Sony apologises and says more PS5's are on their way after pre-order chaos wiped out stock
Sony has assured retailers and customers that more PlayStation 5 stock is on its way after last week’s pre-order chaos left many unable to secure a console.
PS5 pre-orders were released earlier than scheduled last week, causing chaos for customers and leading numerous major retailers’ websites across the US and the UK to crash under the pressure.
Retailers including Argos, John Lewis and Very here in the UK were forced to cancel some customers’ pre-orders after receiving unexpectedly huge spikes in web traffic.
Not only was there widespread confusion due to broken links, downed websites and failed orders, but many retailers sold out of their initial allocation of stock by the end of the day. Sony, which manufactures the PS5, has issued an apology to customers on Twitter, going on to promise that more consoles were on their way. “Let’s be honest: PS5 pre-orders could have been a lot smoother,” Sony said. “We truly apologise for that… Over the next few days, we will release more PS5 consoles for pre-order — retailers will share more details. And more PS5s will be available through the end of the year.” The PS5 is due for release on November 12, but major retailer including Amazon have warned customers who pre-ordered the device that they may not receive their console in time “due to high demand”.
70'000 jobs at risk if Treasury scraps tax-free shopping
Retailers across the UK have reportedly warned that at least 70,000 jobs are currently at risk if the government scraps tax-free shopping. The retailers, along with hoteliers and airport chiefs have warned chancellor Rishi Sunak that ending tax-free shopping for international tourists will risk thousands of jobs, The Guardian reported. Earlier this month, the Treasury said that the retail scheme, which enables non-EU visitors to reclaim VAT paid on their purchases, would finish at the end of December. However, the Treasury said it is making use of the end of the Brexit transition period to bring personal duty and tax systems in line with international norms. Meanwhile, luxury handbag retailer Mulberry criticised what it said was a “short-sighted” move. The retailer’s chief executive Thierry Andretta warned it would “have a material impact on jobs and manufacturing in this sector”. Retailers such as Marks & Spencer and Selfridges, along with outlet centre Bicester Village are among the businesses signing a letter urging Sunak to rethink scrapping tax-free shopping. Other signatories include the bosses of major airports including Heathrow, Gatwick and Birmingham. The decision, if it goes ahead, will mean the UK will be the only nation in Europe to not have a tax-free shopping scheme for international visitors. The economy fears that without the high spending coming in from China and the Middle East, the cash is likely to go elsewhere. It comes at a time when city centres around the UK are struggling to recover from the Covid-19 pandemic.
Head office job cuts at Waterstones to safeguard future of company
Waterstones has reportedly scrapped 16 head office roles, including four publisher-facing staff in its books team, as it continues to be affected by the Covid-19 pandemic. The British book retailer said category managers Richard Humphreys and Clement Knox, publisher liaison manager Darren Thomson and commercial manager Sarah Callaghan had all left the business due to a “challenging trading climate”, The Bookseller reported. A further 12 unspecified roles have also been axed following a consultation launched in late July at its head office in Piccadilly, London. The company said the cuts were a “necessary safeguarding measure for the future of Waterstones”. Waterstones added that the business has reviewed and streamlined the team structure to ensure “close links across departments and to create efficient liaison with shop and stock teams”. It remains confident that this structure puts it in a good position to deliver “the best possible Christmas”. Meanwhile, head of communications Sandra Taylor is expected to join the category, events, PR and publisher liaison teams. The restructured books team now consists of 12 team members.
Westfield owner takes Boots to court over rent non-payment
The owner of Westfield Stratford City has taken high street chemist Boots to court after the company refused to pay rent at some of its locations. According to court documents seen by The Daily Telegraph, the owners of the shopping centre have taken legal action to claw back the rent that Boots refused to pay during the lockdown. The health and beauty retailer has reportedly insisted on receiving the same treatment as non-essential retailers that were forced to close their stores for months, despite being allowed to stay open. Boots, which is controlled by global chain Walgreens Boots Alliance, chose to temporarily close about 100 of its smaller stores located in less busy areas like city centres and shopping centres to redeploy employees to busier locations. It also closed most Boots Opticians and Hearingcare stores across the UK as well as its revenue-driving beauty halls until mid-June. The measures had a significant effect on the company’s sales performance, with revenues down by 50% in the three months to June compared with last year. In July, the business announced a significant restructuring across its head office, store teams and Opticians teams resulting in the loss of more than 4,000 jobs.
Walmart to take 7.5% stake in TikTok as deal receives cautious blessing
Walmart has agreed to purchase a 7.5 per cent stake in TikTok as a complex deal to keep the social media giant operating in the US is receives President Trump’s “blessing”.
Walmart and technology giant Oracle are set to collectively take a 20 per cent stake in TikTok Global in a deal which would leave its owner ByteDance with a majority stake.
On Saturday Trump tentatively said he gave his “blessing” to the “concept” of such a deal, despite ordering the app to be sold to US businesses by September 20 or be banned from the country entirely.
As around 40 per cent of ByteDance is already owned by US venture capital firms, this deal would essentially mean TikTok Global is now a majority owned US company.
Walmart’s minority stake in TikTok will see it provide services like payments, ecommerce and order fulfilment, suggesting the social media platforms push into retail could be accelerated.
It will also see Walmart’s chief executive Doug McMillon serve alongside four other on TikTok Global’s board.
“This partnership will provide Walmart with an important way for us to expand our reach and serve omnichannel customers as well as grow our third-party marketplace, fulfillment and advertising businesses,” Walmart said in a statement.
The deal has not yet been finalised, and the US Department of Commerce said it would delay a decision to prohibit US transactions using TikTok until next Sunday as the companies hammer out a final deal.
Face masks made compulsory for retail workers from this week
Prime minister Boris Johnson has said that all retail workers in England will need to wear face coverings from Thursday, or retailers face fines of up to £10,000. Speaking earlier in the House of Commons, the PM said the new rules come as infections of Covid-19 increase across the UK. Johnson added that the measures aim to ensure retailers can remain open in a “Covid-secure way”. “From Thursday, we will extend the requirement to wear face coverings to include staff in retail, all users of taxis and private-hire vehicles and staff and customers in indoor hospitality, except when seated at a table to eat or drink,” Johnson said. “In retail, leisure and tourism and other sectors, our Covid-secure guidelines will become legal obligations.” Meanwhile, police presence will increase to make sure businesses are following the new measures. High street retailers could face fines of up to £10,000 for not complying. Moreover, individual fines for people not wearing masks in stores, on public transport and in taxis will also be doubled from £100 to £200 for a first-time offence. From Thursday, all pubs and restaurants will be forced to offer table service only and will have to close at 10pm. The prime minister said that the UK was at a “perilous turning point” with the virus surging across all areas and age groups. Nevertheless, a second national lockdown looms if the public fails to comply with the new restrictions. Johnson also confirmed a government U-turn on getting people back into offices, and workers should work from home “if they can”. The latest round of restrictions are likely set for the next six months, meaning it will be in place during Black Friday, the Christmas trading period and the New Year.
Game and Smyths websites crash amid Xbox pre-order frenzy
Game and Smyths websites have crashed in the release of Xbox Series X pre-orders creates more chaos for consumers.
Two of the UK’s largest gaming retailer have both seen their websites crash this morning due to unprecedented spikes in demand for the next generation of Xbox consoles.
At the time of writing both Game’s UK website says that it is “currently unavailable” after Xbox customers “came out in force with an exceptional response to pre-orders”, which went live at 8am this morning.
A spokesperson told Sky News: “We’re dealing with large volumes of customers visiting our website and are working hard to serve their needs.”
Smyths website is also down and but has informed customers that they can still place Xbox pre-orders “in any of our stores”.
It added that pre-orders for Xbox All Access, which allows customers to pay for their new console in instalments, is “unavailable while our website remains down”.
Smyths and Game are the only UK retailers authorised by Microsoft to offer Xbox All Access.
Meanwhile customers across the UK are struggling to find retailers with any pre-order stock remaining, including on Microsoft’s own website.
It comes just days after shoppers experiences similar chaos trying to pre-order the PlayStation 5, seeing numerous major websites crash and many pre-order being cancelled.
Retailers to save over £3bn if business rates capped at 30%
The government has been urged by a retail property association to cut down business rates in England to relieve bricks-and-mortar from the burden. Retail property body Revo has called for the business rates multiplier to be capped at 30 per cent, down from 51 per cent, at the 2023 revaluation. The reduction could help retailers save over £3 billion each year. Revo has also called for the current business rates holiday to be continued for the 2021 to 2022 financial year at 50 per cent and retained the following year ahead of the next revaluation. It wants the freeze to be extended to empty retail properties. “Successive governments have failed to deliver on promises to reform business rates, and given the crisis engulfing the high street it really is a case of now or never,” Revo chief executive Vivienne King said. “For a decade our sector has been calling for reform of the system which does not reflect today’s economy, cannot adjust quickly enough to market conditions and places a disproportionate burden on physical retail, which sustains millions of UK jobs and is the heart of town and cities. “We need radical action from government to save the high street for future generations.” Separately, London Mayor Sadiq Khan said on Friday that the UK Government is in “listening mode” after he made a plea for them to extend the business rates holiday for another year. After the coronavirus pandemic hit the UK, business rates for retail, hospitality and leisure businesses in England were halted for the current 2020/21 financial year. In a joint submission to the government’s business rates review, Khan has joined with local councils in the capital to call for an extension to the 2021/22 financial year. Khan said: “The indication from the Government is they are in listening mode. “They’ve seen what countries across Europe have done because we have told them.” He urged the UK Government to follow countries such as Germany, France and Spain in giving further support to businesses. “We’ve made our observations quite clear on a cross party basis that these businesses need support,” Khan said. “And actually, if the government is serious about giving a helping hand to business, the best way to do it, is to support them during this difficult time.” Raising concerns that thousands of jobs could be lost, the London mayor’s office said on Friday morning that an extension on the business rates holiday would provide support to businesses who have suffered a drop in footfall due to the coronavirus crisis.
Brits must stop unnecessary panic buying, Tesco CEO Dave Lewis urges
Tesco chief executive Dave Lewis has reportedly called on customers to not return to a state of “unnecessary” panic buying after prime minister Boris Johnson revealed tougher measures for the retail sector. Following the PM’s speech at the House of Commons on Tuesday, speculation arose over whether there could be stockpiling, or panic buying, of groceries similar to that seen in March. Grocers across the UK were forced to speed up their supply chains and introduce purchase limits during the national lockdown, which meant rationing toilet rolls and other products such as pasta and hand sanitiser. Johnson said retail workers must now wear face masks from Thursday or retailers will be fined, and the hospitality sector must shut stores at 10pm. Tesco maintained that there was no need to stockpile as food supplies were plentiful, Sky News reported. Lewis attempted to reassure shoppers by saying the food industry managed last time, “so there’s very good supplies of food”. “We just don’t want to see a return to unnecessary panic buying because that creates a tension in the supply chain that’s not necessary,” he said. He urged customers to continue to buy as normal, despite infection rates soaring in the UK. Toilet roll sales increased over the past week as retailers prepare for a strong demand in staple items. Over the past week, sales of toilet rolls have soared by 23 per cent, according to manufacturer WEPA Group, which produces toilet paper and kitchen towels for the UK market.
Amazon Prime day 2020 set to launch on October 13 after months of delays
Amazon Prime Day is now set to launch on Tuesday October 13 after being delayed for months due to the coronavirus.
Amazon’s flagship sales event which usually takes place in July will now launch in just three weeks’ time, according to a report from CNET.
Four separate sources “with knowledge of Amazon’s plans” leaked the October date, though Amazon has not yet publicly confirmed this.
Amazon has also reportedly prevented its full-time warehouse staff from taking vacations between October 13 and 20, adding further weight to the reports.
Last year’s Prime Day event was extended to over 48 hours for the first time, and while Amazon has remained quiet about this year’s event, these holiday dates suggest we are in for another extended shopping festival.
The leak comes just a day before Amazon is due to launch it annual autumn product launch, in which it expected to reveal the latest generation of Alexa enabled gear and smart gadgets.
Details of its other major shopping event Black Friday remain unclear, and the far later date of Prime Day could mean shoppers opt to purchase their Christmas gifts even earlier this year.
Nike closer to a permanent shift to online as first quarter sales surge
Nike has enjoyed a significant rise in online sales as its direct-to-consumer strategy came to fruition during lockdown and allowed it to bounce back from a coronavirus slump. The sportswear giant saw digital sales surge by 82 per cent in the three-month period ending August 31, offsetting falling revenue in its stores as a result of the pandemic. This follows a 75 per cent surge in online sales that was recorded in the previous quarter. While Nike did not provide a figure for its bricks-and-mortar sales, it did reveal overall first quarter revenue of $10.6 billion (£8.3 billion) as many of its key markets recovered since various lockdown restrictions eased, including China. The retailer and brand has been transforming its business in recent years to sell directly to customers while reducing its store presence and wholesale partners. During the various lockdowns across all of its markets, it leveraged its website and app to release limited edition products and drive sales through online customer experience innovations such as interactive work-outs and games. Part of Nike’s transformation strategy is to have half of its sales derive from direct-to-consumer online sales, and chief executive John Donahoe said this shift could be a permanent trend. “We know that digital is the new normal. The consumer today is digitally grounded and simply will not revert back,” he said. Nike now expects full-year profit and revenues to come in ahead of expectations.
Nearly 1 in 4 Brits now practically addicted to online shopping
Online shopping has become so prevalent in the UK during lockdown that close to a quarter of Brits admit to being “practically addicted” to it.
More than half of UK adults say they get excited on delivery day when the doorbell rings and look forward to their parcel more than calls with friends and family, or even the end of the working day.
The research, conducted by Argos and OnePoll, found that 10 per cent of online shoppers order so often that they know their delivery driver by name, while 57 per cent would favour online delivery over instore purchasing for the latest products.
It comes amid a significant boon for online shopping across the globe as huge swathes of the population remain in lockdown.
According to Argos, which polled 2000 people, 52 per cent of respondents have had more home deliveries in 2020 compared to previous years.
“It’s interesting to see how in this digital age, it’s the doorbell ringing and getting that delivery which really excites the nation,” Argos head of toy buying Juliet Ward said.
“People are choosing online shopping as their preferred experience more than ever before and toys have once again made into the top three most popular categories purchased online.”
Ted Baker signs Next as lingerie licence partner to transform business
Ted Baker has signed fellow British retailer Next as a lingerie and nightwear licence partner as part of a three-year agreement. Next will work with the Ted Baker team to create and distribute the retailer’s lingerie and nightwear collections, known as B by Ted Baker. The first collection will launch in May 2021 and will be sold through Next’s ecommerce channels as well as Ted Baker’s online platforms. Ted Baker currently works with Next on its childrenswear range, which launched in spring 2020. The retailer now has 20 global product licence partners, which is a key step in its “Formula Growth”. Ted Baker hopes to deliver a more profitable, cash generative and higher return on capital employed, business with the three-year agreement. “We are delighted to be signing this licence agreement with NEXT. We have worked together for many years and know they share our passion for unwavering attention to detail and firm commitment to quality,” Ted Baker group commercial and business development director Phil Clark said. “It is a testament to the global strength of the Ted Baker brand that we partner with the leading experts in their relevant categories. “As we continue to rationalise and enhance our product license portfolio, this new partnership is another step in transforming our business and returning Ted Baker to growth.” Next chief executive Simon Wolfson said: “Next is delighted to be involved in developing the Ted Baker lingerie and nightwear business across the globe, building on our childrenswear collaboration announced last year. “We have worked with Ted Baker for a number of years through our Label business and we are excited to extend our collaboration with this world class brand.”
Prove reveals "many failings" in Boohoo supply chain
A review of Boohoo’s supply chain has identified “many failings”, but it freed it from allegations of deliberately allowing poor conditions and low pay for garment workers. The independent probe was called after reporters uncovered serious concerns about some of Boohoo’s suppliers in Leicester over the summer, including allegations of modern slavery. The Alison Levitt QC-headed review concluded that hat Boohoo “did not deliberately allow poor conditions and low pay to exist within its supply chain, it did not intentionally profit from them and its business model is not founded on exploiting workers in Leicester”. The probe also found that Boohoo could have been a force for good if it had been “willing to take a different approach to how it both views and interacts with the Leicester supply chain”. The review added: “It has already made a significant start on putting things right.” The probe has also led to recommendations of a series of improvements to Boohoo’s corporate governance, compliance and monitoring processes. Meanwhile, Boohoo said initiatives aimed at “remedying problems in its Leicester supply chain had been implemented nearly a year ago”, but conceded that “with the benefit of hindsight we regret that these processes did not advance quickly enough”. “The group recognises that in order to effect real change in the Leicester textile industry, further clear, strong and measurable actions are needed in addition to those that the group was undertaking,” the online fashion retailer said. Boohoo added it was already working on improving its corporate governance, pointing to its recent hiring of a new group director of responsible sourcing as an example, and that it would soon appoint “a highly experienced and respected individual” to oversee its change agenda. The online retail giant said it also plans to bring in two new non-executive directors, with one of having a speciality in dealing with environmental, social and governance matters. Boohoo added that supply chain compliance would now become “a mandatory item” at every board meeting “with immediate effect”, and that its buying teams will undergo “mandatory education and training” to ensure new purchasing principles are being implemented. The retailer also pledged to consolidate the number of businesses on its approved supplier list and will invite new suppliers with a track record of “ethical and sustainability policies”. Meanwhile, Boohoo promised to establish a Garment and Textiles Community Trust to support Leicester factory workers. “As a board, we recognise that we need to rebuild confidence that these matters will be dealt with appropriately and sensitively, and that they will not recur,” Boohoo chief executive John Lyttle said. “Garment workers in Leicester and our suppliers across the city are an important part of our success. “We recognise that Boohoo has been a major force in driving the textile industry in Leicester and today want to reinforce our commitment to being a leader for positive change in the city, alongside workers, suppliers, local government, NGOs and the community at large. “Today, we are setting out the further steps we are taking to drive long-lasting and meaningful change that all stakeholders in the Boohoo group will benefit from.”
John Lewis launches first ever virtual Christmas store
John Lewis has launched a virtual Christmas shop for the first time allowing customers to take a 3D tour of their flagship store from their own homes.
The department store has officially launched its Christmas shop at its iconic Oxford Street flagship, 91 days before December 25.
For the first time in its history John Lewis has brought its Christmas shop online, using footage captured in-store to allow shoppers to navigate through the store via their smartphone, tablet or computer.
Items throughout the Christmas shop, which this year features the largest ever Christmas tree forest, seven new festive trends and room sets and a one stop gift emporium, will be available to examine and purchase during the virtual tour.
John Lewis opened its online Christmas shop back in August, 10 days earlier than last year.
It comes amid a sharp rise in demand for early Christmas purchases, seeing a 112 per cent rise in sales compared to 2019.
According to John Lewis Christmas tree sales have skyrocketed 232 per cent compared to the same period last year, while Christmas decoration sales have jumped 156 per cent.
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