Category Archives: Retail industry

Marks & Spencer plans to step up cost cuts despite 41% jump in annual profits

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Pre-tax profits increased to £672.5m but retailer says it will reduce costs further as part of five-year plan

Marks & Spencer has said it will step up cost cuts in the year ahead despite increasing annual profits by a better-than-expected 41%.

Stuart Machin, the chief executive of the clothing, homeware and food retailer, said it was “at the beginnings of a new M&S” with “wind in our sails, and confidence that our plan is working” as pre-tax profits rose to £672.5m in the year to 30 March. Sales rose 9.4% to £13bn.

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Burberry profits slump by 40% as demand for luxury goods slows

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British fashion retailer hit by drop in sales in Asia and Americas, and expects challenging first half of 2025

Burberry’s profits have slumped by 40% in a year amid a wider slowdown in demand for luxury goods that has pushed down sales in Asia and the Americas.

The high-end UK fashion retailer posted a pre-tax profit of £383m for the year up to 30 March in its preliminary results on Wednesday, a 40% drop on the £634m in the previous 12 months. Global sales fell by 8% in the second half of the year.

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Brexit border IT outages delay import of perishable items to UK by up to 20 hours

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Lorries carrying meat, cheese and cut flowers held up by new checks, with retailers rejecting some orders

Lorries carrying perishable food and plants from the EU are being held for up to 20 hours at the UK’s busiest Brexit border post as failures with the government’s IT systems delay imports entering Britain.

Businesses have described the government’s new border control checks as a “disaster” after IT outages led to lorries carrying meat, cheese and cut flowers being held for long periods, reducing the shelf life of their goods and prompting retailers to reject some orders.

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Target Pride merchandise only available at select stores after rightwing backlash

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Company, which operates roughly 2,000 stores, declined to disclose number of stores where merchandise will not be available

Target confirmed Friday that it won’t carry Pride Month merchandise at all stores in June after the discount retailer experienced a backlash and lower sales over its collection honoring LGBTQ+ communities.

Target, which operates roughly 2,000 stores, said decisions about where to stock Pride-themed products, including adult apparel, home goods, foods and beverages, would be based on “guest insights and consumer research”.

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Shein ‘steps up plan for London IPO’ amid US listing hurdles

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Sources say Singapore-based online fashion retailer founded in China prefers a float in New York but faces tougher scrutiny than expected

The fast-fashion company Shein is stepping up preparations for a London listing after its attempt to float in New York faced regulatory hurdles and pushback from US lawmakers, sources have told Reuters.

The online clothing retailer plans to update China’s securities regulator on the change of the initial public offering (IPO) venue and file with the London Stock Exchange (LSE) as soon as this month, said one source.

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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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