Ikea & Dixons among those with goods stuck in Suez Canal
Ikea and Dixons Carphone are among retailers with goods stuck on the container ship that is currently stranded in the Suez Canal. The ship, called the Ever Given, has been blocking the trade route for almost a week. It has roughly 20,000 containers on board including electricals, furniture and livestock. The blockage has put even more pressure on EU and US supply chains, which have been impacted by the demands of the Covid-19 pandemic. The Ever Given has also blocked the way of roughly £7 billion worth of goods per day as the blockage caused a tailback along the canal. Ikea had around 110 containers on board the ship, and is looking into whether more of its products are delayed on other vessels waiting to enter the channel. Meanwhile, Dixons Carphone said it had goods stuck on the Ever Given, while 134 containers of PPE including gloves and masks bound for the NHS are also stuck on nine ships waiting behind the blockage. Last week, it was reported that some goods made in China might be more difficult to get hold of following the blockage. High demand had already put pressure on international shipping routes as businesses – particularly retailers – prepare for the end of Covid-19 restrictions from next month, even before the Ever Given ran aground in the vital waterway earlier this week. The blockage has piled up a backlog of ships waiting to pass from the Indian Ocean to the Mediterranean, or vice versa. The Suez Canal is one of the world’s most important shipping routes, carrying about 10 per cent of all oil and goods which are transported by sea.
Non-essential shops in England to stay open until 10pm, gov't says
The government has announced that shops in England will be permitted to remain open until 10pm once lockdown restrictions are eased next month. Non-essential stores will be able to open for extended hours Monday to Saturday to encourage shoppers to return, while easing pressure on public transport at peak times. Under the temporary measures, shops will be allowed to open at 7am and close at 10pm. The new opening hours are expected to be popular with shoppers, particularly after they were given the opportunity to shop in extended opening hours in the lead up to the Christmas period. However, trade union Usdaw warned that retail staff may not approve of the new extended hours, which should be voluntary or covered by new staff. Communities secretary Robert Jenrick has said that the new opening hours are “part of a package of support to help reopen our shops and high streets safely, backed by £56 million”. “This will provide a much-needed boost for many businesses – protecting jobs, reducing pressure on public transport and supporting people and communities to continue to visit their high streets safely and shop locally,” he said.
Nisa to cut wholesale prices for retailers in £2m investment
Nisa has announced it will invest £2 million into slashing wholesale prices for retailers. The groceries wholesaler, which is a wholly owned subsidiary of the Co-op, said the investment would be across both branded products and its Co-op own-label range. The own-label price cuts will be on products such as chicken fillets, baked beans and flour. Nisa said highlighted branded lines such as Lucozade, Kit Kat and Cathedral City cheese would also see cuts. “We are always looking for ways to ensure our partners can adapt and grow in a fast-evolving market,” Nisa chief executive Ken Towle said. “This significant investment in price will ensure our partners stay competitive across a basket of goods, helping to drive sales and margin in key categories. “We continually work hard to secure the best terms we can for our partners with the might of Co-op’s buying power behind us, and this significant investment is just one of a number of ways we are helping partners grow their businesses in 2021.” Nisa retail trading director Ayaz Alam said: “Alongside our investment in price reductions, significant promotional activity and new product development planned for this year will enable our partners to stay competitive and adapt to changing consumer trends as we slowly emerge from lockdown.” Moreover, Nisa is also investing £7.5 million in its logistics and delivery network. This investment means new temperature-controlled vehicles will be introduced as part of its ‘fleet refresh’ programme. Meanwhile, its chillers and freezers in its depot sites will see improvements in an effort to cater to the growing partner demand for fresh. An electronic proof delivery system will be launched in the second half of the year, which will enable a simpler paperless sign-off process on delivery. Nisa chief operating officer John McNeill said: “Today’s investment to improve the efficiency, reliability and ease-of-use of our service will ensure Nisa is able to maintain its market-leading levels of availability and improve the distribution service for our partners. “We want to ensure we are the wholesale delivery partner of choice for independent retailers and the significant investment shows we are serious about this. “It is important our partners have all the tools in place to grow their businesses, and that process starts with distribution.”
Asda slashes food prices as it overhauls product range
Asda has reportedly slashed food prices as it seeks an overhaul for its product ranges, following the sale to billionaire Issa brothers. The Big 4 grocer slashed the prices of some ranges including desserts and baking products, with more cuts expected to be introduced as early as next week, The Telegraph reported. The promotional pricing initiative comes as Asda pledged to invest £100 million in discounts and advertising, following the price wars between grocers. The Issa brothers, backed by private equity firm TDR Capital, are seeking to lower prices in an effort to battle German discounters Aldi and Lidl. An Asda supplier said they were expecting extra price cuts as Issa brothers Mohsin and Zuber “try to save some money somewhere”. This could mean that food producers could be squeezed further. Meanwhile, Asda said the new initiative to cut prices has been in the making for the last 12 months and category transformation is a key component of its discount platform strategy. The brothers will wait until next month to stamp their mark on Asda as the CMA has set an April 20 deadline for a preliminary decision on the deal. The Issa brother’s company EG Group’s £750 million deal to buy Asda’s forecourts must be approved by the competition watchdog, as they own petrol stations, which are close to Asda supermarkets.
M&S joins essential digital skills coalition
Marks & Spencer has become the second retailer to join FutureDotNow, a coalition of major organisations focused on accelerating the UK’s workplace essential digital skills at scale. FutureDotNow is coordinating industry action to get working-age adults across the UK equipped with the essential digital skills for life and work. So far the only two retailers to have made a pledge with the coalition are Asda and M&S. M&S said it recognised the importance of digital skills across its entire business, whatever staff roles happen to be. The high street stalwart said it joined FutureDotNow because it was keen to pass on its workplace digital skills training successes to the coalition for the benefit of the entire economy. The retailer also wanted to learn how other members of the coalition identifed their digital skills needs and how they addressed them. According to FutureDotNow, digital transformation is key to the UK’s economy and individual workers. However, it highlighted that UK was in the midst of a digital skill crisis: 17 million people are without the essential digital skills for work and only 23 per cent have had any digital skills training from their employer. Digital retail analytics is crucial for retailers, as it provides data on inventory levels, supply chain movement, consumer demand and sales, and for maintaining procurement levels and taking marketing decisions.
Lloyds pharmacy to launch UK first ever Covid-19 nasal spray
Lloyds Pharmacy is set to launch what it calls the UK’s first ever nasal spray specifically designed to fight Covid-19. The spray, called Viraleze, claims to be made from “a specifically designed antiviral active that irreversibly inactivates greater than 99.9 per cent of coronavirus/SARS-CoV-2 within one minute”. LloydsPharmacy said the active ingredient, astrodimer sodium, was “a potent virucidal agent that forms a barrier and irreversibly blocks coronavirus/SARS-CoV-2 ‘spike’ proteins from binding to nasal mucosal cells required for infection”. The spray claims to have a number of “unique advantages, including its virucidal action, its rapid onset and its ability to inactivate viruses either before or after exposure”. The high street pharmacy retailer also said claims that the spray “provides a moisture layer to help keep nasal tissue hydrated, protecting it from dryness and damage”. It should be used once in each nostril up to four times a day. Lloyds Pharmacy added that the spray would work against a “broad spectrum” of other viruses such as the flu, SARS and MERS. “As we ease out of lockdown, taking precautions to help prevent the spread of the coronavirus needs to remain a key focus,” Lloyds Pharmacy superintendent pharmacist Victoria Steele said. “The spray can be used alongside conventional PPE (masks) and in addition to customers receiving their vaccine and does not remove the need for these other protective measures”. Each bottle contains 80 sprays. Viraleze launches online this week, ahead of an in-store rollout from April 21, and will be priced at £15.
Big 4 grocers except Sainsbury's witness growth slowdown
New research has found that the growth of grocery sales has slowed to 7.4 per cent for the period ending March 21. Sales were down three per cent year on year in the most recent four weeks, though grocery spending remains 15.6 per cent higher than pre-pandemic levels in 2019. Online grocery shopping levels dropped back as more people returned to stores, visiting 13 million more times than in February, according to new figures by Kantar. Online sales were 89 per cent higher than this time last year, but the channel’s share of the market dropped back to 14.5 per cent from the record of 15.4 per cent in February this year. The over-65s that have been largely vaccinated, have stepped up their confidence by increasing their trips to supermarkets by 6.8 per cent – more than double the national rate. “Spring’s arrival signals the start of a really interesting period for the grocery market,” Kantar chief executive Fraser McKevitt said. “The anniversary of the first national lockdown means we begin to compare grocery sales against the record-breaking levels seen in the early days of the pandemic and growth has perhaps not surprisingly dipped over the past four weeks as a result. “This time last year, Brits were adjusting to schools and offices closing and making extra trips to the supermarket to fill their cupboards for lockdown. “To put that into context, shoppers made 117 million fewer trips to the supermarket this month compared with those fraught weeks in March 2020.” Tesco increased its sales by 8.5 per cent and once again gained share to capture 27.1 per cent of the market, up by 0.3 percentage points compared with the same 12 weeks last year. Asda grew ahead of the market and edged up its market share from 15.0 per cent to 15.1 per cent. Morrisons’ sales growth of 8.7 per cent meant a share increase of 0.1 percentage points to 10.1 per cent, while sales at Sainsbury’s rose by 7.3 per cent to hold share steady at 15.3 per cent. Ocado’s sales jumped by 33.9 per cent, taking market share up to 1.9 per cent from 1.5 per cent a year ago. Meanwhile, German discounters Lidl and Aldi, which have not benefited from the rise in digital sales, grew by 2.9 per cent and 1.5 per cent respectively. Co-op sales rose by 7.1 per cent, with its shoppers visiting an average of 22 times during the 12 weeks. Frozen food retailer Iceland’s sales increased by 14.3 per cent, with particularly strong growth among families with children, while sales at upmarket grocer Waitrose rose by 5.1 per cent.
Boots sales drop by nearly a fifth
Quarterly sales at pharmacy chain Boots have dropped by nearly 18 per cent, the retailer’s US-based parent company revealed today. The drop was caused by the continued impacts of Covid-19, which is pushing down the number of customers using the UK’s high street stores. Sales fell 17.8 per cent in the second quarter period to the end of February, even as its website, Boots.com, saw a 105 per cent surge compared to the same period last year. “Covid-19 continued to impact footfall, particularly in major high streets, and in train stations and airports,” Walgreens Boots Alliance said in a statement. “The recovery in footfall trends seen in early autumn was set back by the re-introduction of stricter restrictions beginning in November, mainly due to a 17.8 per cent decrease in Boots UK sales resulting from Covid-19 related impacts.” The rise of one-stop grocery shopping, where shoppers buy all the food they need from one place, weighed on Boots, which does not cater to such shopping habits. The only category of goods where Boots gained market share was for beauty products. Gross profit dropped 9.2 per cent, despite a 4.2 per cent impact from favourable currency exchange rates. Parent company Walgreens Boots Alliance saw its sales rise 4.6 per cent, despite the weight of Boots in the UK. Its earnings per share from continuing operations rose 8.7 per cent to $1.06. Walgreens Boots Alliance has been included in the US vaccination drive, administering more than eight million doses to date. “Overall, we have achieved a good financial quarter with results well ahead of expectations, despite significant impacts from Covid-19,” said chief executive Rosalind Brewer, who took over the top job on March 15. “I am optimistic about our ability to drive sustainable, long-term value for our shareholders, while acknowledging that there is still work to be done to stabilize the base business. “I will continue to review closely all our initiatives, strategies and opportunities to capitalize fully on the incredible potential in front of us. “Our team will move swiftly and decisively to best serve the needs of our patients, customers and communities around the world, at this critical time and beyond.”
M&S to reopen with contact-free bra fitting
Marks & Spencer has announced that its clothing and home stores will feature contact-free bra fitting services as it prepared to fully reopen once lockdown is lifted from April 12. The high street stalwart added that the service will also be available for customers on its website via an online bra fit offer after initial trials of the service during lockdown. M&S said adapting its bra fitting service to include the option of the online platform was part of wider plans from its lingerie department to offer customers “more relevant products and services for a post-Covid world”. New research shows 65 per cent of M&S lingerie customers were excited to return to the shops. The retailer said it surveyed around 1000 customers. M&S added that the Covid-19 pandemic has demonstrated that while customers have adapted to online shopping, for many there was still a preference for in-store shopping for this category. Meanwhile, the retailer is also improving the in-store service at 50 of its bigger stores by utilising the Pay with Me service that was first trialled over Christmas in M&S Food stores. Pay with Me means during a bra fit appointment, customers can purchase their lingerie without even visiting a till – they pay via card or Apple Pay on one of M&S’s handheld payment devices. “I want every woman to be confident she can buy her bras from M&S – whoever she is, however she shops, whatever her needs,” M&S lingerie director Laura Charles said. “This means every customer needs to be able to access not just our amazing products but our lingerie expertise. “Our new and improved bra fit service means customers have the choice to talk to our fabulous team not just in-store, but also from the comfort of their home. “And when they’re in store we’re making it easier & more convenient than ever with pre-booked appointments and our new digital payment option – Pay with Me.”
Primark to more than double store estate in Italy by end of 2022
Primark has revealed ambitious expansion plans in Italy in which it will more than double its store estate across the country by the end of 2022. Currently the value fashion retailer has six stores in Italy, and it now intends to open another eight stores in the 21 months to bring its Italian portfolio to 14. Primark opened its first store in Italy five years ago. The first of the new eight stores will open in Rome, within the Roma Est Shopping Centre. The retailer hopes to have new store openings in Catania, Sicily, at the Centro Sicilia Shopping Centre, and Chieti, Abruzzo, within the Megalò Shopping Centre, by the end of this year. The remaining five stores are scheduled to open late next year in Grugliasco, Turin, in Shopville Le Gru; Casalecchio di Reno, Bologna, in Shopville Gran Reno; Marcianise, Caserta, in the Campania Shopping Centre; Marghera, Venice, at the Nave De Vero Shopping Centre; and Milan, on Via Torino. The Milan location will also house Primark’s Italian regional office. Despite lockdowns and trading restrictions in all of the global markets it trades in due to the Covid-19 pandemic, Primark has still managed to open six new stores in France, Spain, the US and Italy in the 27 week period to the end of February. Primark also plans to open 15 new stores over the next six months in Spain, the US, the UK, France, the Netherlands, Poland and Czechia. The expansion plans mean an additional net 700,000sq ft of selling space is expected to be added in Primark’s current financial year.
Over 9000 people sign petition to save John Lewis Peterborough store
Nearly 10,000 people have signed an online petition to save the John Lewis store in Peterborough, after the chain recently announced store closures. Last week, John Lewis said the department store in Queensgate would not be reopening after lockdown is lifted. Over 9000 people have now signed a petition in an effort to save the store, as John Lewis continues to shut stores to save cash. People signing the page have said there are a number of reasons to keep the store open. Members of staff at the store have also signed it. Last week, John Lewis Partnership, which also owns Waitrose, announced plans to not reopen eight John Lewis stores when lockdown on non-essential retail is lifted this month. Consultations with 1465 staff affected by the proposals have commenced and the partnership said it would “make every effort to find alternative roles” in the business for as many staff as possible. The eight John Lewis stores identified for closure include four smaller At Home shops in Ashford, Basingstoke, Chester and Tunbridge Wells plus four full-size department stores in Aberdeen, Peterborough, Sheffield and York. The partnership added that the eight shops earmarked for closure were financially challenged prior to the Covid-19 pandemic, and that it does not believe their respective trading performances could be improved. The remaining 34 John Lewis stores will reopen from April 12 subject to government guidance, with the exception of Glasgow, which will reopen from April 26, and Edinburgh, which will reopen on May 14.
Next raises 2022 forecast despite profits down 53%
Next has seen its pre-tax profit drop by a staggering 53 per cent to £342 million in the year to the end of January as it suffered “a crisis unprecedented in living memory”. The fashion retailer raised its profit guidance for the 2021/22 financial year despite the slump in earnings. Next’s operating profit dropped 50 per cent to £384.2 million during the period. Online sales have risen by 10 per cent across the 52-week period to £2.37 billion, while revenues raked in from stores fell 48 per cent to £954.5 million as stores remained shut for the majority of last year. Total sales across the group dropped 17 per cent to £3.6 billion. Full-price sales declined by 15 per cent during the year. Despite the challenging 12 months, Next raised its central profit by £30 million to £700 million for its 2021/22 fiscal year. It said while full-price sales would likely be flat compared to 2019/20, online sales had been “stronger than expected” in the first eight weeks of the new financial year, growing 60 per cent compared to two years ago. Next chief executive Lord Wolfson warned that the wider retail outlook remains “uncertain”. “The health of the consumer economy, the future course of the pandemic and the prospects for retail stores remain unknown,” he said. “It also remains to be seen how many of the product preferences and shopping trends induced by the pandemic will persist once life returns to normal.” “Next’s best guess is that the consumer economy will be healthier than many presume during the short term. “A big question mark remained over the level of sales that stores will achieve once they reopen on April 12. “The pandemic has served to accelerate a pre-existing social trend – the move to more online shopping. History has been given a shove and, having moved forward, seems unlikely to reverse.” Next expects a 20 per cent drop in store sales in its new financial year, given the rapid shift to online shopping that has taken place during three national lockdowns.
Fitting rooms allowed to reopen when retailers exit lockdown
Clothes shoppers in England will be able to use fitting rooms again after more than a year when non-essential retailers reopen on April 12. The government has released new guidance on fitting rooms after advising shops after the first lockdown to keep changing rooms closed “wherever possible” unless essential. Retailers have been calling for updated regulations in an effort to compete with online rivals, reduce return rates and restore faith in high street businesses. The new guidance published by the Department for Business, Energy and Industrial Strategy (BEIS) allows for fitting rooms to be reopened provided shops introduce measures to minimise transmission of Covid. Fashion retailers are advised to deploy a staff member to control entry to changing areas and allow only one person at a time into a cubicle, with exceptions allowed for those who have disabilities or are shopping with children. Managers are advised to leave a gap of “several minutes” between customers and cubicles should be cleaned regularly. The guidance adds that fashion retailers should create “procedures to manage clothes that have been tried on, to minimise contact between customers and staff”. However, it stops short of advising that clothes items should be quarantined after customers have tried them on. “The enclosed nature of fitting rooms may result in increased risk of transmission of Covid-19. They should therefore be carefully managed to reduce that risk,” the government’s guidance reads. “Retail businesses should update their risk assessments for each premises where fitting rooms are being used.” A government spokeswoman said: “We have set out our road map to reopen the economy and have recently published updated safer workplace guidance having worked closely with retailers, trade unions and medical experts so that businesses can reopen in a way that is as safe as possible for workers and customers.” Yesterday, Marks & Spencer announced it would reopen 50 of biggest clothes & home stores with a contact-free bra fitting service, which customers must book. However, it said its current intention was not to open all of its fitting rooms straight away. The high street stalwart added that the service would also be available for customers on its website via an online bra fit offer after initial trials of the service during lockdown. The biggest stores will also offer the Pay with Me service that was first trialled over Christmas in M&S Food outlets which allows customers with a bra fit appointment to buy their lingerie via a handheld payment device, removing the need to visit a till. M&S said adapting its bra-fitting service to include the option of the online platform was part of wider plans from its lingerie department to offer customers “more relevant products and services for a post-Covid world”. A survey carried out by M&S found 65 per cent of its lingerie customers were excited to return to the shops.
H&M posts £115m pre-tax loss as stores remain closed
H&M has seen its net sales drop 21 per cent in its first quarter as the second wave of the pandemic resulted in extensive restrictions. Around 1800 stores were temporarily closed, which amounts to 36 per cent of the group’s total number of stores. For the December-February period, H&M reported a pretax loss of £115 million. H&M said it would not propose a dividend at its annual general meeting but saw good prospects of one in the second half of the year. Its customer loyalty programme now has over 120 million members in 26 markets. H&M members can now get points for more conscious choices such as bringing in old clothes for H&M’s garment collecting, choosing climate-smart delivery options, bringing their own bag when shopping and choosing products made from more sustainable materials. “While we are humbled by the uncertainty that still exists due to the pandemic, it’s fantastic to see the great interest in our collections,” H&M chief executive Helena Helmersson said. “With a well-positioned customer offering we are continuing our transformation at full speed to create long-term sustainable and profitable growth for the H&M group. “It is now a year since the full force of the pandemic hit. I am deeply impressed by and proud of all our colleagues’ fantastic commitment and customer focus during a very challenging time. “Although it is still largely a matter of managing the negative effects of recurring store closures, it is clear that customers appreciate our offering. “When markets have been allowed to open, store sales have picked up while at the same time online sales have continued to develop very well. “The changes that we were already seeing in areas such as digitalisation and sustainability have been speeded up further by the pandemic. We have therefore increased the pace of change, and thanks to our significant investments in recent years we are able to meet customers’ changing behaviour and higher expectations with increasing speed.