Amazon workers called on to strike over Prime Day
Amazon workers are being called on to strike on Prime Day by German trade Union, Verdi.
Verdi announced it was organising a three-day strike in its latest battle against the US ecommerce giant in Germany, calling for better pay and working conditions.
“The workers in the mail order centres have to cope with the rush of customers and don’t get a cent more for the additionally intensified workload,” said Verdi representative Orhan Akman in a statement to Reuters.
Germany is Amazon’s second biggest market after the US and the trade union has been battling against Amazon since 2013.
However, an Amazon spokesperson responded to the calls saying that the company offers excellent pay and benefits.
The company has claimed that, during previous calls for strikes, 90 per cent of workers in its logistics arm worked as normal.
This comes as earlier this month, the ecommerce platform promised to give workers an entry-level wage at its German warehouses, which would will mean employees’ pay will rise from €12 to €12.50 from next year.
Amazon’s widely anticipated members-only sales event is an important date in the ecommerce’s company’s calendar, with sales figures expected to exceed those of Black Friday and Cyber Monday.
Last year, Amazon sold $10.4 billion worth of goods, and Prime members collectively saved over $1.4 billion on Prime Day.
While the event is popular amongst consumers, Amazon has come under plenty of criticism in recent months over alleged workers’ rights abuses.
A poll carried out in May found that of 700 UK Amazon delivery drivers conducted by campaign group Organise, 82 per cent said they are forced to break the speed limit in order to meet targets and avoid being reprimanded.
A further 92 per cent said they never take a break while working, while 86 per cent said they did not have time to wash their hands between deliveries.
Over nine in 10 drivers also said they had been forced to urinate into a bottle during shifts as they have no access to a toilet and can’t afford to stop.
Amazon is now investigating gender-bias in its Prime team according to an investigation carried out by Business Insider.
John Lewis blasted for charging 3rd party brand ridiculous fees
John Lewis is reportedly facing backlash from third-party brands who have accused the department store chain of claiming “ridiculous” fees to stock their products. The retailer’s chairwoman Sharon White has enlisted Alix Partners to renegotiate supplier contracts, under which brands pay John Lewis up to 50 per cent of every sale in commissions and fees. Seasalt has since decided to cut ties with John Lewis saying it would push its offering in Marks & Spencer and Next instead, while two other unnamed brands had negotiated for discounts, The Times reported. In March the employee-owned parent John Lewis Partnership said it was not planning to reopen eight of its 42 John Lewis shops from lockdown, adding to eight closures last year. The moves to hike fees comes following a top-level shakeup at the retailer. In May, there were a host of new senior appointments — including bringing in a “store of the future” director. John Lewis appointed Stephen Spencer, currently director real estate, store development and strategic sales at athleisure brand Lululemon, as director of store of the future. This came alongside plans to invest £50 million in johnlewis.com this year as shoppers continue to buy online. “The review looks at a range of themes such as marketing and shop space, as well as fees. We build trusting and fair relationships that benefit John Lewis and our suppliers,” John Lewis said. “In the last six months, we’ve introduced 90 new Fashion brands, which demonstrates that we are an attractive partner to our suppliers.”
Retail landlords criticise disgraceful extension to evictions ban
Retail property owners have criticised the government’s decision to extend the current rent moratorium on commercial properties, protecting tenants from eviction to March next year. While retailers and hospitality groups can pay bonuses and dividends — and from next month will start paying business rates on their premises — property companies cannot force them to pay their rent. Most smaller tenants have been supported by landlords or have paid rent, while retailers including Boots, Superdrug, JD Sports and H&M have taken advantage of the legislation to defer payments. The British Property Federation, the industry’s principal lobby group, had called for an end to the ban on June 30. It argued that businesses continued to exploit the moratoriums and pay no rent at the expense of the local authorities. Since the government launched a ban on evictions and winding-up petitions in March last year, property owners have lost more than £6 billion, or £1 in every £6 of rent due, according to Remit Consulting. Landsec and British Land’s respective chief executives Mark Allan and Simon Carter came up with a proposal for resolving the £6 billion rent problem after teaming up. They suggested that rent arrears built up during the pandemic should be ring-fenced and landlords and tenants should be given six months to agree a plan for paying them back before entering into a binding arbitration. Carter and Allan said the announcement was “disappointing” and would “divert investment from our high streets”.
ASOS considers restructuring teams across Arcadia brands
Asos has reportedly considered restructuring the teams working across its Arcadia brands. The online fashion retailer bought Arcadia’s Topshop, Topman, Miss Selfridge and HIIT brands for £265 million back in February. It remains unclear as to what the proposal entails or how many roles could be affected. At the time of Arcadia’s purchase, around 300 employees across design, buying and retail partnerships transferred to Asos. Asos is now considering rationalising the headcount, Drapers reported. Last month, Topshop’s Oxford Street flagship store launched a sale process with a £420 million price tag. The building, which was valued at £500 million two years ago, is being advertised as an opportunity to introduce a “new age retail concept”. The sale process – named Project Infinity – is led by real estate adviser Eastdil Secured on behalf of KPMG, which was appointed administrator to Redcastle 214 – the company that held the building when Arcadia collapsed in December. The first £311.6 million of any sale will go to private equity firm Apollo, which lent against the building in 2019, with further proceeds going to Arcadia’s pension scheme.
Tesco trialling new Clubcard Pay debit card to reward customers
Tesco Bank are trialling a new prepaid debit card which will give shoppers double Clubcard points for three months.
The debit card will allow customers to claim extra point when doing their shopping as well as being rewarded for shopping at other shops, where they will receive one Clubcard point for every £8 spent.
The new Clubcard Pay debit card will work in a similar fashion to its reward scheme Clubcard, however there will be no overdraft and shoppers will be able to use it the same as they would a normal debit card.
Users will be able to withdraw cash from machines and use the card when at checkouts, all the while earning Clubcard points.
With Clubcard Pay, shoppers will be able to receive two Clubcard points for every £1 spent in Tesco and on Tesco Fuel.
The debit card offers double points for customers when they first signup for three months after opening their accounts.
The new card enables customers to keep track of their spending through the Tesco Bank app while having the option to round up their spending to the next pound which is set aside in a savings pot for the future.
The set aside savings earn interest at a rate of 0.1 per cent but can be transferred to other accounts with high returns.
“This innovation by Tesco to grow its younger demographic customer base is a significant move for the industry and challenges the challenger banks, such as Starling and Monzo who offer similar products,” Marketing agency Tcc chief executive Simon Hay told Charged.
“Emotionally connecting with customers to create long lasting loyalty remains a constant challenge for every retailer.”
Currently, only 20,000 UK consumers are able to sign up for a debit card however the retailer plans to roll out the scheme the rest of the nation come Autumn.
Tesco’s Pay+ app which allows shoppers to pay with their phones and collect Clubcard points surpassed £1 billion in payments in January as mobile payments garnered popularity during the pandemic.
Pay+ is now understood to have 1.2 million registered users and is used to make a transaction every 1.4 seconds on average.
Tupperware-style retail smashes £1bn in 2020
Tupperware-style retail enjoyed significant growth throughout the pandemic, thanks to a significant increase in people signing up as direct sales representatives for major brands. According to new data from the Direct Selling Association (DSA), there has been a 45 per cent year-on-year growth in “social shopping” sales following analysis of 54 leading UK direct selling brands, such as The Body Shop, Avon and book publisher Usborne. The DSA said this increase meant more than £1 billion retail sales among its members was made in 2020, marking one of the strongest annual growth periods on record for the UK since the heyday of 1970s Tupperware parties. The DSA also found a significant increase in the number of people choosing to work as independent direct selling representatives compared to before the Covid pandemic, taking the total number of people earning this way in the UK to 631,000 – an increase of 12 per cent year-on-year. “Direct selling has always been an industry powered overwhelmingly by women, and whilst working women have been hardest hit by the pandemic, it appears that many are taking control of their financial future by opting for more entrepreneurial styles of working,” DSA director general Susannah Schofield said. “The last year saw the greatest pace of change in the retail channel’s history with the events of the pandemic serving as a catalyst for a rapid transformation to far more sophisticated and widespread support of direct selling via online platforms. “It is largely due to this evolution and its effectiveness in facilitating both the new ways that consumers want to shop, and people want to work, that direct selling is seeing a renaissance.” Direct selling is a channel of retail where products are sold directly to consumers outside of a fixed retail environment. This could be via social events, Tupperware-style parties, social media events or online broadcasts, or through brochure distribution. Individuals act as independent representatives and earn through commission paid on product sales.
High Street "will be a different place" - Samsung UK boss
The head of Samsung in the UK has said that while the high street will remain an important outlet for retailers after the pandemic, it will evolve to become a “different place”. Samsung UK and Ireland corporate vice president Conor Pierce said the tech giant was already seeing people return to physical retail spaces as lockdown restrictions began to ease and shops started to reopen. Speaking to the PA news agency, Pierce said Samsung’s own research had found that many people intended to return to the high street post-pandemic, but the rise of online shopping driven by lockdown restrictions would also drastically change how people shopped. He also described the lockdown restrictions as having “fast-tracked” how the Samsung would be “engaging with the market” going forward. “I think it (the high street) is definitely going to be a different place,” Pierce told PA. “I think it’s just a natural evolution and new chapter in retail – obviously forced by the pandemic.” Samsung’s research showed that prior to Covid, retail accounted for around 50 per cent of smartphone sales in the UK but during the pandemic that dropped down to 21 per cent, partly hanks to some non-essential stores remaining open for click-and-collect services only. Since shops have reopened after the recent third lockdown, that figure has climbed up to 37 per cent – which Pierce said was still “quite a significant drop” compared to pre-pandemic figured. “What is interesting though is that recent research shows that 20 per cent of UK consumers intend to return to retail to browse and shop,” he said. “So I think they still recognise that need for retail. “Of course, everyone has been imprisoned in their homes so they’re desperate to get out anyway, but they certainly see value in retail and retail for us is very important.” Samsung, like many other major tech firms, moved its product announcements and retail experiences online during the pandemic, creating virtual hands-on spaces to preview new devices to the media and others, with many continuing to run events and offer new ways to shop online.
Landsec to host a new inclusive beauty event across the UK
Landsec has announced a new beauty-themed event, ‘Be Your Beautiful’, which will take place across key retail destinations within the portfolio, commencing at Buchanan Galleries, Glasgow on 26 June. The event will then move to Trinity Leeds, Bluewater Kent, St David’s Cardiff, and Westgate Oxford in the following weeks, culminating at White Rose Leeds on 31 July. Developed by the Landsec marketing team, ‘Be Your Beautiful’ is an inclusive event to celebrate each person’s individual form of beautiful. The two-day themed event is part of a wider campaign shining a spotlight on beauty, cosmetics, and health & wellbeing. Each location will feature a dedicated line-up of giveaways and empowerment opportunities, emphasising the values of kindness, self-care, and being true to yourself. Landsec managing director Bruce Findlay commented on the initiative: “This is a fantastic initiative that brings together the power of our brand partners along with our expertise in curating events that provide our guests with an experience that can’t get elsewhere.” “It’s a win-win for our brand partners, our guests and the community in which we operate. Through this type of activation, we’re creating a platform for our brand partners to thrive, and extending the role that our centres play in the lives of our guests” The event will feature a giant foot-powered digital scratch card machine that guests can play to be in with a chance of winning hundreds of prizes and an ‘Empowerment Mirror’ featuring designs and slogans from Instagram’s popular influencer ”The Label Lady”, Jemma Solomon. There will also be unique activations at Westgate, Bluewater, and St David’s, with a beauty amnesty hosted by charity The Hygiene Bank, where shoppers can donate unopened, unused toiletries and beauty products which will then be distributed to good causes in local areas. Exclusive content is currently available to sign up to, including videos and interviews with stars of RuPaul’s Drag Race UK, Tayce and Lawrence Chaney. As well as discussing their transformative make-up looks, the Queens will be discussing beauty, pride and wellbeing.
Morrisons brings back glass milk bottles in a bid to cut plastic
Morrisons is reintroducing glass milk bottles in a new trial as the supermarket continues to find ways to help customers to reduce their plastic use. The glass milk bottles which hold a pint of milk and are priced at 90p will be available in seven trial stores across Kent and four stores around Sheffield. They are delivered directly to Morrisons supermarkets by local dairy farms and once returned are collected and sanitised and can be reused for ten years or more. The introduction of traditional glass milk bottles is expected to remove 40,000 plastic bottles from these Morrisons stores per year as well as reduce CO2 emissions as delivery from local suppliers means milk covers shorter distances. Morrisons packaging manager Natasha Cook said: “We want to help our customers live their lives with less plastic.” “Reusing glass milk bottles is an easy leap for many people to make because they remember that this was how milk used to arrive on the doorstep. “We’re currently talking to other local dairies and hope to be able to roll out glass milk bottles across the country.”
Steve Hynd, Policy Manager, from City to Sea said: “Milk is a prime example of a product that could and should be swapped from single-use plastic bottles to planet friendly reusable bottles.” “It is great to see Morrisons pioneering the process of delivering milk in reusable bottles in supermarket stores. “We know this move is popular, with 3 out of 4 people telling us they want more refill options in shops as a way of tackling plastic pollution. “This is Morrisons doing not only what’s right for the planet but also what their customers are telling us they want to see.” Morrisons has also already committed to a 50 per cent reduction across its own-brand primary plastic packaging by 2025. These initiatives introduced over the last 12 months will remove 9,000 tonnes of unnecessary or problematic plastic each year while over 83 per cent of Morrisons own-brand plastic packaging is now able to be recycled.John Lewis expands furniture rental service following successful trial
John Lewis has announced it will expand its furniture rental service by doubling the range on offer following last year’s successful trial. The department store retailer said the range on offer through its rental service will now grow to 200 furniture lines, ranging from bed to bar stools, and sofas to dining tables. Previously only available in London, the service will now also be extended to John Lewis customers outside the capital. John Lewis said last year’s rental trial, through which is partners with Fat Llama, saw almost all of its rental collection snapped up within the first 48 hours. The retailer said this highlighted “the demand and changing attitude towards renting goods which would previously be bought”. It also found that thirds of those using the service were furnishing rented accommodation and just over a quarter had recently bought their homes. Meanwhile, desks and office chairs were among the top rental picks as lockdown saw customers repurposing rooms continued work from home. “We’re seeing a real shift in consumer behaviour towards usership rather than ownership, the weak signals were already there pre-Covid, with the emergence of car-sharing schemes, hot-desking and services like AirBnB, but the pandemic has turbo-charged this with an almost back-to-the-future move towards sharing, reusing or trading within communities or groups – renting a dress or sofa is the modern day equivalent of borrowing sugar from next door,” John Lewis Partnership futurologist John Vary said. John Lewis home furnishings head buyer Nicola Waller said furniture rental offers “quick convenience” and any need for long-term commitment. “It is also a sustainable choice for our customers and the expansion of our rental scheme reflects our ambition to offer more sustainable ownership options and forms part of the commitment we made to our customers that all of our John Lewis product categories will have a ‘buy back’ or ‘take back’ solution by 2025,” she said. Customers using the service are able to rent John Lewis furniture for 12 months at a time, followed by the option to purchase the product with payments already made deducted from the purchase price.
Space NK releases its first ad campaign in over 10 years
The beauty retailer Space NK has launched its first advertising campaign in over ten years. The campaign which launched this week will appear across multiple media platforms, as well as feature in the windows of the retailer’s store estate. The campaign titled This is your Beauty – Space NK showcases that beauty is different for everyone. The retailer said the creative will explore the importance of individuality in beauty and the customer discovering the products that work for them. Space NK chief marketing officer Emma Simpson Scott said: “When it comes to beauty, everyone has their own perceptions, approach and priorities. Our new campaign embraces the importance of individuality in beauty and discovering what works for you. “Our beauty advisors both instore and online are dedicated to helping customers find products that work for them on their terms. “It’s their choice, their approach to beauty and it’s their beauty ‘space.’”
Superdry on the hunt for a new London flagship store
After ending the lease on its Regent Street store early, Superdry is relocating its London flagship. The retailer closed its Regent Street flagship location, which opened its doors in 2011, earlier this month. It is unknown when the lease was supposed to expire. Superdry is looking at a variety of properties in London, including Forever 21’s old flagship store on Oxford Street, which closed last year when the business went into administration in the UK. A Superdry spokesman told Drapers that the retailer could confirm that it is relocating its London flagship, and has agreed terms with the landlord to surrender its lease on the Regent Street store. “We remain totally committed to London and are in advanced talks on securing a new West End store which will be a global flagship for the brand, showcasing our new ranges and reflecting our commitment to sustainability.”
M&S to offer video-based customer service after Go Instore partnership
M&S has announced it has partnered with Go Instore to offer customers enhanced shopping experiences through a new Video Expert Service.
Video Expert is a live-video service designed to replicate the company’s in-store customer service for online customers.
The software powered by Go Instore enables staff from beauty and furniture departments to connect to customers shopping from home, offering convenience and flexibility alongside the service customers expect from the major British retailer.
Customers will also be able to book and schedule appointments with sales associates through Edinburgh-based startup Appointedd’s platform, which has also recently partnered with Go Instore.
The service will allow shoppers to have one-to-one consultations with M&S experts from the comfort of their home and on demand via product pages on the website, informing their purchases before choosing to complete either online or in-store.
“Our M&S Live Expert service helps us to offer our customers flexible, easy and rewarding shopping experiences whether they choose to shop online, in-store, or both,” M&S digital store programme manager Clive Hudson said.
The additional M&S Video Expert booking feature means customers can pre-book two-way personalised video calls with an in-store expert at a time of their convenience to discuss how furniture and beauty products will best fit their needs.
The new service will also enable M&S staff to perform “StoreStream” live-stream sessions on the site, which allow unlimited numbers of customers to join broadcasts to learn more about products as they browse.
M&S sales associates are able to chat and ask questions in real-time regarding the products.
“The last year has accelerated many of the trends and shopping patterns we were seeing pre-crisis and we have responded by building a shopping experience that’s fit for the future, enabling customers to shop the way that they want,” Hudson added.
“The service has proven really popular, our in-store experts have taken over 9000 calls so far. What’s more, connecting staff to online customers is increasing our conversion rates by up to 40% and receiving 92% consumer satisfaction scores.
“Our customers have booked a total of 500 appointments in just 3 months, demonstrating the high demand for our enhanced digital offering.”
M&S launches lingerie brand Freya in third-party push
Marks & Spencer is launching lingerie brand Freya on its website today as part of its third-party push. As reported by Drapers, Wacoal Europe-owned Freya, which sells bras up to a K cup, will join the site, followed next month by the lingerie brand Fantasie. Freya and Fantasie are the third and fourth lingerie brands to be added to the retailer’s site as part of “Brands at M&S”, following the launches of Sloggi & Triumph earlier this year. Neil Harrison, director of “Brands at M&S”, told Drapers : “We’re very proud to be the UK market leader in bras and knickers – offering our loyal customers the best in comfort, quality, style and value. “Adding complementary brands, such as Freya which launches today, and Sloggi and Triumph which have had great customer feedback, is an exciting way we can offer our customers even more choice when they shop on our platform.”
Sports Direct on hunt for lots and lots of stores
Sports Direct is “looking at lots and lots of stores”, including vacant department stores, as it accelerates its expansion drive by picking up vacant space thrown onto the market during the pandemic. Frasers Group head of elevation Michael Murray told Property Week that Sports Direct is looking “at lots and lots of stores now.” “We’ve proven the concept works and we have confidence in our concept. Landlords want to work with us and we’ve never been in a better place with our brands. “It’s now going to be about how many [stores] can we physically do a year? That’s the big question.” He added that there will be a “huge push into Europe” as the business has a five-year plan with its brand partners. “We want to have this concept in all capital cities around Europe,” he told Property Week. Following a £10m facelift, the improved flagship store now features a bra-fitting zone as well as 100 digital screens, a selfie booth and 140 different brands. Murray told Property Week that the store was a “pivotal moment in an era of huge change,” and that the concept would be replicated in other major locations across the UK. Despite the fact that brick-and-mortar retail has been heavily damaged by pandemic lockdowns, Murray believes that “there has never been a better chance to create new stores” for the business. He added: “The rents are coming into alignment with what people can afford. Landlords are starting to work with tenants on a turnover basis, and in the long term sharing the upside, sharing the downside and also contributing towards fit-outs and matching out investments. “So there’s been no better time to roll this plan out. If we did it five to six years ago, we would have paid the highest rents in the marketplace.” The group signed a lease for the vacant Debenhams shop in Galway last month. The move came after Mike Ashley, the owner of Frasers Group, tried unsuccessfully buy the whole department store business last year.
Poundland owner posts 47% surge in half-year profits
Pepco has posted a rise in half-year sales and profits and revealed that one in 10 products on sale across it Poundland fascia are no longer priced at its traditional £1 price point. For the interim period ending March 31, Pepco – which also operates the Dealz and Pepco fascias in mainland Europe – said underlying pre-tax profits surged 47.2 per cent year-on-year to €112 million (£95.82 million) while underlying EBITDA grew 16.8 per cent year-on-year to €324 million (£277.24 million). The profit increase came on the back of a shift away from being a single-price retailer as half-year revenues rose 4.4 per cent year-on-year to €1.99 billion (£1.7 billion). Pepco said trading store like-for-likes – defined by stores that were able to remain open throughout the pandemic and were exempt from lockdown restrictions – enjoyed an uptick of five per cent. Poundland and its European equivalent Dealz saw a like-for-like sales increase of 1.4 per cent during the six months period compared with the same period a year earlier. However, overall like-for-like growth for all stores dropped 2.1 per cent due to the various lockdowns and Covid-19 restrictions across its markets, which Pepco said saw roughly 15 per cent of trading weeks lost during the half-year period. Despite the pandemic, Pepco still managed to open 402 net new stores compared to the previous year, bringing its total store estate to 3246. In the UK, the increase in the Poundland store estate was primarily reflected in the 80 Fultons Frozen Foods stores the retailer had acquired as part of a transaction designed to enhance Poundland’s capability and scale in this key target growth category of frozen food. As a result, frozen food offering is now available in 129 Poundland stores, with the intention to have it available in 700 within the next two years. Poundland now has 917 stores in the UK and Ireland, with its Pep&Co clothes lines in 300 larger stores – which in turn has increased sales of products with higher profit margins. Bosses also said they managed to reduce rents by around 50 per cent on 44 stores and look set to cut rental fees on a further 211 stores within the next two years. Pepco chief executive Andy Bond said he expected to see improvements as customer behaviour returns to more normal shopping patterns. “We anticipate that the environment in which we operate will remain changeable and challenging in the short term but over time as consumer behaviour returns to more normal patterns, as any Covid related restrictions that impact our customers confidence to shop are further relaxed,” he said. “However, as these results show, we have a clear and winning customer offer, a long-term growth strategy delivering stores in existing and exciting new markets, as well as a number of key initiatives to drive our sales and margin. “As such, we remain confident about our prospects for continued profitable growth in the balance of the financial year and beyond.”
Amazon post record Prime Day sales of $11bn
Amazon Prime Day sales matched analysts expectations by beating last year’s Cyber Monday figures, seeing sales of over $11 billion according to Adobe Analytics.
According to Adobe, Amazon’s two-day sales bonanza generated 6.1 per cent more sales for the ecommerce behemoth than the event last year, which saw sales of $10.4 billion in overall US digital revenue.
The total beat last year’s Cyber Monday sales holiday, which was until a few days ago, the most successful digital sales day on record, which recorded sales of $10.9 billion.
The first instalment of Prime Day saw the bulk of online retail sales, with figures amounting to $5.6 billion, the second day watched sales drop slightly to $5.4 billion.
“There’s a pent-up demand for online shopping as consumers look forward to a return to normalcy,” Adobe director of digital insights Taylor Schreiner said to CNBC.
“The halo effect of Prime Day also played a significant role, giving both large and small online retailers significant revenue lifts.”
Popular retailers Walmart and Target were amongst a selection of companies trying to cash in on the Prime Day frenzy by offering competitive sales deals themselves.
Research from Adobe shows that retailers that bring in over $1 billion in revenue every year saw a 29 per cent increase in ecommerce sales during Prime Day compared with an average June day.
Retailers that generate less than $10 million annually saw a 21 per cent rise in sales.
Amazon invests heavily in the success of partners that use its platform to sell and offered small businesses sellers promotion deals such as spend $10, get $10 which was funded by the platform itself in the lead up to Prime Day.
Data shows that consumers spent over $1.9 billion on more than 70 million small businesses products during this promotion period, which was over a 100 per cent increase year-on-year compared to last year’s event.
Tens of millions of shoppers also watched Prime Day product demonstrations and try-on hauls broadcast directly from creators, a growing trend in ecommerce.
Debenhams launches first campaign since Boohoo acquisition
Debenhams is launching its first brand campaign since its acquisition by the Boohoo Group in January 2021. The nationwide, multi-media campaign which goes live tomorrow positions the retailer as a digital-first department store destination for Fashion, Beauty and Home under the new name Debenhams.com. Showcasing the retailer’s fashion, beauty and home offering, the campaign will see Debenhams connect with its established 18.9 million customers across digital and social platforms. The 30-second advert, featuring an everyday family to reflect the wide customer audience of Debenhams.com, aims to drive both new and existing customers to the newly relaunched e-commerce site. The campaign also highlights Debenhams.com’s multi-brand offering including the much-loved Debenhams in-house brands: Principles, Red Herring, Maine New England and Mantaray, plus the addition of brands from across the Boohoo Group portfolio. The campaign will run for 8 weeks across primetime shows such as Love Island, This Morning and Celebrity Gogglebox, as well as On-Demand platforms. Group chief executive John Lyttle said: “I’m very excited to see the first Debenhams.com nationwide multichannel campaign, only 10 weeks after we launched on the 12th of April and just 5 months after it was acquired by the group in January.” “Driving the digital-first message, that we’re known for at the Boohoo Group, the campaign launches our first-ever online, multi-brand, cross-category platform. “Already we have launched some amazing brands and we will continue to strategically add to this diverse portfolio, offering even more choice to our customers which will allow us to see growth in new markets.” The retailer has already begun the rollout of its Beauty division with customer favourites: Urban Decay, Benefit, Peter Thomas Roth, Elizabeth Arden, and perfumes such as Marc Jacobs, Hugo Boss, Viktor & Rolf, Ralph Lauren, Montblanc and more. Debenhams.com Trading Director, Richard Vanoli, said, “We’re working hard to build our brand offering across our core Women’s, Men’s, and Children’s Fashion categories as well as Beauty and Home. “We know Debenhams customers love our heritage brands as well as the leading household names we have traditionally partnered with. “Every week, we have new brands launching on our site, with multiple brands available now and many more to come.” “We look forward to launching the Debenhams Beauty Club in the coming months, as well as the Debenhams App in time for Christmas, to further build on both the experience and reward for our customers. “We plan to grow the Debenhams.com platform into a market-leading online retailer where our customers are given an incredible experience, from purchase to delivery. We remain focused on the customers’ needs and how best to service them.
Crown Estate profit drops 22% as retail tenants struggle to pay rent
The Crown Estate is set to deliver less money to the Treasury this year due to the Covid-19 pandemic as many of its high street renters struggled to pay their bills. The estate, which owns huge tracts of property across the UK – including retail property – said that net revenue profit had dipped 21.9 per cent to £269.3 million. The decline was largely because the estate was unable to collect all the rent it was owed. It warned that further hits are likely as government support schemes for companies comes to an end. The news will mean a considerably smaller payday for the Treasury, which collects all of the Crown Estate’s profit. However, the Queen is unlikely to take a hit. Although the money she gets from the government – the Sovereign Grant – goes up if Crown Estate profits increase, it does not fall when they decrease. “Whilst the challenges posed by the pandemic and associated economic impacts are clear to see in our results, drawing on a diverse portfolio we have continued to demonstrate both our strength and resilience, contributing £3 billion to the public purse over the last 10 years and building a portfolio valued at over £14 billion,” Crown Estate chief executive Dan Labbad said. “What the pandemic has thrown into sharp relief is that challenge and uncertainty are the new normal and there is no doubt we will face another difficult year ahead, but with the progress of the vaccination programme and our collective resilience as a society, there is reason to be cautiously optimistic.” All the money from the Crown Estate goes into the Treasury’s coffers rather than being paid to the Queen. While the Crown Estate is not managed by the Queen, its income does have some bearing on how much money she is given each year. Currently the Sovereign Grant is 25 per cent of the Crown Estate’s profits. Since 2017 it has been temporarily increased from 15 per cent to pay for a major refurbishment of Buckingham Palace. The Crown Estate body currently owns property worth around £14.4 billion, according to the most recent results. Notable retail properties within the Crown Estate’s portfolio include the entirety of Regent Street, around half of St James’s in London’s West End as well as property in Oxford, Exeter, Nottingham, Newcastle, Harlow, and Swansea. While its retail portfolio has been challenged in recent years, the estate has managed to find huge value in its offshore holdings. The value of the Crown Estate’s portfolio increased by 7.5 per cent last year due to a £2.1 billion hike in its marine portfolio. This offset the fall of £1.1 billion in the Crown Estate’s capital values.
Decathlon partners with Tesco to open its first Welsh store
Decathlon has opened its first shop in shop in Wales, in partnership with supermarket chain Tesco. The 14,000 sq ft store inside Tesco Culverhouse Cross, near Cardiff, sells a combination of sportswear and outdoor sporting goods. Decathlon announced it entered the Welsh market in 2020 after seeing £2.5 million in online sales from the region. The total number of Decathlon outlets in the UK now stands at 47. Decathlon Culverhouse Cross store leader Lucia Varone said: “Following the success of our online business in Wales, we’re confident our store will attract new customers. We’re able to offer a range of sports in store, providing a new experience for our customers. “Additionally, the partnership with Tesco will allow us to speak with customers who might not have shopped with us before, giving us the opportunity to inspire them to lead active and healthy lifestyles.”
Nike revenues rise 96% as threat of Covid-19 subsides
Nike has seen its fourth quarter revenues grow as the retailer continues to emerge from the effects of the Covid-19 pandemic. Fourth quarter revenues were at $12.3 billion (£8.8 billion) in the three months to March 31, which was a rise of 96 per cent year-on-year. This marked an increase of 21 per cent compared to the same period in 2019. Full year reported revenues increased by 19 per cent to $44.5 billion (£31.95 billion). Nike Direct fourth quarter sales increased 73 per cent to $4.5 billion (£3.23 billion). Revenues for the Nike Brand were $11.8 billion (£8.47 billion), up 88 per cent compared to the prior year on a currency neutral basis, driven by triple-digit growth in its wholesale business and strong double-digit growth in Nike Direct. “FY21 was a pivotal year for Nike as we brought our Consumer Direct Acceleration strategy to life across the marketplace,” Nike president and chief executive John Donahoe said. “Fuelled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth.”
ASOS to make redundancies at Topshop
Asos has reportedly confirmed it is axing roles across its Topshop, Topman and Miss Selfridge brands, which will affect almost 40 jobs. Employees at the brands were informed on Wednesday about the restructuring, which will affect 38 roles across senior buying, established buying, design and merchandising. Asos will begin a consultation next month, Drapers reported. In February, Asos purchased Arcadia’s Topshop/Topman, Miss Selfridge and HIIT brands for £265 million. At the time, around 300 employees across design, buying and retail partnerships transferred to Asos. Earlier this week, Asos said it was considering restructuring the teams working across its Arcadia brands. Last month, Topshop’s Oxford Street flagship store launched a sale process with a £420 million price tag. The building, which was valued at £500 million two years ago, is being advertised as an opportunity to introduce a “new age retail concept”. The sale process – named Project Infinity – is led by real estate adviser Eastdil Secured on behalf of KPMG, which was appointed administrator to Redcastle 214 – the company that held the building when Arcadia collapsed in December. The first £311.6 million of any sale will go to private equity firm Apollo, which lent against the building in 2019, with further proceeds going to Arcadia’s pension scheme.
PrettyLittleThing moves into hospitality with hotel in Devon
PrettyLittleThing has announced it is moving into the hospitality industry by opening its own hotel to capitalise on the staycation craze that is gripping the UK.
The demand for staycations has risen an astronomical 14,400 per cent in the UK this year, as the pandemic has limited the chance to holiday abroad.
The fast fashion retailer has said plans have been in the works for some time, with the hotel available for hire through competitions but with plans to take summer bookings soon.
The hotel experience “promises to give guests a chance to live the highlife without the need to leave the UK” and is located in Devon.
The luxury stay includes accommodation for up to three guests, custom PrettyLittleThing merchandise, a private chef and luxury catering, spa amenities including a swimming pool and wellness guru and a makeup artist.
“The PrettyLittleThing hotel is something we have been excited to launch for a long time. We’ve carefully curated the decor and homeware from our own range to create the ultimate staycation destination this summer,” PrettyLittleThing marketing director Nicki Capstick said.
“We’re looking forward to welcoming our first guests and ensure that they have the most incredible getaway after over a year of being unable to travel.”
The news comes as the fashion brand recently partnered with Bank Digital to supply it with business intelligence from the growing digital retail space.
PrettyLittleThing has appointed Banks Digital to supply it with business intelligence from the digital retail space.
The Manchester-based company’s area of expertise is in conductive research into markets and competitors and will provide the fashion retailer with daily data reports.
Banks Digital director Paul Banks added: “The digital retail space is like a jigsaw puzzle where brands fight to find the missing pieces.
“We have positioned ourselves as the agency who can provide these pieces and help boost performance within the e-commerce arena.”