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North Yorkshire cycle hub up for top tourism award

22 Mar 2024

Rob Brown, co-director of Dalby Forest Cycle Hub, a not-for-profit hire scheme has been nominated for the Tourism Superstar 2024 award, run by VisitEngland.
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Independent retail bodies welcome new report aimed at tackling retail crime.

21 Mar 2024

ACS (The Association of Convenience Stores) and the Federation of Independent Retailers (The Fed) have both welcomed a new report published by the Association of Police and Crime... Read more…

Indie retailers outperformed supermarkets in sales of organic food, wellness and beauty products in 2023.

21 Mar 2024

As reported by Healthstores UK, new data contained in the 2024 Soil Association Organic Market report shows that independent retailers delivered an impressive 10% growth in 2023, with... Read more…

Cheltenham beer shop and bar wins top UK award.

21 Mar 2024

An independent bottle shop and bar in Cheltenham has been named as the UK's Independent Beer and Wine Retailer of the Year 2024 at the Drinks Retailing Awards. 
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Welsh Government Announce £20m Future Proofing Fund for Retail Businesses in Wales

21 Mar 2024

A number of organisations, including Bira (the British Independent Retailers’ Association), other trade associations, BIDs and unions have met with officials from the Welsh Government to... Read more…

High Street Faces 'Unprecedented Challenges' says Trade Association

21 Mar 2024

The British Independent Retailers’ Association (Bira) has reacted to data released by PwC and the Local Data Company exploring the state of the UK retail landscape.
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Greeting Card Association expresses concern on new evidence Royal Mail prioritising parcel deliveries over letters.

6 Mar 2024

The Greeting Card Association has reacted to a BBC Panorama programme lifting the lid on Royal Mail management prioritising parcel delivery over letters, which it says are in contradiction of... Read more…

Kate Bush named as Record Store Day ambassador.

4 Mar 2024

Pop star Kate Bush has been announced as an ambassador for this year's Record Store Day, on 20 April.
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Shortlist for Independent Bookshop of the Year 2024 revealed.

4 Mar 2024

The British Book Awards has announced its shortlist for Independent Bookshop of the Year. 
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Local Bike Shop Day 2024 confirmed for Saturday May 4th.

4 Mar 2024

The ACT is happy to confirm the date for Local Bike Shop Day 2024 as Saturday 4 May, the weekend of the early May Bank Holiday.
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20-70% correction in retail properties

Posted on in Business News, Cycles News

London skyline 

According to a report published by Fidelity International, UK retail properties could lose up to 70% in value due to rent cuts.

Fidelity said it anticipates that UK retail real estate values will fall by 20% to 70% depending upon the nature and quality of the assets.

This correction is driven in part by, a 10%-40% reduction in rent to make them sustainable and affordable and by, the change in risk profile of the underlying tenants and their future cash flows de-rating the sector equivalent to 10% to 30%.

Data in the report has revealed that from 2015 to October 2018, the value of unlisted UK retail sectors has fallen by 5%, whereas listed retailers during the period have experienced a 17% drop.

Fidelity said:

"Profitability among bricks-and-mortar retailers in the UK has shown a marked deterioration"

This can be reverted if rental costs fall by 10% to 40%. Of course, this would then lead to the significant de-rating for UK retail real estate by anything from 10% to 30%.

This correction would be the largest in UK retail rents and would lead to major repercussions for landlords.

"Retail real estate would transform from a defensive, premium asset class into one of the most volatile elements in any real estate portfolio".

Fidelity, taking the issue wider and globally, said that countries with, "high retail space per capita, weakening consumer spending growth or a structure change to GDP away from consumer-driven growth are at risk of market repricing; with France and Australia being two markets of particular concern".

According to Fidelity, rent is the only key cost, amongst wages and supply costs, that can be reduced.

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