Page 38 - RLI September 2019

MARK FAITHFULL

Following

the Money

Mark faithfull crunches the numbers as he looks at
analysis and expansion that reflects changing markets

Development anD new UK DIY retaIler bUYs bathroom
retaIlers bolster specIalIst from aDmInIstrator
polIsh marKet
K DIY retailer Homebase has bought
n the first half of the year, developers bathroom specialist Bathstore out of
delivered 215,000sqm of new retail Uadministration. The company will take over
Ispace, with six international brands 44 branches and the Bathstore website, with plans to
making their debuts in Poland. The first open a “significant” number of concessions within its
half of the year saw the market grow own stores over the next 18 months, the company
by 215,000sqm of modern retail space, said.The biggest highlight during this time was the
according to JLL’s latest report on eagerly anticipated opening of Galeria Młociny in
conditions in Poland’s retail market at Warsaw. The 78,500sq m project is the largest
the end of H1 2019. completion of 2019 and the biggest shopping centre
The biggest highlight during this delivered to the market since Posnania in 2016.
time was the eagerly anticipated Bathstore appointed BDO as administrator in June
opening of Galeria Młociny in after the retailer collapsed after the then owner –
Warsaw. The 78,500sqm project is American billionaire Warren Stephens – refused to
the largest completion of 2019 and inject more cash into the business to keep it afloat.
the biggest shopping centre delivered Homebase has faced its own struggles over the last
to the market since Posnania in 2016. few years. In February last year the company reported
JLL expects that approximately an 86.6 per cent cent drop in profits following an fired all the incumbent management only to create
278,000sqm across all retail formats unsuccessful attempt to rebrand the DIY chain as an offer better suited to its Australian home than
will be delivered to the market in the Bunnings. The home improvement retailer is one year the UK market. The company is thought to have lost
second half of the year, although the into a rescue plan after it was bought from Australian around £1bn in exiting the business.
completion of some developments may brand Wesfarmers by turnaround specialist Hilco Bathstore, the UK’s largest specialist bathroom
be put back until 2020. Capital for just £1 last year. retailer, collapsed into administration, with Ryan
The total modern retail stock in Wesfarmers, through its main brand Bunnings, Grant and Tony Nygate of BDO’s restructuring unit
Poland at the end of H1 2019 stood at had overseen a disastrous takeover during which it appointed joint administrators.
nearly 14.5 million square metres, with
10.2 million square metres located in 422
shopping centres. Shopping centre density sUrge In overseas shoppers vIsItIng the UK
(excluding high streets) currently stands
at 265sqm per 1,000 inhabitants, which wo new reports have shown that overseas performing shopping destination for tourists with
brings Poland’s market progressively shoppers are on a sustained spending spree Italy falling at a distant second place with only a 6
closer to the Western European average Tin the UK. Tax free shopping expert Global per cent sales growth rate.
of 279sqm per 1,000 inhabitants. Blue forecasts that there will be a surge in Middle Other major destination markets such as Germany,
In Q2 of this year, four new Eastern shoppers visiting the UK over the summer France and Spain all experienced sales decreases. While
international brands entered Poland. months, with an expected rise of 16 per cent from the volume of Tax Free transactions in the UK increased
Three of the four newcomers have July to September, continuing the strong trend. by 5 per cent and the average spend value per transaction
chosen Galeria Młociny: Sloggi, the With approximately 37.8 million visitors throughout among international shoppers rose by 8 per cent.
lingerie brand from Germany opened its 2018, Global Blue’s forecast comes as the GCC markets The first half of 2019 marks a stark difference
first mono-brand store, Gagliardi, from look to make the most of the weak pound to purchase for UK retailers compared to this period last year
Italy, offering exclusive men’s fashion, and leading luxury British brands from their flagship stores. which saw double-digit declines in Tax Free sales to
Pesto Café from Ukraine. Another Italian The Middle East is the UK’s second-most valuable international shoppers in all but one month.
brand, Boxeur des Rues, offering sports market, with Gulf Countries’ citizens accounting for
clothing, opened its first store in Factory more than a quarter of the total tax free shopping
Poznań. Earlier, TEPfactor opened its spend; with Qatar holding 8 per cent of the total
entertainment theme park concept in share, the UAE and Kuwait having 7 per cent
Blue City, and My Shoes debuted at the respectively and Saudi Arabia 6 per cent.
same time in Galeria Mokotów, Galeria Latest insight from Global Blue reveals that visitors
Katowicka and Galeria Echo Kielce. will look to spend, on average, over £1,000 during
The most eagerly awaited debut of their time in the UK this summer, up 4 per cent from
the year is expected in the autumn - 2018. Additionally, out of the six countries that form
according to reports fashion brand the GCC, Saudi Arabia has grown at the fastest pace
Primark will open its first store in with the number of transactions per visit up 28 per
Poland in Galeria Młociny. Urban cent, as the UK becomes their first choice destination.
Outfitters and Swedish H&M brand, Meanwhile, international shoppers are choosing
Weekday, also plan to open in Warsaw’s to spend money with British retailers over European
Elektrownia Powiśle in spring 2020. neighbours this summer, according to Planet.
Another H&M brand - Monki is about Tax free sales to international shoppers increased
to appear in Katowice and Kraków. by 13 per cent in June making the UK Europe’s best
50 RETAIL & LEISURE INTERNATIONAL NOVEMBER 2018