Tenant Watch Issue 30

Retail

MINISO has agreed to open its first UK MINISO LAND flagship store at 363 Oxford Street, replacing HMV, which plans to vacate in March 2027. The 19,000 sq ft store will offer immersive shopping experiences featuring the brand’s character collaborations and themed environments, reinforcing MINISO’s UK expansion strategy (BE News, 16/10/26).

Lidl, Intersport, Pepco & McDonald’s - Mitiska REIM has opened its first retail park in Bulgaria, developed through its MEREP 3 fund in partnership with Park Lane Developments and the European Bank for Reconstruction and Development (EBRD). Located in Sofia’s Hadzhi Dimitar district, the fully leased Estrea Park comprises 14,000 sqm across 22 retail units, with 300 parking spaces. Anchored by Lidl, tenants include Pepco, TEDi, Sinsay, Intersport and McDonald’s. The development is targeting BREEAM Excellent certification and marks the beginning of Mitiska REIM’s planned retail park expansion in Bulgaria (Property Forum, 19/10/26).

Waitrose has opened its first new supermarket in eight years, launching an 18,000 sq ft store in Cricklewood, London, as part of its £1bn investment programme. Further openings are planned in Hale Barns in November and four additional locations in 2027, alongside 29 store refurbishments in 2026. Sales rose 4% in the six months to August, although underlying operating profit declined by £7m to £103m (Retail Gazette, 22/10/26).

John Lewis Partnership has signed a collective agreement recognising trade union Usdaw across John Lewis, Waitrose and John Lewis Money, effective 30 October 2026. The agreement covers consultation on workplace matters, including health and safety, equality and training, while pay and employment conditions will remain directly negotiated with employees (Retail Gazette, 21/10/26).

Carrefour has downgraded its 2026 profit outlook after riots and looting affected approximately 50 French stores, potentially reducing operating income by £174m. The retailer now expects flat to slightly higher adjusted earnings per share, down from previous expectations of high single-digit growth, while cutting planned capital expenditure by €100m to €1.6bn (Retail Gazette, 21/10/26).

Adidas has raised its 2026 operating profit forecast from €2.3bn to €2.5bn following record third-quarter results. Operating profit increased 37% to €1.01bn, revenue rose 9% to €7.25bn, and gross margin improved by 2.5 percentage points to 54.3%, supported partly by a €200m US tariff refund (Retail Gazette, 21/10/26).

Wickes reported a 4.5% increase in third-quarter revenue to £439m, driven by 6% retail sales growth to £331m and an 8% increase in TradePro sales. However, Design & Installation revenue rose just 0.3% to £108m amid weaker demand for expensive kitchens. The retailer remains on track to meet full-year profit expectations and continues expanding its UK store estate (Retail Gazette, 20/10/26).

Mulberry reported an 18.1% increase in sales for the 26 weeks to September 2026, driven by stronger full-price handbag sales and improving international demand. UK sales rose 10%, while revenue increased 28% in the US, 23% in Europe and 5% in Asia Pacific. The luxury retailer continues to progress its turnaround strategy, targeting annual revenue exceeding £200m and a 15% adjusted operating profit margin (Retail Gazette, 20/10/26).

Poundland owner Gordon Brothers is considering competing takeover and break-up proposals as the retailer faces potential administration. B&M, Lidl, The Range and Fortress Investment Group have reportedly expressed interest in acquiring selected stores, with Fortress targeting 200 to 250 locations, while Martin Property Group has submitted a management-backed bid for the entire business. Three independent directors have been appointed to oversee the process, with approximately 12,000 jobs across nearly 600 stores at risk and no agreement finalised (Retail Gazette, 16/10/26; Retail Gazette, 20/10/26).

Halfords reported a 7.1% increase in first-half like-for-like sales but maintained its full-year profit guidance despite stronger summer trading. Sales benefited from increased demand for bicycles, camping equipment and seasonal products, while the retailer continued investing in pricing, motoring services and higher-margin electric bicycles. However, management expects profitability to be weighted towards the first half because of increased marketing and technology expenditure later in the year. The unchanged guidance disappointed investors, with shares falling as much as 10% following the announcement (Reuters, 21 October 2026).

L'Oréal exceeded third-quarter sales expectations as strong demand for premium beauty products supported growth across its international markets. Revenue increased 7.7% on an adjusted like-for-like basis to €11.56bn, exceeding analysts' expectations of 5.9% growth. The luxury division recorded 7% growth, supported by fragrances and premium skincare, while European sales increased approximately 9%. Revenue across South Asia and the Middle East rose 19.5%, reflecting strong demand in Gulf markets and Vietnam (Reuters, 22 October 2026).

Debenhams Group returned to pre-tax profitability for the first time in five years as its restructuring and cost-reduction programme continued to deliver results. The retailer reported a £28.3m pre-tax profit for the six months to 31 August, compared with a £17.9m loss a year earlier. Following the disposal of its Sheffield automation facility and Nasty Gal brand, net debt is expected to be negligible by the financial year-end. The group maintained its full-year adjusted EBITDA guidance of at least £59m and is targeting pre-tax profit exceeding £100m over the medium term (Reuters, 23 October 2026).

Sainsbury's raised its full-year profit guidance after first-half underlying operating profit increased 3.6% to £525m. Sales excluding fuel increased 2.6% to £14bn, supported by grocery growth and cost savings, although second-quarter like-for-like sales growth slowed to 1.2%, below market expectations. The supermarket now expects full-year underlying operating profit of £1.025bn to £1.065bn, compared with previous guidance of £965m to £1.065bn, adjusted for the planned disposal of Argos. Management warned that the UK grocery market would remain highly competitive ahead of Christmas (Reuters, 22 October 2026).

Utopia Brands has signed a 10-year lease for 129,139 sq ft at Indurent's Dove Valley Park in Derbyshire. The consumer goods company is relocating from a 54,000 sq ft facility at Indurent Park Derby, marking its third expansion within Indurent's portfolio since 2020 and reflecting continued business growth (Property Week, 22/10/26).

Logistics

A.P. Moller Capital has agreed to acquire 100% of Singapore-based port operator Portek International from Mitsui & Co., expanding its infrastructure portfolio with seven port terminals across Africa, Asia and Europe. Portek operates terminals in six countries, handling approximately seven million tonnes of bulk cargo, 700,000 containers and 90,000 vehicles annually. The acquisition, through A.P. Moller Capital’s Emerging Markets Infrastructure Fund II, remains subject to regulatory and third-party approvals. Following completion, the firm plans to improve operational efficiency, safety and environmental performance across Portek’s portfolio (Logistics Manager, 16/10/26).

Maersk has announced reductions to its temporary inland fuel surcharges across several major European logistics markets. From 26 October to 9 November, road and barge fuel surcharges will fall to 15% across Belgium, the Netherlands and Luxembourg, and 14% across Germany, Austria and Switzerland. Polish road transport surcharges will remain at 16%, with the carrier continuing to review its rates fortnightly in response to energy market volatility and associated transport costs (Container News, 21 October 2026).

Kuehne+Nagel has raised its 2026 earnings outlook for the third time this year following a 53% increase in third-quarter operating profit. EBIT reached CHF 435m, supported by strong demand for semiconductor and cloud infrastructure shipments, with air freight volumes increasing by 9.8% to 619,000 tonnes and sea freight volumes rising by 4.5% to 1.16m TEU. The Swiss logistics group increased its full-year recurring EBIT guidance to CHF 1.5bn to CHF 1.6bn, reflecting stronger freight volumes, improved margins and cost efficiencies (The Loadstar, 22 October 2026).

DSV has reported higher third-quarter earnings despite continued disruption to its European road freight operations following the Schenker integration. Revenue increased by 12.1% to DKK 80.7bn, while EBIT before special items rose by 22.2% to DKK 6.6bn. Contract Logistics operating profit increased by 50.3%, although Road division earnings declined by 35.1% amid lower productivity and volumes. DSV maintained its target of approximately DKK 9bn in annual integration synergies, with some savings now expected in 2027 (Container News, 22 October 2026).

CMA CGM has operated its first container train into Hungary's East-West Gate terminal, strengthening its presence in Central European intermodal logistics. The arrival at Fényeslitke follows Maersk's introduction of container depot and dry port services at the facility earlier in 2026. The terminal, located near the Ukrainian border, is seeking to develop new freight flows serving Hungary's automotive and battery industries alongside potential containerised agricultural exports from Ukraine, although regular CMA CGM service frequencies have not yet been confirmed (Rail Market, 22 October 2026).

GEODIS has expanded its European e-commerce logistics partnership with Lovevery, establishing its Malsfeld facility in Germany as the retailer's central European distribution hub. The agreement follows the relocation of Lovevery's European distribution operations from Hamburg and extends a partnership established in 2024. The multi-user facility combines warehousing, inventory management, order fulfilment and international shipping, strengthening GEODIS' position in European consumer goods logistics (Logistics Manager, 21 October 2026).

Royal Mail has reduced its heavy goods vehicle fleet by more than 500 trucks and 140 trailers over the past year as parcel operators prepare for the Christmas peak. Industry fleet data indicates that the nine largest UK parcel carriers collectively operate approximately 20,960 trucks, representing a 1% annual decline, despite competing operators expanding capacity. The reductions at Royal Mail come amid continued pressure on its letters business, with volumes falling by 10% to 5.72bn items in the year ended March 2026 (Motor Transport, 19 October 2026).

Bpost is expanding its electric delivery fleet to 4,165 vans, representing approximately 42% of its Belgian van operations. More than 1,100 electric vehicles are being introduced during 2026, with the rollout scheduled for completion by the end of October ahead of the Christmas parcel peak. The investment supports Bpost's target for 85% of its last-mile fleet to operate without direct CO₂ emissions by 2030, while its Belgian network can handle more than 800,000 parcels daily during peak periods (Post & Parcel, 21 October 2026).

Rhenus has introduced smart warehouse picking technology at its Strasbourg logistics hub in France, strengthening its long-standing partnership with Merck. Developed alongside technology specialist Signature One, the system combines automated weight verification, light-guided picking and digital quality controls to improve order accuracy. The facility processes approximately 2,800 orders daily for Merck's Molsheim operations, with further integration into warehouse management and conveyor systems planned (Rhenus, 20 October 2026).

DACHSER has extended its research partnership with Germany's Fraunhofer institutes until 2029 to accelerate the deployment of artificial intelligence and robotics across its logistics network. The collaboration will focus on digital solutions for freight handling, warehouse automation and operational efficiency. DACHSER also expects its @ILO digital twin technology, designed to improve visibility and management of groupage cargo, to be operational at 14 European facilities by the end of 2026 (Container News, 22 October 2026).

ID Logistics has reported a 25.6% increase in third-quarter revenue to €1.18bn, supported by strong international contract logistics growth. Revenue for the first nine months of 2026 increased by 20.9% to €3.26bn, with European operations outside France recording like-for-like growth of 23.4% during the quarter. North America delivered the strongest regional performance, with growth of 48.1%, while the group continued expanding its warehousing operations and preparing additional facilities for peak e-commerce demand (Container News, 22 October 2026).

SBB Cargo has extended its rail logistics contract with Swiss food wholesaler Pistor until the end of 2031, securing long-term freight volumes across Switzerland. The agreement covers regular block train services from Rothenburg to Chavornay and Sennwald, transporting food and consumables for bakeries, restaurants and healthcare facilities. Approximately 40 tonnes are transported overnight to Sennwald each day, while the wider operation replaced an estimated 5,900 truck journeys during 2025 (Rail Market, 23 October 2026).

Office

Landsec has secured five new AI and technology occupiers, including Replit, at its MYO King’s Cross flexible workspace, bringing occupancy to over 95% just over a year after opening. AI and AI-related businesses now account for 70% of occupied space, highlighting growing demand from London’s technology sector. Occupancy has risen from 60% in March 2026, while Landsec’s wider MYO portfolio comprises over 300,000 sq ft across seven central London locations (Property Week, 19/10/26).

Zilch has signed a 10-year lease for a new 33,160 sq ft London headquarters at 40 Grosvenor Place with PATRIZIA. The fintech company will occupy the fourth and fifth floors of the building, with relocation scheduled for spring 2027. The agreement represents a significant commitment to central London office space and will provide additional capacity for the company's operations (BE News, 19 October 2026).

Stripe is nearing an agreement to lease approximately 130,000 sq ft of office space at Blackstone’s Broadgate Quarter development on the edge of the City of London. The proposed deal follows preliminary terms agreed earlier in 2026 and reflects the fintech company’s rapid expansion (Bloomberg, 21/10/26).

Sullivan & Cromwell is in advanced negotiations to double its London office footprint to approximately 150,000 sq ft. The US law firm is considering floors eight to 13 at 75 London Wall, the former Deutsche Bank headquarters, with a potential relocation from New Fetter Lane in 2029 or 2030. The proposed lease, which remains unfinalised, reflects the firm's expansion in London following several senior partner appointments (Financial Times, 20 October 2026).

The Financial Conduct Authority has confirmed plans to relocate its Leeds operations to a new 36,097 sq ft office at 2 Wellington Place. The regulator will move from its existing premises at 6 Queen Street in 2028, establishing a larger permanent base to accommodate its growing regional workforce. The relocation supports the FCA's ambition to have 1,000 roles based outside London by 2030 (Financial Conduct Authority, 22 October 2026).

FGS Global has agreed to relocate to 23,887 sq ft of office space at Brettenham House in central London. The strategic advisory firm has exchanged an agreement for lease covering the sixth, eighth and ninth floors of the refurbished building. FGS Global will occupy the premises from January 2027 on a 10-year term, becoming the first occupier secured following the property's comprehensive redevelopment (Helical, 22 October 2026).

NatWest has announced stricter office attendance requirements affecting thousands of UK employees from February 2027. Approximately 13,500 remote-first employees, previously required to attend the office twice monthly, will be expected to attend at least twice weekly, while existing hybrid workers will also face increased attendance requirements. The changes have attracted criticism from Unite over commuting costs and reduced flexibility (Reuters, 20 October 2026).

Deliveroo has secured approximately 25,000 sq ft of office space at the Tootal Buildings in central Manchester. The food delivery company committed to 24,975 sq ft during the third quarter of 2026, representing the city's largest office letting during the period. The transaction was highlighted in the Manchester Office Agents Forum's latest market report, published in October (Commercial News Media, 20 October 2026).

Jacobs has become the first occupier to sign at the newly completed Lucent office development in Glasgow. The international engineering and consultancy group has committed to space at the refurbished city-centre building, with the agreement reportedly establishing a new benchmark for prime office rents in Glasgow. The transaction comes amid improving demand for high-quality office accommodation in the city (CoStar News, 19 October 2026).

ISOS has renewed its lease on 35,000 sq ft of office space at Chiswick Park in west London. The health and security services company has recommitted to its existing accommodation in Building 4, representing the largest individual transaction within the business park's recently announced 72,500 sq ft of office lettings (BE News, 21 October 2026).

Ferrovial has agreed a 15-year lease restructuring covering 10,000 sq ft of office space at Chiswick Park. The international infrastructure company has recommitted to its accommodation in Building 10, securing its continued presence at the west London campus under a revised long-term agreement (BE News, 21 October 2026).

Pierre Fabre has signed a 10-year lease for 7,000 sq ft of office space at Chiswick Park in west London. The international pharmaceutical and dermo-cosmetics group will occupy accommodation in Building 11, joining the business park's established community of healthcare and international corporate occupiers (BE News, 21 October 2026).

Air China has agreed a new 10-year lease for 4,000 sq ft of office space at Chiswick Park. The international airline will occupy accommodation in Building 4, establishing a new long-term office commitment at the west London business campus (BE News, 21 October 2026).

Pladis has expanded its office presence at Chiswick Park by 4,500 sq ft, increasing its total footprint to 33,000 sq ft. The international snacks manufacturer has agreed a five-year lease for the additional accommodation in Building 3, reinforcing its existing presence at the campus (BE News, 21 October 2026).

Other

Mercedes-Benz has expanded its partnership with Nvidia to develop next-generation advanced driver-assistance and automated-driving systems, combining its MB.OS operating system with Nvidia’s AI and accelerated computing technologies. The collaboration will support autonomous urban driving, automated parking and future Level 4 driverless vehicles, including robot limousines. The companies will also integrate AI-powered engineering simulations and digital manufacturing tools to improve production efficiency, flexibility and safety across Mercedes-Benz’s global operations (Just Auto, 19/10/26).

Jaguar Land Rover, owned by Tata Motors, has renewed its longstanding partnership with British AI firm Aiimi to strengthen data governance and improve operational efficiency. The agreement extends JLR’s access to Aiimi’s Workplace AI platform, which uses AI to classify, manage and retrieve historical data, reducing administrative costs and compliance risks. The partnership, established in 2017, has already delivered significant time and cost savings, with the renewed collaboration focusing on improving data accessibility, supporting data-driven engineering and expanding practical AI applications across JLR’s operations (Just Auto, 19/10/26).

PwC reported global revenue of $60.2bn for the year ended 30 June 2026, representing a 5.7% increase year-on-year, or 3.5% at constant exchange rates. Growth was strongest in Asia-Pacific at 7.7%, while Europe, the Middle East and Africa recorded just 0.7% growth amid geopolitical disruption. Tax and legal services led divisional performance with 6.3% growth, followed by advisory at 3% and assurance at 2.6%. UK revenue increased by 2% to £4.4bn, although consulting and risk revenues across the wider UK and Middle East group declined by 9.8% and 8.9%, respectively. PwC also invested $3bn globally in technology and AI capabilities (City AM, 19/10/26; PwC, 19/10/26).

Microsoft has withdrawn from plans to develop the UK’s largest supercomputer at Nscale’s £2bn data centre project in Loughton, Essex, due to delays in securing a grid connection. The 50MW facility, with potential expansion to 90MW, was originally expected to receive power by the end of 2026 but may now face delays until the early 2030s. Nscale remains committed to the development and is exploring alternative power sources, while maintaining its wider partnership with Microsoft across projects in Norway, Portugal and the US (Property Week, 19/10/26).

AstraZeneca and Oracle announced a global AI collaboration aimed at improving clinical trial recruitment, earlier disease diagnosis and drug safety monitoring. The partnership will combine AstraZeneca's clinical expertise with Oracle's AI, cloud infrastructure and healthcare data, initially focusing on hypertension care in Abu Dhabi alongside healthcare company M42. The companies have signed a non-binding agreement, with financial terms undisclosed (Alliance News, 20/10/26).

Barclays plans to cut approximately 5,000 jobs, representing around 5% of its global workforce, by the end of 2026 as it expands its use of AI and technology to improve efficiency. Around 1,000 roles have already been eliminated, with most reductions targeting operational and support functions. Meanwhile, third-quarter pre-tax profit increased 12% to £2.3bn, while the bank implemented approximately £600m in structural cost measures during the first nine months, with a further £300m planned for the final quarter (Business Live, 22/10/26).