Boots UK owner pays £488m to US owner despite c19 impact
Boots UK parent company has reportedly paid a dividend of £488 million to its US owners while the health and beauty chain was struggling during the Covid-19 pandemic. The UK owner Superior Holdings Limited made the payment last November – just months after Boots drew a £300 million government loan, Mail on Sunday reported. Superior Holdings is the parent company of The Boots Company Plc and is controlled by US corporation Walgreens Boots Alliance. In January, Walgreens Boots Alliance boss Stefan Pessina received share-related payment of £50 million. This was despite The Boots Company Plc having accepted the emergency taxpayer-backed loan provided by the Bank of England. Walgreens has paid dividends to US shareholders – including Pessina – of about £300 million every quarter throughout the pandemic. The loan appears to have been repaid in the past ten days. Walgreens insisted that “no dividend directly or indirectly was paid by Boots UK [the retail arm] to the group in 2020”. “Walgreens Boots Alliance is a global company and the dividend payment reflects the company’s long-term prospects.”
Homebase reveals first new store in 6 years
Homebase has opened its first new store in six years in the town of Cheltenham in Gloucestershire. The move follows the successful launch of three small format stores in Surrey. The new 36,591sq ft shop will offer customers gardening and DIY products as well as furniture, home accessories, kitchens, bathroom, flooring and tiles. The store features a Dulux Paint Desk which offers a paint mixing service and also sells paint from Homebase, Crown, Farrow & Ball, ELLE Decoration and Craig & Rose. It will also stock House Beautiful and Country Living wallpaper, furniture and home accessories as part of Homebase’s partnership with publisher Hearst UK. Meanwhile, the 12,500sq ft garden centre will offer a range of plants, pots, garden care products, outdoor furniture, spas and barbecues. Homebase previously operated two stores in Cheltenham between 1993 and 2019. “I’m really proud that we’re returning to Cheltenham and our brilliant store team is ready to welcome customers old and new, bringing them the products, style and advice they need to complete any home or garden project,” Homebase retail director Grant Anderson said. “This store looks completely different to those we’ve had in the town in the past – it’s designed to make shopping with us easier than ever. “From clever QR codes that show customers how to recreate the look in their own homes to the helpful advice our team can offer, we’re ready to inspire the local community.”
Tesco to sell seedless lemons
Tesco is set to sell a new variety of guaranteed seedless lemons as part of a trial in the UK. The Big 4 grocer had trialled seedless lemons in the UK many years ago, but the initiative did not take off due to a lack of consistent supply. However, Tesco has managed to grow seedless lemons in South Africa and Spain, which is due to be stocked in stores all year long. The lemons are supplied to the supermarket by Peterborough based AMT Fruit, which has worked with Tesco for more than 20 years. “At last now customers will no longer have to spend extra time picking out the pips after squeezing lemon on a wonderful meal or drink,” Tesco citrus buyer Emily Ridge said. “Seedless lemons were first trialled about 15 years ago but unfortunately until now they could never be guaranteed to be completely pip free. “This new variety has been growing and maturing for many years and now is finally ready to hit supermarket shelves.” The new Jaffa Seedless Lemons will go on sale at 320 Tesco stores across the UK and will cost £1.50 per pack.
Primark releases new affordable sustainable loungewear range
Primark has introduced a new sustainable loungewear collection in an effort to source more recycled materials. The new collection has been certified by circular fashion business Recover. Under its Primark Cares label, the fashion giant has created an eight-piece collection partially made from recycled cotton. Each item is made from between 15 per cent and 25 per cent recycled cotton, while the rest is made up of a mix of materials including sustainable cotton from Primark’s Sustainable Cotton Programme. The range includes hoodies, joggers, sweats, T-shirts and leggings in navy, white, black and grey. Prices range from £3.50 to £12. “At Primark, we believe that fashion should be more sustainable but that this shouldn’t come at a higher price,” Primark Cares director Cares Lynne Walker said. ”We are working with innovative partners like Recover, who have been a leader in closed loop recycling for over 70 years, as part of our Primark Cares initiative to help make sustainable fashion affordable for everyone. ”With prices starting at £3.50, this collection can help make that possible so everyone can afford to make more sustainable and stylish choices.”
Shein steals Amazons crown as most downloaded shopping app
Shein has overtaken Amazon to become the most downloaded shopping app in the US as it continues its blistering rise to prominence.
The Chinese ecommerce fast-fashion app has been dubbed the “TikTok of ecommerce”, and is reportedly the fastest growing ecommerce company in the world, expanding over 100 per cent every year for the last eight years.
According to TechCrunch, which cited data from App Annie and SensorTower, the startup overtook Amazon to become the most downloaded shopping app on both iOS on May 11, achieving the same feat on Android’s app store six days later.
A separate report from NotBoring states that Shein is also top in the iOS app store’s shopping category in 56 countries, and top five in a further 124.
Despite its ubiquity, Shein has remained largely under the radar during its rise to prominence, shunning traditional media in favour of social media popularity.
Instagram and TikTok stars including Addison Rae, Katy Perry and Lil Nas X have all worked with Shein driving the brands popularity among Gen Z shoppers.
Unlike many of its fast fashion rivals Shein, understood to be worth $15 billion, controls its entire production chain from design to manufacturing.
This allows it to pump out hundreds of new products tailored to specific user tastes in different markets across the globe for prices almost always undercutting its fast fashion rivals.
Smart rings could soon replace contactless cards
Smart rings could soon replace contactless cards and smartphones as the main method of making touchless payments.
Japanese health and beauty retailer MTG has struck a deal with Visa which will enable wearers of its ‘Evering’ smart ring to pay for items by hovering their hand over a payment terminal.
The Evering is made of synthetic crystal and has a chip hidden inside which enables it to be linked to a customer’s credit card.
Just like a card the ring will never need charging, is totally waterproof and will allow customers to track their spending via a smartphone app.
While the coronavirus pandemic has seen a seismic shift in the usage of contactless payment methods, which accounted for 90 per cent of all card payments in the UK last year, MTG envisages a much wider use of its smart ring.
“We want to make a world in which people can live with a ring,”, MTG’s chairman Yoshihito Ohta said in an interview.
“The business has potential to grow. It’s risky, but I think no other business has bigger potential than this.”
MTG says the ring could replace a user’s wallet and keys, able to open and lock doors, cars and replace cards all together.
Visa has ordered an initial batch of 3000 Everings, which retail for the equivalent of roughly £130.
Other manufacturers are also exploring the idea of smart rings including market leader Oura, which raised $28 million in its latest funding round and enables users to track health metrics, but not pay for goods.
Amazon has also cautiously tipped its toe into the space with its Echo loop device, announced in 2019, and Apple is understood to have issued patents for similar technology.
While the technology is still in the early stages of development, MTG’s Evering marks a significant step forward for devices which could soon be as ubiquitous as smart watches.
Wilko - challenging retail landscape leads to £107m loss
Wilko has reportedly seen its full year pre-tax profits and sales decline thanks to a “challenging retail landscape”. For the year to February 21, Wilko’s pre-tax profit was at £4.4 million, down 61.4 per cent year-on-year. The retailer’s EBITDA during the period stood flat year-on-year at £48.3 million, dropping by a mere 0.4 per cent, Retail Week reported. Wilko’s 414 stores remained open during the Covid-19 restrictions after it was recognised as an essential retailer. The retailer recorded an overall sales decline of £107.2 million last year to £1.36 billion, a seven per cent drop from the previous financial year. As the pandemic led to a decrease in footfall, Wilko said its shopping centre and high street stores were the hardest hit, with footfall dropping 40 per cent year-on-year. Wilko’s digital sales increased by 89 per cent during the period. Meanwhile, Wilko said it did not participate in the government’s furlough scheme throughout the pandemic. The company also completed early repayment of the VAT payment deferral scheme. Wilko reported a £31.8 million investment across supply chain, IT and brand development last year. “There’s no escaping the impact the pandemic has had on us all and that traditional British retail has been particularly badly affected,” Wilko chief executive Jerome Saint-Marc said. “Our focus has remained on further developing our omnichannel offer, controlling cash, developing great product and investing in our future and given all the challenges of such difficult trading circumstances the directors are satisfied with the 2021 results.”
Mothercare forecasts small drop in profit despite 40% drop in sales
Mothercare has predicted that it will see a profit this year despite a 40 per cent drop in sales. The maternity care retailer reported a “small” EBITDA profit growth in its pre-close trading update. Retail sales declined by 40 per cent to £326 million in the year to March 27 after the impact of Covid-19 hit its various markets around the world. Mothercare’s UK division has been in administration since November 2019. The business was subsequently wound down in February last year, resulting in 79 store closures and 2500 redundancies. Mothercare reported a pre-tax loss of £4.4 million for the six months to October 10, from a £4 million profit the year before. The improved outlook comes despite net worldwide franchisee retail sales falling 40 per cent to £326 million year on year as a result of the Covid-19 impact in the UK and the 40 international markets in which it operates. Mothercare also said it had significantly reduced its net debt to £12.1 million at the year end. “As a global brand the impact of Covid-19 has varied enormously by market as the countries in which our franchise partners operate have addressed the Covid-19 pandemic in many different ways, including restrictions on travel, movement and operating hours of retailers,” Mothercare said. “These issues have been compounded by similar restrictions for our manufacturing partners, which, coupled with the disruption to the global movement of freight, have caused additional challenges with availability of product for franchise partners further impacting sales for the year.” After closing all of its 79 stores and website, the UK arm of the business now operates as a franchise subsidiary of the overall group. In August last year, Mothercare confirmed a franchise partnership with health and beauty retailer Boots, which saw Mothercare products being rolled out on Boots’ website. The Mothercare range also appeared in over 400 Boots stores. Mothercare chairman Clive Whiley said: “Our performance in 2021 shows that, while we are not immune to the impact of the pandemic on our franchise partners’ operations around the world, we have ended the year in a far stronger position than we started it. “Our resilient performance and financial position bears out the robustness of the Mothercare business today, delivering what will be a positive if modest EBITDA result for the year. “We enter 2021/22 as a conservatively financed, cash-generative and profitable business. “We expect 2022 to be a year of further progress, and we can now focus upon developing our strategy and future plans to optimise the competencies and attributes of Mothercare over the next five years. “That is an exciting prospect for all of our staff and stakeholders as we hopefully exit this most uncertain of times.” Mothercare will release its preliminary results for the year to March 27 this July.
Made.com pushes ahead with £1bn stock market float
Made.com has confirmed that it has started the process to float on London’s main stock market, in a move that could value the online furniture retailer at £1 billion. It comes after Made.com grew by 30 per cent over the past year after raking in sales of £315 million thanks to locked-down customers freshening up their homes and repurposing rooms in order to work from home. Earlier this year, it appointed JP Morgan, Morgan Stanley and Liberum to draw up plans for a potential initial public offering (IPO). Made.com has now disclosed a “potential intention” to go ahead with an IPO which would raise primary proceeds of £100 million. The pricing is expected to be confirmed soon. Made.com co-founders Brent Hoberman, Ning Li, Chloe Macintosh and Julien Callede are expected to share in a major payday once the IPO takes place. The money raised from the IPO would also be used to invest in growth in Made.com’s existing markets, as well as “improve service through reduction of lead-times offered to customers, scale its homeware range and give the group increased working capital flexibility”. Made.com joins a fast-growing list of big-name retailers that recently announced plans to or have gone ahead and launched on the stock market after enjoying success during the Covid-19 pandemic. These include The Hut Group, Moonpig, Dr Martens, In The Style, Made.com, The Very Group, MyTheresa, Poundland parent company Pepco, and most recently, Hotter Shoes. Made.com said it has ”consistently shown strong top line growth”, achieving 36 per cent gross sales compound annual growth rate over the last five years. In the year to December 31, 2020, the retailer reported an adjusted EBITDA loss of £5.1 million despite recording the 30 per cent sales growth of £315 million. ”Made.com has been revolutionising the home and living sector for the last 11 years,” Made.com chief executive Philippe Chainieux said. “Founded in the UK, it is now the leading digitally native lifestyle brand in a sector that is shifting steadily online. “The business is powered by a technology platform that connects independent designers and makers, allowing us to develop our exclusive product offering. ”The business is fast growing and we have demonstrated the capacity of our brand and customer proposition to travel well. “Around half of our sales are outside of the UK and we are aiming to be the leading home destination in Europe for the digital native.”
M&S to close 30 stores after £201m loss
Marks & Spencer has announced plans to reduce its store estate after it plunged to a £201 million loss thanks to lockdowns and tiered restrictions. The retailer currently has over 250 “full line” sites selling clothing and home as well as food ranges, and is set to cut this number down to around 180. Some stores will be transformed into “food only” and others will be moved to new locations. The retailer’s full-year loss for the year to March 27 compares to a profit of £67 million a year before. M&S said at least 30 stores will close. The retailer said it has already closed or relocated 59 “full line” stores, 16 food stores and eight outlets, but the effect of the pandemic means “we can move faster”. It added that there has rarely been a better time to acquire new replacement stores on good terms. M&S is planning 17 new or expanded “full line” stores over the next two years, including a number of former Debenhams sites, with the pipeline continuing to grow. M&S said the overall clothing and home result for the year was “heavily impacted” by lockdowns, ongoing social distancing, steep decline in formal and occasionwear, the location of many of our stores in town and shopping centres and the priority to clear stock. As a result, total revenue declined 31.5 per cent. Clothing and home sales dropped 31 per cent despite onlin e sales rising 54 per cent. Clothing and Home recorded an operating loss before adjusting items of £129.4 million as lower sales were only partly offset by reduced operating costs. Losses “substantially reduced” in the second half as M&S invested in its online channels to accelerate online growth to partly compensate for losses in store. Meanwhile, food revenues grew by 1.3 per cent without including the contribution of the online delivery partnership with Ocado, which now sells M&S products and delivered a £78 million boost to its business. M&S said its balance sheet is “stronger than expected” following the impact of the pandemic. “In a year like no other we have delivered a resilient trading performance, thanks in no small part to the extraordinary efforts of our colleagues,” M&S chief executive Steve Rowe said. “In addition, by going further and faster in our transformation through the Never the Same Again programme, we moved beyond fixing the basics to forge a reshaped M&S. “With the right team in place to accelerate change in the trading businesses and build a trajectory for future growth, we now have a clear line of sight on the path to make M&S special again. “The transformation has moved to the next phase.”
British Land sees over £2bn wiped off property value
British Land has seen more than £2 billion wiped off the value of its retail sites and offices as the Covid-19 pandemic and lockdowns wreaked havoc on its estate. The property giant, which owns shopping centres including Meadowhall in Sheffield, reported a 10.8 per cent tumble in the value of its property portfolio, from £11.2 billion to £9.1 million at the end of March. The firm posted its third straight year of annual losses, with pre-tax losses of £1.05 billion for the year to March 31 against losses of £1.1 billion the previous year. On an underlying basis, profits reduced by more than a third, down 34.3 per cent at £306 million as many of its office block and retail tenants were left unable to pay rent for most of the year. Its retail sites took the brunt of the hit from the pandemic, with values plunging by 24.7 per cent, while its suffered a 3.8 per cent fall across offices. British Land said it was able to collect just 71 per cent of rent across its retail estate, with many shops closed for most of the year due to coronavirus restrictions. By contrast, it collected 99 per cent of office rents. British Land said it had seen an “encouraging” performance across its estate since non-essential retail started to reopened on April 12, with shopper numbers and sales recovering to pre-pandemic levels. However, it cautioned retail markets were set to “remain tough and we expect rents to decline further”. “We are seeing signs of stabilisation on retail parks and our central case is an additional rental decline of around five per cent… shopping centres, which have been more impacted by Covid-19, are likely to take a little longer to stabilise,” British Land said. With flexible homeworking set to stay, commercial land said it was targeting higher-end campus-style developments, mixing retail, office, meeting and housing space.
Tesco trials new one-hour rapid delivery service
Tesco is launching a new rapid delivery service which will allow the supermarket chain to deliver groceries to customers within an hour. The Big 4 giant is initially trialling the Whoosh delivery service at one store and will then assess potential opportunities to expand the model. It said the one-hour service will be available for customers in selected postcodes around its Wolverhampton Willenhall Express store. The supermarket chain has seen soaring online growth during the Covid-19 pandemic but has so far refrained from following rivals into the on-demand grocery space. Sainsbury’s operates its own Chop Chop rapid delivery business, as well as services through Deliveroo and Uber Eats. Meanwhile, Waitrose recently scrapped its own Zoom rapid delivery business in favour of expanding its tie-up with Deliveroo. A raft of major grocery retailers, including Morrisons, Aldi and the Co-op, also use delivery operators such as Deliveroo and Uber Eats to reach customers. Tesco said customers would now be able to order on-demand via its app or Tesco.com, with products delivered by bike, moped or car, with a £5 delivery fee. “Customers are telling us that they would welcome the addition of a 60-minute delivery to their door option as part of our online grocery service,” Tesco online managing director Chris Poad said. “We’ll use the pilot to understand how Whoosh could work best for both our customers and our colleagues.”
Sainsbury's replaces "Live well for less" motto with "Helping Everyone Eat Better"
Sainsbury’s has announced that it will retire its “Live Well for Less” motto after 10 years, to be replaced with a new brand commitment to help “Everyone Eat Better”. The change will see the supermarket give customers advice based on the principles of the UK Government’s Eatwell Guide, and comes as it is revealed that only a quarter of people in the UK manage to eat five pieces of fruit or vegetables a day, with many families relying on just six go-to recipes. Kicking off with a new campaign, with a TV ad voiced by Stephen Fry, Sainsbury’s is encouraging customers to mix it up and try recipes that are made up of more fruit and vegetables over the summer. For each of these ingredients, Sainsbury’s said it would provide a recipe to help customers incorporate them into their diets, such as a broccoli frittata, a kale-filo pie, strawberry pancakes, pea-pesto pasta, and a beetroot burger. These recipes lend a hand to deliver realistic changes that will help customers have a greater proportion of fruit, veg and starchy carbohydrates. Shoppers will also be given incentives to up their own intake of fruit and veg via challenges in the Nectar app. Sainsbury’s said the new focus reflects its belief that healthy and delicious food should be available to everyone, and will see the retailer make it easier and more accessible for customers to incrementally improve their diets while helping to reduce their impact on the environment. More than a quarter of the world’s greenhouse gas emissions come from food production and research shows that shifting the nation towards a diet more in line with the Eatwell Guide could deliver reductions in greenhouse gases of approximately 30 per cent. “At Sainsbury’s, we believe everyone should have access to healthy, tasty food that is better for them and the planet too,” Sainsbury’s chief marketing officer Mark Given said. “With our new brand commitment, we want to help our customers shake up their approach to food, by actively helping everyone make healthier choices. “From providing recipe information and offering incentives for eating more fruit and veg, we have a lot in store and can’t wait to bring the nation on this journey with us.” Meanwhile, until August Sainsbury’s is topping up Healthy Start Vouchers with a fruit and veg coupon to help families in need have access to nutritious food. Sainsbury’s was also recently named Principal Supermarket Partner for the UN’s international climate change conference, COP26, taking place in Glasgow in November.
Frasers Group not planning Hugo Boss takeover
Mike Ashley’s Frasers Group has denied placing a takeover bid on Hugo Boss after reports emerged that the group was planning on increasing its shares in the premium retailer. Shares in Hugo Boss rose on May 21 after reports that Frasers Group would swoop in on the German business, valuing it at €3.2 billion (£2.7 billion). Hugo Boss stock rose almost seven per cent in Frankfurt following the reports. In a one-line statement, the company said: “Frasers Group wishes to make a market clarification that Frasers Group does not intend to bid for Hugo Boss AG.” The Telegraph had reported at the time that Frasers Group said it intends to be a “supportive shareholder” of Hugo Boss. In January, Frasers Group controlled a 15.2 per cent stake in Hugo Boss through a combination of stocks, and has been buying up more in recent months as part of its elevation plan. The empire also owns 3.3 million shares via contracts for difference, which represents 4.8 per cent of Hugo Boss’ shares, and 3.7 million shares via the sale of put options, amounting to 5.3 per cent of the retailer’s share capital. The group, formerly known as Sports Direct International, upped its stake in Mulberry, from 29.7 per cent to 36.8 per cent in November.
Amazon under pressure to reveal plastic footprint
Amazon is facing increased pressure to reduce its plastic footprint, as shareholders voted on a resolution calling for it to reveal how much of its plastic packaging ends up in the environment. The resolution, co-proposed by the activist shareholder group As You Sow, calls on the online retailer to provide a report by this December, showing how much plastic packaging it uses and what actions it has taken to tackle the issue of plastic waste. Amazon’s board of directors had recommended that shareholders vote against the proposal. Last year, conservation group Oceana estimated that Amazon had generated 210,000 tonnes of plastic packaging waste in 2019. Amazon has since disputed Oceana’s figures, accusing the group of “dramatically miscalculating” its use of plastic. The retailer said it reduced the weight of outbound packaging by more a third and eliminated more than a million tonnes of packaging material since 2015. Institutional Shareholder Services (ISS) recommended that Amazon shareholders vote in favour of the proposal. In its recommendation to shareholders, ISS said Amazon’s various initiatives to design packaging that uses less plastic or is more recyclable. “While the company discusses the impact in terms of plastic waste reduction, it does not provide an overall baseline amount of plastic used throughout its supply chain,” ISS said. Amazon said it would review and address the “concern for reducing plastic pollution” by taking steps to share information on its progress on the issue. It said it had made progress to reduce plastic use in four key areas: plastics in packaging for products manufactured by other companies; plastics in packaging that Amazon repackages for delivery; plastics in Amazon’s own devices and labelled products; and plastics in physical stores, such as Whole Foods. Amazon added: “In addition, we are focused on our goal of having the packaging for Amazon devices be plastic-free and made up of entirely kerbside recyclable material by 2023.”
Pets at Home sales smash £1bn for first time
Pets at Home has witnessed an increase in sales and profits thanks to an “extraordinary year”. The pets goods retailer posted a 35.5 per cent rise in statutory pre-tax profit to £116.4 million during the 52 weeks to March 25. On an underlying basis, profits dropped 6.4 per cent to £87.5 million, while group sales rose 7.9 per cent to £1.14 billion, as like-for-likes jumped 8.7 per cent during the period. In Pets at Home’s core retail business, sales grew at a quicker rate of 8.7 per cent, smashing £1 billion for the first time. Like-for-like retail sales grew 8.8 per cent year on year and jumped 17.3 per cent on a two-year basis. Like-for-likes in its veterinary division rose 7.9 per cent year-on-year and was up 13.2 per cent compared to 2019 levels. Retail like-for-likes jumped 11.9 per cent despite the impact of a second national lockdown. The retailer said it was boosted by an eight per cent uplift in pet ownership during the period, as its subscription customer base increased by 21 per cent to more than one million. Although it warned that the trading landscape “remains uncertain”, it insisted it had a “robust” model that would allow it to continue trading “with minimal disruption”. Pets at Home said it now expects to deliver underlying pre-tax profit between £120 million and £130 million in 2021/22. For the year ahead, the business plans to invest £70 million across three key areas: the continuation of its store transformation programme that is focused on repurposing the existing store estate into next generation pet care centres; investment in growing its digital and data expertise across the business as it accelerates its digital pet care experience; and a major new national distribution centre. “We ended this unprecedented year a far stronger pet care business,” Pets at Home boss Peter Pritchard said. “Despite challenges to how we were able to do business, we grew our market share across all channels and our underlying growth trajectory accelerated. “Our loyalty clubs saw record periods of new customer registration, strong growth in subscription customers increased the visibility and quality of our sales profile, whilst new clients across our veterinary estate helped increase practice profitability and cash flow. “We will, as the UK’s leading omnichannel pet care provider, capitalise on this opportunity through continued investment in our infrastructure, further digitising our business and leveraging our extensive and unique dataset to provide insight throughout the customer lifetime to support investment decision-making that will drive quality and profitable growth.”
Dreams acquired by Tempur Sealy in £340m deal
Dreams is to be acquired by Tempur Sealy from Sun European Partners for an expected purchase price of approximately £340 million. No jobs cuts or store closures have been made and Dreams’ management team will also stay in place, led by Mike Logue who was appointed in 2013. The bedding and mattress retailer will also continue its day-to-day operations and said it would remained committed to its business strategy. With 2000 staff across the UK, Dreams sells 11,500 mattresses, bases and headboards per week through its network of over 200 stores and ecommerce site. It also makes all of its own-brand mattresses at its factory in Oldbury and delivers to customers via its 11 delivery centres and fleet of 140 vehicles. The takeover by Tempur Sealy, a US-based mattress and bedding giant, comes after Dreams delivered six years of consecutive growth and generated sales of approximately £327 million excluding VAT in 2020. “Today marks a milestone for Dreams. It is recognition of the transformation we have delivered, and is an endorsement of our customer-focused strategy, our culture and our values,” Logue said. “With Tempur Sealy we expect to drive our growth strategy and build on our position as the most recommended, specialist bed retailer. “I would like to take this opportunity to thank our 2000 colleagues for their hard work, dedication and commitment. “Together we will continue to improve what we make, sell and deliver, to provide better sleep for all our customers.” Tempur Sealy chief executive Scott Thompson said: “Dreams has created a strong brand and business model, known for its outstanding products and customer service. “We have partnered with Dreams for many years and they are one of the most talented retailers we work with, consistently demonstrated best-in-class web marketing and sales capabilities. “This acquisition makes both organizations stronger, better positioned to service customers and bring innovative products to market. “We look forward to welcoming the entire Dreams organization to the Tempur Sealy family.” Thompson added: “This transaction is consistent with our stated strategy of acquiring companies when we see their addition as mutually beneficial and accretive to long-term shareholder value. “We expect over time to realize synergy opportunities and long-term sales growth.” The transaction is expected to close in the third quarter of this year, subject to receipt of regulatory approval from the Financial Conduct Authority.
Mountain Warehouse relaunches Animal as online-only brand
Animal has been relaunched as an online-only retailer after Mountain Warehouse acquired the collapsed surfwear retailer earlier this year. Animal had shut down close down all of its stores permanently last year amid the Covid-19 pandemic and was due to cease operating as a business by the new year. However, Mountain Warehouse rescued it from complete demise after it bought out the brand from H Young Holdings, which had owned and operated Animal since 2014. Mountain Warehouse announced today that it was now relaunching Animal as an online-only retailer in time for the summer season. The new spring/summer 2021 collection includes more than 400 products across categories including menswear, womenswear, childrenswear, accessories, and footwear. Mountain Warehouse said Animal’s new range comes with an eco-edge, created with responsibly resourced materials across wherever possible and using more sustainable packaging. Mountain Warehouse founder Mark Neale said that his “surfing days may be over, but I still have a few classic Animal pieces from the brand’s heyday”. “We are now hugely excited about introducing Animal to a new generation of enthusiasts,” he said. “And I’m sure that our use of recycled and organic fabrics will appeal to today’s conscientious consumer.”
Hendrick's & Lidl in trademark row over gin bottles
Lidl has been forced to temporarily stop selling a version of one of its own-brand gins after being sued by the makers of Hendrick’s Gin who claim a trademark has been infringed. The supermarket chain is defending the case and said there were “clear and obvious differences” between the Hendrick’s trademark and its own Hampstead gin product. Hendrick’s Gin is produced by Scottish firm William Grant and Sons and was launched in 2000, with their bottles bearing a diamond-shaped label in a trademark which became effective from January 2012. Lidl is the parent company and UK owner of the “Hampstead” trademark of the same class 33 for alcoholic beverages, which was filed on March 8, 2012 and registered on March 12, 2013. Hampstead gin has been sold by in Lidl stores for at least 10 years, but the bottle was redesigned in late 2020 and began appearing on shelves in December. After the issue was brought before the Court of Session in Edinburgh, German-owned Lidl has been temporarily forced to stop selling Hampstead in its new guise. Lord Clark noted Hampstead was now priced at £15.99 – with the original version having been sold in Lidl for just £9.99. In his written judgment, he noted the pursuers argued: “While a substantial volume of products in the defenders’ stores were private label products (i.e. own brand), the defenders did stock other big brands in their United Kingdom stores, such as Coca-Cola, Pepsi, Heinz, Nescafe, Budweiser, Corona, Stella Artois and San Miguel. “The defenders’ customers were aware that well-known brands can be purchased in the defenders’ supermarkets often at discounted prices in comparison to other retailers.” However, the judgment also noted Lidl argued they “did not currently have any branded spirits listed as products nationally” and their average customer would not expect to find Hendrick’s Gin for sale but would “be familiar with Lidl’s own label brands, such as Hampstead”. With regards to the trade mark, Lord Clark said: “Notwithstanding the existence of some measure of dissimilarity, having regard to a comprehensive assessment, there is a sufficient basis to argue visual and conceptual similarity between the mark and the sign. “Bottle shape and colour are often intended to be distinguishing features of gin products. “I accept that the more distinctive the mark the greater is the likelihood of confusion and that the Hendrick’s mark relied upon is quite distinctive and recognised on the market. “I do consider that there is sufficient material, from the information put before me, to infer (for the purposes of a prima facie case) that there was a deliberate alteration of the get-up of the Hampstead product to seek to cause at least an association with Hendrick’s. “The defenders also have another get-up to sell the product, which is not challenged, so it is just the sales of Hampstead in this particular get-up that are stopped.” He also referred to content of social media posts lodged on behalf of Hendrick’s which included: “Blatant copying and ripping off of reputable brands”; “Looks a lot like another bottle of gin” (followed by a winking emoji); “Looks like Hendrick’s Gin”; “looks like a complete rip off of Hendricks!!”; and “fake copy of Hendricks”. Lord Clark said: “From the material put before me, I am in no doubt that the trademark relied upon has a reputation in the UK. “I therefore conclude that there is a reasonable prospect of success on the part of the pursuer in showing a change in economic behaviour or a real likelihood of such a change by customers who buy from Lidl, and hence that it has created an unfair advantage. “There is some support within that (social media) material for the proposition of Lidl riding on the coat-tails of the Hendrick’s mark so as to benefit from its attraction and also that this could influence the economic behaviour of the defenders’ customers.” A Lidl spokesman told the PA news agency: “Although naturally disappointed, we note the court’s decision and have closely adhered to the requirements outlined within the ruling. “We continue to liaise directly with the parties involved and hope to reach a satisfactory resolution in due course.” It comes after Marks & Spencer started legal action against Aldi last month over Colin the Caterpillar cake and the rival Cuthbert product.
Co-op to launch franchise store at Keele Uni
Co-op has announced plans to launch a new university franchise store at Keele University this September. The shop will be managed and run by the Keele University Students’ Union, and will stock a range of Co-op own brand products as well as Fairtrade, free-from and vegan options. Keele will be the seventh franchise store for the Co-op following openings at Leeds, Kent, Newcastle, Oxford Brookes and Stirling. “Our university franchise stores are a great opportunity for us to grow our brand, share our values, and get our products into the hands of the next generation of customers and members,” Co-op head of new channels Martin Rogers said. “As the exclusive retail grocery store franchise partner for The National Union of Students and we’re already serving 150,000 students up and down the country.” Keele University Students’ Union chief executive Sarah Ellis said: “This is fantastic news for the students and greater community at Keele. “It will offer a diverse range of products with students benefiting from student discount and anyone else able to use the Co-op membership discount. “It has been a pleasure to work with Co-op on the venture thus far and I look forward to the store developing and opening over the coming months.”
Amazon to open physical pharmacy stores in the US sending rivals' shares diving
Amazon is planning to launch physical pharmacy stores in the US in its latest push into bricks-and-mortar retail, sending shares in rival pharmacies tumbling.
Walgreens Boots Alliance, Rite Aid and CVS Health have all seen their shares drop by around four per cent following reports that Amazon could soon expand its fledgling pharmacy service offline.
According to Business Insider, three anonymous sources familiar with the matter have suggested that talks are in the exploratory phase and that a roll out could be over a year away.
It would mark Amazon’s latest push into both the pharmacy market and physical retail, after launching four Amazon Fresh grocery stores in the UK in quick succession this year.
In November last year, Amazon launched a new online pharmacy service offering up to 80 per cent discounts for Prime subscribers.
The move sought to capitalise on the ongoing healthcare crisis in the US, offering subscribers without health insurances huge discounts on both generic and branded drugs.
Amazon’s launch into the $4 trillion US pharmaceuticals space had a dramatic effect on the market, seeing shares in the country’s leading retailers fall significantly once again.
The online retail giant has had its sights set on the market for some time, having purchased mail-order pharmacy PillPack for $750 million in 2018, followed by the launch of its own branded drugs last year.
While Amazon Pharmacy is only available in the US for now, its likely the service will be rolled out internationally soon as Amazon tries to cash in on the online pharmacy market, set to be worth $131 billion worldwide by 2025.