Tesco to scrap 50m pieces of plastic from beers & cider
Tesco is set to become the first major retailer to scrap soft plastic rings and shrink wrap packaging from all beers and ciders across its UK stores.
The move will lead to 50 million fewer pieces of unrecycled plastic being produced each year. The plastic rings can contribute to oceans being choked up and endanger wildlife such as birds and turtles. Tesco said it would stop receiving beer and ciders that are held together by soft plastic rings and shrink wraps in early May. The retail giant said it expected to sell through the last remaining stock in the coming weeks and confirmed that it would not order beers or ciders that use this packaging in the future. “We are working hand in hand with some of the world’s biggest brands to tackle the problem of unnecessary plastic,” Tesco quality director Sarah Bradbury said. “Our mission is to remove, reduce, reuse and recycle so we use as little material as possible and ensure that all the packaging in our stores can be easily recycled.” The move is part of Tesco’s ongoing 4Rs strategy – Remove, Reduce, Reuse, Recycle -strategy set up to remove excess and non-recyclable material from its business and recycle the rest. As a part of this work, Tesco said it has already hit its target of removing a billion pieces of plastic including tinned multipacks, lids and the small bags used to pack loose fruit and veg. Beer and cider brands that sell to Tesco will now use materials for multipacks such as cardboard sleeves, boxes, or a rigid plastic that can be easily recycled via kerbside collections.
32% of UK Amazon customers feel guilty for shopping with giant
Amazon shoppers in the UK say they feel “guilt” and “buyers remorse” after shopping with the retail giant with many stating they want to cut down on purchases.
Nearly a third (32 per cent) of UK shoppers said they feel guilty every time they shop with Amazon, while 43 per cent of those said their guilt was so bad they wanted to cut down on purchases made with the retailer.
According to new research from digital experience experts Sitecore, shoppers aged between 25 and 40 were most likely to regret using Amazon, instead favouring smaller independent businesses with a clear environmental and social commitments.
While around 44 per cent of this age group said shopping with Amazon made them uncomfortable, millennials were the biggest Amazon shoppers with 46 per cent shopping with the company weekly and 73 per cent subscribing to Amazon Prime.
“Today’s consumers, particularly the younger generations, want to make a contribution to society by supporting local businesses,” Sitecore’s spokesperson Paige O’Neill said.
“They have become more conscious about the brands they shop with and increasingly choose to support brands that have committed to a social purpose. They expect brands to treat employees fairly.
“These results show that Amazon fatigue could be setting in with buyers.”
It comes just days after Amazon blitzed expectations in the first quarter seeing sales soar 44 per cent to over $100 billion.
Over its first quarter Amazon saw net sales top $108.5 billion, coming comfortably above Wall Street estimates of $104.5 billion, while profit after tax more than tripled on the same period last year jumping from $2.5 billion to $8.1 billion, trouncing expectations of just $5 billion.
The higher profits were driven by a significant boost in services like Amazon Prime and Prime Video, which net far higher margins than its traditional retail offering which still saw growth of 37.4 per cent.
Greggs eyes return to pre-pandemic profits
Greggs believes it could get back to normal profits this year, as the food-to-go retailer performed well during the first few weeks after non-essential retailers reopened. The bakery chain said its sales had risen compared with 2019 since clothes shops and others resumed trading on April 12 across England and Wales. It did not reveal the exact increase in sales for that period, but said that in the eight weeks to May 8 sales dropped just 3.9 per cent. This compares with a 23.3 per cent fall in the 10 weeks to March 13, Greggs said this morning. Although it warned of “considerable uncertainty”, the board seemed upbeat about Greggs’ prospects for the year. It said profits could return to the levels seen in 2019 this year if Covid-19 restrictions continue to be eased as expected. “Sales have recovered well in recent weeks as out-of-home activity levels have increased, albeit in the absence of competition from indoor seated catering operators,” Greggs told investors. “If restrictions continue to ease in line with current plans then we now expect our overall sales performance for the year to be stronger than we had previously anticipated.” It added that “profits are likely to be materially higher than its previous expectation, and could be around 2019 levels in the absence of further restrictions”. Total sales in the 18 weeks to May 8 were £352 million, up from £280 million last year as the pandemic weighed, but down from £373 million in 2019. As for many food outlets, Greggs has been helped by deliveries during lockdowns. Customers are now able to order from 800 Greggs across the country and deliveries made up 8.2 per cent of sales at the shops that Greggs directly manages. However this is still less than half of Greggs’ 2101 shops that were trading on May 8. Around 340 of these are franchises. Greggs said it opened 34 shops in the first 18 weeks of 2021.
Hotel Chocolat upgrades full year sales forecast after strong Easter
Hotel Chocolat has upgraded its full year trading expectations after surging sales over its crucial Mother’s Day and Easter periods. The confectioner now expects trading for the year to be “significantly ahead of expectations”. For the eight week period to April 25, the retailer said sales were up 19 per cent than 2019 comparatives, while revenues were 60 per cent up year-on-year for Mother’s Day and Easter. Hotel Chocolat said the sales growth was achieved through its digital channels and subscription services due to stores being closed for much of the period. The retailer has agreed to repay £3.1 million it received from the government in furlough money thanks to the surge in sales. “In the past year, we have added over one million customers to our database, an increase of 47 per cent. Our strong Easter is entirely thanks to them,” Hotel Chocolat co-founder and chief executive of Hotel Chocolat Angus Thirlwell said. “It feels great to have our physical locations back open again and we have a strong pipeline of exciting new products to launch over the summer, including our Rabot Estate Coffee brand, Strawberries & Cream iced chocolate drinks for our Velvetiser system, and Neapolitan chocolate macarons for al-fresco dining. “I’m pleased we are able to look forward to further growth and significant investment this year with strong job creation, particularly in our UK chocolate making and supply teams as we turn on extra capacity for our creamy tasting vegan Nutmilk chocolate, our globally popular chocolate macarons, and our Velvetiser flakes for drinking chocolate. “I would like to commend our team on the commitment, dynamism and creativity they have all shown during the pandemic. “They have not only adapted the business to the challenges we faced but have strengthened the brand and accelerated our business model and future growth prospects.”
Ikea in advanced talks to acquire former Topshop flagship
Ikea is reportedly in advanced talks to take over the former Topshop store in London’s Oxford Street as part of its plan to open outlets in city centres. The Swedish retailer has previously looked at other buildings on Oxford Street including the former BHS, but has shown a “serious interest” in the Oxford Circus site, This is Money reported. Ikea said last year it had drawn up a list of 40 major cities around the world to “introduce their vibrant, urban destinations”. Ikea currently has a kitchen and bedroom planning studio in Tottenham Court Road. Last year, it revealed plans to open a store in Hammersmith, West London. Topshop’s Oxford Street flagship store launched a sale process with a £420 million price tag earlier this month. The building, which was valued at £500 million two years ago, is being advertised as an opportunity to introduce a “new age retail concept”. The sale process – named Project Infinity – is led by real estate adviser Eastdil Secured on behalf of KPMG, which was appointed administrator to Redcastle 214 – the company that held the building when Arcadia collapsed in December.
The Hut Group has signed a deal with Japanese conglomerate SoftBank to receive $2.3bn in investment
The Hut Group has signed a deal with Japanese conglomerate SoftBank to receive $2.3 billion (£1.6 billion) in investment. Softbank was unveiled as the backer of a $1 billion (£710 million) fundraising intended to fuel The Hut Group’s growth. The investor will inject over £500 million into a deal that The Hut Group chief executive Matt Moulding said would allow him to “invest aggressively”. The Hut Group also revealed plans to spin-off its Ingenuity arm, which aims to rent out its online retail and logistics infrastructure to third parties, as a separate subsidiary in which Softbank may also invest. The arrangement grants Softbank the right but not the obligation to acquire 20 per cent of Ingenuity for $1.6 billion, implying a valuation of $6.3 billion. “Softbank allows us to super-accelerate the prospects of Ingenuity,” Moulding said. Moulding owns 319 million shares and has a 25 per cent stake worth £2.2 billion before the placing, which was due to be completed before the stock market opens on Tuesday. The Hut Group said it had consulted major shareholders on its deal with Softbank. “The consultation has confirmed the board’s view that, given the current market environment, the placing and the subscription are in the best interests of shareholders in THG,” the group said. Existing shareholder Sofina will also invest $85 million in the placing.
Morrisons registers £27m in Covid19 costs
Morrisons has recorded £27 million in Covid-19 costs during its first quarter but remains confident as the latest restrictions ease. The Big 4 grocer has forecast stronger annual profits after like-for-like sales, excluding fuel, rose 2.7 per cent in the 14 weeks to May 9 when compared to the same period of 2020. Fuel sales at the supermarket jumped 17.5 per cent, contributing to a 5.3 per cent rise in total sales. The chain described its sales performance as “robust” despite the pandemic-related costs, which came about due to staff absence and use of marshals. Morrisons highlighted delivery sales growth of 113 per cent on the same three month period last year and wholesale like-for-like growth of 21 per cent. It said fuel sales had almost returned to pre-crisis levels, with sales up by more than 17 per cent. It was a factor behind its prediction that net debt would fall and it maintained its guidance that profit before tax and exceptional items would be higher than the £431 million it would have achieved last year, had it not waived £230 million of business rates relief. “As the period progressed there were encouraging signs both of significantly lower direct Covid-19 costs and of the recovery of profit lost due to the pandemic in areas such as fuel and food-to-go,” Morrisons said. “We are also looking forward to the lost profit gradually returning at our cafés from when they reopen next week.” Morrisons chief executive David Potts said: “The pandemic is not yet over, but it is in retreat across Britain and there is much to be positive about as something approaching normal life begins to take shape. “Our forecourts are getting busier, we are seeing encouraging recent signs of a strong rebound of food-to-go, take-away counters and salad bars, and our popular cafes will soon fully reopen. “The nation has a summer of socialising and sport to look forward to and we’ll all be able to rediscover the joys of meeting up and eating well together. Whichever way consumers choose to enjoy their renewed freedom, we will be there for them.”
Pret a Manger to launch shop-in-shops in Tesco supermarkets
Pret a Manger is reportedly set to open stores in Tesco supermarkets as part of a trial in an effort to broaden its appeal. The coffee chain’s chief executive Pano Christou said he wanted to “bring Pret to the people” with the trial partnership. The first concession will launch in June at the Tesco superstore in Kensington, West London, with another four to follow this summer, The Times reported. The Tesco sites will serve food freshly prepared in an on-site kitchen as well as coffee and teas prepared by baristas. The shops will all be operated as concessions run by Pret rather than by Tesco. It comes after Pret rolled out frozen croissants and granolas in Tesco stores as it sought to expand the brand. New owner JAB Holding Company, which snapped up the company for £1.5 billion in 2018, has slashed over 3000 jobs and closed more than two dozen stores as a result. It currently has 389 stores in the UK and 157 overseas, mainly in the US, Hong Kong and France. Pret has already launched a £20-a-month subscription, which gives customers up to five coffees a day, in an effort to attract more trade. Christou said the Tesco partnership was part of Pret’s response to the impact of the Covid-19 pandemic, which saw a sharp decline in commuters into London in particular, due to lockdowns.
Aldi launches new fish range to support British fishing industry
Aldi is launching a new range of seasonal fish in a bid to support the British fishing industry that has been hit hard by the closure of hospitality venues. On sale from Thursday this week, the new range features species mostly fished on the south coast of Britain that would normally have been sold to restaurants across the UK and Europe. It marks the first time that species such as Dover Sole, Lemon Sole, British Hake and Cornish Sardines have featured on Aldi’s shelves, and the first time that Turbot has been sold in any major UK supermarket. The fish is sourced from hundreds of independent fishermen working off the south coast who sell their catches at fish markets in Plymouth, Brixham and Newlyn, and is the result of Aldi extending its partnership with Plymouth-based supplier Sound Seafood. The fish are part of the Aldi Specialbuys range, which are limited-stock ranges launched in store and online every week and are available while stocks last. “With so many challenges facing the British fishing industry, we spoke to our suppliers to see what we could do to help,” Aldi UK buying managing director Julie Ashfield said. “We’re delighted to be able to purchase this seasonal fish stock that might otherwise go to waste, and it’s great for customers too who’ll be able to enjoy restaurant quality seasonal fish at Aldi prices.” Plymouth Fish Market auctioneer Alison Pessell said: “This is a fantastic boost for our fishing community as it represents a real lifeline for our crews. “In more normal times, much of the native fish caught off the South West coastline is destined for restaurants across the UK and Europe, so the fact that they’ve been closed for much of the past year has been devastating. “We’ve worked hard to find other buyers for our fish, with some suppliers delivering boxes of fish directly to customers’ homes. “The response has been fantastic, with consumers recognising the quality and variety of fish landed in our ports. “Now Aldi has stepped in at a crucial time providing the opportunity to connect customers directly with British fish supplied from our coastal communities. “This is a substantial new market opportunity. Aldi has recognised the efforts made every day by our fishermen and women in the UK and is able to now share restaurant quality fish with Aldi customers to enjoy at home.” To help inspire shoppers on how to prepare the seasonal catches at home, Aldi has teamed up with renowned restaurateur, chef and food writer Mark Hix to create a series of delicious yet simple recipes. Earlier this year Aldi committed to spending an additional £3.5 billion a year with British suppliers by 2025.
Selfridges gains licence to host weddings
Selfridges has announced it will offer “non-traditional ceremonies” after obtaining a wedding licence at its Oxford Street store. The wedding packages on offer include a wedding breakfast or three-course meal at the Brasserie of Light, a private screening of a favourite film in the Selfridges Cinema or a DJ set from east London collective Sink The Pink. The ceremonies will take place in a dedicated wedding suite on the fourth floor of the store, which will be tailored for each wedding. The “Just The Two Of Us” package is a minimal option for those wanting a small ceremony and reception with a maximum of four guests. Customers will be able to make appointments for everything from wedding day makeovers and styling appointments to custom-made floral arrangements and canapé consultations. Selfridges said the store is a “social space” and is keen to offer new ways to “celebrate the special experiences everyone has been missing”. The temporary licence permits Selfridges to host “micro weddings” of up to 20 guests. Ceremonies are being held in a suite on the fourth floor with the service also available for civil partnerships. For couples worried about sustainability the store is offering the “earth-lovers” package, where they can pick from vintage clothing or rent an outfit and toast the day with organic champagne and wine.
Fresh call for law to protect shopworkers after crime rises 76%
Retailers are supporting a campaign for legislation to protect shopworkers against crime after the Co-op recorded a 76 per cent increase in antisocial behaviour and verbal abuse. A coalition including leading supermarkets and trade have written to Prime Minister Boris Johnson urging that legislation is required to protect the three million workers in the sector. The government has rejected calls for a new law, but the letter warns that shopworkers continue to face violence, abuse and antisocial behaviour. The Co-op published a new report to back up the call for tougher penalties for those committing attacks on shopworkers. In the first quarter of this year, it has seen almost 400 incidents where weapons have been used against shopworkers, with over half of those involving sharp implements, such as a syringe or a knife or bottle. “Violence, abuse and anti-social behaviour towards shopworkers is unacceptable, and it is clear from our conversations that there is appetite across the political spectrum to bring forward new clauses to the government’s Crime (PCSC) Bill which would provide the protection that frontline shopworkers need and deserve,” Co-op chief executive Jo Whitfield said. “Stiffer sentencing will send out a clear message that criminal behaviour in our communities will not be tolerated by society, and importantly lets shopworkers – who have gone to amazing lengths to feed and care for communities throughout the pandemic – know that they are being listened to and taken seriously. “Assaults and abuse should not be part of the job, and by standing together, I am confident we can encourage the government to change its mind and bring about greater protection for shopworkers in all our communities.”
Dixons Carphone to become Currys in Major rebrand
Dixons Carphone has revealed plans to rename all its UK and Ireland shops as Currys as part of a major rebrand. The group said Currys PC World, Carphone Warehouse, Team Knowhow and Dixons Carphone will all become Currys by October, with a new Currys website also set to be launched. It will see the rebrand rolled out across more than 300 stores, 13,000 staff uniforms and over 300 vehicle liveries, according to the electrical retailer. Dixons Carphone will also change its name to Currys plc on the London stock market after the group’s annual shareholder meeting in September. The move will spell the end for the Dixons, Carphone Warehouse and PC World brands. Chief executive Alex Baldock said the Currys rebrand decision was a “no-brainer”. “Since Henry Curry first started helping everyone enjoy the amazing technology of his day – the bicycle – in 1884, Currys has been the best-known and most trusted brand in tech,” he said. He added: “We’ve worked hard to become one joined-up business and becoming Currys reflects and accelerates that.” Dixons Carphone said the move would make it easier for customers, who can “turn to Currys for all their tech needs”. It also forms part of a recently announced £190 million increase in investment across the company, with revamped stores, an online push, and staff training in technology among plans on the cards. Dixons Carphone has undergone a raft of rebrands over the years, with the Dixons name disappearing from the high street in 2006 when it decided to roll out a change to the then-Currys.digital across its shops. Dixons was retained then as the brand for its online retailing operations, while it has also been used for Dixons Travel. However, the group announced plans in April to shut the 35-strong airport store business Dixons Travel due to Covid-19 pandemic trading woes and the end of tax-free tourist shopping.
Morrisons to expand Amazon tie-up as online sales double in first quarter
Morrisons is set to expand its partnership with Amazon as its online grocery sales continue to soar despite lockdown restrictions easing.
The grocer, which significantly expanded its partnership with Amazon in August last year to see its entire range of goods offered on its platform, said that online sales had more than doubled during its first quarter.
Morrisons saw online sales skyrocket 113 per cent in the 14 weeks to May 9 compared to the same period last year, largely driven by its tie-up with Amazon and its continuing partnership with the part Amazon-owned Deliveroo.
According to Morrisons’ chief executive David Potts, the grocer is now planning to extend the number of stores online orders are picked from.
“The answer is more (stores)”, Potts said.
In September, Morrisons announced it was hiring 1000 new staff in order to keep up with fresh demand from its Amazon tie-up, which currently sees goods picked from 65 stores across the UK.
A Morrisons spokesperson said: “During the pandemic there has been a renaissance of the supermarket in Britain and customers are enjoying cooking at home more”.
“Customers have also embraced shopping online, and both Morrisons.com and Morrisons on Amazon are now complementing our supermarkets well.”
Shore Capital retail analyst Clive Black added: “With Amazon in tow, Morrisons has a really strong platform in this market, augmented by its relationship with Deliveroo too in which Amazon is a major shareholder.”
Sainsburys will relaunch meal deal to win trade from M&S and Pret
Sainsbury’s has reportedly said it is relaunching its meal deal offer in an effort to compete with high street coffee chains. The grocer will shake up its on-the-go offer from May 17 at a new price of £3.50, adding new products and expanding into bakery as well as hot drinks and food. Single-serve pastries will be included, as well as regular-sized Costa coffees, The Grocer reported. Meanwhile, breakfast items such as mueslis, croissants and coffees would allow Sainsbury’s “to better compete with high street coffee chains”. The Taste the Difference range will not be included in meal deals, but Sainsbury’s was “working with more premium and seasonal flavours” to develop the range and “win trade from M&S and Pret”. Hot food items, such as chicken portions, pizza slices and filled baps, will be added to the meal deal offer as mains, while sausage rolls, potato wedges and hash browns will count as sides. Nearly three quarters of products in Sainsbury’s chilled snacking range will also be part of the deal, as well as SKUs from its Summer Editions range to help “drive seasonal excitement”, and vegan options from the Plant Pioneers range. Its on-the-go fixtures will be remerchandised, separating meal deal and non-meal deal products, and new look packs will roll out across products in the range.
The Entertainer launches first store in Spain
British toy retailer The Entertainer has opened its first store in Spain, following a rebrand of its Poly store in Valencia. It comes after The Entertainer acquired Spanish toy retailer Poly in 2018. The move also kicks off the expansion of The Entertainer fascia in Spain, with plans to introduce more stores across the Spanish regions. In the meantime, the new Valencia store will adopt many of The Entertainer’s UK in-store customer experience initiatives such as demonstrations, character meet and greets, as well as social distancing guidelines. “This is an extremely exciting moment for The Entertainer,” The Entertainer executive chairman Gary Grant said. “We have been operating in Spain through our Poly stores since 2018 and heavily investing into the Spanish market but now is the perfect time for us to introduce The Entertainer to the people of Spain. “We have spent 40 years perfecting our unique customer experience and we are excited to bring this full experience to Spain for families to enjoy. “The Entertainer Valencia is a significant landmark for our operations in Spain and we’re excited to develop and grow The Entertainer further across the region over the coming months and years.”
Dobbies picks London for the next 2 new Little Dobbies stores
Dobbies Garden Centres has picked London to launch the next two small-format Little Dobbies concept stores. The stores, which offer carefully curated range of convenience gardening products – ideal for those in urban areas with a compact gardening space – will open at Chiswick High Road and Westbourne Grove this year. These new Little Dobbies stores will be the first London locations, following on openings in Edinburgh and Bristol, and will join the wider Dobbies portfolio as the retailer’s 72nd and 73rd stores respectively. “We are very pleased to be announcing our first London-based Little Dobbies stores, reflecting our continuing ambition to develop and grow the business,” Dobbies chief executive Graeme Jenkins said. “The Little Dobbies format is proving very successful, offering the Dobbies’ experience in towns and cities. It has been created to meet the growing demand to shop local from a growing number of gardening and houseplant enthusiasts.” The stores will open over the course of June and July this year.
Sainsburys partners with Carluccios for 3 in-shop concepts
Sainsbury’s has announced a new partnership with restaurant chain Carluccio’s to test out three new in-store concepts for the first time. The first format will be a coffee shop in Sainsbury’s St Albans superstore, a 900 sq ft cafe offering space for 45 customers to eat-in as well as takeaway options. Caffè Carluccio’s will open on June 3 and will be the first Carluccio’s to open inside a supermarket. A range of Carluccio’s retail products will also be available at the new in-store concept, including biscuits such as biscotti and cantucci, ground coffee and gianduiotti chocolates. Meanwhile, a Carluccio’s Counter will launch in June in the Sainsbury’s Leamington Spa superstore, offering the restaurant brand’s deli products, pizza, and hot ready-to-eat items available to take-away as well as delivery via Deliveroo, Uber Eats and Just Eat. The third concept being trialled is the Restaurant Hub, a multi-brand offer with grab-and-go and delivery options from brands including Caffe Carluccio’s, GBK, Slim Chickens, Harry Ramsdens and Ed’s Easy Diner. The Restaurant Hub will open in July in Sainsbury’s Selly Oak superstore in Birmingham. Carluccio’s was acquired by Boparan Restaurant Group in May last year. Sainsbury’s and Boparan Restaurant Group have said they will be listening to and collecting customer feedback from all three stores before deciding any next steps. “We’re testing these new offers as part of our plan to put food back at the heart of Sainsbury’s – bringing even more innovative and delicious food and drink to our stores,” Sainsbury’s food commercial director Rhian Bartlett said. “This is the first time we’ve worked with Carluccio’s and we’ll be listening closely to see what shoppers think of the different concepts, which also include GBK, Slim Chickens, Harry Ramsdens and Ed’s Easy Diner.” Boparan Restaurant Group managing director Satnam Leihal said: “Our customers tell us they love our brands and would like to access them more regularly and be part of their family home occasions. “This trial with Sainsbury’s allows us to bring our range of high quality products to more customers, more often, in varied formats”.
M&S redefines menswear offering after suits sales drop
Marks & Spencer has reportedly launched new menswear project “Smart Redefined” in response to the rapid decline in formalwear clothing. The new project will “smart separates” items that can be worn as separates or together, and can suit a variety of occasions. It plays into the trend of a “broken suit” – a smart jacket with a pair of chinos, Drapers reported. The “casual smartwear edit” can be found in the menswear tab under suits and formal clothing. Although the collection will launch in stores over the next month, it is already available on M&S.com. “Over the past year we’ve redefined a lot – how we live, how we work and how we dress,” M&S menswear director Wes Taylor said. “During the pandemic we’ve worked hard to deliver product that’s relevant to customers’ rapidly changing needs and built greater flexibility into our ways of working so we can continue to adapt our ranges as we start to re-emerge into the new normal. “As the place men turn to for smartwear we’ve redefined our offer as those moments of normality start to return – be that heading back into the office a couple of days a week or enjoying a meal out in a restaurant. “Covid hit fast forward on the trend to more casual dressing. For many the day to day of the suit and tie is gone – so we’re making it simple with our new smartwear edit – with easy to wear, stylish smart clothing that can be worn in lots of different ways – it isn’t your traditional workwear but it’s not loungewear bottoms under the home desk either. “Alongside our more casual smartwear edit, we’ll still be the place you can go for a great suit whatever the occasion, which is why we’ve just launched a ‘grooms go free’ deal – to cater for that pent up wedding demand and help men look and feel their best on their big day. “Across all our smartwear we’ve looked closely at our fits and fabrics to provide the comfort we know customers will continue to look for.”
Poundland owner Pepco valued at £4.3bn in Warsaw listing
Poundland owner Pepco Group has set its price in the upcoming Polish IPO at a discount, valuing it at €5 billion (£4.3 billion). South African parent company of Pepco, Steinhoff – which is still grappling with fallout from a 2017 accounting scandal – has set the price of shares in the flotation at 40 zlotys a piece (£7.60). The IPO cuts Steinhoff’s shareholding in Pepco to 78.9 per cent, assuming full exercise of an over-allotment option of a maximum of 12 million shares. It puts the offer at the lower end of the range of 38 zlotys (£7.17) and 46 zlotys (£8.68), guided by the group earlier this month. Pepco will look to raise about €700 million from the sale of more than 80 million existing shares in the IPO, but has room to sell up to 92.5 million. The company also sold a further 23 million shares to its lenders to raise additional funds of €200 million. The free float will total 20.1 per cent on admission to public markets, which is expected to be on May 26. Pepco first announced last month about its decision to list on the Warsaw Stock Exchange rather than in London given its exposure to the Polish market. “We are proud to be joining the Warsaw Stock Exchange in what will be its biggest IPO to date in 2021 and to become one of the largest listed companies in Warsaw,” Pepco chief executive Andy Bond said. “Our group operates in the attractive European discount retail sector, and with our three market-leading brands – Pepco, Dealz and Poundland – we are extremely well positioned to take advantage of the enormous growth opportunities in front of us. “We are pleased to have received strong interest and support from a broad range of high-quality international and Polish investors, including substantial retail demand, who have all recognised the quality of our financial track record and the substantial, long-term store growth opportunity that we can readily finance through our internally generated cash-flow.” Bond sold 847,436 Pepco shares in the IPO, making about €7.5 million. He retains more than 3.7 million shares, worth about €33 million at the IPO price.