retail
The latest BRC-LDC Vacancy Monitor was released last week, showing a decline in store vacancies for the first time since 2018. Vacancy rates in shopping centres and high streets showed some decline, while retail parks maintained their vacancy rate of 11.3%, the lowest across location types. BRC chief executive Helen Dickinson said: “It remains to be seen how Omicron will have impacted the number of store closures, but given the third lockdown in England had little impact on the vacancy rate we are hopeful that the trajectory will remain positive. However, with hybrid working unlikely to disappear any time soon, it will be difficult for vacancy rates to fully recover in our town and city centres.”
Tesco has announced that it will close its low-cost Jack’s stores. Six of the seven stores are to be converted into Tesco superstores after the pandemic changed the way customers shop for groceries. Tesco UK and ROI boss, Jason Tarry, said in a statement: “We have learnt a huge amount from Jack’s and this has helped Tesco become more competitive, more efficient and strengthened our value proposition.”
LEISURE
Drinks company Diageo is opening a microbrewery and culture hub in London’s Covent Garden. The 50,000sq ft venue in the Old Brewer’s Yard will include a restaurant, events space and rooftop area. Diageo Great Britain managing director Dayalan Nayager said: “Guinness at Old Brewer’s Yard will strengthen London’s hospitality community and be a must-visit destination for thousands of visitors to enjoy.” Guinness at Old Brewer’s Yard is set to open in autumn next year, subject to planning permission.
PROPERTY
Rent collection fell across UK commercial property in December. Research by Remit Consulting found that collection rates for December were at 78.9%, down from 81.9% three months before. Remit Consulting’s Steph Yates emphasised that the figures are still higher than the overall collection figure of 67.2% a year before. She added: “Anecdotal evidence suggests that the fall in collection rates reflects the uncertainty and nervousness within the business surrounding the restrictions to combat the Omicron variant of Covid-19 that were put in place a matter of days before the quarterly rent demands would have been due.” The latest report reveals that retail was the only sector not to see a drop in collections from the previous quarter, with an increase of 1.6% to a rate of 77%.
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