Selfridges owner begin formal auction with £4bn price tag
Selfridges’ owner the Weston family has reportedly begun a formal auction of the department store business, with bids expected to start at £4 billion. Advisor Credit Suisse is expected to distribute information memoranda to potential buyers and a deal, which may be completed by the end of the year. The sale process follows an unsolicited approach to buy Selfridges, which emerged last month. So far, two or three parties have expressed interest in the business, but no formal bids have been made, The Times reported. Sovereign wealth funds, such as Adia, the Public Investment Fund of Saudi Arabia, and the Qatar Investment Authority, have been named as interested bidders. The Westons are likely to consider the extent to which any interested parties value sustainability as Selfridges has put sustainability at the heart of its strategy. Selfridges’ property assets alone are worth £2 billion. It is understood the sale process is being run from North America by Robin Rankin, Credit Suisse’s co-head of mergers and acquisitions, who is advising Pavi Binning, now special adviser to the Weston family. Selfridges’ profits have doubled in the past decade thanks to investments such as an in-store skating bowl and cinema. In its most recently reported financial year, Selfridges Group’s holding company SHEL Holdings said the pandemic “had a significant short-term impact on the group’s profitability” but it has “committed support from its ultimate parent company”.
M&S to launch same-day clothing delivery
Marks & Spencer has announced it will introduce a same-day delivery service for clothing orders as it boosts its online capabilities. M&S said it will be the first big fashion retailer to offer rapid fulfilment of clothing orders, making it faster than the likes of Asos and Next. Chief executive Steve Rowe said shoppers could get school uniforms, cocktail dresses for evening functions and lacy lingerie ordered online and delivered last-minute. He added that the move would show how bricks and mortar retailers could use their stores as an advantage in online shopping. M&S has said it will close 100 of its 1000 stores, 254 of which sell clothing and food, as it moves high street shops struggling due to lockdown measures and the growth of online shopping. “People think of the store portfolio as being an albatross around our neck but I don’t think it is, I think we are going to have a multichannel proposition so we can be where our customers want and they can choose how quickly they want it,” Rowe said.
LK Bennett to launch clothing rental service
LK Bennett is reportedly set to launch a rental service as a monthly subscription service, which would allow consumers to rent two items at once. The service, which is called LK Bennett Borrowed, would be £79 per month and is expected to launch on July 27. Consumers will be able to create a wishlist of products in order of preference and will receive the top two available items in their size. Shoppers can also pay an additional £9 for the Dart service, allowing them to confirm a specific item for the next delivery or for specific dates, Drapers reported. Items can be kept for up to one month. A customer can rent two items for a whole month, or swap items up to eight items. Free postage is provided for delivery and return. Customers will be able to return garments either one or two at a time using Royal Mail return bags. Those who want to keep their rented products will be able to purchase them for up to 50% off the retail price. LK Bennett has collaborated with logistics provider Caastle on the service. “We believe this new rental offering will attract a new customer base to LK Bennett, as it will satisfy those seeking a more sustainable way of shopping,” LK Bennett chief executive Darren Topp said. “We don’t see this replacing core ecommerce, but rather complementing it and adding choice. “Rental will allow customers who can’t afford or don’t want to spend the amount required to own an LK Bennett item to wear an outfit for a special occasion. “If they’re already an LK Bennett fan, this service enables them to rotate their wardrobe regularly and get fresh items for their everyday wardrobe.”
M&S rolls out new click-and-collect strategy
Marks & Spencer has announced the rollout of an improved digital click-and-collect and returns journey in-store, making the customer experience easier and more efficient. Launching in 78 stores this year, the rollout includes a new self-service digital click-and-collect and returns facility, alongside the launch of a new mobile-friendly paperless returns process. The new digital options are part of M&S’s focus on maximising its omnichannel advantage to drive sales across both its stores and online channels. Currently on trial at 22 stores, M&S said the new digital click-and-collect option has already been popular and the rollout would increase the new format’s footprint to a total of 78 stores ahead of Christmas. The new model replaces the traditional manned collection desks that typically have queues during busy periods, meaning customers can process their collections or returns straightaway using the self-serve digital screens. Alongside the new self service returns launch, M&S said it was making improvements to its existing returns processes. Its new mobile-friendly customer returns journey allows customers to select their preferred route for returning any items purchased on the M&S.com platform – including clothing from its 21 guest brands. The retailer said the portal was created using direct customer feedback and is part of a new process which removes previous customer “pain points” within the shopping journey – such as the need to visit third party courier websites, use a printer, and find the right paper summaries among orders. M&S said the new strategy reduces the average time spent preparing returns by 60 per cent. The high street stalwart has also committed to offering 100 per cent paperless deliveries, which will save 205 tonnes of paper every year and is part of M&S’s wider approach to sustainable shopping. “Customers are looking for quick and convenient solutions like the option to click-and-collect on their terms when they want – which is now the number one choice for orders on M&S.com,” M&S head of digital retail Steve Kemp said. “At M&S we’re building a seamless omnichannel network so that customers can shop however they choose with us, and with the rollout of new digital click-and-collect and returns we’re making it even faster, meaning it’s never been easier to shop our range of fantastic products.” The news comes shortly after it was revealed that M&S was planning to introduce a same-day delivery service for clothing orders as it boosts its online capabilities. M&S said it would be the first major retailer with a bricks-and-mortar estate to offer rapid fulfilment of clothing orders, making it faster than the likes of Next and online-only giant Asos.
Harrods launches new Hair & Beauty salon offering
Harrods has opened the doors to its new Hair and Beauty Salon on the fifth floor of its Knightsbridge flagship. The new salon offers customers at the luxury department store access to exclusive treatments and “must-have” products from the world’s most innovative beauty brands, all under one roof. Harrods’ expert stylists and technicians are also on hand to offer customers a fresh cut, colour and blow dry, or a mani-pedi. The launch of Hair & Beauty Salon marks the final phase of Harrods Knightsbridge beauty business transformation, led by beauty director Annalise Fard. This includes the transformation of Harrods beauty halls in 2020 which now span across 90,000sq ft, in addition to the final chapter in the department store’s beauty transformation with the 16,985sq ft Hair & Beauty Salon space. “The launch of our new Hair & Beauty Salon is yet another significant landmark in Harrods’ quest to bring our customers a world-class beauty proposition that delivers expert hair and beauty experiences,” Fard said. “Harrods has invested in pushing the boundaries in what is expected from a beauty destination, as well as bringing the most innovative experiences and services from around the world to London. “I am absolutely delighted to be creating this exciting new beauty offering for our Harrods community.” Harrods opened its first hair, beauty and manicuring salon back in 1894, and the latest instalment pays homage to this heritage. Harrods head of beauty Mia Collins said: “For the redesign of our newly reimagined Hair & Beauty Salon, we wanted to pay homage to the salon’s heritage and bring back the sophistication and iconic glamour. “We took inspiration from our rich archives to create a space that’s uniquely Harrods. “Through the unique combination of the salon’s design, exceptional treatments, and curated product offering, we strive to offer our customers a real celebration of what beauty is all about.”
Netflix open first ever bricks-and-mortar store amid retail expansion
Netflix is expanding its retail operations further as it announces plans to open its first ever permanent physical store next year.
The streaming giant, which opened its debut online store last month, plans to open a high-tech physical store in Tokyo, Japan, in 2022 aiming to “merge the virtual world of the internet with the real world”.
Netflix is understood to be introducing a host of experiential features to its new store, while selling a range of merchandise from its most popular shows in line with its online offering, according to The Japan Times.
Alongside recreating sets from popular shows and films, Netflix is reportedly considering an installation which would explain to shoppers how it uses artificial intelligence to recommend new shows.
It comes just weeks after Netflix opened its first online store in the US, with plans to open to further markets in the coming months.
The store offers a curated rotating stock of items based on fan-favourite shows like Stranger Things, The Witcher, Lupin and its latest popular anime series Yasuke.
While Netflix has partnered with fashion retailers like TopShop previously its new merchandise, which has been created by a host of different fashion designers, will be exclusive to its store.
In further efforts to diversify its offering amid a drop in subscribers, Netflix has also recently announced a foray into video games.
According to Bloomberg, Netflix is planning to offer mobile games to subscribers ad-free at no extra charge as early as next year.
While no titles have been confirmed, it is understood that Netflix is considering creating its own games based on existing franchises as well as original games that could eventually spin-off into movies or shows.
Sketchers sales smash £1.4bn despite Covid-19 challenges
Skechers has reported record quarterly sales of $1.66 billion (£1.42 billion) in the three months to June 30. Sales at the sportswear retailer increased by a colossal 127.3 per cent year-on-year, and 31.7 per cent over the second quarter of 2019. Domestic wholesale sales grew 205.7 per cent and direct-to-consumer sales grew 137.8 per cent. Meanwhile, international wholesale grew by 94.8 per cent. “Skechers second quarter financial results exceeded expectations,” Skechers chief operating officer, David Weinberg said. “This growth, along with both record gross margin of 51.2 per cent and record quarterly diluted earnings per share of $0.88, was the result of triple-digit improvements in both our domestic and international businesses compared to second quarter 2020, and over 30 per cent as compared to the second quarter of 2019. “We accomplished these financial results even as we continued to face Covid-19 related challenges, including delayed shipments and port constraints, as well as temporary store closures in some key markets, including India, Canada, and parts of Europe and South America. “With a higher average selling price and significantly more units sold, we saw sales increases of 205.7 per cent in domestic wholesale, 137.8 per cent in direct-to-consumer, and 94.8 per cent in international wholesale over the second quarter of 2020. “As consumers began returning to a more normal lifestyle in many markets, demand increased for our comfort technology products, including in North America, across Europe, and in China, which achieved double-digit gains over both 2020 and 2019.”
Hamleys opens new state of the art gaming department
Hamleys has opened the doors to its new state of the art console, PC and gaming accessories department in its Regent Street store in London. The 1326 sq ft. gaming space, located within the lower ground floor of the seventh floor at its London flagship store features leading consoles from PS4 and PS5 to Xbox 1 and XS, Nintendo Switch as well as a range of PC games and accessories. The new department is the biggest gaming retail site in London’s Soho area and features the latest top ranked games and best sellers across the gaming platforms with all the leading publishers from EA, Capcom and Activision to Nintendo, Ubisoft, Rockstar Games and Bandai Namco. Gamers will be able to purchase accessory brands within the new section, including XRocker, Turtle Beach, Anda Seat, Power A, Nacon and Hori and feature everything from keyboards and mouse pads to a wide range of gaming chairs, controllers, arcade sticks and headsets. “We are delighted to unveil this exciting new development in our Regent Street store, where we will deliver the very best range of products and the first-class expertise and service our customers have come to expect,” Hamleys of London chief executive Sumeet Yadav said. “This is a natural fit for Hamleys and in time, we would like to see gaming roll out across our wider global retail estate.”
Moonpig profits soar 125% since IPO
Moonpig has seen its sales and profits increase in its first set of full-year results since floating on the London Stock Exchange. For the financial year ending April 30, Moonpig reported a 113 per cent year-on-year increase in revenue to £368.2 million and 125 per cent adjusted profit before tax increase to £74.6 million. The online gift and cards retailer also reported adjusted EBITDA of £92.1 million, ahead of expectations at the time of the float earlier in the year and at the top end of its guidance in February. Moonpig also reported operating cash flow of £97.2 million and adjusted operating cash conversion of 106 per cent. It expanded its group database to over 190 million cumulative transactions and over 50 million reminders. The current financial year started “moderately ahead of expectations” due to slower lifting of lockdown in the UK and Netherlands. Moonpig said it expected sales in the 2022 financial year to be approximately £250 million to £260 million, representing growth of around 45 per cent to 50 per cent compared to 2020 financial year. “The past year was a milestone year for Moonpig Group as we accelerated the delivery of our strategy to become the ultimate gifting companion, doubled both revenue and adjusted EBITDA, dispatched over 50 million customer orders and floated on the London Stock Exchange,” Moonpig chief executive Nickyl Raithatha said. “We have completed a three-year technology and data re-platforming project, which allows us to leverage our unique gifting dataset in new ways by personalising the customer experience and accelerating the pace at which we deploy innovation. “The scale of our proprietary data, with over 50 million reminders set, is a growing source of competitive advantage. “Our customer proposition continues to improve, with enhancements to our card and gifting ranges, and more delivery options than ever before. “In the past year we have delivered an enduring transformation and step-change in the scale of our business. “The long-term growth opportunity remains vast, with the majority of the card and gifting market still offline, and we have never been in a better position to capture this growth. “I want to personally thank the whole Moonpig group team for their hard work and for making this all possible in such fast moving and challenging circumstances.”
LVMH revenue reaches 24.5bn after excellent half year
LVMH has reported revenue of €28.7 billion (£24.5 billion) in the first half of the year, up 56 per cent compared with the same period last year when its revenue was €18.39 billion (£15.62 billion). The French luxury conglomerate said this was due to accelerated growth in the second quarter of the year, during which organic revenue increase by 14 per cent compared with eight per cent in the first quarter. LVMH benefitted in its second quarter from strong demand from customers in both the US and China. “Demand is very strong everywhere in the world, and in almost all of our categories,” LVMH chief financial officer Jean Jacques Guiony said. “We are coming out of the crisis with remarkable levels of profitability.” Group share of net profit amounted to €5.28 billion (£4.5 billion), up 62 per cent compared with 2019 and 10 times higher than the €522 million (£445 million) seen last year. Operating free cash flow exceeded €5 billion (£4.26 billion), more than three times that of 2019. LVMH chairman and chief executive Bernard Arnault said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. “The creativity, the high quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our maisons, thereby ensuring their continued desirability. “Highlights from the first half include the integration of the Maison Tiffany and the inauguration of La Samaritaine after an ambitious renovation programme. “Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021. “As France is the principal recruitment area and the country of origin of many of our products, the growth of LVMH benefits the country today, and even more tomorrow, with all our Maisons being proud to make their contributions."
M&S food publishes children's book on sustainability
M&S Food has launched a new children’s book that focuses on the stories of its Select farmers and promotes food sustainability. Farm to Foodhall, The Magic Ingredient, co-created and published by HarperCollins Children’s Books and words by Linda Chapman and illustrations by Sarah Jennings, takes young readers on a journey into the world of sustainable agriculture. Available in-stores from today, M&S said the book also “champions” the commitment that its Select Farm partners have to building a more sustainable future. Taking the reader on a journey through the British countryside, the book explores the world of sustainable farming and helps children to better understand the source of their food. Viewed through the eyes of central character, Amalia, it also provides readers with stories, recipes, fun facts and family activities. The book comes after the first M&S quarterly Family Matters Index report, published last month, highlighted the issues most important to families, with environmental impact topping the list. Almost two-thirds of those with children worried about how environmental damage will affect future generations while a third spent time together as a family discussing healthier eating habits. “M&S Food has always partnered with Select farmers and growers that we know and trust to produce delicious food in a way that maintains our reputation for trusted value and protects the planet for future generations,” M&S Food managing director Stuart Machin said. “The stories within the book bring to life these relationships in a way that sparks conversations within families who we know are deeply concerned about the impact of environmental damage on future generations. “It will inspire young minds and help children to learn more about where their food comes from, the effort that goes into producing it, and the importance of establishing ethical and sustainable farming practices now and long into the future.”
Poundland establishes role as job creator after plans to hire 13'000 staff
Poundland is among the discount retailers which is continuing to expand, whether its new stores, products or jobs. The retailer’s parent company Pepco Group recently announced plans to embark on a recruitment drive, with the creation of 13,000 net new jobs across its operations in Europe. While the number of new UK jobs remains unknown, a Poundland spokesperson told Retail Gazette that the majority of the new jobs would be created in mainland Europe. The recruitment spree will take place over the next three years as part of the firm’s wider store portfolio expansion plans. Along with creating new jobs, Pepco Group also plans to treble its number of stores to help it achieve its target of over €1 billion in core earnings within five to seven years. The expansion presents promotion opportunities for existing employees, with Pepco Group highlighting how 90 per cent of every management job was an appointment from within. Poundland is also expecting to benefit from inflationary pressure as people become more price sensitive amid the ongoing economic uncertainty brought about by the Covid-19 pandemic. “Poundland will be a job creator too as it continues to transform the business,” the Poundland spokesperson told Retail Gazette. They added that Poundland planned to open a “modest number of stores” each year, along with new whole new categories, such as frozen food and free-from groceries. “Poundland continues to make good progress across all areas of its business,” the spokesperson said. Rachel Artiss, managing consultant at business consultancy BJSS, said Poundland can now benefit from the large amount of vacant retail space left from the collapse of many retailers. “There are deals to be done for organisations who have the resources available, and the confidence in a brick-and-mortar strategy going forward,” she said. “It could enable a retailer to expand their store footprint on more favourable terms than before, and with the opening of further stores this also creates job openings to support this expansion. “Expansion could also deliver reputational benefit for Pepco, as they are visibly supporting the effort of getting more people back to work following the significant job losses and upheaval created by the pandemic in the retail and hospitality sector. “It also drives a positive awareness of the brand which expands the potential customer base. I would also expect there to be robust supply of stock in some categories following the disruption of traditional sale channels resulting from lockdowns, which in tail has driven cost efficiencies to expansion and product sourcing.” Retail expert Andy Barr agreed. He said Poundland was yet another example of a brand exploding out of the lockdowns around the world. “It’s a prime time for expanding with so many good people unemployed, and these kinds of stores are holding the UK high street together,” he told Retail Gazette. “It gives a shot in the arm for consumers and another opportunity to save. It’s a nice alternative on our high street to all the betting shops, at any rate.” Samantha Silva, head of retail EMEA at recruitment agency Quest Search & Selection, argued that Poundland was likely to pick up some great deals on empty units for retailers that have ceased trading on the high street or have turned their focus to online. She added that Poundland was “targeting the savvy shopper” as it continues with its brick-and-mortar ambitions. “This is great news for their employees, as it has been mentioned that 90 per cent of their management population are from internal promotion,” Silva said. “With this in mind, they still need to focus on getting fresh blood and new talent into the business to strive forwards with their expansion plans and on-going success.”
Philip Morris owned IQOS stores all shut down
The parent company of heated tobacco retailer IQOS has reportedly closed down almost all 16 of its stores across the UK. It comes two years after Philip Morris International, the same company that owns Marlboro, revealed ambitions expansion plans for the high street chain. The plans, which were set out before the Covid-19 pandemic, featured opening hundreds of IQOS shops across the country to help drive sales of combustible cigarette alternatives as part of its visions for a “smoke free” future. IQOS first launched in 2016 and mainly has stores across London, Manchester and Bristol. The retailer generated net revenues of $6.8 billion last year, which made up almost one quarter of Philip Morris’ overall revenues. According to The Times though, there are signs IQOS is struggling to gain traction in the UK and a source speaking to the newspaper said 60 agency retail staff were made redundant as a result of the store closures. A Philip Morris spokesperson told The Times that IQOS was “growing rapidly and is the number one smoke-free product in the UK”. Customers can still purchase IQOS products online or through other high street stockists like convenience or grocery stores.
Tesco offers £1000 bonus to new HGV drivers amid shortage crisis
Tesco is offering a £1000 joining bonus to lorry drivers who join the Big 4 grocer before the end of September amid staffing pressures on the UK’s supermarkets. The payment, which applies to new starters who join from July 14 until September 30, appears on various advertisements for HGV driver roles on the retail giant’s website. Potential candidates are told that the role offers the opportunity to be “an ambassador on our roads” where “you’ll play a vital role for our customers and communities, representing Tesco on the highways and byways of the UK”. The time-limited offer comes after supermarkets had to reassure customers last week that there was no need to panic buy following pictures of half-empty shelves and reports of temporary shortages. A “perfect storm” of aggravating factors was blamed for the situation, including self-isolating workers and prior staff shortages brought about by Brexit and the Covid-19 pandemic. Last week the BRC warned that staff shortages, caused by large numbers of workers self-isolating after being pinged by the NHS Covid-19 app, was “putting increasing pressure on retailers’ ability to maintain opening hours and keep shelves stocked”. The impact of the so-called “pingdemic” was also being seen in factories, bakeries and meat processing plants. The UK Government has since introduced emergency measures which it says will protect food supplies, allowing thousands of workers to avoid the need to self-isolate if identified as a contact of a Covid case. Critical workplaces in the food supply chain are being prioritised for targeted daily testing, which will allow eligible workers identified as Covid contacts to continue working if they test negative. Meanwhile, the Road Haulage Association previously said it believes there is a shortfall of about 60,000 haulage drivers in the UK after around 30,000 HGV driving tests did not take place last year due to the coronavirus pandemic. Hauliers blamed the shortage on a large proportion of drivers being foreign nationals from European countries who had returned to the EU amid Brexit changes, combined with truck drivers not being included on the government’s list of skilled labour, leaving new arrivals needing immigration paperwork. Tesco previously assured shoppers it had plenty of food and all grocers urged customers to shop as normal.
Games Workshop confirms £5000 staff bonuses as profits surge 69%
Games Workshop showed a big spike in profit over the past year as it confirmed plans to expand in China as well as payment of a generous staff bonus scheme. The fantasy figurines retailer confirmed in its trading update this week that around 2600 staff will each receive £5000 in shares under its profit-share scheme. The share bonuses, paid in May, in total are worth £12 million and mark a £10 million hike on the £2 million awards given to staff the previous year. The staff would split a £10.6 million special bonus on top of a £2.6 million profit share. Meanwhile, senior executives will share an extra £1.1 million bonus pot, which marks a £300,000 increase on the year before. Although Games Workshop had to shut its 523 stores during lockdowns due to the Covid-19 pandemic, it still performed well thanks to social media engagement, online events, and online sales. As a result, the full-year pre-tax profit rose 69 per cent to nearly £151 million, while revenue came in a £353 million, which marked an increase of around a third. The retailer said it also cancelled business rates relief and other pandemic financial support from the government. Games Workshop, which trades on the high street as Warhammer, said it was now gearing up to roll out hundreds of products across China following delays at the border. To help, it is hiring an in-house Chinese translation team in a bid to capture the massive market. The country, and nearby Japan, are “not significant contributors to our performance yet, but we remain focused on sharing our passion for Warhammer to more people in these countries as well as the rest of Asia”, chief executive Kevin Rountree said. Last year Rountree’s company was given a safety registration by authorities in China and has now signed up 750 products for the country. All of these will be on sale in China soon. Games Workshop’s trading performance was also in line with forecasts. Analysts at Jefferies had expected exactly those numbers, but still left shareholders feeling a little cold. After a series of guidance upgrades over the past year, simply meeting expectations did not seem to be enough for the market. Shares had dipped around 2.8 per cent on Tuesday morning. The retailer did not provide any new guidance, merely reiterating what it said six months ago.
Co-op to turn more plastic into fabric at festivals this summer
Co-op has partnered with recycling firm Reborn to install reverse vending machines at five festival pop-up shops that will help turn plastic into fabric for Co-op staff uniforms. The convenience grocery chain has become a fixture on the festival scene since the launch of its first pop-up shop back in 2018 and will return this year at five of this summer’s biggest music festivals, along with the popular in-store reverse vending machines. Reborn is now supplying Co-op with two reverse vending machines at each of the festival stores for customers to return plastic bottles and cans to be recycled and “earn” money back to spend in the pop-up shop. Reborn will then use its fleet of electric vehicles to collect all plastic waste after the festivals and repurpose it to create garments and uniforms for Co-op to use at future festivals. The collected plastic will be shredded and turned into RPET pellets at Reborn’s new recycling centre in Sarratt, Hertfordshire. These pellets can be transformed into almost anything ranging from uniforms, merchandise, umbrellas, worktops and furniture for Co-op to use internally and at future events. Reborn has also created 2000 t-shirts and 450 hoodies for Co-op staff to wear at the 2021 festivals which have been made from completely sustainable materials. The t-shirts and hoodies have been made from 40% organic cotton and 60% RPET created from 18,000 plastic bottles – six recycled plastic bottles per each t-shirt and hoodie – collected from the ocean. “We’re so excited to be back with our festival family after what has been such a difficult year,” Co-op marketing experience director Amanda Jennings said. “We’re finally able to enjoy live music together and we can’t wait to be part of people’s festival experience once again. “Festival-goers have previously responded well to the reverse vending machines in our pop-up stores and it’s fantastic that we now have a festival-themed closed loop system in place for the bottles and cans we collect.” Co-op and Live Nation UK recently announced a five year partnership renewal to secure Co-op’s presence as the official supermarket sponsor across Download Festival, Latitude Festival, Reading & Leeds Festivals, Creamfields Festival and Isle of Wight Festival.
Boohoo drops DaBaby from menswear campaign after homophobic rant
Boohoo Group’s menswear fascia BoohooMan has cut ties with rapper DaBaby after he made vile remarks during a live show that was homophobic and fuelled HIV stigma. During his performance at the Rolling Loud Festival in Miami on Sunday, he said: “If you didn’t show up today with HIV, AIDS, any of them deadly sexually transmitted diseases that’ll make you die in two, three weeks, then put your cellphone light up.” He also said: “Ladies, if your p***y smell like water, put a cellphone light them up. Fellas, if you ain’t sucking d**k in the parking lot put your cellphone light up. Keep it real.” DaBaby has since faced massive backlash over his remarks about gay people and people living with HIV or AIDS, prompting BoohooMan to confirm today that it would no longer work with the rapper in its marketing campaigns. “Diversity and inclusion are part of the boohoo Groups DNA and we pride ourselves on representing the diverse customers we serve across the globe,” BoohooMan said in a statement posted to Instagram. “We stand by and support the LGBTQ+ community, and do not tolerate any hate speech or discrimination in any form.” In June, BoohooMan released a 100-piece capsule collection with DaBaby. Boohoo also released a Pride collection during the same month, donating proceeds to It Gets Better. On Monday, DaBaby attempted to defend his homophobic rant from the day before via Instagram Stories, in which he said the backlash was a “weak ass internet issue” and that none of his gay fans are living with HIV or AIDS. “I wasn’t going on a rant, that’s called a call to action, that’s what that’s called, cause I’m a live performer, I’m the best live performer… you interact with your fans, you get what I’m saying,” he said. “All the lights went up, gay or straight, you want to know why? Cause even my gay fans don’t got f**king AIDS, stupid ass n****s. “They don’t got AIDS, my gay fans, they take care of themselves, they ain’t no nasty gay n****s, they ain’t no junkies.” DaBaby also said that anyone who did not attend the Sunday show should “shut the f**k up” and not “disturb my motherf**king gay fans and make them feel uncomfortable in they skin”.
Singapore's GIC joins £6.3bn Morrisons takeover deal
The Singapore sovereign wealth fund has joined forces with the private equity-led consortium seeking to buy Morrisons in £6.3 billion deal. The Big 4 giant’s board of directors have already agreed the takeover move, led by US-based investor Fortress, earlier this month and recommended shareholders to approve it when they meet to vote on the matter next month. However, on Tuesday evening, Morrison’s largest shareholder, Silchester International, said it would not support the offer and called for more time for other potential bidders to come forward. The current agreed deal values Morrisons at 252p per share, with a conditional special dividend of 2p per share. On Wednesday, the Singaporean GIC fund said it would take part in the consortium to buy Morrisons via its Cambourne Life investment vehicle. Fortress will continue to hold a majority position in the consortium and the value of the takeover offer will remain unchanged. It comes around a week after private equity firm Apollo said it was in talks to join the Fortress-led agreed takeover deal. Morrisons shareholders are due to vote on the offer at a general meeting on August 16. The retailer agreed to the takeover move days after it rebuffed an initial £5.5 billion approach from rival private equity firm Clayton, Dubilier & Rice (CD&R). UK takeover regulators have given CD&R a deadline of August 9 to either place its own firm bid for the chain or walk away. Morrisons’ share price was more than 265p on Wednesday morning, firmly ahead of the 254p takeover offer, suggesting that investors believe a higher bid is still likely.
Pets at Home revenue smashes £377m thanks to robust pet care market
Pets at Home has increased its profit expectations despite “the ongoing impact of the pandemic on operating costs”. The pets goods retailer hailed a “strong sales momentum” in the first quarter as it witnessed a total group revenue growth of 25.7 per cent to £377.8 million. In the 16 weeks to July 15, like-for-like revenue was up 30.2 per cent, or 29.4 per cent on a two-year basis, “reflecting continued strong growth across both retail and veterinary operations”. Retail revenue grew by 29.1 per cent, with growth across both food and accessories, instore and online, despite the reopening of non-essential retail and hospitality sectors during the quarter. The strong performance across veterinary operations continued through the quarter, with customer sales across First Opinion practices approximately 30 per cent higher on a two-year basis. The number of profitable practices continued to increase, with the balance of operating loans reducing further post year end. Meanwhile, the number of subscription plans across the group grew 24 per cent year-on-year to over 1.3 million, generating over £100 million in annualised recurring customer sales. “Notwithstanding an increasingly challenging cost environment, including the ongoing impact of the pandemic on operating costs, which we continue to estimate at £9 million this financial year, we maintained our price competitiveness through the quarter, with good profit and cash conversion reflecting a higher number of store transactions and strong growth in accessories sales, as well as the strong sales performance from the Vet Group,” Pets at Home said. “Based on trading year to date we now anticipate that full-year group underlying pre-tax profit will be £130 million, at the top end of the current range of analyst expectations, representing a £42.5 million increase on the prior year. “The UK pet care market is robust, with the ongoing increase in pet ownership, combined with the prevailing trends of pet renewal, humanisation and premiumisation, creating a long-term tailwind for growth across both the underlying market and our business. “During the quarter, we continued to invest in our ecosystem and implement initiatives to drive productivity gains across our operations.”
Lidl scraps over 1bn pieces of plastic from UK stores
Lidl has removed over one billion pieces of plastic from stores across Great Britain as part of its strategy to reduce plastic waste. The discount retailer said it has prevented the equivalent of 10 million water bottles from entering the ocean through its use of ocean-bound plastics. It has pledged to remove a further two billion pieces of plastic by the end of next year. This includes more than 24 million plastic trays and punnets being removed from its fruit and vegetable ranges, and up to 25 million plastic lids from dairy and yoghurt ranges. Lidl has already cut nearly 19 million plastic tags from its fruit and vegetable lines, and 3.5 million pieces of plastic packaging on fresh flowers. “It is fantastic that we have been able to reach this significant milestone which demonstrates our commitment to tackling excessive plastic waste and working collaboratively with all of our suppliers,” Lidl chief executive Christian Härtnagel said. “We recognise, however, there is still more to do in this area which is why we are pushing to go further by removing even more pieces of plastic from our stores and packaging over the next two years and rolling-out our leading ocean-bound plastic packaging across more and more categories in our stores.” This builds on Lidl’s existing plastic commitments to make 100 per cent of own brand packaging widely recyclable, reusable or refillable by 2025.
Halfords profits soar
During the Covid-19 pandemic, Halfords’ B2B, services, and online businesses grew, resulting in record earnings, despite store closures over the course of lockdown. For the full year to April 2, the bicycle and automotive retailer reported a 72.3 per cent increase in underlying profit before tax, driven by the “largest ever year for services.” According to the report, service-related group sales currently account for 29 per cent of total group sales, with 44 per cent coming from the internet and 18 per cent from B2B channels. Overall, group sales increased 13.1 per cent to £1.29 billion as the store took advantage of “record demand” for bikes and cycling gear. With traffic levels reduced by up to 90 per cent during the pandemic, Halfords said that motoring was down 12.1 per cent on a like-for-like basis however autocentre revenues grew 31.6 per cent year on year thanks to its mobile service. By continuing to expand its offer, investing in employees, and enhancing its digital capabilities, the retailer said it is now focusing on driving its service-led business for both customers and enterprises. Halfords chief executive Graham Stapleton said in a statement: “This year has undoubtedly been one of the most challenging that Halfords has faced in its 130-year history,” “I reflect on the year with immense pride in the commitment and determination of our colleagues to support our customers, suppliers and communities, whom we served throughout the pandemic to keep the UK moving in a time of great difficulty. “Despite the challenging operating environment, I am very proud of the resilient and strong performance we delivered in FY21. “We have shown agility in adapting our operating models on multiple occasions during the year, while at the same time continuing to build the strategic foundations on which we will transform our business in FY22.”
Pret A Manger to roll out automated vending machines as staff crisis continues
Pret A Manger is planning to launch automated self-service coffee machines as it faces severe staff shortages and dwindling commuter footfall.
The coffee giant is understood to have trademarked “Pret Express” with the UK’s Intellectual Property Office under “coffee vending machines and dispensing machines”, according to The Financial Times.
Alongside this listing Pret filed a trademark for “Pret Perks” pointing to a new loyalty scheme to go alongside this its new vending machine venture.
While a spokesperson for the brand said they “did not comment on speculation”, the move is expected to be the retailer’s latest effort to diversify its offering amid ongoing challenges to the sector.
It comes as Pret said it had been forced to close 17 stores last week as a significant portion of its staff were forced to self-isolate amid the ‘pingdemic’ crisis.
The chain has also been one of the hardest hit by the pandemic and subsequent work-from-home revolution, severely impacting its returning footfall when stores were allowed to reopen.
Last year Pret was forced to permanently close 74 outlets across the UK and a futher 22 in the US despite investors pumping in an additional £185 million.
“You now have a situation where in a train station, for example, it might not be economical to have a fully-fledged barista café while the opportunity to put coffee into a train station that can operate 24 hours is becoming more compelling,” Allegra World Coffee Portal’s chief executive Jeffrey Young commented.
He added that technology has advanced to the point where the quality of vending machine coffee was “no longer an issue” and is becoming “closer and closer to the real barista experience”.
Northern Irelands £100 high street voucher scheme to open in September
A high street voucher scheme that will give everyone in Northern Ireland aged 18 and over a pre-paid card worth £100 is set to open to the public for registration in September. Economy Minister Gordon Lyons made the announcement as he unveiled that the contract for the delivery of the scheme has been awarded to Prepaid Financial Services (PFS). Lyons also revealed a “Spend Local” logo which will feature on each of the cards which are intended to encourage spending at retailers that have been badly affected by the Covid-19 lockdowns. Speaking during a visit to businesses in Carrickfergus, he said: “My department is planning for the scheme to go live in September and I want to ensure everyone who is eligible can receive their pre-paid card as soon as possible after registration. “As a first step in that process I would urge members of the public to sign up for the electoral register if they have not already done so, as we plan to use the register to check registrations for the high street scheme.” Lyons added: “This scheme is a key element of my department’s Economic Recovery Action Plan and will give a very welcome boost to our high streets which were hard hit by the Covid-19 pandemic. This uplift is what our local businesses need and deserve. “It will mean up to 1.4 million people will have an extra £100 each to spend on our high streets rather than online. “This will help bring many more customers back through the doors of local retail, hospitality and other sectors. “I look forward to seeing the benefits this scheme will bring to the wide range of businesses situated in the heart of towns, villages and cities across Northern Ireland.” Northern Ireland Retail Consortium bosses welcomed the move. “The past year has been one of the hardest on record for our retail industry and our high streets because of the pandemic,” director Aodhan Connolly said. “This scheme will give a welcome boost to high street retailers and other consumer-facing sectors in towns and cities in Northern Ireland. Chief executive Glyn Roberts said: “This scheme is a win-win for our members and our high streets. “It will be a significant spending boost for struggling independent retailers as we progress the long road toward recovery. “Seventy pence in every pound spent with an independent retailer is recycled around the economy, supporting local producers, farmers and manufacturers. “So it is vital that consumers make a special effort to spend this pre-paid card with local traders to ensure the widest possible boost to our economy.” A similar voucher scheme is being considered in Scotland, as well as in some local council areas in Wales.
Fall in number of temp delivery drivers as hospitality and retail reopen
The number of temporary delivery drivers has fallen by more than a quarter as thousands of workers return to their pre-pandemic jobs in retail, new research suggests. Delivery work was a “lifeline” for many people during the lockdown amid a big increase in online shopping, according to jobs site Indeed Flex. Its study indicated that the number of temporary drivers available for work in June was 28.8 per cent down on its March level, with many opting for shifts in the hospitality and retail sectors instead. “The logistics sector stepped up admirably last year, keeping millions of locked-down Britons supplied with food and essentials,” Indeed Flex chief executive Jack Beaman said. “The surging demand for delivery drivers also proved a lifeline for many people whose jobs in hospitality, tourism or high street retail came to an abrupt end. “Now, as lockdown restrictions ease, many of the temporary drivers who kept Britain moving in its time of need are boomeranging back to their old jobs. “The trend is happening at the worst possible time for logistics businesses, who are simultaneously grappling with the post-Brexit shortage of drivers and a ‘pingdemic’ which is forcing many staff to stay off work to isolate at home. “The news is better for those looking for temporary work as a driver. They’re in the driving seat like never before – as flexible workers with an in-demand skill, they can pick and choose the shifts that suit them best.”
Amazon fails to meet analysts' expectations sending shares dropping 7%
Amazon’s shares have dropped more than seven per cent in after hours trading as its first set of financial results under its new chief executive miss expectations.
In the three months to the end of June Amazon saw revenues rise 27 per cent to $113 billion, marking the third quarter in a row it has topped $1 billion.
Despite this the ecommerce giant missed consensus estimates of around $115 billion, largely due to its core retail business which grew at its slowest rate since 2019 at 15 per cent.
While profits saw healthy growth of 50 per cent to $7.8 billion, Amazon warned that profits would likely fall year-on-year in its current quarter, while estimating that operating income between July and September would come between $2.5 billion and $6 billion, down from $6.2 billion in the same period in 2020.
Aside from its core retail and logistics business, Amazon’s cloud computing arm Amazon Web Services (AWS) continued its solid performance.
AWS, the arm of which Amazon’s new chief executive Andy Jassy is credited with building, saw revenues rise 30 per cent for the second consecutive quarter to $14.8 billion.
Its advertising arm, which it lists as “other”, also posted a solid performance seeing revenues jump 88 per cent to $7.9 billion as companies piled money back into advertising as much of the west began to reopen.
While this was the last period under the stewardship of founder Jeff Bezos, who officially stepped down earlier this month, all eyes will be on Jassy and how he handles Amazon’s slowing growth in the face of easing lockdown restrictions.
Amazon’s chief financial officer Brian Olsavsky said that the widespread emergence from lockdowns meant Amazon was “seeing among our customers in especially United States and Europe, people are getting out more doing other things besides shopping”.
Jassy added: “Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic,” Jassy said in a statement.
“At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud.”
Sales surge at Prada
On constant exchange rates, retail sales at Prada Group were up 60 per cent to £1.11 billion compared to the same period last year, and up 8 per cent to the same period in 2019. The luxury retailer experienced a strong acceleration in sales in the second quarter despite 17 per cent of the group’s stores being closed at the first half of the year amid Covid-19 restrictions. The group said online sales “continued to make a strong contribution with triple-digit growth”. In Europe, online sales increased 19 per cent to £217.8m year on year although this was a 29 per cent drop compared with the first quarter of 2020. Prada said sales were impacted by the rafts of store closures across Europe but stated that once stores reopened, sales partially recovered. It said strong demand partially offset the lack of tourists visiting its European stores. Wholesale sales were down 37 per cent compared with the equivalent period in 2019. Prada Group chief executive Patrizio Bertelli said: “The commitment to our brands and stronger ties with our customers have delivered robust growth in sales across markets and product categories. We improved gross margin as well as the group’s profitability, despite the uncertain environment. “The sales momentum will stay strong in the second half of the year. Our brands have plenty of potential and we will unlock it over the medium term. I look forward to updating the market on this and other topics at a capital markets day that will take place in the autumn.”
Earlier this week, Selfridges officially unveiled a new public art commission by artist Osman Yousefzada at its Birmingham store. The iconic building, famous for its bulbous blue shape and large silver disks, is now covered by the world’s largest canvas showcasing Yousefzada’s black and pink patterned design. This new art installation, co-commissioned with the Ikon gallery in Birmingham, titled Infinity Pattern 1, has dramatically changed the Birmingham skyline as it stretches over 107,639sq ft. Infinity Pattern 1 addresses the issues of race, labour and migration and for Yousefzada, who is Birmingham-born and the son of Pakistani-Afghan migrants, the work contains some autobiographical elements. The core of its concept is a world without borders, whether physical or imaginary, represented by the pattern. “The work is entrenched in autoethnographic elements of migration, community formation and how they happen, interact and settle,” Yousefzada said. “The work reflects my personal story and more widely my ethnic history and some of the symbolisms inherent to my culture.” This major public artwork, part of Selfridges’ long-established commitment to supporting creativity in the cities where its stores are located, will remain in its completed state until the end of the year. “Selfridges is celebrating the communities of Birmingham through a unique art commission that represents both optimism and transformation,” Selfridges creative director Hannah Emslie said. “This new work by Osman Yousefzada is uplifting but also meaningful and deeply connected to the fabric and culture of the city. “By changing the skyline – at a time when the city itself is changing – we hope to make the world brighter through creative expression, and the people of Birmingham even prouder of their iconic city.” The installation will be dismantled over the course of next year while major renovation work to the store, started last winter, come to an end just ahead of the Commonwealth Games. Yousefzada’s installation was chosen following an international competition led by the Ikon, art gallery in Birmingham.