Hammerson sees an encouraging first quarter amid development projects

British property investment and management group Hammerson presented its results for the first half of 2023. The group showed financial progress and adjusted profits up 15 percent year-on-year to 56 million pounds, or 65 million euros.

According to the Group, this increase is partly the result of higher rental income and lower operating and financing costs. On a like-for-like basis, gross rental income increased by 3 percent and net rental income by 2 percent, while gross administrative costs fell by 12 percent year-on-year. Hammerson is targeting a 20 percent reduction in costs compared to FY22 by 2024.

In the first half of 2023, the property management group opened 55 new stores. On behalf of fashion brand Palm Angels, a discount shop was opened in Bicester Village. During the same period, Burberry introduced a new shop concept in Ingolstadt, Germany. These openings will continue in the second half of the year. At La Vallée, Monogram, a second-hand shop, will be moving into a permanent space, following a series of temporary openings which the group says have been a success.

The rise in footfall is one of the factors driving the company to focus on opening new spaces. In the UK, like-for-like sales are up 3 percent year-on-year, 7 percent in France and 2 percent in Ireland. During the first six months of the year, 134 leases representing 18 million pounds (21 million euros) in total rent were signed.

A new strategy for the future

Consumers are returning to town centres, both for leisure and for work. However, the group has observed that they are reducing their purchases in certain categories, such as fashion accessories. They are becoming more cautious and concentrating on value for money. With this in mind, the group says it now wants to focus on the quality of the products it offers.

This article originally appeared on FashionUnited.FR. Translation and edit by: Rachel Douglass.