TJ Morris storms the border
Liverpool-based TJ Morris has continued to buck the retail downturn after unveiling plans to open the first of six new stores in Scotland in a move it describes as “not being a risk”. The business, which trades as discount chain Home Bargains, will open a store at a site in Rutherglen in December 2008, followed by one in Clydebank in January 2009. It expects to open a further four by March 2009. Operations director Joe Morris told Insider that he doesn’t see the latest expansion as risky, given the company’s strong sales and cash-rich nature. “Growth is probably as good as we’ve ever had so we don’t see it as a risk,” he said. “People want value so this is a good time to expand. Plus we’ve always been very conservative in our financial management which makes us attractive for banks.” The latest expansion has been backed by The Royal Bank of Scotland.
Liverpool hotels rocket
The Liverpool hotel market is experiencing an unprecedented period of growth thanks to the tourism boom created by the city’s European Capital of Culture celebrations. According to figures released by accountancy and business advisory PKF, occupancy rates during August rocketed by 11.8 per cent from 68.5 per cent last year to 76.6 per cent this year, while average daily room rate rose from £71.50 to £74.16. The overall room yield was also up 16 per cent to £56.81. “Looking solely at the Liverpool figures, you would be forgiven for forgetting about the economic turmoil as hoteliers across the city continue to experience a positive year,” said Jane Jackson, Liverpool partner and head of North West real estate and construction at PKF.
Hurley heads to Liverpool
Fashion retailer Hurley is opening two franchise stores at Liverpool One for top fashion brands Henri-Lloyd and Lacoste. The two stores will be connected together, as in the Leeds store at The Light retail scheme, which opened this summer. Headed by brother and sister team Mark Hurley and Kim Taylor, the company, which is over 50 years old and also has stores in Manchester, Bolton and Wigan, joins a host of top-brand fashion retailers that have set up shop in the £1bn city centre retail scheme.
Peel ups stake in UK Coal
Peel has increased its stake in UK Coal from 20 to 26 per cent, in a move likely to add to speculation about a possible takeover. UK Coal has revealed that Goodweather Holdings, a member of the Peel group of companies, bought 40,883,000 shares in UK Coal at 1p each. However, UK Coal's spokesperson pointed out that Peel has been a significant stakeholder in the business for many years. Peel was last rumoured to be mounting a takeover of UK Coal in 2006, when it held 7 per cent of the company.
JJB needs time, says Ronnie
Chris Ronnie, chief executive of Wigan-based JJB Sports, has told Insider that his plans to turn the retail giant around remain on track, despite the tumble in share price that followed interim results showing heavy losses in September. He said: “We’ve always said we are looking long term – this is not a two-year play. This business employs 13,400 people and it takes time to turn a big ship round.” Ronnie said the redesigned new era stores were all performing well, with Trafford Centre figures up 30 per cent. He hopes to open 11 fitness centres in 2009 and roll out the £9.95-a-month Mifit dry-gym concept, following its opening in Cardiff last month. He said: “Are we going bust? No. These are the worst retail conditions I’ve ever known, but I’m confident our backers will support us. People would be very brave to write off JJB.”
Don't walk away from R&D, says Garner
North West businesses need to forge better links with academia and invest in innovation if they are to ride out the economic downturn, according to Cathy Garner, chief executive of Manchester Knowledge Capital. Speaking at Insider’s What Education Can Do For Business event held at the Bridgewater Hall yesterday, Garner told the invited audience that the region should look to the example of Silicon Valley and trust in its ability to innovate. “The difference between Silicon Valley and the rest of the world is that Silicon Valley always invests in a downturn and never walks away from research and development,” she said. “North West universities are globally connected with the likes of China, India and the US market and businesses need to use those connections, work with universities and identify the innovative opportunities that exist.”
Task force calls for local power
Today sees the release of the latest report from the government’s Lifting the Burdens independent task force, which looks at the barriers faced by local authorities in economic development and regeneration. The review, led by Manchester City Council deputy chief executive Eamonn Boylan, asks for more streamlined and flexible processes to ensure a more locally responsive approach to regenerating communities. The review focused on barriers, funding and strategic infrastructure, and skills and unemployment. Boylan said: “This report presents an exhaustive review of the barriers that can be faced by local authorities in trying to effectively shape their areas. We welcome the overall thrust of government policy to streamline regeneration and devolve powers, and hope these recommendations will make a positive contribution.”
RDA promises swift payment
Following the government’s announcement yesterday of a further package of support to help small businesses during the economic downturn, the Northwest Regional Development Agency announced that it will aim to pay all invoices to suppliers within ten days, instead of the previous 30 days. This will help those companies contracted to provide goods or a service to the agency to retain a steady cash-flow.
Entrepreneurs braced for battle
Despite the doom and gloom surrounding the economy, more than two-thirds of entrepreneurs remain determined to ride out the downturn and tough it out with their business, according to a report by Grant Thornton. The firm’s biannual Entrepreneur Insight Report also found that more than three-quarters of business owners surveyed were either as ambitious or more ambitious for their business than six months ago. Alysoun Stewart, head of entrepreneurial advisory at Grant Thornton, said the findings demonstrated “a pragmatic approach” despite the uphill battles that many entrepreneurs face and would be instrumental in driving the coming economic recovery. The owners of 715 UK businesses, with a turnover between £5m and £150m, took part in the survey.
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