Clarke Willmott

GET READY FOR A FOREIGN RETAIL INVASION!

National retail lawyers predict an invasion of overseas retailers

While news headlines have been focused on the credit-crunched demise of British retailers, overseas-based retailers have spotted the opportunity to invest in the UK.

This is the view of retail specialists at national law firm, Clarke Willmott.

According to Kathy Toon, a retail partner at Clarke Willmott: “With the fall of the pound, and the massive easing in occupation costs of retail property, the UK has become an attractive investment target for overseas retailers.

“While the UK was already the biggest recipient of overseas retailers setting up their European operations, the recent economic crisis has made this country even more attractive”, said Ms Toon.

“Retail rents have declined, landlords are now more open to monthly-rent deals, the availability of vacant retail sites has increased, and shopping-centre owners are focused on reducing tenant costs for such services as security and maintenance.

“This all adds up to a compelling appeal for overseas retailers wanting to enter the UK and European market”, said Ms Toon.

“While the recession has driven many UK retailers to the wall, foreign retailers have spotted that this is the moment to grab a low-cost entry to Britain‘s High Street”, she added.

“This is good news for shoppers and for shop-owners. But it should also be a wake-up call to UK retailers”, said Ms Toon.

“History tells us that that the retail sector will be among the first to recover from the current recession, at a time when Tesco has announced record profits. This is a moment to grab the opportunity of lower costs.

“When we emerge from recession, our High Street will have changed: there will be more variety, with more independent retailers, more ‘new ideas‘, and more non-British shops”, Ms Toon predicts.

“This is a challenge for the UK‘s big multiple retailers: do they shrink their portfolio, or do they match the inflow of European investors?”, she asked.

END 29th April 2009

For further information please contact David Sturgess, Sturgess Van Damme, on 01275 349011 or email david@sturgessvandamme.co.uk