Bad
Timing for London Mall's Debut
Westfield Mall, the largest mall in a European city, opens Thursday, but
its timing couldn't be worse. Britain's economy is sliding into a
recession.
When the Westfield mall opens Thursday in London, it will be the largest
mall in a European city. The American-style retail center has 265 stores,
including Tiffany and Gucci, as well as 50 restaurants, fountains and
gleaming palm trees.
But its timing couldn't be worse.
Britain's economy is sliding into a recession, and its decade-long
consumption boom has come to an end.
"The exact environment isn't
of our choosing," concedes Michael Gutman, managing director for the
U.K. and Europe at Australia's Westfield Group, the mall's operator.
"But," he says, "this is a long-term project."
- 2008 October 30 WALL
ST JOURNAL >> VIDEO
UK landlords to ease pressure on some
retailers
A group of major property companies will
allow certain retailers in Britain to pay rent monthly rather than quarterly
to help them cope with a sharp decline in consumer spending. In a statement
yesterday, the companies said the policy change would apply to retailers
with three shops or less in their estates and malls, and which pay an annual
rent of £50,000 or less, providing they pay by direct debit. 'The
initiative to accept monthly rents will have a significant benefit to
retailers' cash flows,' they said. The group of property owners includes
British Land, Liberty International, Land Securities, Legal & General,
Aviva, Prupim and Westfield. A joint initiative between the property owners
and retailers is also being planned to lower service charge costs, with a
pilot under way targeting up to 20 per cent reductions in service
charges.The property firms said they will continue to lobby the government
to reverse its decision to levy full rates on empty property.
-- 2008 November 29 Reuters
London's
Bond Street sees sales rising
Well before
the store opens, a window-cleaning van arrives every morning to ensure
gleaming windows set off the sparkle of diamonds. A pair of burly guards, in
black suits and earpieces, take their places.
Britain's retail summer may be set for a
washout, Wimbledon strawberries may be prohibitively pricey and fuel for the
four-wheel drive might be stretching some budgets - but on Bond Street,
jeweller Graff is ready for the season.
As the mega-rich get richer and seek ever
more unusual gemstones, Graff and other stores like it in the chic Mayfair
district in London's West End - Leviev, Moussaieff, Harry Winston and
Chatila - stand out as the premier location for jewellery shopping.
'People with new money want new
treasures,' said Fiona Spence, marketing manager for Graff, established in
the heart of Mayfair since 1994 as a powerhouse of exclusivity and with
clients including Oprah Winfrey, retail billionaire Philip Green and real
estate mogul Donald Trump.
Bond Street was named after Sir Thomas
Bond, devoted follower and close friend of King Charles II - a hedonistic
monarch whose 17th-century reign saw the rise of colonisation and trade in
India, the East Indies and America, including in 1664 the British capture of
New York from the Dutch.
It still attracts royalty and its fame is
legendary: for precious jewels, antiques and works of art, fashion and the
accessories of gracious living, its shops are unsurpassed.
Today, Bond Street is a litmus test of
the fortunes of the world's seriously wealthy, as jewellers say non-British
buyers account for more than three-quarters of its turnover in fine
jewellery.
In the wake of the credit crisis, some
wealth in real estate and investment banking is slackening, jewellers say.
However, demand is being fed by a fast-growing entrepreneurial elite from
the emerging markets, including those who control increasingly valuable
natural resources, such as Russia's richest men Oleg Deripaska and Roman
Abramovich.
June to September is when Arab families
head to Mayfair hotels, to escape the searing heat at home and to shop for
brands and watchmakers including Bulgari, Tiffany, De Beers, Patek Philippe
and Rolex.
Graff, which has 30 stores worldwide, has
about 60 per cent of the global market share in yellow diamond jewellery,
currently popular with Russian women. Its windows are resplendent with
dazzling combinations of yellow and colourless diamonds and pieces featuring
huge emeralds and rubies.
Founder Laurence Graff is well known in
the diamond world for buying some of the best stones on the market. At a
Sotheby's auction in Geneva in May, he paid 5.2 million Swiss francs (S$6.82
million) for a pear-shaped 3.73-carat blue diamond, setting a record price
per carat for any gemstone.
His confidence in the sum suggests
reports of a slowdown are premature or the global super-wealthy are immune.
If shops selling such indulgences to the
world's mega-rich are feeling the pinch at all, it is on the side of supply,
not demand: 'The new material is the same or less than a few years ago,
while the number of buyers has increased,' she said. 'If more people chase
fewer goods, you've got to pay for it.'
Marwan Chatila, at Number 22, estimated
that around half of the jeweller's sales to Middle Eastern clients take
place between June and September, when Bugattis and Lamborghinis with
Kuwaiti and Saudi plates patrol the area.
'This year we were expecting a slowdown,
but it hasn't happened,' he said in his boutique. 'When we opened our store
on Bond Street 21 years ago, clients came mainly from the Middle East and
Brunei. Now there is a healthier variety of buyers - they come from India,
the Far East and London too.' Retail prices at Chatila can range from £1,000
to £5 million. Until the credit crisis, London was arguably outgunning Wall
Street as a financial centre, thanks to a mixture of attractive tax
incentives for super-wealthy non-domiciled investors, less regulation than
in the United States, and its geographical location.
London's investment bankers, advising on
takeovers and flotations of companies to generate new wealth in emerging
economies such as China and India, have since trimmed their sails.
Global mergers and acquisitions fell 22
per cent to US$861.2 billion in the first quarter of 2008, the lowest
first-quarter tally since 2005, according to data provider Dealogic.
- 2008 June 14 REUTERS
Designer Shopping in
London : Sloan Street and Bond Street
Hello! TAI TAI suggests
the following areas for a well-heeled Tai Tai (pardon the pun) to
check out when staying in London. The city has some of the world's
most expensive retail space.
Shhh.....this city
have best selection of Hermes bags in the world. We
love lunch at Fortnum & Masons and Harrods but Selfridges for Tea.
This list is just to remind us before we go out. Happy
shopping!
- Sloane Street
Harvey Nichols
Gucci
Gina Shoes
Giorgio Armani
Yves St. Laurent
Hermes
- Bond Street
Asprey &
Garrard
Burberry
Louis Vuitton
Ralph Lauren
Tiffany
Versace
Average UK lease term getting shorter
Challenging UK retail trading conditions have forced commercial real
estate landlords to slash lease lengths to attract and keep tenants in their
properties, data showed yesterday.
The 10th Annual Lease Review, published by the British Property
Federation (BPF) and Investment Property Databank, showed that the average
length of a lease fell from 6.2 years in 2005/2006 to 5.7 years in
2006/2007.
The survey draws from detailed evidence of 75,000 tenancies, encompassing
a full analysis of lease lengths, break clauses, review cycles, rent free
periods and income profiles.
The data showed that 67 per cent of leases struck in 2006/2007 were for
five years or less, while less than 3 per cent of leases agreed in the same
period were for more than 15 years. Retail leases fell from an average of
7.8 to seven years and office leases fell from an average of 5.7 to 5.2
years. Industrial leases remained the same as the previous year's survey at
4.2 years.
The BPF said that the increase in shorter lease terms reflected the
industry's improved ability to offer flexible lease terms to occupiers. --
2007 November 7 Reuters
