Sainsbury Situation

[Smiffy]

Anybody recall the square footage of the proposed store? While they haven't identified specific sites to be mothballed, they indicate they'll open 500,000sq ft of space in the next two years and 350,000sq ft in 2017-18.

6,976m2 (net) retail floorspace, which I believe is about 75,000 sq feet.

 

[THE SEVENTIES NORTH BANK]

SAINSBURY'S: OUR PLANS HAVEN'T CHANGED
SUPERMARKET giant Sainsbury’s insists it still plans to build a megastore on Roots Hall.
It has had no formal talks with Prospects College since a contract giving the supermarket giant the option to buy the college’s site lapsed in January. It was the seventh time in seven years the contract had expired, but this time Sainsbury’s failed to renew it.
The college site offers Sainsbury’s the only viable vehicle access to the supermarket as an entrance on to Victoria Avenue has been ruled out.
The seven-year wait for the land sale, a move by rival retailers, including Tesco, away from large new stores and the introduction of a new Sainsbury’s chief executive has led some to speculate the deal is dead.
However, Sainsbury’s insists nothing has changed.
A spokeswoman told the Echo: “We are constantly reviewing our portfolio to ensure our plans are suitable for the business and for our customers.
“Our plans for Southend remain unchanged. As we make progress, we will update the local community.”

A bit weird. They have let the contract expire that gives them the right to buy Prospects. Without Prospects they can't build the new Sainsbury's. And yet they say their plans remain unchanged.
Meanwhile, Prospects have had enough and are in talks with other buyers.

 

[Smiffy]

A bit weird. They have let the contract expire that gives them the right to buy Prospects. Without Prospects they can't build the new Sainsbury's. And yet they say their plans remain unchanged.
Meanwhile, Prospects have had enough and are in talks with other buyers.

That is an old article.

 

[Che's Left Foot]

http://www.bbc.co.uk/news/business-30016027

The supermarket chain took a charge of £287m because some sites will no longer be developed.

 

[Smiffy]

http://www.bbc.co.uk/news/business-30016027

Yes I think that is the key point. Will it mean the store at RH is scrapped is the question?

Still no nearer to a definitive answer. But IMO, the signs are not good at all.

 

[EastStandBlue]

6,976m2 (net) retail floorspace, which I believe is about 75,000 sq feet.

So, if the project is to go ahead in 2017/2018, it will account for a little more than 20% of its entire new floorspace for the country in that year. Doesn't seem feasible.

 

[THE SEVENTIES NORTH BANK]

That is an old article.

5th November 2014 isn't old. That's last week.

http://www.echo-news.co.uk/news/11579090.New_doubt_over_Southend_United_s_stadium_plan/

 

[Smiffy]

5th November 2014 isn't old.

http://www.echo-news.co.uk/news/11579090.New_doubt_over_Southend_United_s_stadium_plan/

Maybe not. But that comment from Sainsbury was the same one they dished out earlier in the year and obviously before the announcement today.

 

[Chairman Trigg]

One consequence of the review of our estate will be a reduction in the amount of new supermarket space we
open in the coming three years. We will open a total of 500,000 sq ft of space in each of the next two years,
followed by 350,000 sq ft in 2017/18. This will include eight new supermarkets over that period and four
replacement stores, three of which are mixed-use developments, unlocking significant property profits. Over
half of this new space will be convenience stores as we continue to target opening around 100 convenience
stores per year.
As a result of the review of our supermarket estate, we have impaired a number of our trading stores and
have also decided to withdraw from a number of schemes in our property pipeline that are unlikely to achieve
an appropriate return on capital, resulting in a total impairment and onerous contract charge of £628 million.
Posted on bristol rovers m/b

 

[Southchurch shrimper]

This may have been mentioned before but interestingly we do not appear on Sainsbury's future store list on their website. http://www.j-sainsbury.co.uk/about-us/property/supermarkets/

 

[londonblue]

This may have been mentioned before but interestingly we do not appear on Sainsbury's future store list on their website. http://www.j-sainsbury.co.uk/about-us/property/supermarkets/

From the paragraph at the top of the page:

These pages show many of our proposals for new supermarkets around the country and keep you up to date with the latest news on their development.

i.e. those pages don't show all of the proposals.

 

[ooh-andy-ansah]

Surely Southend comes under the replacement category not new.

 

[Razam]

From the paragraph at the top of the page:

i.e. those pages don't show all of the proposals.

You may be correct, however it's quite strange given the RH Sainsburys is said to become the biggest in the UK.
A development of that size would usually be 'boasted' about!:unsure:

 

[Razam]

Surely Southend comes under the replacement category not new.

the list in the link from Southcurch shrimper does actually include replacements (eg. Charlton, Watford Dome, Whitechapel...)

 

[Beefy]

A bit weird. They have let the contract expire that gives them the right to buy Prospects. Without Prospects they can't build the new Sainsbury's. And yet they say their plans remain unchanged.
Meanwhile, Prospects have had enough and are in talks with other buyers.

Are they though?

It has already been mentioned a few times in the past that Sainsburys have lost a lot of cash on these agreements with Prospects. Not renewing it this year could be them deciding not to throw away yet more cash to secure property that no one else would buy.

Prospects is covered by the CPO I believe so why on Earth would anyone else want to buy it. It sounds to me like one or both of Prospects and Sainsburys are trying to call the other's bluff.

 

[Smiffy]

Are they though?

It has already been mentioned a few times in the past that Sainsburys have lost a lot of cash on these agreements with Prospects. Not renewing it this year could be them deciding not to throw away yet more cash to secure property that no one else would buy.

Prospects is covered by the CPO I believe so why on Earth would anyone else want to buy it. It sounds to me like one or both of Prospects and Sainsburys are trying to call the other's bluff.

I am reliably informed that Prospects is not covered by a CPO at present.

 

[Mick]

I am reliably informed that Prospects is not covered by a CPO at present.

Why would it be; they're desperately trying to sell it and have been let down several times.

 

[londonblue]

I am reliably informed that Prospects is not covered by a CPO at present.

Probably not. However the council will issue one if it is the only thing holding up development. There's no way they wouldn't.

 

[Mick]

Probably not. However the council will issue one if it is the only thing holding up development. There's no way they wouldn't.

The council would be obliged to investigate why it was the only thing holding up development and if they did and discovered the developer had at least twice reneged on deals to buy it, it would not be appropriate to issue one.

 

[LCBB]

Maybe not. But that comment from Sainsbury was the same one they dished out earlier in the year and obviously before the announcement today.

The council know that Sainsbury are going to pull out .