.
However, if you think that is simple to achieve – think again. Online platforms are expensive to operate. It is reported that the Online System Spend by Next in January 2019 amounted to £167m. The company estimates that capex on online systems will increase by 328% over the next 24 months. How many retailers can absorb that level of expenditure when margins are already under pressure?
For online retailing to succeed, the customer requires choice, value and convenience. Life for pure online players has its own challenges – particularly in respect of customer retention. It is reported that Amazon spent $11bn on advertising last year – again, how many retailers can sustain that level of expenditure?
Multi-channel retailing is the stable medium. This throws a life line to some high streets and shopping centres but against a wider picture of consolidation. There will be winners and losers. The winners will still suffer a painful readjustment in value. The losers will need to reinvent themselves – not with open spaces and statues of people who have never offended anyone – but with alternative uses for which there is genuine demand. The challenges are multiple. It will undoubtedly require local councils to step up and take the lead, but with limited resource, they will require assistance from the private sector in the form of partnerships. Sadly, there are no quick fixes. This will take time but if there is one positive from the pandemic, it has hopefully accelerated the process.