This is a copy of the Letter to Rachel Reeves that was sent yesterday and signed by 81 retail CEOs. Economic consequences of the Autumn Budget for UK retail We are writing to share our significant concerns about the impact of the Budget on the retail industry and the economic
Supermarket Income REIT has bolstered its portfolio with the £49.7 million acquisition of a prominent Sainsbury’s supermarket in Huddersfield, West Yorkshire. Spanning 113,348 sq ft, the site includes an omnichannel supermarket and a petrol filling station, occupying an expansive 8.5-acre plot. Sainsbury’s has been a fixture on the site for
Landsec has expressed strong confidence in expanding its investment in the retail sector, highlighting plans to deploy further capital in the coming months. The real estate investment trust (REIT) recently strengthened its portfolio with a £120m acquisition of an additional stake in Bluewater, Kent. The company revealed that retail offers
The Range is poised to acquire up to 75 Homebase stores as part of a pre-packaged administration deal, potentially saving around 1,500 jobs. Reports from Sky News indicate that administrators are being appointed to facilitate the sale, with The Range set to take over not only the stores but also
Marks & Spencer is stepping up its store acquisition programme, securing ten new sites in prime locations to boost its retail presence. This expansion comes as the high street staple aims to push forward with its store rotation strategy, allowing the brand to refresh and strategically enhance its store footprint.
Aldi has announced plans to open 11 new stores across the UK in the lead-up to Christmas, enhancing its presence in communities nationwide. The first wave of openings includes stores in Sedgley in the West Midlands and Castle Douglas in Scotland, set to welcome shoppers this week. Later in November,
Pharmacy Plus Health (PPH) has unveiled the first of a proposed 40 new pharmacy stores in West Yorkshire as part of its aim to re-invent the community pharmacy world. Devised in conjunction with the Interior Design team at AJ100 architectural practice, Stephen George + Partners (SGP), the ‘pharmacy of the
LandsecU+I, the regeneration arm of FTSE100 real estate giant Landsec, has submitted ambitious plans to transform Lewisham Shopping Centre into a vibrant, sustainable town centre. The proposed redevelopment aims to deliver a blend of housing, green spaces, and lively social areas, revitalising the site while preserving its role as a
Catella APAM, a prominent real estate asset and investment management firm, acting on behalf of Greater Manchester Pension Fund (GMPF), has announced the successful sale of 133-137 Briggate in Leeds for a total of £4.7 million. The approximately 10,800 sq. ft. retail space was acquired by property investment and development
Lidl, the popular German discount supermarket chain, has secured a landmark £70 million sale-and-leaseback deal to fund the development of 12 new stores across the United Kingdom. This strategic move is part of Lidl’s ambitious UK expansion plan, which aims to make affordable, high-quality groceries accessible to even more communities
This is a copy of the Letter to Rachel Reeves that was sent yesterday and signed by 81 retail CEOs. Economic consequences of the Autumn Budget for UK retail We are writing to share our significant concerns about the impact of the Budget on the retail industry and the economic consequences for inflation, employment and investment. Retail is in every community and is vital to the socio-economic fabric of the UK. It is the largest private sector employer, with three million direct jobs and 2.7 million more in the supply chain, contributing over £100bn per annum to GDP. This scale and reach means the industry can be a partner to government, supporting the reinvigoration of high streets, creating jobs all over the country and supporting the government’s ambitions for growth. We appreciate government’s focus on improving the fiscal situation and investing in public services; we also recognise the role businesses have in supporting this. But, the sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty. Cumulative cost burden The estimated additional costs arising in 2025 are set out below. The impact of the Budget NIC threshold change is particularly acute given retail employs large numbers of people in entry-level and part-time roles. Costs from the Budget sit alongside other incoming regulations, including implementation of new packaging levies. New Costs From Cost Budget Employers’ NIC changes Rate increase to 15% April 2025 £0.57 billion Threshold change April 2025 £1.76 billion National Living Wage increase April 2025 £2.73 billion Packaging Levy October 2025 £2.00 billion Total £7.06 billion Taken together, the retail industry’s costs could rise by up to £7bn a year. This will also affect our suppliers, increasing costs that retailers pay for goods and services. Business rates While the 30 October Discussion Paper recognised the need to bring down the burden for retail and hospitality, as things stand, retailers’ bills will increase by £140 million in April 2025 due to the inflationary uplift and a reduction in the existing retail discount for those businesses that receive it. We are concerned the proposals merely redistribute rates within the industry and would see many retailers’ bills significantly increase. Changes must lead to a significant, permanent reduction of rates bills for all retail properties if they are to offset the effects of the extra costs above in any meaningful way. Economic consequences Retail is already one of the highest taxed business sectors, along with hospitality, paying 55% of profits in business taxes. Despite this, we are highly competitive, with margins of around 3-5%, ensuring great value for customers. For any retailer, large or small, it will not be possible to absorb such significant cost increases over such a short timescale. The effect will be to increase inflation, slow pay growth, cause shop closures, and reduce jobs, especially at the entry level. This will impact high streets and customers right across the country. We are already starting to take difficult decisions in our businesses and this will be true across the whole industry and our supply chain. Proposed next steps We would welcome the opportunity to meet with you to discuss our concerns and to work together on a solution. By adjusting the timings of some of these changes, the government would give businesses time to adjust and greatly mitigate their harmful effects on high streets and consumers. This discussion could include: This letter reflects the strength of feeling across the industry. We look forward to meeting you. Building, Design & Construction Magazine | The Choice of Industry Professionals
Supermarket Income REIT has bolstered its portfolio with the £49.7 million acquisition of a prominent Sainsbury’s supermarket in Huddersfield, West Yorkshire. Spanning 113,348 sq ft, the site includes an omnichannel supermarket and a petrol filling station, occupying an expansive 8.5-acre plot. Sainsbury’s has been a fixture on the site for over three decades, with the current lease offering 11 years of unexpired term and annual inflation-linked rent reviews. In addition to serving in-store shoppers, the site plays a key role in Sainsbury’s online operations, functioning as a fulfilment hub with 12 home delivery vans and click-and-collect services. The acquisition was funded through Supermarket Income REIT’s existing debt facility, bringing the company’s loan-to-value ratio to 39%. The REIT’s portfolio now boasts a weighted average unexpired lease term of 12 years, reflecting its commitment to long-term stability and growth. A Strategic Move for Shareholder ValueBen Green, Principal at Atrato Capital Limited, investment adviser to Supermarket Income REIT, expressed enthusiasm for the acquisition:“We are delighted to add this high-quality UK asset to our portfolio. This acquisition underlines our focus on delivering strong returns and exploring new opportunities to enhance value for Supermarket Income REIT’s shareholders.” This latest investment underscores Supermarket Income REIT’s confidence in the resilience and growth potential of the UK’s grocery sector, solidifying its reputation as a key player in the market. Building, Design & Construction Magazine | The Choice of Industry Professionals
Landsec has expressed strong confidence in expanding its investment in the retail sector, highlighting plans to deploy further capital in the coming months. The real estate investment trust (REIT) recently strengthened its portfolio with a £120m acquisition of an additional stake in Bluewater, Kent. The company revealed that retail offers “the most attractive risk-adjusted returns,” with high single-digit income yields and rising rents. Despite this optimism, Landsec noted that new supply in the market is “non-existent.” For top-tier assets, non-value-adding capital expenditure remains minimal, accounting for just 0.2% of total asset value. This statement coincides with Landsec’s release of its half-year results for the 2024 financial year, covering the six months up to 30 September. The company reported a pre-tax profit of £243m, a significant recovery from a £193m loss during the same period last year. Landsec attributed part of its success to a shift in retail trends, where brands are prioritising fewer but larger flagship stores. This approach has led to new leases and upsizes with prominent names such as Primark, Pull&Bear, Bershka, Sephora, and JD Sports across its portfolio. The group’s retail portfolio occupancy now stands at 96%, exceeding pre-Covid levels and marking a 70-basis-point improvement. Leases worth £26m have been signed or are nearing completion, with rents 7% above estimated values. Mark Allan, Landsec’s Chief Executive, commented:“Our operational outperformance continues, with further growth in occupancy and positive rental uplifts across both our retail and London portfolios. This progress is translating into accelerated income growth.” He added:“Property values have stabilised, and rising rental values are driving a modest increase in capital values. This has delivered a positive total return on equity. We expect these trends to continue, supported by strong customer demand for our premium spaces and increased activity in the investment market. Our repositioning towards higher-return opportunities, combined with disciplined balance sheet management, leaves us well-positioned to deliver growth and attractive returns.” Earlier this year, Landsec announced its intention to focus on acquisitions throughout 2024, leveraging funds from recent disposals to capitalise on emerging opportunities. Building, Design & Construction Magazine | The Choice of Industry Professionals
The Range is poised to acquire up to 75 Homebase stores as part of a pre-packaged administration deal, potentially saving around 1,500 jobs. Reports from Sky News indicate that administrators are being appointed to facilitate the sale, with The Range set to take over not only the stores but also the Homebase brand and its e-commerce operations. Approximately 1,600 Homebase employees would join The Range under this agreement. This latest move comes after The Range’s acquisition of Wilko last year, following Wilko’s entry into administration. Once appointed, Teneo, the advisory firm managing the sale, is expected to secure buyers for an additional 50 Homebase locations. Interest has reportedly been shown by discount food retailers, DIY competitors, and other high street brands. The deal would mark the end of Homebase’s six-year ownership by Hilco, a retail investor with a history of rescuing troubled brands such as HMV. Prior to Hilco, Homebase was owned by Australia’s Wesfarmers, which implemented a company voluntary arrangement in 2018, leading to store closures and revised lease terms to improve financial stability. Earlier this year, Sainsbury’s reached a £130 million agreement to purchase 10 Homebase stores, converting them into supermarkets. The potential acquisition by The Range could be a lifeline for the embattled homeware retailer, preserving jobs and providing new direction for the Homebase brand under The Range’s management. Building, Design & Construction Magazine | The Choice of Industry Professionals
Marks & Spencer is stepping up its store acquisition programme, securing ten new sites in prime locations to boost its retail presence. This expansion comes as the high street staple aims to push forward with its store rotation strategy, allowing the brand to refresh and strategically enhance its store footprint. In its half-year report for the 26 weeks ending 28 September, M&S reported strong momentum, having opened two food halls within full-line stores and three standalone food locations. These new stores, averaging 14,000 sq ft—almost double the size of typical M&S food stores—allow for a wider range of products, and have exceeded sales targets by around 8%. The retailer is also advancing its refurbishment plans, with four completed renewals and another eight scheduled for the second half of the year. M&S’s renewed stores, launched in 2023, saw a 9% sales increase, underscoring the success of its “reshape M&S for growth” strategy. In addition, M&S trialled a smaller 7,000 sq ft store format in Sidcup, showcasing its full range in a more compact space—a pilot that yielded “encouraging” results. The eight new food stores opened in 2024 are projected to bring in annualised sales of £117 million. Stuart Machin, CEO of M&S, commented on the positive impact of the strategy: “Both food and clothing have now delivered market share growth for four consecutive years. We’ve seen an increase in customer numbers, sales value, volume, market share, and profitability.” For the reporting period, M&S recorded a 17.2% rise in profit before tax and adjusting items, reaching £407.8 million. However, Machin remains focused on the future, stating, “The easy thing to do would be to celebrate these results, but there’s more opportunity for growth ahead, and that’s what drives us.” With a mix of new openings, store upgrades, and innovative formats, M&S’s latest moves signal a commitment to expanding its reach and enhancing customer experience across the UK. Building, Design & Construction Magazine | The Choice of Industry Professionals
Aldi has announced plans to open 11 new stores across the UK in the lead-up to Christmas, enhancing its presence in communities nationwide. The first wave of openings includes stores in Sedgley in the West Midlands and Castle Douglas in Scotland, set to welcome shoppers this week. Later in November, Aldi will open additional stores in Horsham, West Sussex, and Muswell Hill, London. As the festive season approaches, further locations in Totton (Hampshire), Cribbs Causeway (Bristol), and Pwllheli (Gwynedd) will also debut. In addition to the new stores, Aldi is investing in refurbishments at 15 existing sites to improve the shopping experience for customers. These expansions are part of Aldi’s ambitious plan to reach 1,500 stores across the UK, supported by an £800 million investment into its UK operations this year alone. Jonathan Neale, Managing Director of Real Estate at Aldi UK, remarked, “We’re dedicated to making high-quality, affordable food accessible to everyone. Our new store openings reflect our ongoing investment in the UK, and we’re thrilled to bring Aldi’s unbeatable prices to more communities ahead of the festive season.” This news follows a similar announcement from rival Lidl, which has confirmed plans to open 10 new stores before Christmas, alongside the reopening of three upgraded locations. Building, Design & Construction Magazine | The Choice of Industry Professionals
Pharmacy Plus Health (PPH) has unveiled the first of a proposed 40 new pharmacy stores in West Yorkshire as part of its aim to re-invent the community pharmacy world. Devised in conjunction with the Interior Design team at AJ100 architectural practice, Stephen George + Partners (SGP), the ‘pharmacy of the future’ pilot store in Alwoodley, Leeds, showcases a patient-focused layout, a modern, high-end aesthetic and dedicated consultation rooms for in-pharmacy non-invasive treatments that will both alleviate pressure from local doctors’ surgeries and provide a more efficient service to the patient. The rebrand of the PPH stores, comes following the innovative partnership with HubRx, who are the UK’s first large-scale automated dispensing facility designed specifically to benefit independent pharmacy. The integration of the HubRX automated dispensing system will streamline prescriptions from facility to store, and not only reduce the amount of time pharmacists spend managing prescriptions, but also reduce the need for on-site storage capacity, freeing up floorspace and placing an increased emphasis on seamless face-to-face interactions between patient and pharmacist. SGP Interiors was appointed to develop the brief for the new pilot store, with a view to rolling out the design across a number of pharmacy and retail units that PPH had recently acquired throughout West Yorkshire. Working closely with the client and shopfitting contractor PEC, SGP’s design underwent constant evolution, moving towards a modular approach, fit for all shapes and sizes with minimal changes, keeping time and therefore costs down, while also establishing a cohesive brand identity. Amy Fulford, SGP’s Principal Interior Designer, explains: “There was a clear requirement from the client to keep both costs and the install period to an absolute minimum as any down time or closure of stores could prove extremely costly. By cleverly designing the display units and reception desk to standardised key components, we created a kit of parts that could be mass produced to combat waste and cost. This off-site production method enabled the install team to achieve the tight time scales with minimal shutdown.” Having engaged with key stakeholders through various initial design reviews, it was evident the design should focus on the patient and streamline their experience. A minimalistic appearance evolved as a result, with clean lines, hidden joints, concealed fixing details and futuristic white canvas. Whilst still incorporating display islands, the intention was to keep the floor space as clean and distinct as possible, creating clear sight lines to the reception counter and reinforcing the physical relationship between patient and pharmacist. Daniel Lee, Chief Executive Officer at HubRX, in partnership with PPH, said: “As a brand we are working with innovative technologies to revolutionise the prescription process. With our automated HubRX system in successful operation, we approached SGP, with a clear vision to design the ‘pharmacy of the future’ and provide our customers with a 5-star experience. Amy & the SGP Interiors team rose to every challenge we set out and meticulously worked through the design development, working with us to extract what we really needed. This has resulted in a Design concept that truly embraces our brand identity and has transformed our customer experience”. To achieve the desired aesthetic, the concept of capsules progressed to creating an illusion of floating displays, raised off the floor on a post. The number of products on the shelves were stripped back to echo the kind of high-end experience you might encounter at a perfume counter. Although products displayed were reduced, stock replenishment was still a high priority for the daily operations of the stores. To keep the minimalist look at the forefront, hidden storage was integrated into the base of the display units, including the perimeter wall units and island capsules. Due to the success of the ‘pharmacy of the future’ pilot store, rollout has now commenced on the interior scheme and kit of parts across further stores, with a second completed and another on site. Alan Soper, SGP Studio Director, concludes: “There is a growing recognition that community pharmacies can play an important role in the delivery of primary care, as well as reinvigorating our high streets and town centres. However, many pharmacies have not been set up or designed to realise this potential. We are therefore delighted to be working with PPH on the delivery of a transformational model of modern, patient-focused pharmacies. Drawing on our strong track record of successful interior design delivery and cross-sector experience in retail, leisure and healthcare sectors, the design of these stores will transform the patient experience, creating an important healthcare hub within the local community and, in the long-term, go some way to relieving pressure on other parts of the health service.” Building, Design & Construction Magazine | The Choice of Industry Professionals
LandsecU+I, the regeneration arm of FTSE100 real estate giant Landsec, has submitted ambitious plans to transform Lewisham Shopping Centre into a vibrant, sustainable town centre. The proposed redevelopment aims to deliver a blend of housing, green spaces, and lively social areas, revitalising the site while preserving its role as a community hub. The plans envision 1,700 new homes, 445 co-living units, and accommodation for up to 660 students. Alongside housing, the development will introduce a pedestrianised high street with a variety of restaurants, cafés, and bars, plus a 500-person live music venue, creating a new cultural destination for the borough. At the centre of the eight-acre site, an expansive urban meadow will provide much-needed green space, offering residents and visitors an oasis amidst the lively town centre. To support continuity for the local community, the redevelopment will take a phased approach, allowing sections of the existing shopping centre to remain open throughout construction. LandsecU+I plans to retain as much of the original structure as possible, preserving key aspects of the centre’s heritage while introducing modern, sustainable elements. Mike Hood, CEO of LandsecU+I, highlighted the impact of this proposal, stating, “This submission marks a milestone in our journey to create a vibrant green heart for Lewisham. We aim to deliver a place that people will cherish, bringing social and economic transformation, thousands of essential homes, and a beautiful meadow above a revitalised shopping centre.” The masterplan follows an extensive two-decade collaboration with the Lewisham community, with thousands of residents contributing to the vision through one of Landsec’s largest public engagement initiatives. Building, Design & Construction Magazine | The Choice of Industry Professionals
Catella APAM, a prominent real estate asset and investment management firm, acting on behalf of Greater Manchester Pension Fund (GMPF), has announced the successful sale of 133-137 Briggate in Leeds for a total of £4.7 million. The approximately 10,800 sq. ft. retail space was acquired by property investment and development firm Augur Group Limited. The unit, which includes the basement, ground, and part of the first floor, was previously single let to the internationally renowned footwear retailer, Foot Locker. Catella APAM, through its Development Management subsidiary Bankfoot APAM, had completed significant refurbishment works to an adjacent unit in 2023 into which Foot Locker was relocated. The strategic move followed the sale of the long leasehold interest in the upper floor in November 2023, collectively optimising the asset’s total sales receipts. Nicky Newman, Senior Asset Manager at Catella APAM, commented: “We are pleased to have successfully completed the sale of Briggate on behalf of GMPF. This transaction underscores our ongoing commitment to enhancing asset value and aligning with GMPF’s broader investment strategy to meet pension liabilities.” “Our proactive management and strategic asset management enhancements have maximised returns, reflecting our dedication to delivering superior outcomes for our clients throughout all stages of the real estate cycle.” Jonathan Heptonstall, Head of UK Retail Investment at JLL, who acted as the agent on the sale, added: “It has been a privilege to advise Catella APAM and GMPF on the successful sale of this prime asset in Leeds. This achievement underscores the impact of proactive asset management and the resurgence of positive retail sentiment in the area. Briggate continues to thrive, with major retailers like Zara, Footlocker, and Frasers all establishing their flagship stores. We are proud to have supported the entire team through this significant transaction.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Lidl, the popular German discount supermarket chain, has secured a landmark £70 million sale-and-leaseback deal to fund the development of 12 new stores across the United Kingdom. This strategic move is part of Lidl’s ambitious UK expansion plan, which aims to make affordable, high-quality groceries accessible to even more communities nationwide. To bring this vision to life, Lidl has teamed up with Roadside Real Estate and Meadow Real Estate Fund, who have formed a joint venture to acquire these new stores upon completion. Under the agreement, Lidl will continue to manage and operate each location, allowing the retailer to strengthen its UK presence while unlocking capital to fuel further growth. Initially, Lidl acquired land and planning permissions for each of the 12 strategic sites. Once construction is complete, Roadside Real Estate will acquire the stores, leasing them back to Lidl under a 25-year contract. This flexible capital arrangement allows Lidl to grow its network while maintaining a robust operational foothold in key communities. The funding deal sees the joint venture contributing an initial £30 million, with a further £40 million to be provided upon the stores’ completion between late October 2024 and February 2025. These new additions will bolster Lidl’s current network of over 960 UK stores, solidifying its position as a major player in the British retail sector. Richard Taylor, Lidl GB’s Chief Development Officer, stated: “We have big ambitions for our expansion, including plans to open hundreds more Lidl stores in the future. This deal is just the latest example of how we’re continuing to grow our footprint, ensuring that more households can benefit from a Lidl store nearby. We look forward to a long and productive relationship with Roadside, Meadow, and the JV.” Charles Dickson, Executive Chairman at Roadside, added: “The Lidl portfolio perfectly demonstrates the JV’s strategy, swiftly providing targeted capital to support tenant expansion while generating management fees and opening up further income opportunities.” George Trimmer from Savills commented, “This is a valuable opportunity to forward fund the construction of 12 supermarkets let to Lidl. The 25-year leases not only provide long-term income stability with annual indexation but also enable Lidl GB Limited to unlock capital while retaining operational control.” This sale-and-leaseback arrangement is a testament to Lidl’s commitment to sustainable growth, combining an innovative funding model with operational stability. By leveraging real estate partnerships, Lidl is accelerating its store expansion across the UK, continuing its mission to invest in quality and affordability for British customers. Building, Design & Construction Magazine | The Choice of Industry Professionals
