Retail & Consumer
Rachel Reeves' Budget has scared off UK retail traders, survey finds
A new survey indicates that retail traders are shying away from the UK market following Chancellor Rachel Reeves' recent Budget. The study by Graniteshares revealed that over a quarter of retail investors (26%) have reduced their stake in the UK after the Budget announcement, as reported by City AM. Moreover, out of the 1,000 British retail investors surveyed last month, one in five stated they are likely to decrease their investment in UK markets by 2025. "Economic news in the UK has been relatively downbeat over the past six months and last year’s Budget has been criticised by businesses," according to Catarina Donat Marques, head of European retail strategy at Graniteshares. The October Budget introduced by Reeves incorporated new taxes amounting to £40bn, including an increase in capital gains tax, leading to a substantial decline in business confidence. The strength of the US dollar is another significant factor deterring retail investors from UK stocks – 27% are being put off due to this reason. Following speculation about the Budget since late September 2024, there's been a noticeable drop in the value of the pound from $1.34 to just $1.24 today. In the long term, the sentiment among retail traders towards UK markets remains bleak, with 61% expressing disappointment with the performance of UK markets over the past three years and 24% admitting to diverting their investments elsewhere as a consequence. In the previous year, the FTSE 100 saw a modest growth of only 5.7 per cent, in stark contrast to the S&P 500's impressive return of 23.3 per cent. This disparity, largely due to the dominance of the US-based 'Magnificent Seven', has prompted a significant number of UK retail investors to turn their attention to American investments. Indeed, approximately 23 per cent of UK retail traders have reported a decrease in the proportion of their investment portfolio dedicated to British stocks and funds over the past three years. However, despite this trend, a third of these investors estimate an increase in their UK investments.
Retail & Consumer
An optician ‘as cool as an Apple store’: Specscart opens concept venue as it plans 2025 growth
Retail & Consumer
Dunelm announces CEO's departure, highlights robust half-year financial growth
Retail & Consumer
Tesco, M&S, Kingfisher and more warn of 'perfect storm' in retail as 300,000 jobs at risk
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Retail & Consumer
'Hotel Chester' plans for former Mecca Bingo site updated and get go-ahead
Revised proposals for converting Chester's old Mecca Bingo Hall into a new 146-bedroom hotel have been approved. The majority of the existing structure will be demolished to accommodate the seven-storey 'Hotel Chester' project, located next to St Oswald’s Way, which is anticipated to bring about 80 permanent jobs once open. The hotel is set to feature serviced office space within its landmark mock-Tudor front at Brookdale Place. Developer TAG, leading the initiative, has forecast over 100 construction jobs during the building phase. Cheshire West and Chester Council had previously given planning permission for the endeavour last summer, despite facing some opposition. However, last month saw TAG submit an application for a 'non-material amendment', aimed at reducing the overall footprint of the building. In her report recommending approval, case officer Lyndsay Shinner indicated that the proposed revisions were "prompted by the future operator's requirement to provide a minimum of five per cent accessible room allocations". Shinner also noted: "All the rooms have been reduced marginally in size to allow for additional accessible rooms to be created on each floor." The blueprint for the construction has been modestly scaled down, with room dimensions tweaked to meet specific requirements. This alteration not only improves the main entrance by offering more spacious circulation areas but also enhances vehicle access, reports Cheshire Live. Despite the smaller overall size, the updated plan manages to incorporate an additional two rooms (bringing the total to 146) without affecting the building's exterior or design features. The report says: "Collectively and individually, the proposed changes are not deemed to be significant changes that would have a material impact in terms of the original scheme. The proposed changes would not conflict with the description of development on the decision notice." In December 2023, TAG's director Luke Averill said: "Designs for Hotel Chester have been inspired by the city's history and reflect Cheshire West and Chester Council's ambition to support the growth of the area's visitor and business economy. Rejuvenation in this part of Chester is much-needed and we believe Hotel Chester will act as a catalyst for exactly this. "Guests staying at the hotel will create additional demand for local shops, restaurants, bars and other attractions, which we estimate could boost the local economy by £2.3m every year." The site, formerly Mecca Bingo, has a rich history dating back to 1931 when it was The Gaumont cinema, later becoming a bowling alley in the 1960s and a bingo hall in 1970, before its closure in February 2023.
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Retail & Consumer
UK retail footfall sees first January increase since 2016 as shoppers delay Christmas spending
For the first time since 2016, retail footfall in January saw a year-on-year increase, likely due to UK consumers delaying their festive spending to take advantage of discounted goods in the new year sales. According to data from MRI Software, footfall across all UK retail destinations rose by 1.4 per cent in January 2025 compared to the same period in 2024, as reported by City AM. Shopping centres led the way with a 1.8 per cent increase in footfall, followed by a 1.4 per cent rise in retail parks and a 1.1 per cent increase on high streets. This marks the largest year-on-year increase, excluding lockdown periods, since January 2016 when footfall increased by 1.2 per cent. However, this increase may not be as positive for the retail sector as it appears. Recent data from advisory firm BDO indicates that while in-store sales grew by 3.2 per cent in January, mirroring MRI's data, there was a heavy reliance on discounted purchases. The weak growth leading up to Christmas, coupled with higher spending and footfall in January, suggests that UK consumers may have been waiting for January discounts, according to Sophie Michael, head of retail and wholesale at BDO. "January trading... requires heavy encouragement through discounting; this delayed spending will no doubt have a significant impact on already-thin margins," said Michael. She added: "The sector has been challenged for some time by the impact of significant cost increases, which will continue to mount throughout the year, particularly post the implementation of the changes in the budget this April." MRI similarly indicated that with February approaching, the effects of the Autumn Budget are "likely to start being felt by both consumers and retailers alike". Retailers are facing notably increased costs this Spring due to a combination of higher business rates, elevated wage taxes, and the introduction of a new packaging tax.
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Retail & Consumer
The Range announces new store openings following Homebase acquisition
The owner of The Range is planning to open a string of new stores in former Homebase outlets around the UK. CDS Superstores, parent company of the Plymouth-based retailer, acquired 70 outlets when the DIY chain fell into administration last year. The new-style Range branches will all have Homebase-branded garden centres and a number will have kitchen sections under the DIY brand. The outlets will also allow dogs inside, CDS said, provided they are kept on a lead. A total of nine locations have already been announced by the retailer with another three opening on Friday (February 7) in Penge, in South East London; Woking in Surrey; and Leighton Buzzard in Bedfordshire. Alex Simpkin, chief executive of CDS Superstores, said: "We’re fully committed to retaining the best of Homebase’s heritage while introducing the broader product range and value that customers expect from us as The Range. “While those Homebase stores acquired by CDS will continue to trade throughout the transition period, we’re focused on ensuring a seamless transfer of these locations into our new store format, with twelve launches confirmed for this year already." CDS, which was founded by billionaire British businessman Chris Dawson, is planning to roll out up to 10 new superstores a month, with a goal of transforming up to 70 Homebase locations in this new format and securing up to 1,600 jobs throughout 2025. The business said it had "prioritised" retaining and transferring team members from the acquired Homebase locations. The company has also acquired the rights to all Homebase's branding and has relaunched its website for online shopping. The acquisition of Homebase came a year after CDS bought the rights to the Wilko brand following its collapse. The company has since reopened a number of the budget chain's outlets and is planning to roll out more in 2025. Pollokshaws, Glasgow Christchurch, Bournemouth Kings Heath, Birmingham Newton Abbot, Devon Felixstowe, East Suffolk Blyth, Northumberland Stroud, Gloucestershire Putney Road, Leicester Blandford Forum, Dorset Penge, London Woking, Surrey