Department store group Fenwick is in talks to lease rival House of Fraser's soon-to-be vacated store in Guildford, CoStar News understands, in a move that flies in the face of the trend of department stores retreating from the UK high street.
House of Fraser will close its long-term home in the Surrey town later this month.
The once mighty department store chain has almost halved from 59 stores to 31 since its £90 million purchase by business tycoon and Sports Direct founder Mike Ashley in August 2018. Alongside Debenhams, which no longer has any physical stores, and John Lewis, House of France has been emblematic of department stores' departure from British high street and shopping centres.
CoStar News understands that landlord Canada Life is now in talks to bring another famous department store name, Fenwick, to the space.
Canada Life bought the 186,000 square feet building from BL Fraser, a joint venture between British Land and House of Fraser in 2009 for £31.5 million, reflecting a net initial yield of 8%. The property was let then to House of Fraser on a lease expiring in 2039.
The building is a landmark in the affluent South East town, and sits opposite a major residential-led development of the 300,000-square-foot former Debenhams being brought forward by Native Land.
It is home to the Jellicoe Heritage Roof Garden, designed and installed by the late Sir Geoffrey Jellicoe in 1958 for the former Harvey’s Department Store, and holds a Grade II listing with English Heritage.
A letting to Fenwick would add to evidence that opportunity is emerging for some vacated department stores to be taken by other department stores, though on a smaller scale. Shoppers remain keen to see department stores on high streets and in shopping centres, with M&S's recent decision to take two of the three floors vacated by Debenhams at Bullring in Birmingham a good example of the trend.
Fenwick began life in 1882 and now operates nine stores across the UK. Its New Bond Street department store began trading in 1891 and is one of the flagships in West End retail, and the only department store on Bond Street.
It has stores in Newcastle, York, Bracknell, Canterbury, Colchester, Kingston, Tunbridge Wells and at north London’s Brent Cross shopping centre.
The family was on the brink of selling the entire business to Thai conglomerate Central Group a couple of years ago before the pandemic took hold. In December last year, Central agreed a £4 billion deal to buy rival UK department store Selfridges.
It emerged in February last year that Fenwick was marketing its New Bond Street store on London's most exclusive shopping street. It was eventually bought by Lazari Investments for £430 million at the end of last year.
Fenwick gained consent in January 2020 for a five-storey office extension and a part change of use from retail to offices at the Bond Street address in a familiar story for London department stores, as Westminster councillors accepted “anything that can be done to help a store like Fenwick to survive and thrive should be welcomed”.
A spokesperson from Canada Life Asset Management said: “We’re not willing to comment on market speculation.” Fenwick did not respond.