Greggs axes 820 high street jobs
Greggs has announced plans to cut more than 800 jobs as a result of the ongoing coronavirus pandemic. Its chief executive warned that the bakery chain and food-to-go retailer “will not be profitable as a business” if sales continued at the rates they have been in lockdown, as it was confirmed that 820 staff will be let go. In a statement posted on the Greggs employee information website last week, chief executive Roger Whiteside said: “Covid trading conditions have forced this action onto our business and we are all very saddened by the need to part company with around 820 friends and colleagues, many of whom have worked with us for many years.” He added that “the battle with Covid hasn’t gone away and is intensifying further” as restrictions continue to be in place across the four nations of the UK, especially in England which is currently in another full lockdown. “At lockdown levels of sales, even after all of the mitigating action that we have taken, Greggs will not be profitable as a business and there can be no room for complacency,” Whiteside said. At the end of September, the Newcastle-based chain said it was in talks with staff to cut hours to try and minimise job losses when the furlough scheme was expected to end in October. The scheme has since been extended until March. Whiteside told reporters at the time: “Some stores have staff hours which are just off what’s needed for current demand. But others are a long way off and will need significant change."
Next CEO Simon Wolfson sells £10m worth of shares
Next chief executive Simon Wolfson has sold over £10 million worth of shares in the fashion retailer, following a strong recovery in its share price since March. Lord Wolfson sold 150,000 shares at £67.87 each, having made a similar disposal in 2019, which has enabled him to “spread his investments into other non-retail areas”. Next said that the share sale pointed out that he retained a significant shareholding, worth more than £80 million at current prices, in the retailer. The value of his holding is well above the three times basic salary stipulated in Next’s remuneration policy. Next shares were down two per cent in early afternoon trading on Friday after the announcement. Both the chain’s 500 UK stores and its online distribution warehouse were forced to close because of the four-week Covid-19 lockdown earlier this month. In the three months to October 24, Next said overall sales were better than expected, up 2.8 per cent i compared with the same period a year ago. It raised its full-year profit forecast after sales beat expectations in the third quarter, but warned on uncertainty affecting its trading in the fourth quarter. Lord Wolfson is currently the longest-serving chief executive of any FTSE 100 company, having been appointed to Next in 2001.
ASOS founder and director Nick Robertson offloads 13.6m of shares
Asos founder and director Nick Robertson has offloaded £13.6 million worth of shares in the online retailer, weeks after revealing it had more than quadrupled its pre-tax profits. The retailers’ shares were accelerated by the demand in online clothes shopping, as restrictions meant shoppers could not turn to bricks-and-mortar. Robertson made three disposals between November 5 and 9 and remains a significant shareholder, retaining 3.34 per cent of the company. The closure of non-essential bricks-and-mortar has led to Asos witnessing pre-tax profits reach £142 million over its 12 months to August 31, compared with £33 million at the same point last year. Retail sales rose by nearly a fifth to £3.17 billion, and Asos said that it had started its current financial year in a solid position. However, it remained cautious on consumer demand, citing likely disruption to the economic and lifestyle prospects of those in their twenties. Asos shares dropped on November 9 following Pfizer’s coronavirus vaccine announcement, falling by a tenth. However, the timing looks to have cost Robertson, who sold 148,000 shares priced at 4,370p, compared with 102,000 shares valued at 4,680p on November 6. Most recently, fashion retailer Next’s long-standing chief executive Simon Wolfson sold over £10 million worth of shares in the fashion retailer, following a strong recovery in its share price since March.
Half of British shoppers experienced delivery issues during lockdown
New research by Citizens Advice finds 47 per cent of adults in Britain had issues with parcel delivery since the first lockdown in March.
The report found complaints about parcel deliveries made to Citizens Advice had trebled since the coronavirus pandemic, with shoppers turning to online platforms instead of bricks and mortar stores.
Citizens Advice said it had received three times as many calls about delivery issues since March, compared with the same period last year.
The charity’s online advice on parcel issues was viewed almost 208,000 times between March and October, compared to 94,000 in the same period in 2019.
Three in 10 people also said they have had a parcel arrive late, while 24 per cent said their experience of a delivery issue has affected their confidence when ordering goods.
“It’s not right that the number of people having issues with parcels is so high,” Citizens Advice acting chief executive Alistair Cromwell said.
“As online shopping becomes an essential, we want people to feel confident that they can shop safely and securely from home,” Cromwell added.
Klarna launches price-tracking feature
Klarna has announced the launch of a price drop widget allowing customers to track the latest deals and sales.
Created in time for the festive season, Klarna’s new iOS feature is designed to help consumers follow sales dates and deals.
Shoppers can receive live updates on price changes for their saved items.
The payments provider also launched a new curated holiday Wish Lists feature, encouraging shoppers to use the Klarna app for browsing personalised brands and categories, as well as a place to track their payments.
“With online shopping becoming the new norm and as people prepare for the upcoming holiday season, the Klarna app can play an integral role in simplifying this busy shopping period,” Klarna senior product director Daniel Lange said.
With these new features, we want shoppers to feel in control while getting access to all of the best products and brands in a simple and tailored way, all from the comfort of home,” Lange added.
Christmas shoppers warned to avoid electronics from online marketplace sellers
Christmas shoppers turning to the internet should stick with reputable websites of known retailers instead of third-party sellers on online marketplaces when buying electronics, a safety charity has warned. Electrical Safety First is concerned even more consumers could end up buying a dangerous electrical product that presents a fire risk from online marketplaces, due to people spending more time at home during the Covid-19 pandemic. According to a survey of 3002 adults carried out by the charity, 58 per cent of Brits will be shopping on online marketplaces for Christmas this year. More than half (53 per cent) of that group say they will be using these sites more than in previous years. One in five of those planning to do Christmas shopping this year say they intend to buy electrical products to give as gifts. Of these, 57 per cent revealed they plan to buy electrical gifts from online marketplaces. “With Covid-19 at the forefront of everyone’s minds at the moment, it is understandable that many consumers are planning to shop online for Christmas gifts to avoid the high street this year,” Electrical Safety First chief executive Lesley Rudd said. “We would urge people purchasing electrical products to use the stores or websites of known manufacturers and retailers such as those found on the high street, rather than resorting to third party sellers on online marketplaces. “Our investigations have found some extremely dangerous items for sale on these platforms and substandard or counterfeit products are often very difficult to spot to the untrained eye. “We have proposed legislation which, if passed, would force online marketplaces to take responsibility for the safety of the goods sold on them and allow consumers to shop in good faith but until that happens we urge caution.”
Debenhams opens virtual beauty room
Debenhams has announced the launch of a virtual beauty room to enable shoppers to receive in-store customer service from the comfort of their own home.
The department store group will offer customers the chance to book one-to-one 30 minute virtual consultations on its website, teaming up with skincare brand Shiseido and cosmetics companies Givenchy and Bare Minerals.
Debenhams will also be offering social media masterclasses each week on Facebook and Instagram, featuring Clarins and YSL.
“During these challenging times, health, beauty and wellbeing is more important than ever before,” Debenhams co-chief executive and managing director Steven Cook said.
“We wanted to ensure that our customers could still have access to our beauty experts to support them with all their beauty needs without having to leave home. That’s why we have introduced the virtual beauty room and we are delighted to be able to deliver free of charge consultations and masterclasses from some of the very best beauty houses across the globe,” Cook added.
The retailer noted that its TRY.LOVE.KEEP! service had also performed well since launching in September.
The service allows customers to try a test product before committing to a full size purchase.
British Land's retail estate drops in value as CVA's increase
British Land has seen the value of its retail portfolio drop as its retail tenants turn to CVAs and the Covid-19 pandemic continues to wreak havoc in the retail sector. The shopping centre owner, which owns Meadhowhall in Sheffield, said the value of its retail portfolio was down 15 per cent in the first half of its financial year. A total of 16 occupiers undertook CVAs or fell into administration during the period, which led to an £11.6 million fall in annualised rents. Despite this, British Land said occupancy across its retail portfolio “remains high at 95 per cent, with all assets open”. The landlord reported that 86 per cent of stores were open before local and then national lockdowns were imposed and it had been “encouraged by the pace at which footfall recovered” before the latest restrictions. “Our approach has been both pragmatic and proactive to maximise occupancy and rent collection,” British Land said. “We are working with successful, financially strong retailers who are additive to our places to agree leasing structures that are appropriate to their business models, potentially including an element of turnover-linked rent and deliver sustainable, long-term cash flows. “Whilst rents on new lettings and renewals are below previous passing levels, in a very low interest rate environment, this approach of improving the quality of our cash flow will in the long run underpin the appeal of our assets to buyers.” British Land reported a fall of almost 30 per cent in first-half underlying profits. Chief executive Simon Carter said: “Our first-half results naturally reflect the challenges in retail. Against this backdrop, we remain focused on active asset management, working to maximise rent collection and keeping our units occupied with successful retailers. “There is a clear preference from shoppers and retailers for out-of-town, open-air retail parks. “Our approach and asset mix means that prior to the November lockdown, we were delivering significant outperformance on footfall and retailer sales and a steady improvement in rent collection levels.”
Cycling sales boost Halfords profits as people avoid public transport
Halfords has witnessed a surge in interim profits thanks to ongoing demand for its bikes as people avoided public transport during the Covid-19 pandemic. The cycling and motor accessories specialist said that underlying profits rose by a colossal 116 per cent to £56 million in the 26 weeks to October 2, when group sales climbed 6.7 per cent like-for-like to £639 million. Retail like-for-likes rose 8.1 per cent to £524 million, while cycling revenues rose 54 per cent like-for-like during the period. Halfords was designated an essential retailer so it is still trading during the current lockdown. In the first five weeks of the second half to November 5, sales had ”continued to be relatively strong, with good growth and increased market share in cycling, alongside resilience in our motoring products and services businesses”. Halfords has since “seen some impact on trading as the second national lockdown came into force”. The retailer said cycling has continued to grow, that there was an “immediate upturn” in its Mobile Expert business. However, sales of motoring products have been affected as car traffic dropped from pre-Covid-19 levels. “We are very pleased to have achieved such a strong first-half performance against the backdrop of one of the most challenging trading environments in recent history,” Halfords chief executive Graham Stapleton said. “It is a great testament to the strength and adaptability of our business, as well as to the professionalism, hard work and dedication of our colleagues. “We have worked hard to capitalise on the cycling market tailwinds by sourcing more stock from existing and new suppliers, as well as launching new products and brands to serve the high level of demand for our cycling products and services. “Despite the headwinds we have seen in motoring, with UK traffic 30 per cent lower than pre-Covid-19 levels and the impact of the MOT deferment, our ‘Road Ready’ campaign and the investments we have made in our motoring services business have enabled us to increase market share and grow the business in quarter two.”
Sports Direct launches first ever Christmas advert
Sports Direct has unveiled its first ever Christmas advert, which showcases the Mike Ashley-owned retailer’s new positioning for 2021 and beyond. The new advert, titled Sport Starts Here, was directed by Henry Schofield, a VMA winner best known for directing Stormzy’s Vossi Bop music video, is a celebration of sport and fitness via a range of sports being choreographed in a magical mashup. The film follows a female protagonist being asked “what do you want for Christmas?” by her mum, before exploring the realms of sport in every sense of the word. Liverpool FC captain Jordan Henderson makes a cameo, where he’s seen being tackled by a female football player, alongside over 100 everyday athletes featured throughout the advert. Ahead of Euro 2021, the new Nike England shirt Henderson wears in the advert is also available to purchase via the Sports Direct website for £69.99, with free England lettering being offered on each purchase. Sports Direct said it was also offering the Premier League “No Room for Racism” badge for free when customers purchase an official Premier League badge, so fans can pledge their alliance to stamp out racism in football. “The evolution of our brand is the final piece of our elevation strategy,” said Michael Murray, head of elevation at Sports Direct parent company Frasers Group. “This is just the start of things to come for the new-look Sports Direct.” Sports Direct chief marketing officer Beckie Stanion said: “Let’s face it, 2020 has been tough for most. We wanted to use our Christmas campaign to reignite people’s positivity, passion and confidence through the powers of sport and fitness. “Regardless of where you’re from or how skilled you are, we want to champion the legend in everyone. “The Christmas advert truly marks the start of something new for Sports Direct, which is why we bought together some of the UK’s most creative talent and used real sport and fitness stars. “We’re excited to introduce the nation to our reinvigorated outlook, we really believe that during these challenging times, sport is the great equaliser.”
Rising clothing & food prices drives up inflation
UK inflation bounced higher last month as the price of food and clothing went up, according to official figures. The ONS said Consumer Prices Index (CPI) inflation rose to 0.7 per cent in October, compared to 0.5 per cent in September. It surpassed the expectations of analysts, who had predicted that inflation would stay flat at 0.5 per cent for the month. “The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year,” ONS deputy national statistician for economic statistics Jonathan Athow said. “The cost of food also nudged up, while second-hand cars and computer games also all saw price rises. “These were partially offset by falls in the cost of energy and holidays.” Economists at the ONS said clothing and footwear prices increased by 2.5 per cent for the month, rebounding after a period of heavy discounting through the summer as stores tried to attract more customers in the face of restrictions. Food inflation was another key driver of rising inflation, as prices bounced back from deflation in September. The ONS said it was particularly caused by an increase in the price of vegetables and fruit. Transport and vehicle prices also pushed higher, as the price of second-hand cars rose by 1.4 per cent, with new car prices up 0.5 per cent as demand for cars improved in the face of guidance to avoid public transport. The largest downward pressure on inflation was caused by a fall in household energy prices. It revealed that gas prices dived by 12.3 per cent and electricity prices slumped 3.2 per cent between September and October. The Retail Price Index (RPI), a separate measure of inflation, was 1.3 per cent in October, rising from 1.1 per cent in the previous month. Meanwhile, the CPI, including owner-occupiers’ housing costs (CPIH) – the ONS’s preferred measure of inflation – was 0.9 per cent last month, up from 0.7 per cent in September.
John Lewis, Tesco, Currys and Game websites crash amid PS5 launch chaos.
John Lewis, Game, Currys and Tesco’s websites have all crashed this morning as eager shoppers scramble to get their hands on a PlayStation 5.
PS5 orders have once again been thrown into chaos as the country’s largest retailers’ websites struggle to handle the spike in traffic as the console officially goes on sale in the UK.
At the time of writing John Lewis’ website, which was due to begin selling PS5 stock at 8am, is down simply displaying an error message stating “We’re currently experiencing a problem. While we work on fixing this, please try to refresh the page or come back later.”
According to unconfirmed sources on Twitter, the retailer has informed a few shoppers that the PS5 is now out of stock.
Game, which was due to begin selling launch stock at 9am, has been down for over an hour and is still inaccessible at the time of writing, with no word yet from the retailer.
Currys also said it would begin selling launch stock at 9am, but was forced to delay the release indefinitely as it too buckled under the pressure for demand for the next-gen console.
“Our 9am go live for the PS5 is unfortunately on hold,” the retailer told shoppers on Twitter.
“We’re really sorry as we know a lot of you are really excited to get your hands on the PS5, we are hoping that it will go live later today… Keep your eyes peeled on our page for more updates.”
Tesco, the UK’s largest retailer, now says it has sold out of PS5 stock after facing similar website outages.
Amazon’s UK website, likely one of the few able to handle such traffic, is due to release some PS5 stock at 12pm, alongside Very.com.
Customers have also taken to Twitter to slam Game after it informed many customers this morning that their PS5 pre-orders would not arrive on time.
The email read: “Due to the volume of PlayStation 5’s in the UK market and the size of the product, the launch has led to UK wide delivery challenges for all Retailers and Couriers.
“Our aim has always been to ensure that as many orders arrive on time for release day as possible therefore, we have had to secure multiple couriers to help try to achieve this.
“However, for reasons beyond the control of GAME, YODEL have informed us today (18th November) that not all orders due to be delivered by them will be delivered on release day.
Yodel has responded to this statement, telling Video Games Chronicle that it does “not work directly with Game” and that it has been “consistently clear on the order volumes we are able to carry for them”.
Debenhams adds further delivery options in time for Black Friday
Debenhams has added more delivery options for Black Friday orders as it is fully set up to trade through the shopping holiday as part of a largely virtual event this year. The department store chain said customers need not be worried that their local store may be closed due to lockdown as it continues to trade online. As well as normal home delivery choices, Debenhams is offering online customers collection from their local convenience store. Debenhams’ online customers are now able to select a “Hermes ParcelShop” option, which allows them to collect their order from 4500 ParcelShop locations nationwide. There is a standard charge of £1.99 for delivery within 5 working days, or for £3.99 customers will be able to pick up their order the next day. Unwanted items can be returned for free via the same route. Debenhams has also mobilised its “Endless Aisle” in-store picking service in over 60 stores that are temporarily closed, to improve availability of product for customer orders. “We have thought hard about what will make shopping easier and more convenient for our customers at this busy time of year,” Debenhams co-chief executive and managing director Steven Cook said. “While they may not be able to pick up orders in our stores for the time being, this gives them the opportunity to collect their Debenhams order as part of an essential shopping trip. “We have some great offers for Black Friday, with exciting daily deals. We are expecting a surge in online orders as customers are shopping early for Christmas, knowing they may not be able to visit their loved ones over the festive period.”
M&S extend opening hours until midnight in time for Christmas
Marks & Spencer has announced that it is extending its opening hours until midnight for the final shopping days before Christmas. This marks the longest ever store opening hours that the retailer has offered in time for the festive period. From December 21 to 23, 400 M&S stores across the UK – which is two thirds of its store estate – will be open until midnight to give customers extra time to shop.
Last year, M&S had extended the opening hours to just 15 of its stores. The two-third of shops to offer this includes nearly all food-only stores (excluding travel locations) and combined Clothing & Food stores on retail parks such as the new Nottingham Giltbrook store. Shops on high streets and in major shopping centres will generally be open until 10pm. “We want our customers to be able to shop with confidence this Christmas, which means supporting social distancing in our stores and minimal queueing outside as the weather gets colder,” M&S retail, operations and property director Sacha Berendji said. ” To help with this, our Sparks Book & Shop service is now live at every store and we’ll be operating our longest ever opening hours just before Christmas to help customers purchase everything they need to make the big day special – however they are celebrating – whether it’s picking up the turkey, or collecting a last minute present they’ve ordered online. “Along with the wider industry, we continue to ask for Sunday trading hours to be extended to help us increase our capacity to serve everyone safely this festive season.” Alongside social distancing measures, which includes counting customers in via a bespoke app, M&S said it continues to operate “robust hygiene measures” in its stores.
Currys forced to cancel all PS5 orders due to website loop hole leaving customers furious
Currys PC World has apologised to customers after its was forced to cancel the sale of all PlayStation 5 consoles due to an error on its website.
Customers were left fuming yesterday as attempts to get their hands on a coveted PS5 console descended into chaos, seeing the websites of almost all of the UK’s major retailers selling the console crash.
Currys was originally due to release its launch day stock for sale at 9am, but informed fans on Twitter at 9:02 that the release was being placed indefinitely “on hold” as its website failed to deal with the spike in traffic.
It has now been revealed that an error in the retailers website meant shoppers were able to buy up Currys PS5 stock well before its 9am release, with Twitter users stating they managed complete a purchase as early as 5:30am.
This fatal error forced the retailer to cancel orders for the day, tweeting that “There will be no PS5s available to buy today.”
Those who managed to buy up Currys stock before 9am have reportedly had their orders cancelled and are awaiting a refund.
“If you had placed the order before 9am, this would have been cancelled due to a loop hole in the website allowing you to order”, Currys Team Knowhow Twitter account said in a now deleted tweet.
It is not clear when Currys will release its PS5 stock, which has been in severely limited supply across the board.
Many who managed to get their hands on a console are now selling them on Ebay for dramatically inflated prices, with many now listed on Ebay for over £1000.
According to Japanese media outlet Famitsu the PS5 has outsold the Xbox Series, which was released just days before, at a rate of five to one.
Aldi more than triples on demand delivery across the UK
Aldi is ramping up its on-demand delivery partnership with Deliveroo to nearly 130 stores across the UK.
The German discounter is once again announcing an expansion of its Deliveroo tie-up, which has seen it offer home grocery delivery for the first time, following huge demand for the service.
Last month Aldi said it had extended the trial to 42 stores across the UK but it has now more than tripled this number adding an additional 90 stores, making the service more widely available across Scotland and Wales.
Customers within a 6km radius of one of these stores can now order over 400 Aldi items for delivery in as little as 20 minutes.
Aldi added that it planned to roll out its new click & collect service to over 200 additional stores by Christmas as strong demand continues to push the grocer to focus more on online shopping alternatives.
In September, Aldi announced plans to invest a whopping £1.3 billion in to modernising its stores and distribution networks, crucially placing a major focus on its fledgling online offering.
“We’re finding customers really value having more ways to shop at Aldi, particularly at the moment,” Aldi UK’s communications director Richard Thornton said.
“That’s why we’ve been keen to extend our trial with Deliveroo to stores in more new areas, and plan to launch our trial of click and collect in more than 200 additional stores between now and Christmas.
“In the past month, we have made the Deliveroo service available in new areas such as Cardiff and Aberdeen, and will continue to monitor feedback of the service closely.”
October sales boosted by shoppers stocking up early for Christmas
The Office for National Statistics (ONS) found retail sales volumes in October rose by 1.2 per cent, marking the sixth consecutive month of growth. Retail sales were 5.8 per cent higher than a year before, suggesting that consumers had started their Christmas shopping early this year, thanks to discounting measures from stores. Taking a snapshot of the industry mid-coronavirus, the ONS found retail sales last month were 6.7 per cent higher than in February 2020, before the pandemic had begun to impact everyday life in the UK. Across retail’s sectors, demand for clothing and fuel in October remained below its pre-lockdown level, largely attributed to the restrictions in place for non-essential stores during lockdown earlier in the year, followed by restricted footfall on high streets due to local lockdowns as 2020 progressed. Purchases made online, through mail order or via other non-store outlets are defined by the ONS as non-store retailing, a sector that continued to strengthen its hold on the industry in October, with non-store retail volume sales coming in 44.9 per cent higher last month that their levels in February. The ONS found online sales now account for 28.5 per cent of all retail sales, rising from 27.6 per cent in September. “Despite the introduction of some local lockdowns in October, retail sales continued its recent run of strong growth,” ONS director general for economic statistics Jonathan Athow said. “Feedback from shops suggested some consumers may have brought forward their Christmas shopping, ahead of potential further restrictions. Online stores also saw strong sales, boosted by widespread offers. “However, the slow recovery in clothing sales has stalled after five consecutive months of increased sales.”