NATIONAL RETAIL | WINTER 2018/19
CORNWALL’S QUIET HIGHSTREET CONTENDER
CEO of Seasalt
An interview with
Paul Hayes,
A guide to this regional hub of retail and leisure
A day in Manchester
INDEPENDENT BEAUTY BRANDS DISRUPTING THE MARKET
Fringe beauty meets the mainstream
London issue
WELCOME
website: savills.co.uk/retail
Designed and produced by: Savills commercial marketing
digital magazine: real media group
on the cover: Paul Hayes, CEO Seasalt
social media: Twitter @savills / Instagram @Savills / LinkedIn
Welcome to the first National supplement to feature in OPEN magazine. This section of the publication is a low-down of all the new and exciting trends and operators emerging from the UK today. Throughout this issue we celebrate retailers who continue to flourish despite challenging market conditions. One such operator is Seasalt. On page 7 we had the pleasure of interviewing CEO, Paul Hayes. Here we discuss the brand’s recipe for success, why it is committed to minimising consumable waste and how its use of Facebook and Instagram allows the retailer to build a genuine relationship with the customer. That recognition in the importance of remaining relevant to the consumer is a common thread that runs throughout many of the articles in this issue. On page 13, Lily Harral reports why it is essential that the traditional British department store recognises the need to adapt in order to be fit for purpose by taking inspiration from the elite luxury department stores. Similarly in our Restaurant Operator Profile (p.08), Naked Deli co-founder Kirstie Dunn speaks to Josh Howe about how they lead the way in the ever-popular clean-eating market which has allowed them to continue to expand nationally. In ‘A day in Manchester’ (p.4), Catherine Barnard highlights the best of the city’s retail & leisure offer making a brilliant case for why this regional hub should be at the top of your staycation list. And following on from our ‘Collaborate of Die’ article (p.15, OPEN, Central London) about the positive impact the right partnerships can have on sales throughout the fashion industry, we take a look at its effect on the beauty industry in ‘Fringe beauty meets the mainstream’ (p.6), and how home grown talent in the form of Alessandra Steinherr (former beauty editor of Glamour magazine) is disrupting the market. We hope you enjoy this special edition and that it goes some way to dampening those negative headlines we are so bored of reading by shining a positive light on some of the inspiring things taking place in and around the Nation. Savills National Retail & Leisure Team
Download pdf
NEIGHBOURHOOD FOCUS
What to do and where to go
BEAUTY
store?
Independent beauty brandsdisrupt the market
SAVILLS
Recent deals
See all of our recent deals on pages 05 & 14
RESTAURANT REVIEW
A taste of Tast
The new Catalan restaurant in Manchester
xx
RETAILER PROFILE
An interview with Paul Hayes, CEO of Seasalt
Cornwall’s quiet high Street contender
RESTAURANT OPERATOR PROFILE
The Naked Deli
Leading the way in the ever-popular clean-eating market
EUROPEAN FOCUS
Dublin: Renaissance on the Liffey
In Conversation with Larry Brennan...what is underpinning the city’s economic success?
F&B trends
Global F&B chains roll out their new recipe for success
Technology, slick design and improved service
The team
Get in touch with us
WHAT'S IN
RETAIL TRENDS
Department stores must evolve to survive
Consumers still want and needthese stores, but they must be fit for purpose.
MY CITY
Edinburgh
With Isla Monteith
04
06
07
09
08
10
11
16
05+
13
EUROPEAN REVIEW
Starbucks brews up in Milan
The global coffee chain finally enters the Italian Market
12
15
would you Like to receive future issues of
OPEN?
Yes Please
A Day In
This city at the heart of the Northern Powerhouse is a regional hub of retail and leisure with excellent national and international transport links. Catherine Barnard shows how to make the most of a day here.
ABOVE: The Ivy, Spinningfields LEFT: Afflecks Palace, Church Street
A stone’s throw from Manchester Piccadilly railway station, the Northern Quarter is the destination for all things creative in the city. During the Industrial Revolution, this area became the world capital of the textiles industry. Today, many of the large brick mill buildings still stand and have been converted into independent shops, cafés and restaurants, with many of the walls covered in street art. Afflecks Palace on Church Street describes itself as ‘an emporium of eclecticism’ and is a must-visit market which opened over 35 years ago in 1982. It allows independent traders to rent small spaces on flexible terms, selling everything from vintage clothing, fancy dress and even wedding dresses to vinyl records, posters and jewellery. Browse the stalls and see what you can find. Further into the Northern Quarter, try Home Sweet Home on Edge Street for a mid-morning coffee. This trendy and award-winning café brands itself a ‘milk bar and kitchen’ and has an excellent American-inspired brunch menu, but it doesn’t take reservations so be prepared for a short wait. Afterwards, head for the Manchester Craft & Design Centre: housed in a former fish market, this calm and quite place showcases highly talented independent artists who you can chat to and buy artwork and gifts from. With lunchtime approaching, Mackie Mayor is the go-to spot. This Grade II listed building has been taken over and sensitively transformed into a bustling food market, similar to Time Out Market in Lisbon. Its sister market in Altrincham has attracted national press and Mackie Mayor deserves similar praise. Outlets include Honest Crust, FIN, Wolfhouse Coffee, Tender Cow, Rotisserie, Baohouse, La Cucina and Blackjack Brewery.
Morning
The Northern Quarter
After lunch, take a stroll down to New Cathedral Street which is home to some of the city’s best shopping. This area of the city was destroyed by the IRA bomb in 1996 and the retail space was created during the redevelopment that followed. Here you will find Burberry, Hugo Boss, Michael Kors, Paul Smith, Reiss, Ted Baker and Zara, along with Polo Ralph Lauren which opened a store in November. If you’re not all shopped out by the time you reach the end of New Cathedral Street, then you’ve both Selfridges and Harvey Nichols to choose from for even more retail therapy. New Cathedral Street opens onto Exchange Square and The Old Wellington Inn which was built in 1552 in what was then known as Shambles Square. In 1999, the pub was dismantled and rebuilt 300m away in its current location, to make way for the development of the Arndale Shopping Centre. Popular on match days, The Old Wellington Inn and the adjacent Sinclair’s Oyster Bar offer a sunny spot for a drink on a summer’s day.
Afternoon
New Cathedral Street and Spinningfields
Next, take a wander down Deansgate until you reach Spinningfields. Developed by Allied London and consisting of over 20 new buildings, Spinningfields comprises a mix of office, retail, leisure and residential space. The mix has changed over time and there is more leisure here now than retail, however you can still easily lose an hour or two browsing in Mulberry, Flannels and Armani. By this point it’s probably almost sundown, so take the lift to the top of No.1 Spinningfields and visit the open air rooftop bar at 20 Stories, where you can enjoy a drink while you gaze at the sunset across Manchester, 93m up. This new venture by D&D London has very much become a place to be seen since it opened and you’ll see plenty of people snapping away at the views and the cocktails for that perfect Instagram post.
After coming back down from 20 Stories, head for dinner at The Ivy. This is the newest addition to Spinningfields, having only opened in December 2018 and it offers three dining concepts set across three floors: The Ivy Brasserie, Ivy Asia and The Ivy Roof Garden. Although it’s the biggest restaurant to open in the UK this year with 535 covers, reservations are highly recommended, especially at weekends. Ivy Asia is the first of its kind, with the menu taking inspiration from East and Southeast Asia. If you still have the energy after dinner, pay a visit to Albert’s Schloss. This day-and-late-night, Bavarian-style establishment provides live music every night of the week, accompanied by drinks and dancing in a huge open plan bar with an Alpine feel to it. Popular with all ages, it’s the perfect spot to finish your evening. Savills has acted on several locations in Manchester such as King Street, the Northern Quarter, the Printworks and Peter Street.
Evening
Spinningfields and Peter Street
Please contact Russell McGill or John Agnew for more information.
Russell McGill
+44 (0) 161 602 8646
russell.mcgill@savills.com
John Agnew
+44 (0) 161 244 7707
jagnew@savills.com
TOP: Sinclair’s Oyster Bar, Cathedral Gates BOTTOM: Albert Schloss, Peter Street
savills deals
SAVILLS DEALS
Real, authentic, fresh pizza operator Pizza 1889 continues to expand, most recently signing a deal with British Airways Pension Fund to open at Avonmeads Retail Park in Bristol. The unique concept is currently trading out of two state-of-the-art shipping containers in London and Cambridge and will continue to roll out new stores using small pockets of landlords’ unused space.
Pizza 1889 is fired up for launching new stores
Sports Direct has acquired the House of Fraser freehold on Buchanan Street from DTZIM following its administration buyout of the Houser of Fraser brand in August 2018. The 350,000 sq ft store will continue to trade as Frasers and will be turned into a luxury department store, currently being referred to as the “Harrods of the North.”
Sports Direct buys iconic House of Fraser building in Glasgow
Joules pops up in Chester
Lifestyle brand Joules opened a 4 month pop-up at Broughton Retail Park, Chester in March 2018. The pop-up store continues to be a successful format for the brand having opened further locations throughout the UK in 2018 including Glasgow Fort. Joules chief executive Colin Porter is reported to have said the brand would continue to ‘embark on several pop-up stores with short term leases to “test out” new locations in the coming years’
Please contact Dominic Rodbourne for more information.
Please contact Stuart Moncur for more information.
Dominic Rodbourne
020 7409 9945
drodbourne@savills.com
Stuart Moncur
+44 (0) 131 247 3706
stuart.moncur@savills.com
The concept is proving especially appealing during a time when large retailers and restaurant chains are choosing to reduce their size.
beauty
mainstream
Fringe beauty
meets the
Social media and high-profile partnerships are helping independent beauty brands disrupt the market.
Step into any retail beauty hall in the UK and you’re guaranteed to recognise the glowing lights of the glamorous cosmetics counters within. It’s well-known that the beauty industry is a big one, enticing consumers, most frequently women but with an increasing male audience, to the latest lotions and potions promising a better you. From Clinique to Clarins, Estée Lauder to Chanel, these beauty stalwarts have dominated the market for years, offering a beauty product for almost every occasion, with a slice of luxury on the side. However, as with all things retail, the beauty industry has been experiencing a shift in mentality, with independent beauty brands bringing disruption to the market, becoming more prominent and sought-after than ever before. Take Selfridges’ ‘Beauty Playground’. Alongside purchasing your favourite beauty hall products, you can also enter the unknown territory of indie beauty brands and explore a vast array of acids, retinols and serums previously reserved for those in the know. Brands such as Deciem’s The Ordinary are a prime example of this, offering stripped back products based on simple and effective formulae at prices starting from £5.
the social media effect and the accessibility of alternative beauty brands will remain a challenge for traditional beauty houses.
It is no coincidence that we are experiencing this beauty revolution now. Thanks to the internet and the rising number of beauty and skincare bloggers, a lot of the mystery traditionally surrounding the industry, products and ingredients has been de-bunked. Caroline Hirons is arguably one of the most influential skincare bloggers in the market. With over 163,000 YouTube subscribers and 230,000 Instagram followers, the dermatologist and brand consultant has established a loyal base of fans with honest and informative product reviews, advising many on the best products to ease their skincare woes. Caroline is just one example of many beauty influencers out there, educating the nation and raising the profiles of the smaller brands, meaning that today’s beauty industry is less reliant on the large-scale branded houses with big marketing budgets and more dependent on well-formulated products that can deliver on the results promised. This trend is not specific to the larger department stores either. Readily available information and advice at our fingertips has also paved the way for improved accessibility to the products themselves, with a number of high street retailers now expanding to offer a diverse range of beauty and skincare products. Alex Steinherr, the former beauty editor of Glamour magazine and respected industry guru, has recently launched a skincare line for Primark. Utilising her industry know-how and years of experience testing and reviewing some of the best products out there, Alex’s line promises honest, simple, affordable and effective skincare products for all. There are 20 products in the range at present and early reviews are promising, with many praising the simplicity of the products as well as the quality and price. Pixi, a firm favourite in the indie beauty sphere, has also moved mainstream, with cult classic Glow Tonic and selected other products now available to buy alongside your 40 denier tights in M&S or your toothbrush in Boots. Even Aldi has decided to dip a toe in the beauty pool, launching its own skincare and make-up line, Lacura, offering products that will offer amazing results for all ages, genders and skin types.
With less relevance placed on the establishment of the brand, and social media playing an increasingly important role in the industry, there is now scope in what was a traditionally tight marketplace for a more diversified offering. Partnerships between branding experts, celebrities and production companies are becoming commonplace. Take Kylie Jenner. Kylie was recently featured in Forbes Magazine as being on track to become the youngest self-made billionaire at 21 thanks to her cosmetic line. Kylie Jenner Lip Kits are the brainchild of her management company and SEED cosmetics.
Between her instantly recognisable personal brand and consequent social media presence and SEED’s intellectual property, cosmetic labs and production know-how, they have captured a true match made in heaven. And there is plenty more where this came from, with beauty company and celebrity partnerships pouring into the market as fast as squalane moisturising oil. In terms of the effect on bricks and mortar, while it is still early days, we are already seeing these skincare and beauty brands taking space. Drunk Elephant, a US cult brand famous for natural products, opened a pop-up store in Covent Garden earlier this year to mark the launch of the brand in the UK and Deciem has just opened in Edinburgh, its first UK store outside London. With the market experiencing such diversification, it is challenging to predict when it will, if indeed ever, reach saturation. At present, each brand and product continues to offer its own point of difference, and with the results being subjective, there is room in the market for more than one ‘It’ product with glowing reviews. One thing is for certain: the social media effect and the accessibility of alternative beauty brands will remain a challenge for traditional beauty houses. The latter will have to adapt to sell products based on quality ingredients and proven results as opposed to the promise of what they will deliver in an industry where transparency and education is more important than ever.
For more information contact Julia Robertson.
Julia Robertson
+44 (0) 20 7075 2854
jrobertson@savills.com
retailer profile
Cornish
brand
charts
its own
course
The Duchess of Sussex might have been photographed in one of its coats, but the Cornish fashion brands customers are its best endorsement, says CEO of Seasalt Paul Hayes
MAIN: Seasalt’s January collection inspired by Vanessa Bell and Virginia Woolf
Next year we plan to open more stores and will promote and support these new stores within their individual communities
Seasalt was founded by the three Chadwick brothers in 1981 and is still very much a family business. How is this reflected in the way the company is run?
We work with our internal teams to make them feel like part of the Seasalt family and strongly believe in maintaining that culture even as we’ve grown bigger. We’ve also kept a healthy balance between the family’s involvement and the development of a very professional management team.
How do you think this resonates with your customer base?
Community is a big part of how we interact with our customers and we’ve continued to open stores on the high street even in difficult economic times. Next year we plan to open more stores and will promote and support these new stores within their individual communities.
You have an impressive UK and European spread with 58 stores (UK) and 400 stockists (UK & Europe). What has been your biggest risk in fuelling this expansion?
We have grown by 25 per cent year on year over the last four years so buying product to facilitate that growth and the associated cash flow considerations are always front of mind. But we are very selective in our choice of store locations so it has been a calculated risk in that respect. While we pride ourselves on being a very creative and innovative brand, we are equally commercially aware so the business is always managed in a professional manner, which is clearly one of the reasons why we are supported by our banking partners, Santander, and for the recent investment by BGF.
You are known for your commitment to producing responsibly made, sustainable products. What do you do to ensure you have a positive impact on the environment?
It is definitely something we feel passionate about at Seasalt. We have always been committed to conducting business honestly and authentically. We are one of the UK’s largest retailers of organic cotton and are proud to have been the first fashion company to have been Soil Association GOTS certified in 2005. We recognise that the way we do business has a direct impact on our people and our profit as well as the planet and being mindful of our environmental impact is critical to the success of our brand. Our design team is always working on new and innovative fabrics such as our exclusive Tin Cloth and striving to find more eco-friendly alternatives. We are committed to measuring and improving our environmental performance by setting goals to reduce waste, energy use and travel, and increase water accessibility. Our cross-functional project team, the Consumables Goods Consortium, is focusing on minimising our consumable waste. So far, we’ve removed approximately 18 tonnes of single-use plastic from the business annually. Part of our commitment to sustainability is creating beautiful quality pieces that are made to last and that customers will want to wear again and again. Possibly to the detriment of our own further sales!
ABOVE: Paul Hayes
Meghan Markle, Duchess of Sussex, wore a navy Seasalt Waterproof coat in New Zealand. What impact did this have?
We were delighted to see the Duchess of Sussex wearing a coat from a previous Seasalt collection. It undoubtedly had a big impact on our website traffic on the day the pictures appeared and we definitely saw a spike in interest in our outerwear collection. Celebrity endorsement is not something we’ve ever pursued so this was just a happy coincidence. Our customers have always been our best endorsement!
Has the rise in e-commerce changed your business strategy in recent years?
Online has evolved quicker than the other channels but it hasn’t necessarily changed our strategy. It has meant more investment in people and technology to ensure that we compete in the technical age.
Does your online business divert sales from your physical stores or complement them?
We find, in general, that sales in online complement that of our physical stores and we remain very thoughtful around the location of our retail stores. We consider them to be a fundamental part of our overall customer experience. With the rise in online retailing, it does mean there is probably an optimum number of stores that a brand like ours may have in the UK but we haven’t yet reached that point.
What about social media?
Social media is a key part of our overall brand and communications strategy. Our customer is at the heart of everything we do and social media, in particular Facebook and Instagram, has allowed us to build genuine trust and love for the brand which in turn translates into positive engagement and ultimately sales. Our teams are dedicated to nurturing an open, meaningful and close relationship with our customer. Social media enables us to do that effectively and at scale. We also use our social touchpoints as a place to test and learn so that our customers feel genuinely part of the journey we are on, we’re continuing to learn as we go.
TOP LEFT: Mylor Sailability’s accessible power boat. Wheelchair users can wheel straight on and people with mobility problems can step on with dignity BOTTOM RIGHT: Seasalt storefront, Leeds
For more please information contact Cameron Bell.
Cameron Bell
+44 (0) 20 7409 8158
clbell@savills.com
Restaurant operator profile
naked
DELI
The
Kirstie Dunn, co-founder of The Naked Deli talks to Josh Howe about the success of the healthy eating brand and its plans for the future
What is The Naked Deli?
We are a clean and healthy eating brand founded by me, my partner Chris Jones, and his cousin Ian Jones in 2014. We opened our first outlet in Heaton, Newcastle then further stores in Gosforth, Fenwick’s Food Hall and the departure lounge at Newcastle Airport. We also make cakes to order which can be collected from either our Heaton or Gosforth outlets.
What inspired you to come up with the concept?
We were all fit and healthy and went to the gym regularly. But though we tried hard to ‘eat clean’, we found it impossible to do as we went about our daily lives. Walking past yet another fast food chain, we had a lightbulb moment: we set to work in the kitchen to come up with a range of breakfast and lunch dishes, plus cold press juices and smoothies, that were made from whole ingredients in their natural state. No hidden sugars, ‘E’ numbers, hormones or chemicals with names that you can’t pronounce.
The food and beverage market is currently very competitive...
It is. Our aim is to lead the way rather than follow. One of the advantages we have is that people who are interested in eating healthily want to do so regardless of where they are. As we’ve already proved, this means our concept works in all types of locations, including airport departure lounges. It’s also important to offer something that is unique: we pride ourselves on the quality of our ingredients, from raw cacao to avocados, which we can trace from origin to plate. The Naked Deli ethos is based on eating well rather than self-denial. We’ve gained an enviable reputation for our Naked Treats’ specialties which include raw snickers, raw carrot cake and our delicious protein balls using grass-fed whey and a mix of whole foods. All of our dishes include nutritional information such as protein, fat, carbohydrate and calorie content as well as an indication of whether they are gluten free, dairy free, vegetarian or vegan.
What is your favourite Naked Deli item?
Our cakes! It’s hard to believe they are all gluten-free, contain no refined sugar and are dairy free and even vegan, but they are. We also offer a selection of them as a shake with a scoop of vanilla whey protein.
Has social media had an impact on your business?
I love how we can engage with our customers in real time and it also gives us the best opportunity to showcase our menu and new creations. When we opened our first deli in Heaton a strong social media campaign helped us to reach full capacity in the first week.
What can we expect from The Naked Deli in the future
We recently appointed a new Chairman, John Upton who joins us from LEON. We have also secured funding from Foresight Group to grow the brand and spread our love of healthy, nutritious food throughout the nation. Our aim is to open four or five stores a year over the next five years. It’s fair to say we are incredibly excited about what is to come.
For more information contact Josh Howe.
Josh Howe
+44 (0) 113 220 1239
jhowe@savills.com
A taste of
TAST
Manchester famously has no Michelin stars, but could a new Catalan restaurant be about to put this right? We sent Catherine Barnard and Russell McGill to find out
For a quick break away from our desks one lunchtime, we headed for a new Catalan restaurant on King Street called Tast. The minute we set foot inside, however, we realised our mistake: this was not a ‘quick break’ kind of place, but rather the sort of restaurant in which you could easily spend the whole afternoon. Receiving rave reviews since its opening in July, Tast is the latest football-associated venture to emerge in Manchester, being backed by Manchester City FC’s very own Pep Guardiola. To date, Manchester has been famous for its lack of Michelin stars, but with the restaurant’s chef Paco Pérez holding no less than five stars in other restaurants across Europe, could this be about to change? After being given a warm Spanish welcome, we were seated on the first floor which had great views up and down this busy shopping enclave. The fit-out is simple but modern, with bold colour on the walls, contemporary furniture and an intriguing wooden ceiling that makes you dizzy if you look at it too long…or was that just the wine? One of Tast’s biggest selling points is its staff – even the chef looked up from the impressive open-plan kitchen to say ‘hola’ when we arrived. The menu was explained to us in minute detail and it was evident that everyone who works here is passionate about food and has a wide understanding of the produce.
Overwhelmed by the extensive menu we chose a selection of small plates, or ‘tastets’ to share. They arrived as and when they were ready and they were placed, tapas style, in the middle of the table. We were given a careful explanation of each dish, its origin and how it was prepared. It’s difficult to say which tastets were our favourites as every plate looked and tasted exceptional. The Espàrrecs Verds, Bauma & Cherry tastet (£7) comprised beautifully cooked asparagus, with the nuts on top providing the perfect contrast against the smooth bauma cheese sauce. The presentation of all of the tastets was excellent, but the Bao Fricandó (£7) was the best, its quirky bamboo steamer giving a nod to the dish’s Chinese roots. We didn’t stay to sample the desserts, though they look absolutely delicious on Instagram. Our bill came to £60 for two, including drinks and service, well priced for a smart eatery located in the heart of the city centre. We would definitely visit again, hopefully for a slightly longer lunch or dinner, and perhaps try La Selecció De Paco Pérez – a set menu at £40 per head showing the very best of Tast’s menu.
Tast, 20-22 King Street, Manchester, M2 6AG, 0161 806 0547, www.tascatala.com
For more information contact Catherine Barnard or Russell McGill
Catherine Barnard
0161 602 8225
cbarnard@savills.com
DUBLIN:
renaissance on the Liffey
IN conversation with… Savills Head of European Retail Agency, Larry Brennan
Dublin appears to be booming. What is underpinning the city’s economic success
Yes, Dublin is really enjoying its economic renaissance, with the challenges of the banking crisis and economic crisis seemingly well behind us. The bedrock of this economic growth has been job creation, with effective full employment now in the city. This was largely led by foreign direct investment in companies in the tech, pharma and financial sectors, bringing thousands of jobs annually, both directly and indirectly.
This had also led to the return of significant construction growth, with numerous major office projects being completed to meet this re-invigorated demand for space, and residential development picking up pace to try meet the demand from the expanding workforce. At the last count some 104 tower cranes decorate Dublin’s skyline, a clear sign of this renewed economic prosperity. Tourism has also been a major factor in the city’s economic growth. Ireland had over 10.65 million overseas visitors in 2017 and the first five months of this year showed an increase of 7.6 per cent on the same period last year. Dublin is the gateway to the country and the city has hugely benefitted from this influx in people and spend.
So what’s new and happening?
While retail development has lagged behind office and residential, it has started with the Clerys scheme of MSU stores and food and beverage (F&B) outlets on O’Connell Street about to start on site and developments at Chatham and King Street and the former Central Bank on Dame Street well under way. On Henry Street, North Dublin’s main shopping street has seen major flagship deals sign with both JD Sports in Jervis Shopping Centre and Next who are to occupy a new circa 37,700 sq ft unit created out of the Arnotts Department Store.
The restaurant market seems particularly active. Which occupiers are driving it?
Yes, like so many other European cities Dublin is enjoying an F&B renaissance. The Ivy has just opened a circa 10,800 sq ft flagship restaurant on Dawson Street and is reporting phenomenal opening trade. Other international brands, such as Le Pain Quotidien and Five Guys, continue to expand. However, the real feature has been the growth in Irish F&B groups, with some amazing concepts. Quick serve and healthy chains such as Freshly Chopped, Sprout and Boojum are expanding not only at a pace, but given the apparent constant queues, very successfully. Multi-concept groups such as Press-Up, which covers hotels, bars, franchised restaurants and quality restaurants, the Wright Group of venues and Alan Clancy’s Nola Clan Group of pubs and venues are also going from strength to strength. An evening walk around Dublin’s tourist areas underpins this, with active seven-day trading. This is particularly evident in the streets west of Grafton Street on the city’s South Side, where Drury, South William and Clarendon Streets have become a true night-time playground for millennials.
Is Grafton Street still king in terms of retail?
The North City has definitely seen more activity, with the deals I have mentioned and with the help of Selfridges’ investment in the Arnotts Department store post its acquisition of the company in 2015. The recent completion of the LUAS cross-city project, which links both sides of Dublin by light rail, also helps balance trade. That said, Grafton Street will always be special, with the Brown Thomas luxury-focused department store and its blend of Irish and international retailers as it winds its way from Trinity College to St Stephens Green. The addition of the likes of Victoria’s Secret, The White Company and Rituals has all helped cement Grafton Street’s top billing, as has the presence of complementary F&B to the west.
What parts of your Dublin experience have helped you in terms of your European role?
Dublin’s recent economic growth, with its resultant influx of young, dynamic international workers, tied with the explosion in tourism, have really helped make it an amazingly cosmopolitan and liberal place. The city is truly unique, as it has a little bit of what’s best throughout Europe and indeed the world. It is hard to think of another city that is so small yet so diverse. This, I think, gives me the perfect springboard into Europe as I am not blinkered by a big city mentality, yet also have my mind continually stretched by the ever changing food, retail and leisure and entertainment scene that is today’s Dublin. We have seen a number of international retailers look at Ireland first before entering the more complex UK market, and conversely seen UK companies look to Ireland for their first foray into the Eurozone. Dublin has become a real European travel hub, with up to 740 flights a day to and from over 180 destinations, meaning I am invariably just a short hop home.
ABOVE: The Grayson RIGHT: Clerys department store redevelopment
OPPOSITE & ABOVE: ModPod room, The Devlin & The Grayson, Press-Up Entertainment Group Venues
For more information contact Larry Brennan.
Larry Brennan
+353 1 618 1302
larry.brennan@savills.ie
F&B TRENDS
F&B chains
Global
roll out their new recipe for success
Technology, slick design and improved service are now the ingredients for success in this sector.
While concept stores have been a feature of the retail market for some time, we are now seeing fast food brands rolling out similar consumer-friendly formats. Quick and inexpensive food and drink will henceforth come with a side order of state-of-the-art technology, slick aesthetics and streamlined service, all designed to encourage customers to linger longer – and spend more. McDonald’s, one of the most recognisable fast-food brands in the world, has already embraced this trend, launching its new flagship store in Chicago last summer. Moving away from its traditional cheap and cheerful diner style, the company unveiled a steel and glass box structure of some 19,000 sq ft, which, despite the presence of the famous golden arches, looks more like an Apple Store than a traditional McDonald’s. The Chicago store is part of McDonald’s ‘Experience of the Future’ initiative to upgrade and renovate all of its freestanding restaurants by 2020. Additional updates at the Chicago store include an internal green wall incorporating 70 trees, which serves not only as a design feature, but also to promote the company’s sustainability policy. Convenience and technology are at the heart of the McDonald’s redesign, with self-order kiosks, table service, mobile order and pay and delivery all offering a new streamlined experience for customers.
However, when it comes to convenience and technology, it’s Domino’s, the world’s largest pizza chain, that has stolen the lead by introducing an artificial intelligence (AI) system to speed up the whole ordering process. It has also experimented with drone delivery, with pilot schemes in both Germany and The Netherlands last year. KFC, meanwhile, has been working with an architectural design team in Turkey to create sleek outlets in which its customers will want to spend more time. It isn’t just fast-food outlets that are working on new, consumer-friendly concepts. Starbucks, one of the world’s top five coffee chains, has been developing a new approach to store design which looks at each outlet individually, reflecting the character of the neighbourhood in which it is set and placing more emphasis on customer experience than ever before. In the future, it says, no two Starbucks will be the same.
Starbucks’ first Italian store in Milan is a prime showcase for this design evolution. It pays particular attention to the heritage of the building in which it is housed and the culture of the city, moving away from the traditional ‘one-size fits all’ model to a more fluid and innovative approach (see review on page 12). Consumers are certainly not losing their taste for fast food: according to the Office for National Statistics (ONS) the UK saw a 34 per cent increase in fast food outlets between 2010 and 2018. What is clear, however, is that fast food brands and coffee chains will have to adapt if they want to stay relevant and retain their slice of market share.
RIGHT: McDonald's Flagship, Chicago
Starbucks
Milan
brews up in
The global coffee chain finally enters the Italian market with a flagship store in MILAN, Gianluca Di Gennaro REVIEWS.
VENUE: Starbucks Reserve Roastery Milano, Via Cordusio, 3, 20123 Milan
When I first heard Starbucks was opening in Milan, I thought ‘hurrah!’, quickly followed by feelings of guilt. I’m Italian, after all. But then I watched a video in which Starbucks CEO Howard Schultz affirmed: ‘We’re not coming here to teach the Italians how to make coffee, not at all! We’re coming here to express our appreciation for what they’ve done.’ It turns out the Milan Starbucks is an homage to the Italian espresso culture; the very culture that inspired the global coffee chain in the first place. And it’s not just any Starbucks: it’s a Starbucks Reserve Roastery. So one Sunday afternoon in mid-October, a month after the new Starbucks opened, my girlfriend and I made our way to Piazza Cordusio. Dozens of other people had clearly had the same idea and we queued for half an hour before climbing the stairs of the former post office building. This was an entrance designed to impress: think Ionic columns, monumental façade and majestic doors.
Once through the doors we were confronted by a vast room. Luminous and crowded, it reminded us of a cross between an amusement park and a design museum. First we came to Princi, an established Milanese bakery, famous for its delicious focaccia. Then we noticed an area full of merchandising: waxed canvas aprons worn by Starbucks’ partners, ‘Starbucks Cordusio’ special edition t-shirts, a two-tailed siren statuette with a hefty €4,500 price tag. In front of us rose the impressive roastery, where beans are ground for use in store or to be packaged up and sold. To one side of this was the main counter for ordering drinks. But before we ordered, we proceeded to the upper floor where there’s an elite area with limited table service called the Arriviamo Bar. Here, special in-house cocktails cost from €12-€20. Having finished our tour, we returned to the main bar where we discovered that the menu is not the same as everywhere else in the world: the familiar marocchino is here, for example, but there’s no sign of the Frappuccino. We ordered two espressos made from the Starbucks Pantheon blend. We could have collected our order and taken it to a table or we could have drunk it outside on the street, Starbucks style. Instead, we had it the Italian way, standing at the counter. Some traditions, we felt, shouldn’t be messed with. While an enjoyable experience, it was also a costly one: in Milan you can expect to pay around €1 for an espresso but ours cost nearly double that, at €1.80 each. At that price, I can report, Starbucks is likely to remain a treat rather than a daily habit.
For more information contact Gianluca Di Gennaro or Cameron Bell.
Gianluca Di Gennaro
+39 (02) 632814228
gianluca.digennaro@savills.it
Department stores
to survive
must evolve
Today’s consumers still want and need department stores, but they must be fit for purpose.
We have already identified the battle department stores are having with online retailers and the so-called Amazon effect, but there are also many new businesses who were born online that are taking millions out of the established retail market. Ten years ago, UK internet sales made up 5% of retail purchases. In 2018, the figure is approaching 20% and is predicted to reach 30-40% in the next 15 years. The second-hand market, which allows men and women to buy used designer clothing and accessories at half the price from the likes of Vestiaire, Deuxième and more recently Depop, is also affecting department stores. We cannot ignore the impact the health fitness market has had either, taking large sums of money from what could have been spent in the established department store. Spinning, Pilates, reformer Pilates, yoga and ballet, alongside a vast option of gyms across the country: the expense of these classes soon adds up. It’s the luxury department stores that seem to be showing us how to survive in these adapting markets. Harrods has always had a finely focused strategy and creates unique departments. The childrenswear department, for example, includes brands you can’t find anywhere else, which attracts customers from all over Europe. Its sales to February 2018 were up 8% to £2.1 billion, partly driven by growth in beauty. Having noted the upward trend in expenditure on beauty and wellness, the store opened a vast Wellness Clinic on the fourth floor, housing qualified doctors and the best specialists, offering the latest treatments. Like Harrods, both Harvey Nichols and Selfridges know department stores can’t just go on selling products in the same way they used to. With only seven and four full-line stores respectively throughout the country, they are enticing customers by going down the experiential route.
If you have ever ordered a must-have handbag or desperately needed a birthday present and had it delivered the next day, you’ll have no trouble understanding why these are challenging times for British department stores. Following the recent news about problems at both House of Fraser and Debenhams, it is becoming ever more apparent retail trends are changing. But is the answer merely a case of adapting quickly to evolve with the every changing consumer habit and taste? Department stores were invented for an era when consumption was something to aspire to, whereas today, the mere act of consumption isn’t about aspiration, as the new ‘savvy’ shopper spends differently. That said, there is still a lot of spending.
today, the mere act of consumption isn’t about aspiration, as the new ‘savvy’ shopper spends differently.
Harvey Nichols has also taken advantage of the rising spend in beauty by opening the Beauty Lounge, offering the latest treatments and hosting master classes with some of the best beauty experts. Selfridges has taken ‘unique customer experience initiatives’ very seriously to help drive footfall and sales amid this turbulent time for British department stores. Project Ocean, for example, is a campaign launched in 2011 to bring awareness to the state of our oceans by banning endangered fish from the food department and the sale of plastic water bottles. More recently Selfridges opened the UK’s only free indoor wooden skate bowl, after launching a new designer streetwear department at its Oxford Street store. Liberty, known for trading poorly, is now doing so profitably after making certain changes. The department store established that its customers were predominantly British (over 70%) and therefore now buys in accordance with what its British customer wants, bringing back more vintage items and furniture, along with eccentricity and a true story behind each product. There is still belief in the future of department stores. There is an innate desire for human interaction – the physicality of going into a store and buying a product is far greater than receiving a package. But they need to redefine a sense of purpose to evolve.
BELOW: Beauty Lounge, Harvey Nichols BELOW: Interior shot, Liberty
Selfridges opened the UK’s only free indoor wooden skate bowl, after launching a new designer streetwear department at its Oxford Street store.
For more information contact Lily Harral.
Lily Harral
+44 (0) 203 618 3515
lily.harral@savills.com
Boutique cinema operator, Everyman has opened its first Scottish venue in Princes Square, Glasgow. The venue has 3 screens and is able to seat 200 guests, offering waiter service from the comfort of your seat. Following suit Kate Spade is set to open its new design concept which will be the brands first in Europe and second in the world. The 1,800 sq ft store is due to open in the Spring.
Princes Square: Everyman & Kate Spade open their first Scottish ventures
Glaswegians get caffeine hit
Nespresso has opened its first store in Glasgow. The Buchanan Street store sells the usual products, coffee machines, pods and accessories and is also home to a coffee bar, allowing you to 'try before you buy'.
my city
Isla Monteith
ISLA WORKS IN THE RETAIL TEAM IN EDINBURGH AND COVERS THE WHOLE OF SCOTLAND, SPECIALISING IN SHOPPING CENTRE LEASING, HIGH STREETS AND ACQUISITIONS ON BEHALF OF MAJOR RETAIL AND RESTAURANT BRANDS.
Home is...
What do you collect?
Building you’d like to be locked in overnight?
Edinburgh, one of the best cities in the world to live in (in my opinion!)
Recently I seem to have started collecting gin! Scotland (and the UK) is producing some amazing craft gins and I just love trying them! I’ve been given a few as presents and bought a few for myself. The Edinburgh Gin Rhubarb and Ginger Gin Liqueur is a favourite!
I’d probably have to say Harvey Nichols on St Andrews Square but only if I had an unlimited budget!!
What is your all-time favourite Edinburgh shop?
It has to be Covet, which is a wee independent accessories boutique on Thistle Street, they have the most gorgeous bags, scarfs and jewellery and you even get a glass of prosecco whilst you are browsing. I always seem to buy something...
Best piece of advice you have ever been given?
I guess my parents always instilled in me an attitude of working hard and challenging yourself but also remembering to have fun.
Most memorable meal?
Within Edinburgh I have had some fantastic birthday and wedding anniversary meals at The Ship on The Shore in Leith, fantastic seafood and a relaxed atmosphere which is a winning combination in my book.
Last play you saw?
‘Sleep No More’ in NYC, whilst on a girls trip last year. It was definitely unusual!
If you could buy any building in Edinburgh what would it be?
I’ve always lusted after one of the New Town mews houses, they are so cute and also would be very close to my office so an ideal pied a terre.
Favourite place for a Sunday stroll?
Definitely the Pentland Hills just south of Edinburgh, you are only 20 mins from the city but it feels like you are in the wilderness, especially up on the hilltops on a crisp winters day.
Earliest Edinburgh memory?
Shopping with my mum in the independent boutiques scattered around the city, particularly around Victoria Street in the Old Town.
Biggest extravagance?
My biggest extravagance is definitely on travel – in the last 2 years I have visited Vietnam, Nepal, New Zealand and Namibia.
Savlls retail team
Contacts
No Thanks
