The Debenhams owner said the sale will “further strengthen” the company’s balance sheet and part of the proceeds will be used to pay down its £47m term loan due for repayment in August 2025. This will leave the business with a £125m revolving credit facility “which is sufficient for its needs going forward”.

Boohoo put the 43,963sq ft six-storey building at 10 Great Pulteney Street up for sale in August, just two years after acquiring it in 2021 for £72m.

The five-storey office block houses 400 to 500 employees across Boohoo Group’s London-based brands such as Burton, Coast, Debenhams, Dorothy Perkins, Karen Millen, Oasis, and Wallis, as well as other product, marketing, technology and central support roles across the group.

Global Holdings Group said the building will now be managed by Global Holdings Management Group and the team will work closely with Boohoo to “ensure the workspace continues to provide the amenities and wellbeing credentials to help them attract and retain talent”.

The firm’s UK chief executive Josh Lawrence said: “As long-term investors in London’s West End office market, we are pleased to add another great building to our portfolio.

“10 Great Pulteney Street, as well as the recent purchase of the Frith + Bateman building, allows us to capitalise on the demand we are seeing from occupiers keen to relocate to such a well-connected and fun place to work.

“We will now utilise our in-house design studio and asset management team to ensure 10 Great Pulteney Street continues to provide high-quality workspace for our occupiers.”

Last week it emerged that the retailer had suffered a setback in the sale of its London office after an Israeli investor pulled out of talks of a £60m deal following concerns raised by a survey.

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Thames Valley Police warned the layout of the proposed £80m housing development puts it at risk of “graffiti, antisocial behaviour [and] inappropriate loitering”, The Telegraph reported.

The police said John Lewis’ plans for a neighbourhood garden in the project that would be open to the general public was at risk of attracting antisocial behaviour.

It said in a submission to Reading Council:  “Similar spaces located in the surrounding area have suffered from undesirable use and antisocial behaviour.”

As a result, police have urged the department store chain to change the design of its development for the centre of Reading.

It is the latest challenge for John Lewis’ rental housing push. It plans for a 353-flat development in Bromley was approved in July despite local opposition.

The retailer was forced to launch an appeal to speed up the decision process for its project in West Ealing in west London, claiming the councillors were taking too long to make a decision.

A spokesman for John Lewis Partnership told The Telegraph: “Any planning application of this scale will receive comments from different parties, which we welcome as part of an open and comprehensive consultation process.

“This build-to-rent community will have a 24/7 operational team led by our partners, which will maximise on-site security at all times.

“Crucially, the scheme is designed to promote wellbeing, foster a sense of community and offer vital new rental housing to Reading on an under-used brownfield site at a time where the town desperately needs additional supply.”

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Rugby Borough council voted in favour of the retail empire’s proposals on Wednesday, backing the decision by seven votes to five.

Planning officers at the council previously recommended the plan be approved after it was ruled that its economic benefits outweighed its “harms” to green belt land.

The group’s plans for its new HQ had previously received 194 letters of objection, with just one in favour of the project, with campaigners angry the designated farm land was being utilised for other purposes.

The decision will enable Frasers Group to relocate its Shirebrook HQ to the new location, which was purchased by the business three years ago for £53.5m.

The new site, which will be built on 275 acres of prime farmland, includes retail space, five warehouses, a 100-bed hotel, offices, a swimming pool, gym, and other sports facilities, a training academy with an auditorium, a nursery, multi-storey car parks, and a helipad.

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The 275-acre facility in Ansty has been recommended for approval by planning officials even though they noted that it would “clearly cause substantial and permanent harm to the green belt by reducing its opened”, The Telegraph reported.

Planning officers ruled in a 208-page report that the benefits of the campus – thought to be the biggest of its kind in the UK – justify the “harms” to green belt land, labelling it “very special circumstances”.

As part of the plans, the Sports Direct owner is looking to build five warehouses totalling 3.3m sq ft, a 100-bed hotel, a space to test out retail concepts alongside offices, a gym, sports facilities, multi-storey car parks and a helipad on the land it bought for £53.3m three years ago

Planning officers said: “The totality of the economic, environmental and social benefits have been considered and the totality of the benefits clearly outweigh the combined weight of the harm to the green belt and any other harm, including the retail and landscape harm [and] heritage harm.

“Consequently, the very special circumstances necessary to justify the development … exist and the application should be approved. National economic benefits hold substantial weight in the balance.”

The retailer, which was founded by Mr Ashley in 1982 and owns brands including Sports Direct, Flannels, Jack Wills and Evans Cycles, will also produce around £9m in business rates for the council.

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The prime retail location has been empty since August, following Ted Baker’s closure of its remaining UK stores.

If the deal proceeds, it would mark Skims’ first physical store in the UK, further expanding the brand’s global footprint.

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Since launching in 2019, Skims has rapidly grown in popularity and opened its first permanent store opening in Washington, DC, in June.

The brand plans to open additional stores across the US, including locations in Florida, Texas, and Georgia. The potential Regent Street store would add to the brand’s increasing presence in the global retail market.

Skims is already stocked in various UK department stores such as Harrods, Selfridges, and End Clothing, and has expanded internationally, with a presence in Galeries Lafayette in Paris and Brown Thomas in Dublin. Earlier this year, the brand also launched a menswear pop-up in Soho’s End flagship.

The shapeware brand was valued at $4bn (£3.1bn) after a 2023 funding round.

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The stores, which opened last week, are part of a £37m investment, adding 130,000sq ft of retail space and creating 580 new jobs.

The retailer‘s new store at Glasgow Fort takes its store estate across Scotland to 21, and marks 195 stores across the UK overall.

The £7.5m site forms part of its £100m investment in the UK this year, which has also seen new stores in Bury St Edmunds and Teesside Park, alongside several expansions.

In the US Primark opened its 10th New York store at Queens Center, its second in the borough, which brings its US total to 28 stores across 11 states.

The high street giant has also entered Tours, France for the first time with a store in L’Heure Tranquille shopping centre, creating 100 new jobs.

In Spain, the fashion retailer relocated its Leganés store to a larger site within the Parquesur shopping centre in Madrid, doubling its previous size.

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The news, first reported by Retail Week, comes after Primark launched a new store format to the UK for the first time last month.

Primark chief executive Paul Marchant said: “This is an exciting day on our growth journey and a first for Primark. Opening four stores across two continents on one day highlights the scale of our global ambition, helping more people to look and feel good for less.

“With 580 new jobs created, we know these stores not only give a boost to the local communities, but they also bring what we call the “Primark halo effect” to the shopping destinations – which is the positive impact of the footfall to our stores on surrounding businesses.

“A huge thanks to all of our colleagues and partners who have worked so hard to get these stores open for the busy festive season.”

Celebrating its 55th year in business, Primark now operates 457 stores across 17 countries.

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The approval allows the high street giant to move forward with plans to demolish the three buildings it occupies and replace them with a 10-storey mixed-use development, including a new flagship store and office space. The project includes a smaller M&S store, offices, a pedestrian arcade, a café, and a gym.

M&S CEO Stuart Machin said: “I am delighted that, after three unnecessary years of delays, obfuscation and political posturing at its worst, under the previous Government, our plans for Marble Arch – the only retail-led regeneration proposal on Oxford Street – have finally been approved.

“We can now get on with the job of helping to rejuvenate the UK’s premier shopping street through a flagship M&S store and office space, which will support 2,000 jobs and act as a global standard-bearer for sustainability.

“We share the Government’s ambition to breathe the life back into our cities and towns and are pleased to see they are serious about getting Britain building and growing. We will now move as fast as we can.”

New West End Company CEO Dee Corsi added: “Today’s decision by the Government sends a strong and positive signal for businesses across the UK, particularly in flagship high street locations which are key drivers of economic growth.

“The redevelopment of Marks & Spencer’s flagship store at Marble Arch will help cement the West End’s status as a global destination for shoppers and office workers alike, revitalising Oxford Street West and reinforcing the message to international investors that the UK is firmly open for business.”

The approval follows a High Court ruling in March, which overturned former Housing Secretary Michael Gove’s July 2022 decision to block the plans.

At the time, Machin called the decision “utterly pathetic” and defended the proposals as essential for the area’s revitalisation.

Gove raised concerns about the potential harm to nearby landmarks, including the grade II-listed Selfridges building, and questioned whether the benefits outweighed the environmental impact of demolition.

The project drew criticism from campaigners, architects, and public figures, who argued for retrofitting the existing buildings instead.

However, M&S reassured that the current structure was “impossible to modernise” and described it as a “confusing warren” unsuitable for both customers and staff.

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Deputy Prime Minister and housing secretary Angela Rayner is due to block or approve the plans for the store before or on 5 December, This is Money reported.

The high street giant has been seeking to permission to demolish the three buildings it occupies to make way for a new 10-storey building, which includes a new store and an office block.

Former housing secretary Michael Gove blocked the plans last July over concerns the public benefit of the proposal did not outweigh the harm to nearby landmarks, including the grade II listed Selfridges building and nearby conservation areas.

M&S boss Stuart Machin branded the decision “utterly pathetic” and said the proposals, approved by Selfridges bosses, would help revitalise the area.

In March, the fashion retailer won its legal challenge against Gove’s ruling after High Court Judge Mrs Justice Lieven concluded that the secretary had made a series of errors in his interpretation and application of planning policy.

M&S has been waiting for an outcome on its appeal since earlier this year.

It comes as Machin looks to open ten more stores as the retailer’s turnaround continues.

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At 50 most people would consider an individual to be ‘mature’. The same probably applies to retailers and with this sort of age comes both ‘wisdom’ and, occasionally, the perception of an unwillingness to change, much.  

Primark, which today posted surging full-year profits, recently celebrated its 50th birthday and is certainly mature. Yet while this means it is a feature of many town and city centres across Europe and (increasingly) the US, it does not imply that this is an outfit that is resistant to shuffling the cards, when this is required.  

With this in mind, it opened a 27,000 sq ft store in Montijo late last month – very small by Primark standards.  

For those unfamiliar with Portuguese geography, Montijo lies across the Tagus estuary from Lisbon, connected with the Capital by Europe’s second longest bridge. It has a population of around 55,000, which compares to over 500,000 for Lisbon, meaning it is a minnow.

This means that there is probably little need for a full-blown Primark in Montijo, the population just does not merit it. There is room, however, for a ‘local’ version and as such, what shoppers encounter when they enter the store is a new format from the value fashion retailer.

This one is certainly ‘curated’ in terms of the offer – it has a very small homewares area, for instance – but still manages to look and feel like a Primark that might be perhaps three or four times the size.

In spite of its relatively modest footprint, the store is an anchor in the Alegro shopping centre and before entering the shopper will probably have paused to admire the fluting-clad in-mall exterior which features large light boxes that has been created to allow the mannequin groupings to show what lies within.  

Once at the threshold, owing to its size, the decision has been taken to make this an interior in which almost all parts can be viewed from the front door. In part this is due to lowering the height of the mid-shop walls opening up sightlines and ensuring that even in a small store, nothing will be missed.

Also worth noting is the signage. This is generally much smaller than in a full-line Primark and owing to the fact that most things can be seen at a sweeping glance, the idea is that the stock should speak for itself, rather than large amounts of overhead and perimeter indicators.  

Making more of less

As far as the offer is concerned, the bulk of what is on display is fashion for women, men and kids, with a small area set aside at the far right-hand corner for homewares. The latter equates to “fashion for the home”, according to Primark director of space optimisation and store design Mark Jordan.

There is also a “brand new beauty concept”, Jordan points out, which does look a little like the kind of layout and display that shoppers might see in a branch of US beauty outfit Glossier or the lone New York store that was the physical embodiment of Birchbox, the Big Apple-based online beauty retailer.  

On the matter of making more of less, the Montijo outpost has a stockroom that is around 40% smaller than a larger storer. “Can we operate more effectively back of house against front of house?”, as Jordan asks.    

Finally, mention has to be made of the store’s eco-credentials. “We are trying to deliver an experience, but through the lens of sustainability”, says Jordan.

Practically, this means a whole raft of new materials have been used in the store construction. “Ecoboard” and “Smart Plastic”, for the display equipment, are among these, both created from recycling other materials.

Extensive use is also made of aluminium as this is both lighter and more readily recycled. A screed floor takes the place of the usual vinyl and, when it comes to recycled clothing, there are bins into which Primark clothing to be recycled can be put that have been formed from…recycled Primark clothing.

The pilot rolls out

The whole of the store design was undertaken in-house, a credit to the skills of the Primark team and in total this is a store that looks in many ways more contemporary than many others that form the estate.

Montijo is a pilot, rather than a trial, and one that has cost only “marginally more than a standard store”, Jordan notes, meaning that roll-out should be relatively straightforward – the next small format store is set to open in Bolton later this month.    

Smaller stores are something that many retailers are currently looking at as a means of ensuring that they do not miss out on shoppers who are not prepared to travel distance to visit a branch.

It may be only a shortish drive across the Tagus to visit the 64,500 sq ft flagship in Lisbon’s Colombo shopping centre, but a more local alternative for everyday Primark needs must surely be welcome.  

Montijo is small and entirely new. It is a departure from the Primark norm, but the implications for shoppers in small(er) towns and cities are substantial – they stand to get a branch of their own. Owing to both materials and footprint, opening a store of this kind will also be cheaper. Expect this to be the first of many across multiple borders.  

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The industry is set to pay an additional £2.3bn in National Insurance when the increase in employer contributions comes into force in April next year.

Last week, M&S boss Stuart Machin hit out at the plans, which it said was “a tax with no link to profit which hits bigger employers like us and our smaller suppliers”.

“The Chancellor was right in the past to call National Insurance a tax on workers – it makes it more difficult to offer the life changing opportunity of a job. Particularly if you hike other tax that hit retailers, like business rates or fuel duty,” he said.

BRC chief Helen Dickinson said the hike was “yet another case of piling taxes on an already overburdened industry – a decision which will reduce investment in shops and jobs”.

 She said: “Retail employs 3m people and 2.7m more across supply chains, driving investment in jobs, communities and, ultimately, economic growth, right across the country.

“For a low margin industry, today’s Budget will hit hard, with the odds now stacked firmly against growth and investment in the short term. These new costs also risk increasing the prices customers pay at the till.”

A 6.7% increase in the National Minimum Wage and 6% jump in National Living Wage in April is set to add another £367m onto retail employers’ wage bill, according to the BRC.

However, Shore Capital director Clive Black pointed out that wage rises “should feed into household spending and, if inflation remains manageable, raise living standards”.

Business rates reform on the horizon

Reeves also promised an overhaul on retail business rates, something the industry has been lobbying hard for as she vowed to introduce permanently lower rates multipliers for high street retail, hospitality and leisure properties. However, this will not come into play from 2026-27. 

This change will be funded through introducing a higher multiplier on the most valuable properties, which is thought to include distribution centres from ecommerce giants like Amazon.

Dickinson highlighted that there were still “many unanswered questions” about the new charges and discounts.

“Charging more to businesses with higher rateable values may punish not only distribution hubs, but also larger stores, which play a key role in attracting footfall to high streets and town centres,” she said.

“With retailers paying over 21% of all business rates in the economy, the solution is not to simply shift the burden around, but to look outside retail to address the disproportionate impact of business rates on the industry.”

Reeves also extended a relief scheme introduced during the pandemic, with eligible retail businesses receiving 40% rates relief – down from 75% – in the next tax year, up to a £110,000 cap.

Dickinson said: “The measures will do nothing to help bigger brands that play such a key role in attracting shoppers and delivering investment for our high streets and town centres. Thriving shops of all sizes are essential to successful high streets to ensure breadth of choice, convenience and experience for customers.”

Tackling shoplifting

Getting to grips with the surging level of shoplifting was also on the agenda.

Reeves said: “We will scrap the effective immunity for low-value shoplifting…And having listened closely to organisations like the British Retail Consortium and USDAW, I am providing additional funding to crack down on the organised gangs which target retailers and to provide more training to our police officers and retailers to help stop shoplifting in its tracks.”

Dickinson welcomed the additional funding.

She said: “This is on top of the scrapping of the low-level shoplifting threshold, which has resulted in many police forces ignoring smaller crimes. Working closely with the police and Government, retailers are determined to tackle retail crime – from shoplifting, to violence against retail workers,” she said.

Smoking and unhealthy food

The cost of vaping and smoking will increase following tax rises announced in the Budget.

Reeves set out a 2% hike on tobacco and 10% for hand-rolled tobacco, along with a new flat rate duty at £2.20 per 10ml from 1 October 2026 tax on vaping liquid.

Meanwhile, the government will increase the Soft Drinks Industry Levy to maintain incentives for soft drinks manufacturers to reduce their sugar content. The government will also review the current sugar thresholds and the exemption for milk-based drinks.

Sonia Pombo, registered nutritionist at Action on Sugar and Action on Salt welcomed the decision to increase the levy but urged the government to consider “additional, robust measures”, such as introducing salt and sugar taxes on food manufacturers.

“By broadening the scope of health-focused fiscal policies, we can create a more sustainable and impactful improvement in public health.”

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