Category Archives: Retail industry

John Lewis owner cut 3,500 jobs last year yet hired chief on £1.2m pay deal

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Further job cuts likely as JLP says it is investing in automation as part of ‘simplifying the way we work’

The owner of John Lewis and Waitrose cut 3,500 jobs last year amid efforts to save costs in a tough market – but employed its first group chief executive on a more than £1m pay deal.

The staff-owned group, which has 34 John Lewis department stores and 329 Waitrose supermarkets, said it employed 72,900 people in its annual report published on Thursday, down from 76,400 a year before, helping to reduce its pay bill to £1.79bn from £1.82bn.

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Delivery firm Getir to quit UK, Europe and US and focus on Turkey

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Grocery service grew during Covid pandemic but has retreated amid competition and waning demand

The grocery courier firm Getir is to quit the UK, Germany, the Netherlands and the US to focus on its home market of Turkey amid heavy competition and waning demand for rapid home deliveries.

The closure marks the latest shakeout of the fast grocery delivery industry which grew rapidly during the Covid pandemic but has sharply retreated since.

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Littler India: why Britain’s south Asian garment stores are struggling

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They have been resilient amid wider high street decline – but units are now emptying in areas such as Southall, west London

The south Asian high street is facing a fight for its future in Britain as customers scale back wedding celebrations because of the cost of living crisis and young people’s changing preferences.

Businesses in London and Manchester have said they have witnessed a huge decline in customers after the pandemic with the cost of living crisis prompting many to decide against the traditional big south Asian wedding and to seek out cheaper products online.

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Tesco accused of undercutting local shops via its wholesale business

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Independent shopkeepers say prices they pay at supermarket’s cash-and-carry arm Booker are often higher than in Tesco stores

Village shopkeepers say Tesco is consistently undercutting them by selling products for less in its stores than via its wholesale business Booker, stoking concerns about the power of the UK’s biggest supermarket chain.

Tesco, which has 27% of the UK grocery market, bought the cash-and-carry group in 2017 for £3.7bn, promising that the deal would benefit shoppers and independent retailers.

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Dr Martens chief to exit as shares hit record low after profit warning

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British bootmaker says it does not expect to increase prices this year as it reports poor US sales

Shares in Dr Martens plummeted to a new low as the UK bootmaker warned on profits and poor performance in the US, and announced the departure of its chief executive.

The brand, known for its yellow-stitched thick-soled boots, warned sales would fall by a single-digit percentage in the year to the end of March 2025, compared with a year earlier. Profit before tax could be just a third of last year’s £159m in a worst-case scenario.

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Australians dropping fruit and vegetables from diet amid cost-of-living crisis

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ABS data shows changes in grocery consumption, prompting concerns over eating habits and the nation’s health

Australians are buying less fruit and vegetables and consuming less milk, as relentless increases in grocery prices upend eating habits, raising concerns over the nation’s health.

Overall, shoppers are buying less of just about everything, with consumption falling from 15.1m tonnes to 14.8m tonnes in 2022-23, according to Australian Bureau of Statistics data released on Friday.

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Co-op profits rise despite record shoplifting levels in food stores

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Chain signs up 1m new members and invests more than £90m in cutting prices

Despite record levels of shoplifting in its food stores, the Co-op increased profits in its grocery business last year as it signed up 1 million new members and invested more than £90m in cutting prices, including introducing special discounts for members.

Profits rose 11% year on year to £154m despite a 6.4% fall in sales to £7.3bn, driven by the sale of the Co-op’s petrol forecourt chain to Asda. Underlying sales rose 4.3%, excluding the impact of that deal, although that was still well behind the pace of grocery inflation.

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Superdry shares fall after CEO rules out making takeover offer

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Struggling retailer announced decision by Julian Dunkerton after markets closed on Thursday

Superdry’s share price has been almost cut in half after its chief executive decided against making an offer for the struggling fashion retailer.

The company announced after markets closed on Thursday that Julian Dunkerton, the founder and chief executive of Superdry, had opted against a takeover after a two-month pursuit.

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Fast fashion retailer Shein doubles profits as it awaits IPO approval

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Company founded in China and promoted on social media is thought to be considering London listing

Shein, the online fast fashion retailer founded in China, has more than doubled its profits to more than $2bn (£1.6bn) as it awaits approval for a stock market listing in New York or London.

The company, which is growing rapidly around the world by using social media to promote its goods, recorded sales of about $45bn last year, according to a report in the Financial Times based on information from sources close to the company.

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Next cheers retail sector with bumper profits and talk of falling prices

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Shares hit new high as chain says consumer backdrop is improving and ‘feels like it is now entering a new era’

Next said the prices it charges customers are falling this year, as the fashion and homeware retailer reported bumper profits and said the UK consumer backdrop was improving.

Simon Wolfson, the group’s chief executive, said that it had been “a long time” since the group had started a financial year in such a positive frame of mind after the positive sales and growth results for the year to January.

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Nearly 1,000 jobs at risk as Ted Baker prepares to appoint administrators

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Authentic Brands announces move for brand’s Europe retail and online arm after ‘damage done’ during tie-up with Dutch company

Ted Baker’s European retail and online arm is to appoint administrators, putting almost 1,000 jobs at risk at the British brand.

The fashion brand, which has 46 stores in the UK and Europe, has been struggling for several years as it faced increasing competition and the fallout from the exit of its founder, Ray Kelvin, who stepped down in 2019 after allegations of “forced hugging”.

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Farmers paid too little, shoppers charged too much – it’s a win-win for Australia’s supermarkets

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Coles and Woolworths leverage their dominant position over smaller suppliers and consumers alike – and both groups are getting angry

Farmers are pressuring supermarkets to raise produce prices, and shoppers want shelf prices lowered. Can both win?

As inflation eases, supermarkets would typically lean on suppliers to cut prices, with some of those savings passed on to frustrated shoppers to dissuade them from buying less or switching grocery stores in search of a better deal.

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US investor Elliott ends bid to buy UK retailer Currys

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Bidder says multiple attempts to engage with high street group’s board were rejected

The US investment group Elliott has ended its bid to buy Currys after previous offers were rejected by the electrical goods retailer.

Elliott, which owns Waterstones, told the markets on Monday that it had made multiple attempts to engage with the Currys board but all had been rebuffed.

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Luxury clothing brand Matchesfashion to enter administration

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New owner Frasers Group decides it is unwilling to fund turnaround

The luxury clothing retailer Matchesfashion is to enter administration after its new owner, Mike Ashley’s Frasers Group, said it was not willing to fund a turnaround.

Matches was acquired by Frasers just three months ago for £52m in cash from private equity firm Apax Partners but the business has “consistently missed its business plan targets” and made losses, Frasers said.

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Fixing Australia’s supermarkets: how to drive competition without wielding a hammer

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Short of breaking up Coles and Woolworths, retail experts call for regulation of wholesale supply deals and help for new entrants to access sites

The Albanese government has ruled out breaking up Australia’s dominant supermarkets after likening such a measure to the old Soviet Union’s command and control economy.

While the government’s position will disappoint some of Coles and Woolworths’ fiercer critics, meaningful reform doesn’t necessarily require a hammer, according to industry and supply chain experts.

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Shein ‘considering London rather than New York IPO amid US scrutiny’

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Fast-fashion company believes it unlikely that SEC will approve US flotation, according to report

The fast-fashion company Shein is reportedly considering a stock market flotation in London rather than New York because of potential problems with a listing in the US, its preferred location.

Shein, which was founded in China but is now based in Singapore, is in the early stages of exploring an initial public offering in London because it believes it is unlikely that the US Securities and Exchange Commission would approve its initial public offering (IPO), Bloomberg reported.

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UK grocery price inflation falls to two-year low amid supermarket price war

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Competition helped offset impact of Red Sea shipping crisis in February, says analyst Kantar

Grocery price inflation in the UK has slowed to a two-year low as fierce competition among supermarkets offset the impact of the Red Sea shipping crisis on goods prices.

In a boost to households, supermarket prices were 5.3% higher than a year earlier in February, the lowest rate since March 2022 and down from January’s 6.8%, according to the analyst Kantar. Grocery sales grew by 5.1% in the four weeks to 18 February.

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More than half of UK retailers affected by Houthi disruption, survey shows

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Costs are escalating amid delays, according to British Chambers of Commerce research that shows UK exporters have also been hit

More than half of UK retailers and exporters have been affected by the disruption to Red Sea trade from Houthi rebel attacks on cargo ships, research by a leading business lobby group suggests.

The price of shipping a container from Asia to Europe has gone up by as much as 300% for some businesses, while logistical delays have added up to three to four weeks to delivery times, according to the survey by the British Chambers of Commerce (BCC).

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New Woolworths boss faces tough initiation amid rising community anger over prices

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Brad Banducci will face a Greens-led Senate inquiry, but it is Amanda Bardwell who will have to rebuild the supermarket giant’s reputation

Woolworths chief executive Brad Banducci is stepping down from Australia’s biggest supermarket chain – but he’s going down swinging.

Against a backdrop of multiple parliamentary inquiries and a year-long pricing investigation, Banducci maintains that the grocery sector is “unbelievably competitive”.

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Violence and abuse against UK retail staff rises to 1,300 incidents a day

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British Retail Consortium says criminals ‘being given a free pass’, with thefts more than doubling to 16.7m incidents last year

UK shop workers are facing 1,300 incidents of violence and abuse a day and a battle to control “brazen” acts of shoplifting, as pressure mounts on ministers to intervene to protect retail employees.

Retailers saw the number of incidents of racial abuse, sexual harassment, physical assaults and threats with weapons rise 50% last year, while thefts more than doubled to 16.7m incidents, according to the British Retail Consortium (BRC), the trade body which represents most major retailers.

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