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"Soaring rents force Sephora to leave UK
24 March 2005
Sephora, the perfume retailer owned by luxury goods conglomerate LVMH, is poised to pull out of the UK after incurring rent hikes at many of its stores.
Sephora has nine shops in the UK, including one at Bluewater, all of which will close by the end of May.
A number of retailers, including Tom Hunter’s Qube footwear chain and fashion chain Bank, will take stores.
Interest has been shown in all the branches except the Southampton store in Hammerson’s West Quay development.
It is understood Bank, founded by joint chief executives Andy Scott and Hoss Mehjoo, has signed an agreement to take over the Kingston store and is in talks to take the Merry Hill outlet in the West Midlands.
Qube has taken the 2,840 sq ft (265 sq m) Uxbridge store and Optical Express has taken the store at Bluewater.
The remaining outlets, at the Harlequin Centre in Watford, Brent Cross and the N1 Centre in London, and in Solihull are all under offer.
Sephora has been crippled by the rent increases at stores; its rent at Bluewater increased by 50% at the last review.
The stores range in size from 2,500 sq ft (230 sq m) to 3,500 sq ft (325 sq m).
Sephora opened in the UK in 1999. It has stores in China, the US, Canada, Spain, France, Poland and Portugal. It pulled out of the Japanese market in 2001.
Harper Dennis Hobbs is the sole agent for Sephora in the UK. The company declined to comment."