Fresh £40m investment plans for West End unveiled
The main lobby group representing retailers across London’s West End has said it will invest £40 million into services to enhance and progress the district as it recovers from Covid-19. The New West End Company has said the five-year investment was approved by 98 per cent votes across its 600 retail, leisure, hospitality businesses and property owner members that operate on Oxford Street, Bond Street, Regent Street and in Mayfair. The New West End Company also had its mandate renewed for a further five years. It said the fresh investment would focus on rebuilding customer and investor demand and support the recapitalisation of businesses to help return the district to £10 billion annual turnover. This will be enabled by creating a year-round programme of campaigns and events “in a safe and welcoming environment highlighting our diversity, sustainability and richness to ensure the West End remains the number one consumer destination for experiences, not just for Christmas, but all year around”. There also plans to build a data and insights platform with access to information across economic performance and environmental best practice, and to deliver the first Zero Emissions Transport Zone in London by 2025. The fresh investment is in addition to other initiatives already confirmed, such as the £150 million that Westminster City Council is investing to regenerate Oxford Street and surrounds – in particular the 25m artificial hill and viewing platform that will be built at Marble Arch. “Our plan, guaranteeing £40 million of investment across our district, focuses on the areas where we know we can make a difference at this critical time,” New West End Company chief executive Jace Tyrrell said. “We will continue to strive to meet the challenges we face to restore the West End’s international status, working with others to fully achieve the benefits of the £150 million investment being made by Westminster City Council. “We are hugely grateful to West End businesses for trusting us to deliver for them and with them for a further five years working with our partners at Westminster City Council, the Mayor Office, and with local neighbourhoods in and around our district.” The West End and the rest of central London has been hit hard by the Covid-19 pandemic, with the tourist numbers and office workers on which it depends having diminished over the past year amid lockdowns, stay-at-home orders and travel restrictions. Last week, Westminster City Council started its work on an “ambitious” renovation of London’s Oxford Street and the surrounding area.
Sunak to delay Amazon tax for at least 6 months
An online sales tax in the UK will now not be seen until at least autumn as the government delays making any decisions for six months.
Many expected the online sales tax, or ‘Amazon tax’, to be announced during the Spring budget earlier this month, but retailers were left waiting as no mention of the proposed levy was made.
The controversial tax, which aims to level the playing field between struggling high street retailers and big online players, is now being delayed until the United States makes their position clear.
Chancellor Rishi Sunak is understood to be waiting for President Joe Biden and his administration to reveal whether they will support global efforts to reform digital tax rules being spearheaded by the OECD.
According to the Financial Times, government sources said Sunak wanted to see whether US treasury secretary Janet Yellen would back this global effort at the G7 summit taking place in June.
The OECD’s proposed global strategy would introduce a global minimum corporation tax rate and enable countries to tax multinational companies’ global profits based on where their customers are located.
Despite this the UK’s online sales tax could target more domestic companies which sell online, a controversial concept which has split support across the retail sector.
While British retailers almost unanimously agree that business rates desperately need reforming, few agree on whether an online sales tax is an effective solution to balance the playing field between physical and online retailers.
Many have warned that this could not only actually raise taxes for physical retailers like John Lewis and Next which have significant online operations, but would also hamper independent retailers at a crucial impasse for the British economy.
Kingfisher full year profits skyrocket 634%
The parent company of B&Q and Screwfix has cashed in on a DIY boom as millions of people stuck at home tried to improve their living conditions. Kingfisher said it had seen full-year pre-tax profits balloon to £756 million in the 12 months to the end of January – a 634 per cent increase on the £103 million recorded last year. Sales increased by 7.2 per cent during the same full-year period to £12.3 billion, the company revealed this morning. Growth was driven by a boom in online sales, which were up by 158 per cent. Ecommerce was already a growing segment for the business, as it rose eight per cent in the year ending January 2020. However, the explosive growth during lockdown came as people tried to do up the homes they were confined to. “Kingfisher is coming out of the Covid crisis as a stronger business, with an improved competitive position in all key markets, strong new customer growth and a step change in digital adoption,” chief executive Thierry Garnier said. “I would like to express my personal thanks to all our teams for their incredible efforts in the most testing of circumstances.” The company said it had seen a strong start to this financial year amid high demand in the UK and France, which are both going through lockdowns. Since the end of January like-for-like sales have risen more than 24 per cent compared with the same period in 2020. “Current trading remains positive and, while visibility is limited for the year as a whole, we are confident of continued outperformance of our wider markets,” Garnier said. “The Covid crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIYers – and we expect these to endure. “With our strategic progress, we are well positioned to capitalise on these new and positive market trends.”
Iceland execs splash out with £150m after keeping £40m Covid relief
Iceland senior executives have reportedly splashed out almost £150 million after a surge in profits and sales since the start of the Covid-19 pandemic, while also refusing to pay back business rates support like other essential retailers. According investor presentations seen by The Sunday Times, Iceland founder Sir Malcolm Walker and group managing director Tarsem Dhaliwal paid £110 million to buy out former shareholder Brait, which had a 63 per cent stake in the frozen food retailer. Walker and Dhaliwal also reportedly used an additional £31 million of Iceland’s money via Ice Acquisitions, a separate company, to acquire 28 restaurants trading under fascias like Piccolino via a pre-pack administration deal. Meanwhile, another £8.6 million was used to buy back shares owned by Nigel Broadhurst after he resigned as joint managing director. The news comes after Iceland declined to hand over one-year business rates holiday to the government, reportedly worth £40 million. A raft of other essential retailers, notably the Big 4 grocers as well as Aldi and Lidl, recently decided to pay a combined total of £2.1 billion in business rates relief back to the government after they were allowed to keep their shops open throughout all the lockdowns. Iceland was one of the few essential retailers – alongside the likes of Waitrose and Marks & Spencer – that declined to hand it over, despite sales growing 20 per cent to £2.9 billion in the 40 week period ending January 1. The business rates relief was given to all retailers last year, regardless of whether or not they were classified as “non essential” and forced to close amid Covid-19 lockdowns. “We make no apology for using the relief to protect and create jobs and to offset significant Covid- related costs,” Iceland told The Sunday Times. “We have not profiteered in any way from the relief provided. “Several of our competitors have paid back relief, but are also making thousands of people redundant and closing stores.”
McColl's annual pre-tax profit plunges 85% despite like-for-like surge
McColl’s has posted rising full-year sales and like-for-likes but profits slumped after it was hit my lower margins and ongoing costs related to Covid-19. According to its trading update for the year ending November 29, McColl’s full-year sales rose 3.2 per cent year-on-year to £1.26 billion – driven by a 12 per cent surge in like-for-likes. However, McColl’s said adjusted profit before tax dropped from £7.4 million to £1.1 million – a year-on-year decline of 85.1 per cent. Meanwhile, statutory loss before tax for the same full-year period narrowed to £5.3 million compared to the loss of £98.6 million recorded in the year prior. McColl’s added that gross profit slid 4.7 per cent to £300.9 million, while adjusted EBITDA on a pre-IFRS 16 basis fell 9.3 per cent year-on-year to £29.1 million. The retailer attributed the profit decline to a “move away from impulse purchases to lower margin take home products as well as multi-buys and value items”. It added that its product mix had changed due to customer demands being altered by the Covid-19 pandemic, leading to a two per cent reduction in gross margin to 23.9 per cent. It attributed the sales increase to strong demand for convenience – in particular strong sales of alcohol, fresh food and tobacco – but this was offset by McColl’s divestments and store restructuring programme. During the full-year period, McColl’s extended its wholesale partnership with Morrisons for a further three years to 2027, which will see it convert 300 of its stores to the Morrisons Daily format. McColl’s said this marked a significant milestone in its strategic goal of becoming a food-led convenience retailer. “Over the last 12 months we have seen strong like-for-like sales growth, driven by the positioning of our stores in key neighbourhood locations and our strong customer offer,” McColl’s chief executive Jonathan Miller said. “Despite the operational challenges of the pandemic, we have made good progress on our customer-focused strategic change programme. “We recently reached a key strategic milestone, announcing a new supply deal with Morrisons, ensuring the continued supply of supermarket quality food across our entire estate for the next six years, supported by a bank facility extension. “I am delighted with the opportunity this brings to convert 300 stores to the successful Morrisons Daily format over the next three years. “These stores will be particularly well suited to the changing customer dynamics that are resulting from the pandemic.” As for current trading, the retailer said like-for-like sales in the 15 weeks to March 15 had grown 8.8 per cent. Gross margin trends were consistent with those experienced in 2020, reflecting a continued shift in sales to lower-margin take-home products and multi-packs. “As lockdown restrictions begin to ease, we expect our sales mix to normalise with higher purchases of impulse products and a progressive reversion towards pre-pandemic margins,” McColl’s said. “However, we remain in a highly uncertain environment, with little visibility on macroeconomic and consumer trends for the remainder of 2021.” Miller said: “Looking ahead to 2021, whilst uncertainties and restrictions remain, there is no doubt that the strategic importance of neighbourhood stores has never been greater, and we are well positioned to deliver for customers and shareholders, as we continue to enhance our convenience offer.”
Waitrose bans children's magazines with disposable plastic toys
Waitrose has said it will no longer sell children’s magazines containing plastic disposable toys in its latest move to tackle pollution and single-use plastic waste. The grocery chain said many children’s magazines contained free plastic toys which had a very short lifespan and cannot easily be recycled – even though many of the youngsters they are aimed at care about the planet and pollution. Over the next eight weeks, Waitrose will remove magazines containing the free toys from its shelves, and is urging publishers to replace “pointless plastic” with sustainable alternatives. Waitrose said the move was inspired by a 10-year-old from Gwynedd who launched a campaign to persuade publishers to stop giving away the disposable toys in magazines. The ban will not include educational or reusable craft items which are designed to be used many times, such as colouring pens and pencils, and collectable models. “While we know these magazines are popular with children, some of the unnecessary plastic attached to them has become really excessive,” Waitrose sustainability director Marija Rompani said. “Many in the younger generation really care about the planet and are the ones inheriting the problem of plastic pollution. “We urge publishers to find alternatives, and other retailers to follow our lead in ending the pointless plastic that comes with children’s magazines.” The retailer has written to magazine distributors giving them eight weeks’ notice of the policy, asking for alternatives to plastic toys and warning that they will not sell copies which contain the disposable items. It is the latest move by the supermarket to cut down on single-use plastic, which has also seen it end the sale of Christmas crackers with plastic toys or glitter, and has a push to make all its own-label packaging recycled, reusable or home compostable by 2023.
Wilko to offer face mask recycling scheme
Wilko will trial an in-store recycling scheme for disposable face masks in an effort to reuse them for various purposes from building materials to new furniture. The retailer said 150 of its stores will have special collection bins from April 1 where customers can drop off used single use face masks. Once full, the bins will be taken away by recycling specialist ReWorked. Wilko is also partnering with Metrisk and Scan2Recycle on the scheme. “One of our core values is to show we care and, we understand the importance of climate change to our customers who expect us to take-action on their behalf and make better choices about caring for the environment,” Wilko chief executive Jerome Saint Marc said. “That’s why we’re thrilled to have developed this scheme, which makes it super simple for shoppers to safely recycle a product which is often unavoidably discarded as a result of us all taking steps to protect the health of everyone around us.” The retailer has pledged to reach Net Zero Carbon by 2040 by signing the BRC’s Climate Action Roadmap and has joined The UK Plastics Pact.
Decathlon to launch 35,000sq ft flagship at Trinity Leeds
Decathlon is set to launch a 35,000sq ft experiential flagship store at the Trinity Leeds shopping centre. The sports goods retailer will occupy the former BHS store on Boar Lane, and will be spread over two floors. The shop will include large showrooms featuring Decathlon’s full array of sportswear and equipment. The store is due to open later this month for click-and-collect and essential items only, the shop will have its full launch in April when retail lockdown restrictions end. Services will include a new Covid-secure initiative ‘Click & Drive’ where customers’ products are brought out to their cars, and a workshop service for the repair of bikes, kayaks and tents. “We’ve already built strong relationships with a number of partners, including Leeds Dock Running and Cycling Club, and Active Leeds. We can’t wait to connect with all the sports enthusiasts in and around Leeds,” Decathlon Leeds store manager David Baker said. “It’s also no coincidence that Leeds is twinned with Decathlon’s home city, Lille – it has long been a target location of ours. “We have spent a lot of time during the pandemic making sure our offer at Trinity is perfectly tailored to the local customer needs, and we’re in no doubt that this young and vibrant city will embrace Decathlon Leeds as the go-to store for all sports-related products and services.” Landsec portfolio manager James Hutchinson said: “We’ve already seen an incredible response on our social media channels to this exciting new anchor store. “Our shoppers are counting down the days until the Decathlon launch, tangible evidence of Landsec’s work at Trinity, bringing the heart of Leeds back to life.”
John Lewis shuts down 8 more stores
The John Lewis Partnership has announced plans to not reopen eight John Lewis stores when lockdown on non-essential retail is lifted from next month. Consultations with 1465 staff affected by the proposals have commenced and the partnership said it would “make every effort to find alternative roles” in the business for as many staff as possible. The eight John Lewis stores identified for closure include four smaller At Home shops in Ashford, Basingstoke, Chester and Tunbridge Wells plus four full-size department stores in Aberdeen, Peterborough, Sheffield and York. John Lewis Partnership said it undertook “substantial research” to identify and cater for new customer shopping habits, and part of this meant not being able to “profitably sustain” a large John Lewis store in some locations where it does not have enough customers. The partnership added that the eight shops earmarked for closure were financially challenged prior to the Covid-19 pandemic, and that it does not believe their respective trading performances could be improved. The remaining 34 John Lewis stores will reopen from April 12 subject to government guidance, with the exception of Glasgow, which will reopen from April 26, and Edinburgh, which will reopen on May 14. Its ecommerce operations continues to trade as normal. The latest round of store closures follow the closure of eight last year, a move that affected 1300 staff and brought the John Lewis store count down to 42 at the time. An additional 1500 job cuts were then made at the John Lewis Partnership head office at the start of this year as part of a wider turnaround plan to reach £400 million profit in five years. It would achieve this through cost-cutting, downsizing and repurposing its store estate, and increasing investment to become a more digitally-focused retailer. Last October it was confirmed that 45 per cent of the John Lewis flagship Oxford Street – which equates to floors three to eight – would be converted into dual use space. More recently, the John Lewis Partnership revealed plans to open John Lewis shop-in-shops as well as improve the click-and-collect service across Waitrose’s 331 stores within the next 12 to 18 months. The partnership also confirmed today that it would be “testing new formats of smaller, local neighbourhood shops offering the best of John Lewis”. The retail giant added that it now expected between 60-70 per cent of John Lewis sales would be made online in the future. It highlighted that nearly 50 per cent of its customers now use a combination of both in-store and online when making a purchase. “Today’s announcement is incredibly sad news for our affected partners, for our customers and for the communities we’ve served over many years,” John Lewis Partnership chair Dame Sharon White said. “The high street is going through its biggest change for a generation and we are changing with it. “Customers will still be able to get the trusted service that we are known for – however and wherever they want to shop.” John Lewis executive director Pippa Wicks said: “Closing stores is the toughest thing we do as a partnership because we all own our business. “If the closures are confirmed, every effort will be made to find new roles for partners and for us to continue to serve our customers by providing access to John Lewis in different ways. “Alongside a growing online business and the expansion of next day click-and-collect, we will invest in our in-store services and experiences, as well as new, smaller neighbourhood formats and the introduction of John Lewis ranges in more Waitrose shops.” The John Lewis Partnership first warned of another round of store closures earlier this month in its full year trading update, in which it posted a £517 million pre-tax loss – compared to profits of £146 million the previous year. The firm attributed this to substantial exceptional costs of £648 million, mainly the write down in the value of John Lewis shops owing to the pronounced shift to online, as well as restructuring and redundancy costs from changes in head office and last year’s store closures. On the partnership’s balance sheet, John Lewis shops are now at almost half the value they were before this year’s and last year’s write downs. However, when taking exceptionals out of the equation, John Lewis Partnership recorded a full-year profit of £131 million – up from £70 million last year. Meanwhile, John Lewis Partnership’s overall trading operating profit declined to £1.69 billion from £1.79 billion last year. On its own, John Lewis’ trading operating profit declined from £734 million to £554 million. The partnership said it was “significantly challenged” as the improvement seen in Waitrose, helped by its status as an “essential” retailer and being allowed to remain open during lockdown, was insufficient to cover the substantial decline in John Lewis which had endured restrictions. Overall, John Lewis Partnership’s full year sales increased five per cent year year-on-year to £12.32 billion and revenue increased six per cent year-on-year to £10.77 billion. These figures were boosted by a surge in ecommerce growth in both its fascias. However, overall sales for John Lewis on its own dropped two per cent year-on-year to £4.72 billion.
M&S transforms over 50 closed cafes into Easter pop-ups
Marks & Spencer has transformed over 50 of its closed in-store cafés into Easter pop-up shops in an effort to drive footfall as the celebration takes place during lockdown. Customers shopping in one of the 52 stores with Easter pop-up shops will see the full range of Easter eggs and products. M&S said overall Easter confectionary sales are already up 63 per cent on last year, with Easter egg sales rising 130 per cent. M&S saw a similar trend at Burns Night, where sales were up 21 per cent, Chinese New Year, where sales were up five per cent and Valentine’s Day, where sales were up 34 per cent. Alongside the pop-ups, M&S has launched its biggest ever online selection of Easter Eggs and hampers and has expanded its range of plant based eggs – both in store and online. “Over the last year , we have seen customers making more of events than ever before as they seek out little moments of joy for them and their loved ones to break-up the challenges of lockdown,” M&S product development director April Preston said. “With this in mind, we want to make our ranges as accessible as possible – by making clever use of our closed café space and expanding our online offer to help customers deliver direct to love ones too. “We have expanded our range to make sure we have something for everyone, with delicious, great quality Easter Eggs – including our plant based and gluten free eggs – and a fantastic range of flowers and gifts available in store and online, which customers are loving. “Our Easter family dine-in launches in-stores shortly and our wider range and ease of shopping, both in store and online, is helping make M&S more relevant more often for our customers.”
TUI mulls another 48 stores closures
Tui is planning to close 48 more retail stores in the UK, a move that will affect 273 staff. The UK’s biggest tour operator said all employees affected by the decision will be offered new roles in other locations. The news comes after Tui announced in July last year that 166 shops closed due to the pandemic would not reopen, which at the time was nearly a third of its total. The firm is not publishing a list of the latest potential store closures. Tui said the travel industry and the high street were “both facing unprecedented pressure” due to the Covid-19 pandemic. “We want to be in the best position to provide excellent customer service, whether it’s in a high street store, over the telephone or online, and will continue to put the customer at the heart of what we do,” the travel operator said. “It is therefore imperative that we make these difficult cost decisions and do our best to look after our colleagues during such unprecedented uncertainty. “We believe Covid-19 has only strengthened a change in purchasing habits, with people looking to buy online or wishing to speak with travel experts from the comfort of their own home. “We have world class travel advisors at Tui, so we hope many of them will become homeworkers and continue to offer the personalised service we know our customers value.” The travel industry has been badly hit by government restrictions and the collapse in demand during the pandemic. The Anglo-German firm’s revenues in the three months to the end of 2020 fell from €3.86 billion (£3.39 billion) to just €468.1 million (£410 million) – a year-on-year drop of 88 per cent.
840 jobs at risk as Santander set to shutter 111 branches
Santander has announced it will shutter 111 branches, putting 840 jobs at risk as customers increasingly lean towards online banking. The banking company said the majority of the sites set to be closed will have another branch within three miles. It expects to retain a “significant” number of the staff affected. Santander said the Covid-19 pandemic has affected footfall and its decision to cull stores will take place at the end of August – which will leave it with 452 high street sites. The company charted a 33 per cent fall in branch transactions in the two years before the virus crisis. It reported a further decline of 50 per cent last year. Its plans also included a major cutback in its office space requirements, which it said was based on staff feedback related to working from home during the pandemic. “Branch usage by customers has fallen considerably over recent years so we have made the difficult decision to consolidate our presence in areas where we have multiple branches relatively close together,” Santander head of branches Adam Bishop said. “We will provide every support to customers of closing branches to find alternative ways to bank with us that best suit their individual needs. “We are also working alongside our unions to support colleagues through these changes and to find alternative roles for those impacted wherever possible.”
Boohoo cuts ties with over 100 suppliers in latest Leveson report
Boohoo Group has severed ties with over a 100 garment factories after a sweeping review of its supply chain in the UK. In its second Sir Brian Leveson-led report investigating its supply chain, the retail giant published a list of 78 approved manufacturers operating across 100 sites in the UK, meeting a commitment for increased transparency. This is down from an estimated 200 main manufacturers. Boohoo Group, which owns a raft of online retailers like PrettyLittleThing, Karen Millen, Oasis and now Debenhams, initially launched its investigation after it became embroiled in controversy surrounding modern slavery allegations and poor working conditions among its third party suppliers. The latest report in the investigation comes six months after the retailer accepted all the recommendations of an independent review led by senior lawyer Allison Levitt, which found major failings in its supply chain in England. It also marks the first time the fast fashion giant has published a full list of suppliers since the controversy, and was one of Levitt’s core recommendations. Last September Boohoo set out steps to tackle the problems. The following November, it appointed Leveson to independently oversee its “Agenda for Change” programme, which implements the recommendations of Levitt’s report. Boohoo said the list was the result of work carried out through the programme, to map and audit its manufacturers and introduce changes to the way the business works with its suppliers. Boohoo responsible sourcing director Andrew Reaney also worked with independent auditors Verisio and Bureau Veritas to examine the working practices of suppliers, the majority of which have been audited twice in the last eight months, including at evenings and at weekends. Boohoo said Leveson also commissioned Tim Godwin, a former senior police officer, to carry out additional forensic-level enquiries to identify and address any irregularities in the leadership and management of suppliers. Boohoo said it has ceased doing business with the manufacturers that were unable to demonstrate the required standard of transparency. “This is the not the end of a project for us at Boohoo but the beginning of a new way of working with our suppliers,” chief executive John Lyttle said. “We have faced up to the problems of the past and are now driving positive change in the industry.”
Tesco boss calls on retailers to take collective action against climate change
Tesco has outlined its climate “manifesto” which has five key areas of focus including cutting absolute emissions from energy and supporting the UK’s transition to electric transport. Other areas include tackling food waste, supporting the sustainable production of food, and helping customers eat healthy, sustainable diets. Tesco chief executive Ken Murphy highlighted the need for both efficiency improvements and “cutting-edge” innovation if the retailer is to meet its climate change targets. In 2017, Tesco committed to science-based climate targets on a 1.5-degree trajectory and aims to reach its net zero climate target in the UK by 2035, fifteen years earlier than originally planned. Through a combination of efficiency improvements and switch to low-carbon innovation, Tesco delivered a 50 per cent emissions reduction last year on a 2015 baseline, beating its 2020 science-based target of 35 per cent. Murphy has now called on the wider food industry to play its part to deliver against the UK’s climate ambitions. “In this critical decade for tackling climate change, it’s vital we challenge ourselves to be more ambitious in our aims and accelerate progress against them. At Tesco, we’re playing our part by creating a better basket for our customers and the planet,” he said. “No one business can tackle these challenges alone. We must take collective action as a food industry to drive the transformational changes necessary to meet the UK’s climate commitments.” Tesco has pledged to continue its work to reduce emissions in its own operations, including switching to renewable energy across all its operations by 2030, partnering with renewable energy investors to launch new renewable power generation projects, and launch its first fleet of 30 electric home delivery vans, switching to a fully electric delivery fleet by 2028. Tesco is also rolling out 2400 charging points for customers across 600 stores, with 400 stores already fitted with the chargers. By the time the programme has concluded, Tesco will have boosted the UK’s electric charging network by 14 per cent.
FatFace sparks fury after asking customers to keep major hack confidential
FatFace has asked customers to keep news of a hack “strictly confidential” after warning them their personal details may have been stolen.
The fashion retailer emailed customers yesterday informing them that their names, email addresses, postal addresses and partial card details may have been exposed in a cyber-attack.
According to Forbes, which first reported the story, customers were asked by FatFace to keep news of the data breach “strictly private and confidential”.
This backfired spectacularly, seeing shoppers angry at being asked to keep it a secret take to social media to share the news.
Customers also expressed their concern that the hack had reportedly taken place two months ago, but they were only just being informed.
Furthermore, it is understood that FatFace employees were at risk of far more exposure, with one staff member telling Forbes they believe their sort codes, account numbers and National Insurance numbers may have been accessed.
In the email sent to customers, FatFace said: “On 17 January 2021, FatFace identified some suspicious activity within its IT systems.
“We immediately launched an investigation with the assistance of experienced security specialists, who, following thorough investigation, determined than an unauthorized third party had gained access to certain systems operated by us during a limited period of time earlier the same month.”
FatFace added that it details of its staff and former staff which were potentially accessed “cannot be misused for fraudulent transactions, so you don’t need to cancel your payment card on this basis.”
Affected customers and staff will also reportedly receive a complimentary 12-month membership of Experian Identity Plus paid for by FatFace.
Argos extended warranty customers to share £500,000 in goodwill gesture
Thousands of Argos customers will be able to share more than £500,000 of e-gift card payments, after the retailer failed to remind people they could shop around when taking out an extended warranty. Argos has also agreed to fix the way it sells extended warranties to customers and provide a goodwill gesture to those who may have missed out on a better deal. Its breach of a legally-binding commitment affected sales of more than 400,000 extended warranties and 114,000 of those customers may have found a cheaper deal by comparing prices, had they been prompted to shop around. Some cases involved extended warranties for breakdown care for larger electrical items. Argos will now contact all customers who may have missed out on a lower price and make them aware of the error. Customers will have the option to cancel their Argos extended warranty and all will receive a “goodwill gesture”, amounting to £570,010 of e-gift cards in total. Extended warranties enable people to take out increased protection when buying products, over and above any standard guarantee. In 2012, Argos signed an agreement which promised to provide a link to a price comparison website every time it offered an extended warranty for domestic electrical products online, so that customers could compare the price of the warranty. As part of routine monitoring, the CMA found Argos was not displaying this link. Argos admitted it had not been doing so for more than a year. The UK’s peak competitions authority said Argos has reinstated the link to the website and agreed to carry out regular internal checks to avoid breaching the undertakings again. “We welcome Argos’s promise to provide a goodwill gesture of over half a million pounds to customers who may have missed out on a cheaper extended warranty deal, after it failed to remind shoppers of their options,” CMA remedies senior director Adam Land said. “It’s only right that Argos is now taking steps to fix its error and make sure that something similar doesn’t happen in the future. Any breaches of this kind must be put right immediately, or we will take action.” The CMA has also written publicly to Argos, outlining the steps the retailer has agreed to take. It will now monitor Argos’s compliance and consider formal enforcement action should it fail to do as agreed. The issue has been logged on the CMA’s register of breaches, which records all significant breaches of market and merger remedies and is updated quarterly. The CMA can take companies to court if they refuse to put right any breaches. It cannot currently impose financial penalties on businesses for breaches of this kind but it wants the power to do so. The CMA said imposing fines would allow it to take quicker action against companies that break the law and would increase the deterrent effect of its enforcement action, benefiting UK consumers. The watchdog said if people think they have been incorrectly sold an extended warranty, they should first ask the business to look into the complaint. They could also contact organisations such as Citizens Advice to get further help.
Frasers Group snaps up Wigan retail park
Frasers Group has acquired the Robin Retail Park in Wigan as it commits to “investing and elevating bricks-and-mortar retail”. The retail group, which owns Sports Direct and House of Fraser, completed the transaction in only nine working days from instructing lawyers. Frasers Group said this demonstrates the pace that it will transact major acquisitions. Frasers Group said it sees opportunities for buying retail assets and driving occupational demand from their retail concepts to elevate the schemes. The group has requirements for all asset classes and sees this as a “stepping stone” to more property acquisitions throughout 2021 within the UK and Ireland. “We plan to transform this retail park into a modern, aspirational shopping destination for the local area,” Frasers Group head of elevation Michael Murray said. “We are excited to bring our new elevated retail concepts to Wigan and breathe new life into the area.”