Naked Wines sales smash £340m as US business booms
Naked Wines has reported a 68 per cent rise in sales to £340.2 million after a surge in customers as well as a strong performance in the US. With pubs and bars shut for most of the year, the online wine retailer witnessed a 53 per cent rise in customer numbers in the year to March 29. It comes after a £50 million investment in new customers compared to £23.5 million last year. However, the increase in investment saw Naked Wines post a pre-tax annual loss of £10.7 million. Naked Wines said it will continue to increase its focus on its US segment, which saw a 78 per cent surge in sales, as it looks to spend cash on new customers, inventory purchases and “strategic priorities”. The company said it is now the largest direct to consumer wine merchant in the US and has managed to scale its operations in response to growing demand. “It is clear to us that the pandemic has served to underscore the value of our business model in connecting winemakers and consumers directly and proven the opportunity before us,” Naked Wines chief executive Nick Devlin said. “As we head into FY22, we are focussed on investing in the opportunity and executing against our strategic initiatives, which are to invest in new customers at attractive payback, to enhance the customer proposition to improve LTV, to leverage our scale to enhance value creation, and iv) to broaden and enhance our go-to-market strategy, driving growth.”
John Lewis expands online fashion offering with 100 new brands
John Lewis is set to expand its online fashion offering with the addition of 100 new brands over the next 12 months and also allow fashion labels to sell directly on its website. The department store said it would first launch more than 40 new brands in the next six months by allowing, for the first time, fashion brands to sell their products directly on John Lewis’ ecommerce platform. Key brands set to launch on the John Lewis site include plus-size lingerie brand Oola and inclusive menswear brands Raging Bull and Spoke London, as well as sustainable brands Knowledge Cotton Apparel, Dedicated and Lefrik – all of which utilise organic or recycled fabrics. Other labels, including Farah, Simon Carter apparel and Trotters childrenswear, will also been added in response to appeal from customers. John Lewis added it would grow its range of more affordable brands online including Crew Clothing, Dorina Lingerie and Lands’ End. The expansion of the fashion ranges online form part of John Lewis’ wider turnaround and modernisation strategy as it responds to a shift in customer shopping behaviour that has become digital-first, especially in the wake of the Covid-19 pandemic. It also comes after the retailer expanded its fashion and beauty offering earlier this year, with the addition of 50 new brands in response to the “casualisation” trend from the Covid-19 pandemic. “We’ve offered customers the option to buy larger branded home products directly from suppliers via johnlewis.com for a number of years and we’re now expanding this into fashion, providing customers with even greater choice,” John LEwis executive director Pippa Wicks said. “As part of our plans to modernise the John Lewis brand, we’re expanding both the number of fashion brands and the range of those we already sell on johnlewis.com. “In the future, we plan to bring onboard and expand many more of our fashion brands, giving customers even more of what they love.”
Halfords profits forecast to almost double
Halfords’ profits are set to almost double for the past year after people shunned public transport in favour of bikes and cars during the Covid-19 pandemic. The cycling and motoring specialist retailer is set for another bumper trading announcement when it updates shareholders on Thursday next week. It is expected to reveal a pre-tax profit between £90 million and £100 million for the year to the end of April. The bumper profit, which will also take into account the £10.7 million it is repaying in furlough, compares with a £52.6 million profit for the previous year. Bike sales have benefited from pandemic trends as Brits chose to cycle more when travelling during lockdown periods while health and fitness has also been a priority for many. Investors will be hopeful that staycations and a desire to have healthier commutes to work will keep the strong momentum over the current financial year. “Near term, we expect that the pandemic will continue to remain supportive for both sectors, as consumers look to avoid public transport and instead prefer to use their own cars and bikes, particularly during staycations,” analysts at RBC said. “Longer term, we expect a strong consumer shift towards healthier living to be supportive for the cycling sector, as consumers aim to be more active, for example by cycling to work.” However, the boom in bike sales has also placed significant pressure on supply, which has also been significantly disrupted by Brexit trade concerns and the blockage of the Suez Canal earlier this year. Nevertheless, the retailer’s recent transformation plan is expected to have bolstered its supply chain and secured significant cost savings. The strong cycling performance is also expected to take some pressure off Halfords’ retail motoring business, which had seen demand weakened by government advice not to travel far during lockdowns. Investec’s Kate Calvert said it was “likely” the group’s recent positive trading will result in a resumption of dividend payments for the past year but added that profitability could dip next year as lockdown trends vanish. “We conservatively forecast full-year 2022 profits to decline year-on-year as it is impossible to call how long the strong cycling demand may continue for, where the market could fall back to and whether the rebound in more profitable retail motoring will be strong enough to offset any weakness in cycling demand,” she said.
JD Sports faces investor backlash over chairman's inappropriate bonus
JD Sports is facing an investor backlash after handing its boss a £4.3m bonus despite taking tens of millions of pounds in government support. Executive chairman Peter Cowgill’s total pay, including a short-term salary reduction, reached nearly £5m. In a report, the shareholder advisory group Glass Lewis recommended that investors vote against the retailer’s “inappropriate” pay policy. The group said the retailer should have substantially reduced or scrapped its bonus awards. It also said shareholders should oppose Cowgill’s re election due to inadequate succession planning and a lack of progress on boardroom gender diversity, the Sunday Times reported. The retailer received £61m through the UK furlough scheme and benefited from an estimated £38m from business rates relief. It benefitted from an additional £25m in wage support from other countries where it operates, including the US. JD Sports was also granted a £300m loan through the Bank of England’s Covid Corporate Financing Facility Scheme which was set up to help larger firms through the pandemic. JD Sports said it had not used any of the loan by the time the scheme closed in March. As a non-essential retailer, JD Sports was forced to close during lockdown. However, the company, which has stores across the UK, Europe, the US and Asia Pacific, reported a 0.9 per cent rise in revenues to £6.1bn as it shifted sales to online. Pre-tax profit fell by 7 per cent to £324m. JD Sport’s annual meeting is scheduled for 1 July when shareholders will be invited to vote on the company’s remuneration report among other topics.
Halfords launches competition to crown the UK's best home garage
For the first time ever, Halfords has launched its Garage of the Year Competition 2021 in a search to crown the UK’s best home garage. The retailer wants to celebrate the garages where you spend your time, whether you’re tinkering with a classic car or unwinding. The competition is part of Halfords’ partnership with British Touring Car Championship Team, Halfords Racing with Cataclean, and comes as research from Halfords found that 40 per cent of people spent more time in their garage during lockdown than they had done before. One in five of those said they spent the time making improvements to the garage itself, with DIY, working on vehicles and even using it as an art studio all featuring as popular uses. The results suggest the garage has become the retreat of choice for millions of Brits. To enter, participants must explain why they think their garage is best and provide pictures to support. The submissions will be judged by the Halfords Racing with Cataclean professional racing drivers Daniel Rowbottom and Gordon Shedden, pictured below. The overall winner of the competition will receive a £5000 cash prize, along with a Halfords Ultimate garage bundle plus a new set of tyres and a BlackVue dash cam fitted for free, courtesy of Halfords Mobile Expert. The Ultimate Garage Bundle will include £2000 worth of Halfords tools, tool storage and products, to give the winner the perfect prize. “As the operator of more than 400 full-service garages across the UK, we know better than most the value of a well-equipped and well-designed garage and we’re very excited to launch this competition to find the best home equivalent,” Halfords chief operating officer Andy Randall said. “Over the course of the pandemic, we’ve spent more time than ever at home and in the garage, organising, tinkering and tidying up. We’re hugely looking forward to seeing all the amazing spaces people have created at home and finding our Garage of the Year.” Submissions are open at the Halfords website until July 31.
Majestic Wine launches Shop Local platform to give stores online autonomy
Majestic Wine has launched a new online shopping platform designed to give greater autonomy to its stores and local consumers across the UK. The wine specialist has created the Shop Local service, which will give each of its 200 stores its own individual website. Customers will be able to view the product ranges and stock levels of their nearest Majestic store before placing orders for same-day, click and collect or home delivery. All of Majestic’s 200 stores across the UK has its own social media account, which will combine with the Shop Local platform to ensure “each store is digitally in control”, chief executive John Colley told Retail Week. Last week, the retailer revealed it gained over 350,000 new customers in past year, and that the Covid-19 pandemic and the lockdowns it brought along prompted online sales to skyrocket by 300 per cent. The alcohol retailer said it has been heavily investing in growth across its store-based business since Fortress acquired it, and attributed its new owner from saving the business after it came “perilously near” closing its doors for the final time in 2019.
Tesco slammed by vets over Frankie the Trench Bulldog cake
Tesco’s Frankie the French Bulldog cake has reportedly been criticised by British vets who have said that flat-faced dogs shouldn’t be used to promote goods. The Big 4 grocer has sparked the biggest cake row since Marks & Spencer accused Aldi of copying its Colin the Caterpillar cake design earlier this year. Experts at the British Veterinary Association (BVA) criticised Tesco for using the pug’s face for a cake as that breed of dog can suffer breathing difficulties and other health issues, The Telegraph reported. The £11 French Bulldog Cake is part of a range and depicts a Madeira sponge puppy with buttercream, raspberry jam, icing and edible decorations. The BVA has called on Tesco to stop the sale of the French bulldog cake and “think health over looks”. The BVA and animal charities have been urging companies to avoid using flat-faced dog breeds, whose scientific name is brachycephalic. “Breeds such as French bulldogs, pugs and bulldogs, often suffer life-limiting health issues, including breathing difficulties and eye and skin conditions and many owners are taking on these dogs without knowing about these problems,” BVA said. Tesco responded by saying that its Frankie the French bulldog cake is one of a number of animal inspired cakes in our range and “proves popular”. In April, M&S accused Aldi of copying its Colin the Caterpillar cake, and said Aldi’s Cuthbert the Caterpillar design infringed its Colin trademark.
Holland & Barrett opens new sustainability-forward flagship store
Holland & Barrett has officially opened the doors to its new Coventry flagship store which focuses on a “sustainability-forward” design. The health and wellness retailer’s new 2000sq ft branch has been refitted using 100 per cent recyclable materials, including the metalwork, wood, plastics, fibreboard and flooring materials. The lighting has also been revamped to reduce electricity consumption and cut carbon emissions. The store features 178 new lines across beauty, 84 in sports nutrition, and 130 in supplements, vitamins and minerals. The new beauty zone offers a variety of vegan, zero-waste and cruelty-free beauty items. The retailer said its staff members hold the equivalent to an A level in nutrition and have undertaken further training during the pandemic, allowing them to provide customers with advice on their health and wellness products. “As a team we are incredibly proud of the new store, it offers our customers a wider range of supplements, clean and conscious beauty and sports nutrition,” store manager Nicola Owen said. “We have a team of trained experts who will be on hand to advise our customers on their needs and to recommend products that will be right for them.” Safety measures have also been implemented in store, such as shielding screens at the checkout, social distancing features and antibacterial gel.
BNPL global spending to top $1tn in next five years
‘Buy now, pay later’ spending is set to hit nearly a trillion dollars by 2026 despite increasingly strict regulation of the sector.
According to new data from Juniper Research, spending with BNPL services like Klarna and Laybuy will account for over 24 per cent of all global ecommerce transactions for physical goods by 2026, worth a whopping $995 billion.
This will represent a 274 per cent increase from this year, when BNPL services are expected to account for nine per cent of all ecommerce spending, worth $266 billion.
Juniper believes this growth with be driven by increasing pressure placed on shoppers’ finances due to the pandemic, seeing active users jump from 340 million to 1.5 billion in the next five years.
“As a tool to split the cost for users, buy now pay later is ideally suited for high-cost items, as it enables users to seamlessly split large costs into smaller, more manageable payments,” research co-author Damla Sat said.
“By 2026, these platforms will increasingly become the norm for lower-cost purchases as well; driven by user demand and eCommerce platform integrations.”
It comes amid increasing regulatory scrutiny of the sector following a number of reports suggesting such services can harm users credit scores, and that many can have a disproportionate negative affect on young shoppers.
This incoming regulation will inevitably place restrictions on services, such as limiting charges and enforcing affordability checks, but Juniper believes these will not diminish their appeal but rather place them on more secure footing.
Swedish BNPL giant Klarna last week saw its valuation rise 50 per cent to $45.6 billion after a recent round of funding led by Japanese company SoftBank, making it Europe’s most valuable fintech company.
Klarna watched its valuation rise to $31 billion in March after being previously valued at $11 billion in September 2020.
Boohoo sales rise 32% in latest quarter
Boohoo, which owns several retailers including PrettyLittleThing and Karen Millen, has reported a 32 per cent revenue growth for the last quarter, benefiting from rising demand as lockdown restrictions eased. The group said that its revenues increased to £486.1m from £367.8m in the same period last year, with two-year growth of 91 per cent. This comes after the company’s integration of high street brands Dorothy Perkins, Wallis and Burton into its platform, as well as the launch of its new Debenhams digital department store. Boohoo, which sells clothing, shoes, accessories and beauty products aimed at 16 to 40-year olds, said revenue was £486.1 million in the three months to May 31, up from £367.8 million year-on-year. Britain and the United States were the stand-out markets, with sales up 95 per cent and 157 per cent, respectively. The group has said that it anticipates “significant” job creation in the second quarter of the year, as its new Daventry distribution site is set to open. In January, Boohoo purchased the Debenhams brand out of administration for £55 million and in February bought the Dorothy Perkins, Wallis and Burton brands from the administrators of Arcadia for £25.2 million, It said the former Arcadia brands had been successfully integrated into its multi-brand business, adding that a new Debenhams online department store had been launched.
Very to recruit 30 young people via Kickstart initiative
The Very Group, operator of online retailers Very.co.uk and Littlewoods.com, is set to create 30 new roles as part of the Government’s Kickstart scheme to improve opportunities for young people at risk of long-term unemployment. Open via Job Centre Plus to 16 to 24 year olds on Universal Credit, the roles will offer work experience during a paid six-month placement within Very’s Customer Care, technology or colleague experience teams at its Liverpool-based HQ, or within its operations team at its highly automated fulfilment centre in the East Midlands. The programme, which will run from July to December, will see the Kickstarters learn a range of skills to support their future employability and set them up for long-term success. The group said it expects a number of the ‘Kickstarters’ to have the opportunity to apply for permanent roles at the end of the six month period. To deliver the programme, the retailer has teamed up with The Prince’s Trust, which will provide the chosen applicants with employability webinars, one-to-one pastoral support and talks from Prince’s Trust Young Ambassadors, as well as helping them with their next steps post-placement. In addition, The Trust will run training sessions to support Very’s kickstart mentors, so they can best support the young people on the programme. As well as paid work experience and tailored training, the Kickstart colleagues will gain access to Very colleague benefits, including its colleague discount and the use of its on-site fitness and wellbeing facilities, including gyms. Vicky Ferrier, talent and capability director at The Very Group, said: “When it comes to the jobs market, young people have been disproportionately negatively impacted by the pandemic.” “But we know they have a huge amount to offer, both to our business and our communities. That’s why Kickstart is so important and why we’re proud to take part. “By offering genuinely exciting, valuable and supported paid placements across our business – and providing employability skills alongside our partner The Prince’s Trust, we’re confident the chosen applicants will have bright futures ahead of them, whether that’s here at The Very Group or with another employer. We can’t wait to welcome the Kickstarters in July.”
H&M's quarterly sales surge as covid restrictions ease
Quarterly turnover at H&M, the world’s second-biggest fashion retailer, jumped from a year earlier as pandemic restrictions were eased, although revenue remained well below 2019 levels. The Swedish company stated on Tuesday that net revenues increased by 62 per cent year on year to 46.5 billion crowns ($5.59 billion), or 75 per cent in local currencies. Refinitiv polled analysts, who predicted a 66 per cent increase in net sales. The pandemic and government steps to curb it brought most of global trade and retail to a halt in the previous quarter, and about 4,000 of H&M’s 5,000 outlets were temporarily closed. H&M’s net sales fell 19 per cent in the second quarter of 2019 compared to the same period the previous year. “As more people are vaccinated a number of markets have gradually allowed stores to reopen and the H&M group’s strong recovery continues,” the group said in a statement. “Online sales have continued to develop very well, even as the stores have opened. “This shows that customers appreciate the collections and being able to shop via their preferred channel.” H&M said local-currency sales in the June 1-13 period were up 35 per cent on the year, and up 2 per cent from the corresponding period in 2019. H&M flagged ongoing pandemic-related restrictions to store operations, with stores in Germany and France mostly closed throughout the period. There were signs of improvement over the quarter, however, with the number of closed stores declining from over a thousand at the outset of the period down to 140. Market leader Inditex, the owner of Zara, and smaller rival Next, have also reported recovering sales on the back of easing restrictions. Inditex said last week that sales in May and early June were higher than two years earlier, as it reported forecast-beating February-April profit. H&M is scheduled to publish its full second-quarter earnings report on July 1.
Ikea slapped with €1m fine as it's found guilty of spying on employees
Ikea has been found guilty of illegally spying on its employees over a number of years and has been fined €1 million by a Frech Court.
The world’s largest furniture maker was today found guilty of storing employee data that it obtained improperly, while its former chief executive Jean-Louis Baillot was handed a two-year sentence and fined €50,000.
In March this year, it was reported that the French subsidiary of Ikea, which employs over 10,000 staff in the country, is facing fines of up to €3.75 million (£3.2 million) over allegations it paid for illegal access to police files.
Ikea France was accused of buying information from Frances STIC police records system, which tracks names and personal information on millions of criminals, victims and witnesses.
It reportedly accessed this information illegally from police officials, four of which also faced allegations, to try and catch an employee who was claiming unemployment benefits but drove a Porche.
Ikea is also accused of accessing an employee’s criminal record to determine how they could afford to drive a BMW on low income.
It has also been accused of spying on customers during the case, while a number of store managers, employees in human resources, private investigators and police officers were also facing allegations.
Prosecutors had been pushing for a more severe fine, aiming for at least €2 million.
Its former chief executives Baillot and Stefan Vanoverbeke also faced potential fines of €750,000 and sentences of up to 10 years for their involvement.
“Ikea Retail France has strongly condemned the practices, apologized and implemented a major action plan to prevent this from happening again,” the company said.
Tesco rejoins BRC to "play a part" in retail
Tesco has reportedly rejoined the BRC three years after quitting the trade association saying that it wants to “play our part” in industry discussions. The Big 4 grocer reunited with the trade association as the retail sector seeks to rebuild in the wake of the Covid-19 pandemic. Tesco’s decision to re-join the BRC will provide a huge fillip to the trade body, Retail Week reported. The BRC has lobbied the government on a number of issues during the health emergency, including business rates, the furlough scheme and the rent moratorium, which it wants to extend beyond the current June 30 deadline. The addition of Tesco will add a further boost to those initiatives. Tesco left the BRC back in May 2018, which came after it changed its business model following its £4.7 billion merger with wholesaler Booker. The grocer said at the time that it was looking at a new set of issues and the decision would help lead on those debates that are important to its customers, colleagues and supply partners. However, Tesco’s stance has now changed following the pandemic as well as the arrival of new chief executive Ken Murphy, who replaced Dave Lewis in October last year. Tesco said it has rejoined BRC at an important moment for retail. “The retail sector today faces many challenges, particularly as we look ahead to the longer-term impacts of the Covid-19 pandemic, and we want to play our part in that dialogue,” Tesco said.
Boohoo eyes possible high street return for Debenhams
Debenhams might be returning to the high street with one small store outside of London as new owner Boohoo attempts to strike deals with major beauty brands. A liquidation process saw Debenhams officially shut down the last of its bricks-and-mortar stores last month, ending 243 years of trading on the high street for the department store. It came after Debenhams’ brand, ecommerce operations and assets were bought out of administration by Boohoo Group in a £55 million deal in January. The deal did not include Debenham’s store estate. Speaking to The Times this week, Boohoo Group chief executive John Lyttle said some beauty brands had refused to supply products to Debenhams unless it had a physical store presence. Although the brands like Benefit, Elizabeth Arden and Ralph Lauren continue to supply to Debenhams as an online-only operator, the website does not stock make up brands such as Yves Saint Laurent and Chanel, both of which were previously sold in the department stores. Lyttle said the firm was now in talks about opening one small Debenhams shop outside of London, but insisted it would be “one store and one store only”. A location of the store was not revealed. Before its departure from the high street, Debenhams was regarded as one of the leading retailers in premium beauty. Meanwhile, Boohoo Group is set to launch a new marketing campaign to boost the new Debenhams online site to boost customer awareness that the department store brand is still operating, albeit in an online-only capacity.
Made.com confirms £775m price tag in London IPO
Made.com has confirmed that it will launch its stock market debut next Wednesday with a £775.3 million price tag. Made.com – co-founded by Lastminute.com entrepreneur Brent Hoberman – priced its initial public offering (IPO) at 200p a share for when conditional dealing starts. The online furniture retailer, which unveiled the float plans last month, will raise £100 million of new money through the IPO, with a further £93.8 million worth of shares being sold by existing investors. Unconditional dealing in the group will begin on June 21, it said. It is aiming to invest the cash raised towards growing further across Europe and boosting its homewares range. Made.com chief executive Philippe Chainieux said the IPO was an “exciting milestone for Made”. “A listing in London, where the business was founded, will enable us to accelerate our growth as we lead the development of the online furniture and homewares market as it moves online, both in the UK and internationally,” he said. Its IPO comes amid a boom in demand for home furnishings during the pandemic, as well as a shift towards online retail. Made.com also joins a fast-growing list of big-name retailers that recently announced plans or have gone ahead and launched on the stock market after enjoying success during the Covid-19 pandemic. These include The Hut Group, Moonpig, Dr Martens, In The Style, Made.com, The Very Group, MyTheresa, MusicMagpie, Virgin Wines, Hotter Shoes, and Poundland parent company Pepco. Made.com said gross sales jumped 30 per cent higher to £315 million in 2020, with growth accelerating further in the first quarter of 2021 to 63 per cent year-on-year. It is aiming to have net sales of more than £1.2 billion by 2025. High street rival DFS has also been enjoying impressive trading, with orders nearly doubling in the past 10 weeks compared with 2019 since shops reopened. DFS also saw online orders nearly triple in its third quarter when stores remained shut in a sign that consumers are now more willing to buy so-called big ticket items, such as sofas, over the internet. Made.com was founded in the UK in 2010 by Hoberman and Ning Li and, since 2013, has expanded across Europe, with Spain the most recent new market it entered in 2018. Around 52 per cent of gross sales came from the UK market in the first three months of 2021, with the remainder from Continental Europe. The retailer has two showrooms in the UK and a handful across Europe, but does not plan to increase its bricks-and-mortar sites as it remains focused on being an online player. However, it is expanding its warehouse space in the London Gateway development in the South East, with plans to hire up to another 100 staff to help support its growth. Li – who was chief executive until the end of 2016 – is a non-executive of Made.com, though Hoberman no longer has an active role in the retailer.
Frasers Group to close Psyche flagship and rebrand as Flannels
Fraser Group is reportedly set to close Psyche’s flagship store in Middlesborough and rebrand it into the Flannels chain. The store is expected to close on August 9 when a rebrand will begin with a proposed September opening, Teesside Live reported. Frasers Group, which owns Sports Direct, House of Fraser, and Flannels, bought the Psyche business last year from owner and founder Steve Cochrane. The value of the deal had not been disclosed. The current Flannels store in Middlesbrough town centre, on the site of the former BHS, will remain open and will sell childrenswear. “I sold Psyche in good faith and I have to support Frasers and the decision. It is more profitable to them for the store to become a Flannels,” Cochrane said. He now serves as the head of childrenswear for Frasers Group. After the takeover, which was confirmed last December, Cochrane said the deal would secure the future of the store, its online operations and its 58 workers by becoming part of the large retail group. No jobs will be lost in when Psyche transforms into a Flannels store.
Waitrose changes name of kaffir lime leaves amid racism concerns
Waitrose is changing the name of its kaffir lime leaves over customer concerns that the word has historically been used as a racist insult in South Africa. The grocer’s Cooks’ Ingredients Kaffir Lime Leaves will be re-labelled as Makrut Lime Leaves “in response to customer comments we’ve received”, a spokeswoman said. The new packaging of the dried lime leaves, which are a popular ingredient in South East Asian cuisine, will be rolled out to all shops and on Waitrose’s website by early next year. “This name change is a crucial step in recognising how important it is for us to listen to customers and educate ourselves when it comes to the language we use,” Waitrose grocery trading manager Helena Dennis said. “While some of our customers may be unaware of the connotations of this particular word, it’s important to us that we avoid offending anyone who shops with us. “It is changes like this that ensure we are moving forward. We need industry-wide support on this, and encourage other retailers to do the same in order to make a difference on a widespread, national scale.” Waitrose said it would explain the name change in shelf labelling, on recipe cards and in its cookery schools as cookbooks and other literature still widely referred to kaffir lime leaves. The fruit, known botanically as citrus hystrix, is native to Sri Lanka and is also found in Mauritius and South East Asia, including Thailand – where it is known as makrut. It is thought that Scottish botanist HF MacMillan introduced the fruit to the English-speaking world, using the name kaffir lime in the late 1800s. However, the word was used in apartheid-era South Africa as a racist insult towards Black people. In 2018, a woman was jailed in the country for abusing a Black policeman with the word. Many chefs and food writers in the UK, Australia and the US have chosen to adopt the name makrut for the fruit instead.
Halfords full year profits skyrocket 72%
Soaring sales of electric bicycles and scooters amid the Covid-19 pandemic has helped Halfords notch up a 72 per cent jump in full year profits. The cycling and motoring specialist reported underlying pre-tax profits of £96.3 million for the year to April 2, up from £55.9 million on a pro forma 52-week basis. Retail sales jumped 14.6 per cent on a like-for-like basis – helped by a 54 per cent surge for bikes – while its Autocentres car servicing and repair chain enjoyed a 9.7 per cent hike. Halfords saw surging demand for electric scooters and bikes, with sales in this category almost doubling – up 94 per cent. The retailer is investing heavily in the area of electric vehicles and will have trained more than 2000 of its store and garage staff to service electric cars, bikes and scooters by the end of its new financial year. Halfords said it was “positive” over the outlook as it expects restrictions on foreign travel to boost staycation goods sales, such as touring and cycling products, while it sees motoring product demand benefiting from more normal traffic patterns. The retailer added that statutory profits rose to more than £75 million in 2021-22, up from £64.5 million in the year to April 2. However, Halfords warned of “acute” ongoing supply issues with bikes, which have been affected by demand, Brexit trade concerns and the blockage of the Suez Canal earlier this year. “The general economic outlook remains challenging, with consumers likely to be more cautious and expecting greater value from their purchases,” it said. “We will address this by making a significant investment in pricing in our retail motoring business.” Sales in the first nine weeks of the new financial year have remained solid – up 6.6 per cent for retail motoring, 42 per cent for cycling and 6.6 per cent across its Autocentres against pre-pandemic levels two years ago. Chief executive Graham Stapleton said: “Demand for our services remains strong in the new financial year, and our touring categories are currently performing particularly well given the trend towards staycations this summer. “In the longer term, we remain confident in the future prospects for the UK’s motoring and cycling markets and our ability to compete strongly in both.”
Rent moratorium for commercial properties extended to March 2022
The government is extending the current rent moratorium on commercial properties, which includes retailers, to protect tenants from eviction to March next year. Treasury chief secretary Steve Barclay told MPs in the House of Commons yesterday that the current ban on evictions for unpaid commercial rent would be extended past the end of this month following the delay to easing further Covid-19 restrictions. The ban, which stops landlords from taking tenants with rent arrears to court, was due to end on June 30 but will now be extended to March 25, 2022. Barclay also announced the government would introduce legislation for a new arbitration system to solve disputes between landlords and commercial tenants affected by the Covid-19 pandemic. Giving an economy update in the Commons, Barclay said: “In recognition of the importance of jobs in the many affected businesses at the heart of local communities, we launched a call for evidence in April on further actions to take to resolve those debts. “As a result of that call for evidence, the government now plans to introduce legislation to support the orderly resolution of these debts that have resulted from Covid-19 business closures. “We will introduce legislation in this parliamentary session to establish a backstop so that where commercial negotiations between tenants and landlords are not successful, tenants and landlords go into binding arbitration. “Until that legislation is on the statute book existing measures will remain in place, including extending the current moratorium to protect commercial tenants from eviction to March 25, 2022.” Barclay added: “To be clear, all tenants should start to pay rent again in accordance with the terms of their lease, or as otherwise agreed with their landlord, as soon as restrictions are removed on their sector if they are not already doing so. “We believe this strikes the right balance between protecting landlords and supporting those business that are most in need.” BRC chief executive Helen Dickinson welcomed the announcement for retailers. “This is a very welcome announcement, addressing an issue of vital importance in the nick of time,” she said. “We will be looking closely at the details, but welcome the continued support provided by government to businesses. “Just as retailers feared a wave of legal action by landlords, the government has stepped in to offer both landlords and tenants more time to negotiate. “The last 15 months have seen extended periods of forced closure for retailers, preventing many from making the turnover needed to cover rents. “Retailers need time to trade their way out of debt; this announcement does exactly that. We’re also pleased to see the government adopt our proposal for binding arbitration where agreements between parties cannot be reached.” Shadow chancellor Rachel Reeves also welcomed the announcement, but said it was it still not enough to support struggling businesses. “The truth is if the Chancellor believed that this economic package was enough, he would be here announcing it himself because whatever this is, it is not doing whatever it takes to support British businesses and our economy,” she said. Thousands of high street businesses – mainly hospitality and leisure firms – have seen trading constrained by virus curbs. On Monday, Prime Minister Boris Johnson said plans to remove remaining pandemic restrictions on June 21 have been pushed back to July 19 amid concerns over the spread of the Delta variant, which was first identified in India. The Government is not expected to alter planned changes to the furlough scheme following the delay. Currently, the state will cover 80 per cent of wages until the end of this month, with this tapering to a 70 per cent subsidy next month with at least 10 per cent covered by employers, and reducing until it is removed at the end of September.
Victorian Plumbing confirms plans for £850 AIM float
Victorian Plumbing is set to float on the AIM market later this month, in a move expected to give the bathroom retailer a value of £850 million. The placing of new shares is expected to raise gross proceeds of £11.6 million for the company, while the placing of sale shares is expected to raise £285.9 million for the selling shareholders. The IPO is expected to take place on June 22 under the ticker ‘VIC’. “The overwhelmingly positive reaction to our IPO has been humbling and it is amazing to see the support and excitement around our strategic plans,” founder and chief executive Mark Radcliffe said. “We’re thrilled to have reached this milestone. It is a testament to the dedication of our fantastic employees who have helped build this unique and trusted brand and industry leading proposition.” Victorian Plumbing said the placing had attracted strong support from institutional investors and was “significantly” oversubscribed. The primary proceeds of the placing will be predominantly used to satisfy the direct costs of the IPO process. The company said it will use the placing to take the business to “the next stage of its development”.
Cash payments divebombed 35% in 2020 amid marked changes to payment behaviour
Cash usage plummeted 35 per cent last year as the pandemic drove “some marked changes in payments behaviour”.
Physical cash was used to make 6.1 billion payments in the UK last year, representing just 17 per cent of all transactions, according to new data from UK Finance.
In contrast, contactless card payments accounted for more than a quarter (27 per cent) of all transactions accounting for 9.6 billion transactions last year.
Around 135 million contactless cards are now in circulation, according to the data, covering around 88 per cent of debit and 81 per cent of credit cards in the UK.
The sharp drop in cash payments was in partly due to the UK seeing its first fall in overall payments in six years as the majority of stores remained closed for large portions of the year.
Overall transactions dropped 11 per cent year-on-year to 35.6 billion, with supermarkets accounting for a whopping 41 per cent of all payments throughout 2020.
While 13.7 million people said they used cash once a month or not at all, doubling from the 7.4 million cashless shoppers in 2019, 1.2 million consumers said they still mainly used cash for their day-to-day spending.
Last year also saw a significant rise in mobile payments, with the number of UK adults registered to make mobile payments rising from 7.4 million in 2019 to 17.4 million, though this was heavily weighted towards 16 to 34-year-olds.
“The increase in the contactless limit to £45 coupled with retailers encouraging its use meant that more than a quarter of all payments in 2020 were made via contactless,” UK Finance chief executive David Postings said.
“The use of cash fell, reflecting the fact that large parts of the economy were closed during the year, although it still remained the second most popular payment method behind debit cards.
“There remains real diversity in the way in which people choose to conduct their day-to-day spending and the banking and finance industry is committed to helping customers make payments in a variety of different ways.”
Loomis UK’s commercial director Simon Wood added: “Demonstrating the continued preference for notes and coins among some consumers, this week our data has shown that cash use is now back to 73 per cent of pre-lockdown levels and as a business, we have had the highest cash collection volumes since the first lockdown.
“With this in mind, we will continue working to ensure that those consumers who still prefer to use cash can still have this choice as our economy continues to open.”
Sky opens first ever retail shop in London
Sky, Europe’s leading media and entertainment company, has announced its opened its first ever retail shop in London at Westfield Stratford City.
The opening of this latest Sky Shop in London adds to Sky’s growing retail footprint across the UK which includes shops already open at some of the country’s busiest retail destinations such as Liverpool One, Trinity Leeds, Metrocentre Gateshead, Buchanan Street, Glasgow, and Sheffield Meadowhall. The shop will build on Sky’s existing presence in the city with head office locations and Sky Studios in close proximity to London.
The new shops are the first time Sky has had a full retail presence which brings together its innovative Mobile, Broadband and TV products all under one roof, and with dedicated expert advisers and bespoke areas throughout the shop. Comprising 1,420 sq ft in total, the shop will provide an unrivalled space for customers to speak with Sky’s expert advisors and test out the brand’s latest innovations. Sky Shops offer a new social hub for shoppers - whether they are looking for the latest Sky products, the assistance of expert in-shop advisors, or simply looking to immerse themselves in all Sky has to offer.
Sky’s focus on customer experience is at the crux of the new shops and designed with customers’ needs in mind. The shop will be separated into designated themed spaces across an open-plan layout, encouraging easy and safe conversation between Sky’s expert advisors and customers. It will also have a dedicated ‘Customer Hub’, complete with seating areas, that will allow existing customers to speak to advisors about their current products.
A dedicated ‘Access All Areas Stage’ will host various interactive experiences for customers, creating moments that entertain and surprise, putting customers at the centre of Sky’s extraordinary entertainment content and leading products.
Customers will be able to test out Sky’s latest innovations, displayed across the shop for maximum convenience and accessibility, for the first time. Shoppers can experience Sky’s award-winning Sky Q technology, including entertainment content from Sky and established partners such as Netflix and Disney, and new, innovative partnerships with fitness apps, Fiit and Peloton. This provides customers with the opportunity to make the most out of Sky’s products and services and ensure they take home the right products for them.
Matthew Price, Retail Director, Sky UK commented: “We are delighted to be opening our first ever retail shop in London at Westfield Stratford City. This marks the first time Sky has ever had a bricks and mortar retail presence in the capital and this is a proud moment for the business. The shop will allow Sky to showcase the amazing benefits it has to offer new and existing customers. As the second largest shopping and leisure destination in Europe, Westfield Stratford City really stood out to us as a key retail hub and we’re pleased to be able to offer a safe environment in which people can shop for the latest innovative technology from Sky. We look forward to opening our doors and sharing the full experience with customers.”
Kate Orwin, Leasing Director for Westfield UK, says: “We are delighted to partner with Sky to launch their first retail shop in the Capital at Westfield Stratford City and bring its innovative and cutting-edge products and services to shoppers. Our recent How We Shop research found that 66% of consumers expect stores will be using more floorspace to offer experience than product, something Sky do particularly well to elevate the customer experience in store. Westfield centres continue to attract the best and newest concepts that our customers want and we look forward to welcoming Sky as our newest entertainment brand to launch a physical store at Westfield Stratford City.”
The Sky shop is located on level one of Westfield Stratford City shopping centre, in between Paperchase and Samsung, and joins a series of new openings at Westfield Stratford, including Wanyoo Esports and Beyond Retro.
M&S family survey results to impact product opportunities & marketing
A new survey conducted by Marks & Spencer has shown how shifting ideas and values on what constitutes a family influences consumption habits and behaviour. M&S today launched the first of its new quarterly Family Matters Index reports, designed to identify what family means today, why family matters and what matters to families now. Conducted by Yonder Consulting, the first benchmark study combines qualitative and quantitative research with over 10,000 people from across the UK. Key findings show that over half of people (55 per cent) believe that family is defined more by who you feel close to than by biology – increasing to 72 per cent for those aged 18-24. The survey also found that half of the UK agree that “the make-up of families is unrecognisable compared with 20 years ago”, while 90 of respondents said they felt part of a family. Due to the pandemic, around 79 per cent of Brits now believe family is more important than ever, 40 per cent of respondents said their family has never been stronger, while three times as many people felt closer to their family than a year ago. The Family Matters Index report had a benchmark score of 55 out of 100, which M&S said demonstrated “a cautious optimism” about family prospects for the future as the UK emerges from the pandemic. The high street stalwart said it would regularly track and measure the optimism of families and compare across different representative groups, and that this would form part of its wider transformation scheme – which has a focus on being relevant to consumers. M&S said the new tracker was just one way of helping the retailer deliver on products, ranges and services that respond to families’ needs and changing consumer behaviours. This includes expanding its range of value staple lines, extending its activewear range to men and children, and include vegan products and expand marketing opportunities for celebratory occasions like Easter, Christmas, Passover, Eid, Chinese New Year and Ramadan. M&S also said it would develop “easy dressing” adaptive clothing ranges that support specific needs, including specially made hip dysplasia clothes, feeding tube clothing and zip-up bodysuits. The retailer said it would also strive to address sustainability concerns in its Plan A multi-year action plan, through the launch of sustainable fashion ranges, using less water, increasing food redistribution, tackle modern slavery, and extending its climate change commitment from carbon neutral operations it has today to reach a net zero emissions status by 2035. “We’ve launched the new Family Matters Index to obtain and share a deeper understanding of how the UK’s families are feeling and what they’re doing,” M&S communications director Victoria McKenzie-Gould said. “M&S serves around 30 million customers and our products help families make more of the everyday and mark the special moments we can all relate to – whether it’s a first day at school or milestone birthday. “Whilst we are first and foremost a retailer, we’re not only a retailer and for many we are an employer, partner and a neighbour – and we take that role seriously. “Through the quarterly index we want to stay close to families across the UK so we can deliver our promise of trusted value on the things that matter to them most. “The findings of this first study reveal that family is more important than ever, and in a year when we have all spent so much time apart, it has brought us closer in ways we could never have imagined. “We often talk about the M&S family and through the pandemic it’s been incredible to see how our colleagues have pulled together in support of each other. “As this report tells us, family is not always about set structures or blood relationships, but the feelings of support, trust and loyalty we feel from those closest to us.” M&S said the next Family Matters Index and report will be published in September.