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[fenners66] 02/11/2018 00:06

That is scary reading

[eeza] 01/11/2018 12:52

Over 200 shopping centres in crisis.

[fenners66] 31/10/2018 09:40

Share price seems to have stabilised in a lower range.

Got to say with the latest news from Debenhams about the planned closure of 50 more dept stores I am surprised this has not turned lower again.

Yes there was support in the budget for small retailers - but each High Street etc needs a destination shop - if a lot of those Debs are destination shops then the smaller shops around them are back in the frying pan.

[nisbet] 18/10/2018 18:00

The stated short position is down to 5.24%,

[speedsgh] 16/10/2018 16:58

Bear in mind that when people refer to 'Co-op foodstores', these are actually a network of supermarkets and convenience shops owned and operated by over 15 completely independent co-operative societies. See

In some locations different co-operative societies will operate convenience food stores (under slightly different brands/logos even though they are generally all referred to by the public as 'The Co-op') within just a short distance of each other i.e. on the same residential road within less than a mile from each other. So the term 'Co-op' actually covers a number of operators competing in the same market alongside all the other operators of convenience food stores (Tesco Express, Sainsbury's Local, McColls, One Stop, etc).

[jon123] 16/10/2018 15:54

a pub is different to a food shop its a common theme that tesco's are targeting the co-op,nisa and other smaller food chains by putting the tesco extra shops very near to them.Who's knows who will win but i'm guessing the co-op will do better due to the value added services like a post office and i'm guessing the co-op's margins are greater as i think there robbing gits.

I'm guessing that the NRR pub estate will gradually be run down and replaced by shops or houses if the pub's don't make ends meet.

[fenners66] 16/10/2018 11:57

We had a local pub - that did not compete at all with the Co-op - until it closed......

Then a while later it re-opened as a Tesco Express announcing what its opening hours were to be.

All of sudden the Co-op who shut at 9.00pm , but you were lucky to get in to get served at all after 8.45p, announced that it was going to stay open until 10.00pm - the Tesco announced they were opening until 11.00pm !

Co-op got refurbed as well - competition does strange things....

Will they both survive ?

Added labour costs , split trade volumes , lower prices ... the pub did not survive so why both shops ?

[ramellous] 14/10/2018 15:36

I like the relationship they have with the co-op. I live in an area made up of a lot of large villages Which nearly all have a long established co-op. A local one has relocated into a pub building mirroring the focus NRR have in place with community hubs.

[spectoacc] 14/10/2018 15:20

1987! But good point - possibly exactly what those selling/shorting have done of course, but I'll be a part-timer reaping the yield and keeping fingers crossed. NRR at least a little more transparent than eg CAKE, what a brilliant story that's been.

I think the problem with rents for small units being "on the floor, if not below cost" is that the entire concept of the High St is rapidly becoming redundant.

[hpcg] 14/10/2018 11:12

Rents for small units must be on the floor, if not below cost. I'm not sure why anyone would build any. I quite like NRRs client base as I see Primark, Wilko, and pound stores as internet proof. Their warehouses are the worst part of the portfolio. The Bradford properties are excellently placed adjacent to a Morrisons, but some of the others are horrific. Daventry may never get a tenant, the Staples in Chester Retail Park looks isolated and the Blackburn properties rely on the concept of OOT shopping as a leisure experience. Gateshead lists Maplin, Evans Cycles and American Golf on its slate, though in the latter's case it is not one of the 20 to close after the parent went into administration. The single property in Felixstowe must now be void as it was a Homebase and is no longer listed on their website. Not only are these units difficult or impossible to fill, but I bet their redevelopment potential is negligible. Felixstowe possibly an exception here as it is right by the station in the town centre, next to a Co-op; would be a pretty good place for either hotel space or flats. Nothing in progress there though so they must be marketing it; the only planning application in recent years is:

Homebase
Great Eastern Square
Felixstowe
Suffolk
IP11 7DY

Application Reference Number: C9260 Date of Decision: 13/04/1987
Condition Number(s): 4 and 6
Conditions(s) Removal:
So that a wider range of goods can be sold from the unit and goods can be displayed externally.
Condition 4: Notwithstanding the Town and Country Planning Act (Use Classes) Order 1987 or any order amending, revoking or re-enacting that Order, or the description of development associated with this permission, no more than 30% of the gross floor area of the unit shall be used for the sale of food.

2019 report is going to look worse than 2018, but maybe not dramatically so. This is a company where a full time investor could do a fair amount of useful primary research.

[a0002577] 14/10/2018 10:50

Good analysis, SpectoAcc, but not sure what you mean by this "And the more that close, the less trade for the others"

Far, far too many shops which because of their high mark up (an item bought for a fiver sells at £20, for example) have given the businesses which provide 'services' to the retail sector scope to up their charges - including the business rates.

NRR seems to be deliberately avoiding high profile retailers which is why I have invested here.

[spectoacc] 14/10/2018 08:02

Worse - empty rates are such a killer that after your shop's been empty for a while, it's better to take a temporary tenant at nil rent than to keep losing cash. And the more that close, the less trade for the others. High Streets & shopping centres likely to look very different in 10 years time. And this is without a recession!

[hpcg] 13/10/2018 23:02

Supercuts in trouble now. By the time this secular down turn has reached the bottom rents will be reset down across the board. Walked passed a Greggs today and it seemed a bit wrong - it had moved 2 doors down. Clearly stores can reset their rents to a degree that easily covers the fit out cost. Nothing directly pertinent to NRR's estate that I can see in the latest raft of closures and warnings but its just downward pressure all the time. There are simply too many retail units in this country.

[hpcg] 12/10/2018 13:47

Positive for all UK property if there is a settlement that doesn't wreck the economy I would think.

[mikeyfernandez] 12/10/2018 13:25

Seems to have a bit of momentum at the moment and maybe new support level around 2.50. What are people’s thoughts as to impact if brexit deal goes through next week? Cheers mike

[a0002577] 11/10/2018 15:20

"One of the few stocks holding its head above the water today!

But, but, but: if you look at the chart at the top you will see for most investors it is well under water. It's only people like me - one of the 'johny come latelies' who can say that.

[chucko1] 11/10/2018 13:19

... and yesterday.

[mikeyfernandez] 11/10/2018 11:54

One of the few stocks holding its head above the water today!

[ptolemy] 26/9/2018 09:12

Yesterday's Tesco report is worth a read for an insight into lease renewals.

[hpcg] 23/9/2018 12:25

This was posted on the DEB thread and I thought worth repeating here as that one gets a bit consumed by chaff.

Sort of mixed for NRR. On the plus side there do appear to be some less than skilled operators; being blind sided by an HoF CVA doesn't say much for due diligence. Equally positive is that they aren't bending over to take whatever rent is offered, and I can certainly imagine Ashley low-balling. The negative is that premium rents are under immense pressure - see for example FCCN running down its estate with premium thought to be especially loss making. One would have thought this would continue to knock on to rents everywhere, fully accepting NRR operating mode is quite different to prime retail.

[hpcg] 21/9/2018 12:11

So ... Evans Cycles? The drip just keeps on dripping.

[fenners66] 21/9/2018 00:08

PS. I was as disgusted as anyone with the management of Carillion - and said so on advfn at the time - but the private sector has the self balancing ability - when companies fail they go bust and you hope the failed management never get a chance to do it again.

[fenners66] 20/9/2018 23:59

Sorry for those who did not want this to drift off topic - but I have to counter some of that.

Firstly I agree as I said there are exceptions on both sides so we can all refer to something in support of our argument.
Interestingly though the examples used to show private sector failings are either - migrated public sector operations or private sector funded by the public sector's perceived bottomless pit of cash.

So I feel that you inadvertently supported the point.

Would 2 private enterprises selling to each other be so pathetic ?
Needing to ensure they stay in business without the safety net of just borrowing billions more or going back to the tax payer.

Do you scream at how inefficient Specsavers are or Boots Chemist.

I personally know of massive failings of management in the NHS - but in the private sector the failings would be addressed.

One example you go look at a cars at a dealer on a Wednesday , salesman Bob approaches you and says the cars not ready , not been prepped yet - but if you come back tomorrow and buy it from the "other" dealership he works for you can have it - he will charge you more , or maybe you can come back after lunch - but to his other dealership after all he is the best salesman and the mechanics he uses elsewhere are much better.

He says all this to you and knows his boss is watching - what is that private sector boss going to say to him ?

In the private sector you don't compete with your employer and even advertise on their time - whilst the exceptionally poor NHS just watches it happen!

[spectoacc] 20/9/2018 15:16

Ha ha we've all ventured OT. But - @Minerve - I view Carillion as an example of it working, not an example of it going wrong. Shareholders/bondholders lost the lot, taxpayers hit for very little. (As for bailing out the banks - I'll maintain to my dying day that they shouldn't have been. And yes, there'd have certainly been a few weeks of chaos, & all the life insurers would likely have collapsed too. But capitalism isn't about the State bailing out the banks, or at least - the State can bail out the system, but it should never bail out the shareholders (some of them, Crock & B&B weren't so lucky) & the bondholders FFS). Railtrack/rail privatisation in general is a good example of ideology over common sense. NHS - if some can be better done private, why not do some of it private? Works for dentistry. NHS a perfect example of rabid ideology in the other direction - a sacred cow.

(Thanks @chucko1, we'll see :) ).