Category Archives: Retail industry

John Lewis suffers first half loss of £99m and warns of risk to staff bonuses

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Outlook ‘uniquely uncertain’, says Partnership as it announces cost of living support for staff

The John Lewis Partnership has warned its annual staff bonus is at risk this year after it slumped to a first half loss of £99m and said the outlook in the run-up to Christmas was “uniquely uncertain”.

The group, which is staff-owned and includes the Waitrose supermarket chain, blamed soaring inflation for the loss in the 26 weeks to 30 July, which compared with a £29m loss before tax in the same period last year.

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Asos sales weaker than expected as cost of living crisis bites

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August slump leads to online fashion retailer downgrading annual growth forecast to about 2%

Asos said sales in August were weaker than expected and warned that full-year profits would be at the bottom end of its guidance, with the cost of living crisis hitting cash-strapped shoppers.

The online fashion retailer, which made more than £190m in profits last year, expects profits for the year to the end of August to be about £20m.

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Bed Bath & Beyond executive falls to his death from New York tower, police say

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Chief financial officer Gustavo Arnal, 52, fell from skyscraper on Friday, days after the company said it was closing several stores

The chief financial officer of the troubled home goods retailer Bed Bath & Beyond fell to his death from a New York skyscraper known as the “Jenga” tower on Friday, police said, just days after the company said it was closing several stores.

Gustavo Arnal, 52, joined Bed Bath & Beyond in 2020. He previously worked for the cosmetics brand Avon in London and had a 20-year stint with Procter & Gamble, according to his LinkedIn profile.

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Selfridges wants half of transactions to be resale, repair, rental or refills by 2030

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Department store group says it is responding to customers’ demand for more sustainable shopping

Selfridges is aiming for almost half its interactions with customers to be based on resale, repair, rental or refills by 2030 as the upmarket department store responds to increasing demand for more sustainable shopping.

The retailer said it wanted to step up action after increasing sales of secondhand items by 240% to 17,771 pieces last year and facilitating 28,000 repairs, more than a third of which were pairs of trainers, in its effort to trade in a more environmentally sustainable way. It also rented out more than 2,000 items to customers and sold more than 8,000 refills.

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UK retailers blocking moves to end the killing of day-old male chicks

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While France and Germany have introduced bans, Britain continues to slaughter 29 million unwanted chicks every year

UK retailers are blocking moves to end the killing of millions of day-old male chicks each year, farmers and breeding companies have said.

The industrial-scale culling of unwanted chicks is common practice around the world, with 330 million males slaughtered by crushing or gassing each year in Europe, according to campaigners, 29 million of those in the UK.

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Rising energy costs ‘will force thousands of corner shops to close’

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Association of Convenience Stores urges chancellor to provide more financial support for small shops

Thousands of corner shops will be forced to close due to surging energy costs unless the government steps in with emergency support, a trade body has said.

The Association of Convenience Stores (ACS) has written to the chancellor, Nadhim Zahawi, saying that without financial support its members will be driven out of business. “We will see villages, housing estates, neighbourhoods and high streets lose their small shops,” the letter says.

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M&S pledges to put recycling at heart of Marble Arch store redevelopment

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Mark & Spencer says 95% of materials will be recovered, recycled or reused amid growing opposition

Marks & Spencer has pledged that 95% of the materials in its Marble Arch building in Oxford Street, west London, will be recovered, recycled or reused as it fights back against heavy opposition to its plan to flatten the shop.

In the run-up an inquiry into the scheme, scheduled to begin on 25 October, the retailer said some materials would be reused directly on site within its new building as part of its efforts to “promote circular economy principles”.

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Massive queues in Moscow as shoppers take last chance to shop at H&M

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Retailer halted operations in Russia after invasion of Ukraine but has reopened for limited time to sell remaining stock

Long lines of Russian shoppers formed outside H&M stores in Moscow shopping centres this week when the Swedish fashion retailer reopened its doors to sell off stock before pulling out of Russia for good.

Along with a series of other western brands including Ikea, Nike, and the Zara owner, Inditex, H&M halted operations in Russia after the invasion of Ukraine on 24 February but opened its doors one last time this week to clear out remaining goods.

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Visits to shopping centres and high streets dip below pre-pandemic levels

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South of England experiencing faster recovery than north, Scotland and Northern Ireland

Visits to high streets and shopping centres dipped to below pre-pandemic levels last month, with the north of England – plus Scotland and Northern Ireland – trailing behind the south in terms of the overall recovery from Covid-fuelled gloom.

Footfall decreased by 14% in July compared with 2019, reversing gains made in April, as retailers struggled to entice shoppers amid a heatwave in the third week of the month and surging inflation.

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School uniforms: UK parents urged to buy early amid supply problems

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Supplier warns of Covid-related disruption, amid calls for VAT on over-14s’ school clothes to be axed

The holidays have only just begun for many children but families are being warned not to leave uniform shopping to the last minute because of potential shortages of official school blazers and jumpers.

The specialist retailer School Uniform Direct, which supplies scores of UK schools, has written to thousands of customers urging them to place orders for branded clothing as soon as possible.

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UK e-commerce firm THG ends investment deal with Japan’s SoftBank

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Company, which owns sites such as Lookfantastic and Zavvi, blames ‘global macroeconomic conditions’

The online shopping group THG has ended an agreement under which the Japanese conglomerate SoftBank had agreed to invest in it, blaming “global macroeconomic conditions”.

The company formerly known as The Hut Group, which owns a range of internet health and beauty retailers, secured $730m (£610m) of new investment from a division of SoftBank to help fund expansion of its technology platform a few months before it listed in London.

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Aldi gives second pay rise in year amid high demand for UK workers

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Supermarket chain’s move comes as employers face fierce competition for staff after Covid and Brexit

Aldi has raised pay for shop workers for the second time in a year in the latest sign of the intense competition for workers in the UK.

From September, the grocery discounter is to put up hourly pay by 40p to a minimum of £10.50 outside the M25 and to £11.95 in London, an increase of at least 3.5%.

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France orders air-conditioned shops to save energy by shutting doors

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Minister says open doors lead to 20% more consumption as restrictions on illuminated signs also announced

Air-conditioned shops throughout France will have to keep their doors shut or risk a fine of €750 (£635), a French minister has announced, after the mayors of several major cities unveiled a similar rule during the country’s heatwave last week.

Agnès Pannier-Runacher, the minister for ecological transition, said leaving doors open with air conditioning on led to “20% more energy consumption and … is absurd”. A decree confirming the decision will be issued in the coming days.

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Prices fall as UK heatwave produces glut of soft fruit

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Yields of cherries, strawberries and blueberries could more than double on the same time last year

The UK heatwave has produced a glut in strawberry, cherry and blueberry harvests prompting a wave of discounts in stores and lower prices for British farmers.

Strawberry farmers said they were picking as much as 30% more fruit than usual, and blueberry growers at least 50% more this week as temperatures topped 40C on Tuesday in some parts of England. Yields are expected to be double that of the same week last year in the week ahead. Blackberry harvests are expected to be up 80% on the same time last year this week according to the British Berry Growers association.

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Co-op Group to cut 400 jobs at Manchester head office

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The group blamed rising inflation for job losses as it vows to protect shoppers from higher prices

The Co-op Group is cutting 400 jobs at its head office in Manchester as the retailer said it faced tough trading conditions amid rising inflation.

The job cuts come after the Co-op, which employs more than 63,000 people including 4,000 at its head offices, warned in April of continuing problems with food supplies and inflation after its annual profits more than halved amid supply chain disruption and higher staff wages.

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M&S to remove ‘best before’ labels from 300 fruit and veg items to cut food waste

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The change, to be rolled out this week, will leave customers to judge whether goods are still fine to eat

Marks & Spencer is planning to remove “best before” labels from 300 varieties of fruit and vegetables in its stores to cut food waste.

The change, to be rolled out this week, will rely on customers using their judgment to determine whether goods are still fine to eat. The measure will affect 85% of the supermarket’s fresh produce offering.

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Burberry sales fall 35% in China on back of Covid lockdowns

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Lola handbag range and signature trenchcoat give luxury fashion retailer boost elsewhere

Burberry has reported sales growth of only 1% in its latest financial quarter because of the impact of Covid-19 lockdowns in China, while sales were boosted elsewhere by its Lola handbag range and signature trenchcoat.

The luxury fashion retailer said sales fell 35% in mainland China because of restrictions and store closures to contain the latest outbreak of the coronavirus, while sales grew 16% across the rest of the world in the 13 weeks to 2 July.

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Amazon to create more than 4,000 jobs in UK

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US company says recruitment drive will take permanent workforce in Britain to 75,000

Amazon is creating more than 4,000 permanent jobs across the UK this year, the online company has announced.

The US firm said the recruitment drive would bring its permanent workforce in the UK to 75,000, having created 40,000 new jobs in the past three years.

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Asda employees ‘skipping meals’ due to monthly payroll errors

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Thousands of staff have been left up to £500 short on payday, which has forced some to use food banks or leave bills unpaid

Asda employees are having to skip household bill payments, take out loans, and even use food banks to get through the month due to regular payroll errors that have seen some underpaid by £500 or more.

The scale of the problem emerged after the private equity-backed company admitted to members of the Scottish parliament that its external payroll firm had made nearly 11,000 errors in recent months, affecting the wages of 5,500 staff.

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Boohoo starts charging shoppers £1.99 to return items

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Processing of unwanted items has become increasing problem for retailers since Covid online boom

The fast fashion website Boohoo has become the latest online retailer to start charging shoppers to return items.

Boohoo customers will now have to pay £1.99 when they send unwanted goods back, and the cost will be deducted from the amount they are refunded.

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