Co-Op & Iceland workers recognise in Queen's honours
Two workers at the Co-op and another from Iceland received recognition for their response to the Covid-19 crisis and efforts to keep communities fed throughout the pandemic. Liz Mclean, store manager at Co-op’s Brodick store on the Isle of Arran, becomes a Medallist of the Order of the British Empire (BEM) and Jean Marie Hughes, a trade improvement and response manager on Merseyside, was made a Member of the Order of the British Empire (MBE). Mclean was nominated for putting her store at the centre of the Isle of Arran’s community response to the crisis, including working round the clock to ensure deliveries were made to hundreds of elderly and vulnerable members of the community. She helped liaise with local foodbanks and social services, and played an active role in the Island’s resilience service. “I love our customers to bits, they are brilliant, and, the way the community has responded has been incredible,” she said. “Local businesses, volunteers, community groups, the local authorities and especially the port manager of Calmac, all co-operating and helping the community to get through this together. “In addition, the whole Co-op team has been fantastic, so it feels like this is as much in recognition of all their hard work too. I really am delighted.” Hughes, who worked closely with frontline retail workers and the Co-op’s central support centre, said: “It is an incredible feeling to be recognised and honoured in this way.” Meanwhile, Iceland supermarket delivery driver Adam Smith was awarded the BEM. Iceland said he went above and beyond the call of duty during the Covid-19 lockdown, ensuring vulnerable shoppers in his local community received vital supplies. Smith, who works in the Rustington store in West Sussex, said: “My family are very proud with what I have achieved, and when I told my father he was beaming with pride, even more so because he received a similar award over 25 years ago.”
Lidl scraps plans to launch online in the UK as it dissolves Digital Logistics
Lidl is scrapping plans to launch into online grocery in the UK as it dissolves its digital logistics arm and pledges to focus “on our bricks-and-mortar business”.
Lidl Digital Logistics, which the German discounter set up in 2018 to explore expanding in to online grocery, is now being officially shut down according to The Grocer.
The news comes as the UK’s largest grocers, including Lidl’s closest rival Aldi, have scrambled to expand their online offerings during the pandemic.
While Aldi has introduced both a new click-and-collect service and a growing Deliveroo partnership, Lidl hinted at following suit.
It launched a click-and-collect trial in Poland, partnered with Deliveroo rival Buymie here in the UK, and advertised for a number of ecommerce roles towards the end of last year.
However, the closure of its Digital Logistics arm suggests any further significant expansion into the online sphere is no longer on the cards.
“This company was originally set up in 2018 to house a series of digital logistics assets,” said a Lidl spokeswoman.
“However, in line with our business model and maintaining simple and streamlined operations, the decision has been made to close the legal entity, but to keep exploring suitable digital opportunities within existing structure, as we did with the successful launch of our Lidl Plus rewards app.
“Our focus remains on our bricks-and-mortar business, which we see as presenting significant growth opportunity.”
It is understood that despite its best efforts, Lidl has been unable to find a way to delivery groceries without raising its prices, which are its key selling point.
Amazon scraps development of Crucible video game after disastrous launch
Amazon has officially cancelled development of its video game Crucible after dismal reviews forced it to be pulled from public circulation.
The retail giant’s first major foray into the lucrative video game development industry has now been scrapped entirely, as no “healthy, sustainable future” could be found for its flagship title.
It comes after Crucible was pulled from public circulation in July following an embarrassing launch in May which drew widespread condemnation from the industry.
Critics and players widely panned the game, branding it “too generic to wholeheartedly recommend”, “tedious” and “a game that fights itself at every turn”.
The free-to-play multiplayer title, which was touted as a new rival to market leaders like Fortnite and Apex Legends, was returned to a closed beta testing phase so developers could remove bugs and “continue to make the game better”.
This development has now ended and the team working on it has been assigned to work on upcoming games, including New World which Amazon plans to release next year.
“This has been a labor of love, and we’re grateful for the time we got to spend on planet Crucible with you,” Amazon said in a blog post.
Amazon is clearly set on expanding its foothold in the video game industry, having revealed its upcoming Luna video game streaming service last month.
Luna has been launched in early access in the US, starting from an introductory price of $5.99 per month.
Like its key rival Google Stadia, Luna will require gamers to purchase a Luna Controller for $49.99 to access its platform, which will be entirely run by the retailer’s cloud platform Amazon Web Services (AWS).
Selfridges opens Christmas shop 75 days in advance
Selfridges has once again become the first major retailer to launch its annual Christmas range with a dedicated a shop-in-shop at its Oxford Street flagship in London. With 75 days to go until Christmas Day, the retailer’s festive range is also available on its ecommerce website while a selection will also be on offer at its Birmingham and Manchester stores. Selfridges said this year’s Christmas range is its must sustainable and largest one one yet, with half of all products – including decorations, crackers, cards and wrapping paper – having one or more sustainable attributes. The new sustainable collection features dozens of brands including many artisan and small enterprises, often UK based, and well over 1000 different product lines. The luxury department store said the products on offer consists of pre-loved decorations, make smart use of recyclable materials, and are clearly labelled with their sustainable credentials, such as being forest-friendly, plastic-free, or made from recycled materials such as glass or paper. In addition, the crackers on offer are fully recyclable with no single use plastic packaging and come in recyclable boxes, and all cards and wrapping paper are either FSC certified or made with recycled content. Meanwhile, a new a Santa-style workshop offering personalised decorations, gifting sacks, stockings and crackers will also be on offer for customers, with the use of planet-friendly organic cotton, recyclable card and paper and reduced plastic packaging. Selfridges said its new Christmas range falls in line with Project Earth sustainability initiative, which was launched this summer and features a commitment to ensuring that the most environmentally impactful materials used throughout the business come from certified, sustainable sources by 2025.
Morrisons takes aim at Fortnum & Mason with new luxury Christmas hampers
Big 4 giant Morrisons is seemingly taking aim at Fortnum & Masons with the launch of a luxury Christmas dinner hamper. Available from today, customers can order a Christmas Dinner Box online for it to be delivered on time for Christmas between December 22-23. It costs £50 and features 16 items, with enough to feed a family of four while taking the stress out of shopping in-store for the items, especially amidst the pandemic as social distancing and self-isolation continues to be the norm. The hamper contains a turkey and all the trimmings, a cheese board and crackers, deep-filled mince pies and a festive yule log. When delivered, Morrisons said the hampers would arrive in a specially developed box so that items remain cold and fresh until they reach customers’ fridge. “We want to take the stress out of Christmas food shopping and give customers the ultimate hassle-free Christmas dinner to enjoy,” Morrisons food to order director Aidan Buckley said. “In a difficult year, this is the simplest way to get your Christmas meal.”
Waitrose launches first dedicated overseas ecommerce offer
Waitrose customers in the United Arab Emirates will now be able to shop with the grocer online after the launch of its first dedicated website overseas. The new website will home more than 15,000 grocery products with over 2800 delivery slots available each week, reaching more than 1500 homes across Dubai and Abu Dhabi. Waitrose said its UAE website would also offer same-day delivery, with the cut-off for amendments being two hours prior to delivery. Waitrose said that it added 12 delivery vans, and created an additional 14 driver jobs through its partner Fine Fare Food Market, which runs the retailer’s daily operation in the UAE supported by Waitrose in the UK. Orders will be picked and packed in two of Waitrose’s 12 shops across Dubai and Abu Dhabi. It comes after Waitrose opened its sixth shop in Dubai last month, with plans to open two more in the city by the end of this year. “Our ecommerce service has grown significantly in the UK and we’re very excited to work with our partners in Fine Fare Foods Limited to extend this to our customers in the UAE,” Waitrose commercial sales business manager Sarah Burton said. “It brings an even more convenient way for our customers in the UAE to shop Waitrose products, and we’re proud to bring the same quality and inspiration customers find in our shops, to our website.” Fine Fare Foods chief executive Sunil Kumar said: “Our new website adds online capability, meaning we can reach even more customers in the UAE, while also supporting the local community during these uncertain times with an easy way to shop. “As the pace of online shopping continues to accelerate, listening to our customers’ demands and reflecting the service, quality and choice of our supermarkets has never been more crucial. “We are committed to delivering the best quality food and drink sourced in the most responsible way right to our customers’ doorsteps.” Waitrose has been significantly investing in ecommerce capabilities after ending its long-term partnership with Ocado last month. Having expanded rapidly in recent months, Waitrose said its online grocery business was on track to become a £1 billion business in its own right by the end of the year. It added that it now delivers to nearly 90 per cent of postcodes across the UK. Waitrose also recently announced a new delivery relationship with Deliveroo, in a trial that would give over half a million households in the UK the opportunity to have Waitrose food delivered direct to them in as little as 30 minutes.
Ikea will now buy back customers' old and unwanted furniture
Ikea customers in the UK will now be able to sell their unwanted furniture back to the retailer in an unprecedented sustainability initiative.
Ikea UK is set to launch a new “Buy Back” scheme on Friday November 27, timed to coincide with this year’s Black Friday event, encouraging shoppers to “live more sustainably”.
Customers can visit Ikea.co.uk and submit a return request for their unwanted furniture, before bringing the fully-assembled product to their local store’s returns and exchanges desk.
Depending on the quality of the furniture customers will then receive a refund card (which will never expire) to spend in store.
Furniture which is “as new” and has no scratches will see returners receive 50 per cent of the original value of the item.
This drops to 40 per cent for items with minor scratches, and 30 per cent for items with visible signs of wear and tear.
The furniture will then be sold in a new “As Is” section, formerly the “Bargain Corner”, while any items in such poor condition they can be resold will be recycled by Ikea.
While Ikea has always been at the forefront of the retail sector in terms of sustainability, this is perhaps its boldest initiative to date.
“The Ikea vision has always been to create a better everyday life for many people, which right now means making sustainable living easy and affordable for everyone,” Ikea UK’s country sustainability manager Hege Sæbjørnsen said.
“Being circular is a good business opportunity as well as a responsibility, and the climate crisis requires us all to radically rethink our consumption habits.
“Currently, 45 percent of total global carbon emissions come from the way the world produces and uses everyday products, so Buy Back represents an opportunity to address unsustainable consumption and its impact on climate change.”
Debenhams launches new toy concession concept
Debenhams has announced the launch of a new toy concession concept called Toys At Debenhams, just in time for half term and the upcoming Christmas trading season. The department store chain, which is currently going through a sales process as part of an administration, said the concept is now open in around 20 stores as well as online. There are plans to roll it out to around 100 Debenhams stores in the UK. Key brands available at Toys At Debenhams include include Lego, Barbie, Disney and Paw Patrol. The retailer added that it has refreshed its gifting and toy brand mix for autumn/winter 2020 and has a number of new offers launching in time for peak trading over Christmas. “We have thought hard about what will make shopping easier and more convenient for our customers and we want to make sure we offer a range that meets the needs of the whole family,” Debenhams managing director Steven Cook said. “We already have a great childrenswear range from schoolwear to playtime, including our popular new Lola & Maverick range. “That’s why we are delighted to be able to offer a really comprehensive range of toys across all our channels as we build up to a ‘giftastic’ Christmas at Debenhams.”
Asda partners with The Entertainer
Big 4 giant Asda has partnered with toy retail chain The Entertainer as part of the former’s “test and learn” partnership strategy. The new partnership will see The Entertainer turn the toy aisles in five Asda stores into branded concessions. The Asda partnership will launch early next year, with The Entertainer having full responsibility for product range, pricing and merchandising. Asda also announced the expansion of its trial partnership with musicMagpie to a further 31 stores and a new partnership with Per-Scent, the branded fragrance distributor, at the Stevenage store. Asda said its strategy of bringing brands that are popular with customers into stores began last year with jewellery and accessories retailer Claire’s and has since been extended to partnerships with Greggs, B&Q, musicMagpie and now The Entertainer and Fragrance Point. The move to accelerate the in-store partnerships strategy follows a shift in customer behaviour brought on by the coronavirus pandemic, with an increasing number of shoppers looking to complete multiple shopping “missions” on a single trip. “The Entertainer are experts in toy sourcing and retailing so we are really excited to work with them and are confident their offer will prove very popular with customers,” Asda partnerships senior director Matt Harrison said. “We anticipate working with more great brands like The Entertainer and Fragrance Point in the coming months as we look to make our stores even better places to visit.” The Entertainer executive chairman Gary Grant said: “We are delighted to be partnering with Asda to bring the wonder of The Entertainer to their customers. “The trial in five stores from February 2021 will give customers the opportunity to shop our range of the latest toys and games, including our great value exclusive range from Addo, where ever is most convenient to them.”
ASOS full year sales up almost 20% to £3.26bn
Asos on Wednesday announced group sales for the year rose 19 per cent to £3.26 billion. The online-only fashion retailer saw UK retail sales rise 18 per cent to £1.18 billion, while international retail sales rose 20 per cent to £1.99 billion. In the 12 months to August 31, Asos saw its active customer base grow by 3.1 million people to 23.4 million, citing momentum in custom acquisition. Profit before tax rose £109 million from the same time a year before, to £142.1 million, an increase of 330 per cent. Speaking on the disruption caused by coronavirus, Asos said the initial challenges were from securing stock from suppliers who were locked down, or delayed freights that disrupted the supply chain. Asos added that demand for occasion and formal-wear had remained constrained since the onset of coronavirus, although it had seen strong growth in its casual wear and lockdown-relevant product categories. Looking ahead, Asos said it was prepared for the peak trading period with its warehouse capacity operating at normal levels whilst maintaining social distancing. The online fashion giant noted that it had experienced a “solid” start to its current financial year, but that it was maintaining a caution on outlook for consumer demand, while the “economic prospects and lifestyles of 20-somethings remain disrupted”. “After a record first half which saw us make progress in addressing the performance issues of the previous financial year, the second half will always be defined by our response to Covid-19,” chief executive Nick Beighton said. “I am proud of the way Asos met this challenge head on, putting our duty to act as a responsible business at the heart of our approach and working to balance our performance in that context. “As well as protecting staff, suppliers and customers, we’ve driven efficiency and have emerged a stronger, more resilient and agile business whilst delivering strong profit and cash generation. “Whilst life for our 20-something customers is unlikely to return to normal for quite some time, Asos will continue to engage, respond and adapt as one of the few truly global leaders in online fashion retail.”
Amazon accused of breaking virus safety measures to ensure smooth Prime Day
Amazon has reinstated “oppressive and dangerous” productivity quotas in the run up to Prime Day exposing employees to greater risk of catching COVID-19.
According to Bloomberg, plaintiffs in an ongoing court case against the retail giant have accused it of not being “honest and forthcoming” with the court after assuring that it had scrapped warehouse productivity quotas during the COVID-19 crisis.
In July, Amazon told the court that it would stop disciplining workers for falling short on quotas for how many tasks they completed each hour at its Staten Island facility.
It also said it would no longer penalise workers for time spent on safety measures like washing their hands under its “Time Off Task” policy, which tracks and restricts the number of unproductive minutes workers have each day.
According to the plaintiffs both practices violate public nuisance laws and raise COVID-19 hazards at the facility.
However, in a new filing the plaintiffs have accused Amazon of reinstating these measures in the run up to its busy Prime Day event, which took place this week.
Amazon has reportedly warned workers at the facility that slowness could get them fired and that “productivity feedback” was being restored.
In response Amazon said it had “reinstated a portion of our process where a fraction of employees, less than five per cent on average, may receive coaching for improvement as a result of extreme outliers in performance.
“All of our measures continue to provide additional time for associates to practice social distancing, wash their hands and clean their work stations whenever needed.”
Earlier this month Amazon was accused of being a threat to public health after it reported that over 19,000 employees had contracted COVID-19.
Despite tens of thousands of employees having contracted the virus, Amazon says that its own analysis suggested the infection rate was 42 per cent lower than expected based on infection rates across the US.
According to Amazon, 33,952 of its total 1.37 million workers would have contracted the virus if infection rates matched the US average, instead of its 19,816 it recorded between March 1 and September 19.
AO World H1 revenue up 57%
Online electrical retailer AO World revealed on Thursday it is expected half year profit to rise by 57 per cent thanks to strong demand in UK and Germany. In a market trading update this morning the company said it expected group revenue to rise by more than half year-on-year in the six months to September 30. UK revenue rose 54 per cent during that time, with German sales up 83 per cent on a constant currency basis. Although the AO’s competitors began to re-open their physical stores in the company’s second financial quarter, AO said the sales momentum had continued as customers looked to buy online goods due to ongoing covid-19 concerns. “We believe we have seen a lasting step change in online penetration,” AO World said on Thursday. “During the first half we have seen a change in the behaviour of some customers in our mobile business with increased cashback redemption rates and cancellation of contracts with networks that have negatively impacted our gross margin. We have changed the mix of our customer proposition to minimise this risk in future.” Looking ahead, AO said it was now on track for its biggest ever peak trading period. “The last six months of trading have been like no other during my two decades in the business. AO was in good shape coming into this financial year and the global, structural shift in customer behaviour to online, accelerated by Covid, emphasised our strengths,” AO founder and chief executive John Roberts said. “Whilst we remain mindful of the uncertain economic climate caused by the pandemic and Brexit, we are on track with plans and well set for our biggest ever peak trading period in the UK and Germany,” Roberts added.
Dunelm posts 37% rise in Q1 sales
Home and furniture specialist Dunelm on Thursday posted a 37 per cent jump in first quarter sales thanks to higher demand for home items. Sales came in at £359.1 million in the 13 weeks to September 26, up 37 per cent, with digital sales were up 12 per cent on last year. Net cash at the end of the first quarter was £175 million, an improvement from last year’s debt of £24 million net debt a year ago, thanks to £80 million of exceptional working capital inflows. The retailer, which operates around 169 stores in the UK and an e-commerce platform, said it expects its gross margin to be slightly positive for the year, barring any impacts from coronavirus-disruptions or restrictions. “Recent months have seen homewares become even more relevant, as people spend more time in their homes up and down the country,” chief executive Nick Wilkinson said. “While we remain cautious about the continued uncertainty in the wider market, the resilience and flexibility of our business model leaves us well positioned as we enter our peak trading period, and we remain confident in our ability to grow market share and help even more customers create a home they love,” Wilkinson added. Dunelm cancelled its last final dividend due to uncertainty caused by the pandemic, however the retailer announced in September that it had experienced encouraging trading in its stores since re-opening, and expected to pay an interim dividend in fiscal 2021, provided it faced no more “material impact” from the COVID-19 pandemic. The business added that it will repay £14 million received under the government’s furlough scheme and will not claim more funds through further job retention schemes.
Hammerson reveals only one third of tenants paid rent for Q4
Shopping centre giant Hammerson said just 38 per cent of its UK tenants had paid rent for the final quarter of the year. In an update this week, Hammerson noted the level of fourth quarter collections were higher than at the same point following its June quarter date collections, even with the UK’s extension of the moratorium on business evictions. The Birmingham Bullring owner said that as of Tuesday October 13, all of its shopping destinations had reopened, with 94 per cent of its tenants allowed to trade in the UK and Ireland. Last month the Government announced that it would extend support to stop business evictions until the end of 2020. It also called on landlords and tenants to work together to agree rent payment options for the rest of the year if tenants are struggling. In August, Hammerson has said it plans to raise £825 million through a £552 million fundraise and £274 million sale of assets in an effort to offset “the extraordinary disruption caused by Covid-19”. The shopping centre giant will bolster its financial position through a proposed rights issue, as well as the sale of the company’s 50 per cent stake in VIA Outlets, bringing the combined £825 million cash influx. Hammerson this week announced it had received the go-ahead from competition authorities to proceed with its disposal of its stake in VIA Outlets. The sale is expected to complete within the current quarter.
ASOS could be hit hard by coming lockdown measures, experts warn
Asos could be hit hard by the second wave of coronavirus lockdowns in the UK, potentially seeing its monumental share price growth reverse, according to experts.
The online fashion giant has seen its share price grow by 37.9 per cent this year, aided by whopping 329 per cent rise in pre-tax profits and 19 per cent boost in sales during the pandemic.
Despite its period of rapid growth and subsequent popularity among investors, some have warned that its target market will soon be disproportionately affected by looming lockdown measures, spelling trouble for its margins.
“With the second wave of the UK epidemic building, and its 20-oddsomething customer base probably, on the whole, unlikely to suffer more serious health problems from the virus, the knock-on effects of the pandemic on the whole economy certainly could hit them hard,” Fidelity’s associate director of personal investing Emma-Lou Montgomery told Investment Week.
“After all, it is largely 20-somethings who work in retail, pubs and bars and on whom the zero hours gig economy relies. If these jobs start to go, then the likes of Asos and others which cater for their consumer needs, will start to feel the knock-on effects themselves.
“Out of work, locked-down 20-odd-year-olds are not going to spend, even on cost-conscious fashion if they are down in the dumps and out of pocket.”
She added that costs are also being forced up due to reduced freight capacity, and that Asos’ once popular “going out” range will suffer at the hands of increased demand for casualwear.
Etoro’s analyst Adam Vettese also warned that evidence suggested it is “those in their 20s – Asos’ target demographic – who are most likely to lose their jobs” and that this could cause the retailer to “suffer further down the line”.
While there are undoubtedly challenges in the coming months for Asos, The Share Centre’s analyst Joe Healey believes that Asos has proven its ability to adapt to adverse circumstances already this year.
He said: “With the share price nearing its 52-week high, investors may be cautious in terms of the amount of uncertainty we are still yet to face, but there is no question that ASOS has managed the pandemic well and performed resiliently.”