A supermarket chain has put real estate deals on hold until at least January, citing the “considerable” impact of last week’s Budget.
In a letter seen by EG sent to landlord-side agents on the day of last week’s Budget, Farmfoods said it would suspend “all work/progress” on certain transactions until January 2025 at the earliest. The company is understood to have been looking at a number of former Carpetright stores following that retailer entering administration.
“Today’s Budget imposes considerable new and additional responsibilities on businesses – particularly those with large numbers of employees – and we intend to assess the ultimate impact these will have before signing to further commitments and expenditure,” the Farmfoods letter said. “Next week’s American election has the potential to create further economic uncertainty.”
The company added that it believed the value of retail property “may have become over-inflated” during the past year.
“As a 70-year-old business, we pride ourselves on making tough decisions to ensure ongoing and long-term success,” the letter concluded. “This week’s decision is not one that has been taken lightly; however, we require time to assess the combined effect of the factors set out above and the pause will allow that exercise to take place.”
It added: “If your client is willing to accept the required pause until January, I can assure you of an update at that point.”
Farmfoods has more than 300 stores across the UK. On its website, the company said it has targeted new ground-floor locations of between 10,000 and 20,000 sq ft, but said it is open to considering stores of 6,000 sq ft in select locations.
The company has made a push in Greater London, recently taking on a former Pets at Home store at Springfield Road Retail Park in Hayes, west London, following acquisitions in Wood Green and Hendon. It now has 10 sites in the capital.
Photo © Hans/Pixabay
Send feedback to Shifali Gorka
Follow Estates Gazette
