Ocado criticised for excessive pay for executives
Ocado is reportedly facing a shareholder backlash over “excessive” pay after chief executive Tim Steiner’s near-£7 million windfall. Advisory firm Glass Lewis has urged investors to reject pay proposals at the annual meeting in the next fortnight. It criticised Ocado and said there was too much focus on the “shareholder value creation” rather than underlying performance, The Telegraph reported. It also said it has “severe reservations” about a controversial bonus scheme pegged to Ocado’s share price, which has rocketed by 676 per cent to £21 in the past five years. Glass Lewis said there was too much focus on the “shareholder value creation”, which is subject to market forces, rather than the underlying performance of the business and management. Ocado awarded a £58 million pay packet to Steiner in 2019 and is expected to give him a bonus of up to £100 million over five years if the shares continue to rise. He earned £6.9 million last year. Glass Lewis has also told investors to oppose the reappointment of chairman of the remuneration committee Andrew Harrison. It said it had concerns around the base salary of the new finance chief Stephen Daintith, who will receive an annual sum of £550,000. A total of 29 per cent of shareholders voted against Ocado’s previous remuneration report. Ocado said its pay schemes are approved by shareholders and only deliver above-market payouts for “the delivery of above-market, outstanding results”.
Moss Bros launches menswear subscription service
Suit and formalwear retailer Moss Bros has launched a new monthly subscription service for renting outfits. Bosses hope the £65-a-month “Moss Box” service can be the new Netflix of clothing with customers able to choose two items from casual to formalwear with unlimited swaps. Customers can select from more than 180 products including chinos, jeans, shorts, jumpers, roll-necks, waistcoats, tailoring and other wardrobe essentials from brands including French Connection, Barberis and Ted Baker. If the customer finds what Moss Bros calls “a keeper” there is the option to buy for up to 50 per cent off the retail price. “I had the idea about four years ago because I felt we were seeing Generation Rent – Airbnb, Zipcar, Rent The Runway,” Moss Bros chief executive Brian Brick said. “I felt there was a generation coming through that didn’t want to gather and collect things. “I thought if people didn’t own their wardrobe but revolve it, would that be something they wanted?” He added that the Covid-19 pandemic has seen a shift in trends towards sustainable fashion and a move away from the fast-fashion culture of the past, as shops were shut. Speaking to the PA news agency, Brick said: “I think the biggest change is going to be from fast fashion to slow fashion. I think this whole fast fashion is going to be beaten back by sustainability. “When people started talking about sustainability in some cases, I think it was a little bit of marketing speak, but I think it’s real now.” An estimated £140 million worth of clothing is disposed of by Brits every year. According to GlobalData, the UK rental market value is expected to reach £2.3 billion by 2029. The service is thought to be the first of its kind for men in the UK, but the boss added he would expect to see department stores such as John Lewis, Selfridges and Harrods follow suit. It also comes just as H&M launched a new free men’s suit rental service called One/Second/Suit, where customers are able to rent a suit for a 24-hour period, with the aim to help those attending job interviews to make a good first impression. “I think it’s absolutely ideal for department stores to do subscriptions,” Brick said. “I think you’d be amazed that over the next sort of 18 to 24 months, how many people will do it and it’ll catch on.” Moss Bros’ new subscription service will be launched in partnership with CaaStle, a leading rental technology platform in the US. It sees the company move away from its traditional heritage of formalwear and moving into the casual market, with bosses expecting to see a new dress-down culture in offices. “I think there will still be an element of people who go in and wear a jacket or a suit (but) I think there will be less people wearing suits for business,” Brick said.
WHSmith considers taking over Dixons Carphone's airport stores
WHSmith is reportedly mulling the possibility of taking over Dixon Carphone’s airport stores as part of a travel recovery gamble. According to The Telegraph, WHSmith chief executive Carl Cowling is sizing up Dixons Carphone’s stores in airports after the latter recently confirmed it would close down all 35 of its travel shops – a move that places 400 jobs at risk. Cowling said Dixon Carphone’s exit from the travel retail sector was “another opportunity” to roll out InMotion, the US gadget chain it acquired in 2018. Cowling also said WHSmith “was already talking to landlords to bring InMotion to more stores”. He added that the fascia would work well at airports. An InMotion store already operates at Leeds Bradford Airport. The news comes after WHSmith revealed last week that plans to expand with the opening of 100 new shops in airports and train stations, despite the losses the business suffered due to the Covid-19 pandemic. It said it has a pipeline of 68 stores to open in the US, with the remaining travel stores set to open across the UK, Australia and the rest of Europe. The books and stationery retailer secured £325 million to fund the expansion scheme as it bet on the recovery of commuting and international travel. WHSmith generated more than half of sales and profits from its stores in airports, train stations, hospitals and motorway service areas before the pandemic struck. It expects sales to recover to 2019 levels within the next two to three years.
Frasers Group to buy back £60m worth of shares despite Covid woes
Frasers Group has announced plans to spend £60 million between now and and July despite warning last month that it would suffer a £200 million hit from the Covid-19 pandemic. The Mike Ashley-owned company, which owns high street chains House of Fraser, Sports Direct, Evans Cycles and Jack Wills among others, will start the buying spree on Tuesday – buying a maximum 10 million shares. No reason was given for the decision but businesses typically purchase shares and hold them in reserve to reduce the number of shares available to the public, which tends to push up the share price. “The purpose of the programme is to reduce the share capital of the company,” Frasers Group said. The move comes less than a month after the firm said it could take a hit in excess of £200 million due to the Covid-19 restrictions – double its previous estimate in February. At the time, bosses said further restrictions were “almost certain”, believing a writedown against freehold values and other non-cash impairments will be required. Frasers Group has also been critical of the government’s response to extending the business rates holiday, complaining that the support on offer did not go far enough for big chain retailers. Despite bemoaning its financial woes, the firm has also made several unsuccessful attempts to buy up rivals who have struggled during the pandemic, including Arcadia Group, Debenhams and Peacocks. Frasers Group reopened its estate in England and Wales on April 12 following the easing of lockdown restrictions for non-essential retailers. It did not give an update on current trading. During the first lockdown in March 2020, Ashley tried to claim that Sports Direct was an essential retailer and should remain open, but faced a severe backlash from unions and politicians – including the Prime Minister.
Ebay could soon accept cryptocurrency
Ebay could reportedly begin accepting cryptocurrency in the feature, following in its previous stablemate PayPal’s footsteps.
The online marketplace said in a statement to Reuters last week it was “always looking at the most relevant forms of payment and will continue to assess that going forward”.
It added that the digital payments space was “something we are keeping an eye on”, but stipulated it had “no immediate plans” to begin accepting the cryptocurrencies.
In a separate report from CNBC, Ebay’s chief executive Jamie Ionnone said that accepting digital currency was an option the retailer was considering.
He explained that Ebay was looking into a “number of ways” to get into the non-fungible token (NFTs) space.
NFTs are a type of digital asset which use the same blockchain technology as cryptocurrencies, but instead of denominations of currency they represent a stake in a “one of a kind asset”.
This could be a house, a work of art or anything that is a unique asset that is ‘non-fungible’ or cannot be exchanged for interchangeable units like money.
NFTs have exploded in popularity over the past year, though many expect that the bubble could soon burst.
Should Ebay venture into the crypto space it would follow in the footsteps of PayPal, which it was formerly closely tied to, after it launched a “checkout with crypto” option in late March.
The announcement came after the payment provider said it would enable the buying, selling and holding of cryptocurrencies in users’ PayPal wallets in October last year.
Empty River Island & Debenhams stores converted into climate emergency centres
Many high street retail units including the likes of Debenhams, Homebase and River Island across England and Wales have been converted into climate emergency centres “for the benefit of people and planet”. The units were left empty due to the change in consumers’ shopping habits following the Covid-19 pandemic. Owners of vacant premises have the option to reduce their business rates payments by up to 100 per cent through leasing the property for community benefit to a not-for-profit or charitable organisation, such as a climate emergency centre (CEC). The sustainable centres are run by communities themselves and offer a range of activities that focus on both addressing the climate emergency and bringing people together. These include activities such as art exhibitions, exercise classes, sustainable living workshops, bike repair facilities and vegetarian and vegan cafes. A handful of these centres are already operating during the pandemic after risk assessments to ensure they are Covid-secure. Others are hoping to stage grand openings in the coming months as society opens up further. Some of the empty stores that have either already been taken over for use as climate emergency centre or are the subject of negotiations, include a River Island, a Debenhams and a Homebase. Matt Griffiths-Rimmer, of Hadley Property Group will be redeveloping the former Homebase store for housing and other uses.
Pandora to scrap mined diamonds
Pandora has announced it will stop selling mined diamonds with the switch to lab-grown stones billed as making its jewellery more affordable. The jeweller said it is the first big retailer to completely switch to lab-grown stones following increased ethical concerns. Pandora’s new Pandora Brilliance range is described as its “first lab-created diamond collection”. The range, which includes earrings, necklaces and rings, features lab-grown stones made in the UK, with prices starting at £250. “It is now possible to mimic nature but at a very, very different price,” Pandora chief executive Alexander Lacik said. “Lab-grown diamonds could be produced for a third of what it is for something that we’ve dug up from the ground.” Concerns about the environment and working practices in the mining industry have led to growing demand for alternatives to mined diamonds. Pandora sells 85m trinkets a year, but only 50,000 feature diamonds making it a small player in the gems market. Pandora said demand for lab-grown diamonds was growing faster than the overall diamond jewellery market. The stones are graded by the same standards as mined ones known as the “4Cs” – cut, colour, clarity and carat. The Brilliance range is going on sale in the UK first and is advertised as carbon neutral because the diamonds are made with 60 per cent renewable energy. It is set to go on sale in other markets next year.
Boohoo sales & profits soar
Boohoo Group has said it is seeing “early rewards” after snapping up Debenhams and three Arcadia brands in rescue deals as it unveiled strong trading amid a tumultuous year. The online fashion giant reported a 41 per cent surge in revenues as it benefited from the online shopping boom during various lockdowns around the world due to the Covid-19 pandemic.The firm said revenues jumped to £1.74 billion in the year to February 28 compared to £1.23 billion the previous financial year. It told shareholders this morning that pre-tax profits lifted by 35 per cent year-on-year to £124.7 million as it was boosted by the sales increase. Boohoo Group’s adjusted EBITDA also jumped 37 per cent year-on-year to £173.6 million. The pandemic allowed the online retail giant to capitalise on the online shopping boom across all of its territories due to various lockdowns and stay-at-home orders. In its core UK market increased 39 per cent to £945.1m during the year, while in the US it skyrocketed by 65 per cent to £435.1 million – making it its fastest growing market. Meanwhile, revenues in the rest of Europe was 30 per cent, and sales from the rest of the world grew 16 per cent year-on-year. In addition to the pandemic, last year saw Boohoo Group dogged by a supply chain scandal regarding labour abuses and poor working conditions at its Leicester factories. It also went on an acquisition spree. The group said its trading performance was helped by the “successful integration” of the Oasis and Warehouse brands it bought out of administration last year. Earlier this year, Boohoo Group also snapped up the Debenhams and former Arcadia Group brands Dorothy Perkins, Burton and Wallis after their owners tumbled into administration. In addition to the flagship Boohoo, the group already owns PrettyLittleThing, Nasty Gal, MissPap, Karen Millen and Coast. “Our newly acquired brands are being re-energised and made relevant for today’s consumer across a broader market demographic,” Boohoo Group chief executive John Lyttle said. “We are very excited about their potential and are already seeing the early rewards from their growth.”Boohoo Group said it expected to post 25 per cent sales growth for the current year, with five per cent of this from the recently acquired brands. Boohoo said trading in the first weeks of the financial year has been “encouraging” although it cautioned that the outlook remains uncertain and its expects the recent benefits from reduced returns to begin to unwind. It said it that while it saw benefits to demand from lockdown measures, the pandemic hit core categories such as dresses and going-out clothing, although it hopes these will rebound in coming months. Regarding the supply chain scandal, Boohoo Group said it has made progress in its Agenda for Change programme to improve its corporate governance. In a joint statement, co-founders Mahmud Kamani and Carol Kane said: “Over the last year the group has made great progress, delivering another set of record results despite the challenges posed by the Covid-19 pandemic. “We have made significant progress on our Agenda for Change programme, with greater oversight of our supply chain, stronger governance and more transparency. “We are embedding a new way of working and improving the sustainability of the group for the benefit of all stakeholders.”
Co-op to make plant-based food range cost the same as meat equivalents
The Co-op is to price match its own-brand plant-based food range against equivalent meat products to help shoppers adopt “flexitarian” diets, it has announced. The scheme is part of the supermarket’s plan to sell fully carbon neutral own-brand food and drink by 2025, in turn part of a climate plan to achieve net-zero carbon emissions by 2040. The Co-op said it is investing more than £1.7 million to reduce the cost of 29 fresh, chilled and ambient vegan products from May 5 to help consumers who saw price as a barrier to choosing a plant-based diet. “It’s an industry-wide standard that plant-based alternatives are usually priced higher than their meat and dairy counterparts,” Co-op Food chief executive Jo Whitfield said. “At Co-op, we believe it shouldn’t cost you more money to eat plant-based food and that this disparity is unfair to those following vegetarian, vegan and flexitarian diets. “It’s Co-op’s ambition to make our plant-based range, GRO, even more accessible to our members and customers, helping them make decisions that collectively will have an impact on the world we all share. “Emissions from our operations and our own-brand products are where we have the greatest responsibility and can make the biggest difference. “This move is a step in the right direction and we encourage other retailers and brands to consider making the change too.” The Co-op has also pledged to make its entire 200-strong home delivery fleet electric, end the use of fossil fuel heating, lower farm agricultural emissions, cut packaging and reduce impacts from soy in animal feed. The plan sets out targets, endorsed by the Science-based Targets Initiative, to cap global temperature increases and meet the goals of the Paris Agreement, which came into force in 2016 and created a global pact of almost 200 countries to tackle climate change. “This is a hugely significant year and the world will be watching as the UK Government hosts the largest climate change conference ever (COP-26),” Whitfield said. “Just as the government must be ambitious in delivering against its own commitments, we must all be bold and take collective action to tackle climate change.” The Co-op’s Ethical Consumerism Report, which has tracked ethical expenditure year by year over the past two decades, suggests that sales of meat-free and dairy-free products have increased by 25 per cent and 28 per cent and that almost one in three people intend to eat less meat and dairy than before. According to the report, sales of vegetarian and plant-based alternatives have doubled in a decade, up from £541 million in 2010 to more than £1 billion.
Ikea launches furniture buy back scheme
Ikea has launched its delayed “Buy Back” scheme allowing customers to sell their old furniture back to the retailer. The initiative, originally scheduled to launch in November but postponed due to the second national lockdown, is now available across Ikea stores in England. Customers can earn up to £250 per returned item, which will be given to them in the form of a voucher to spend at the store. Used products returned as good as new with no scratches will be bought for 50 per cent of the original price, items with minor scratches will be bought for 40 per cent and furniture that is well used with several scratches will be bought for 30 per cent. Products eligible for Buy Back include dressers, office drawer cabinets, small structures with drawers, display storage and sideboards, bookcases and shelf units, small tables, multimedia furniture, cabinets, dining tables and desks, chairs and stools without upholstery, chests of drawers and children’s products, with the exception of baby items. Customers can submit items for consideration by filling out an online form on the company’s website. The tool will automatically generate a preliminary offer and customers will then be invited to bring the fully assembled product and introductory offer to the Returns and Exchanges desk in their nearest store, where they will receive a voucher. The voucher will have no expiry date to encourage customers to only purchase new items when they really need something. Ikea will resell the items within their Circular Hubs, previously called Bargain Corner, in an effort to prevent them going to landfill. The retailer is trialling a “Pre-Loved Labels” service giving customers information about a second-hand item’s past. Ikea said it was aiming to become a “fully circular and climate positive business” by 2030. The Swedish furniture giant is investing €4 billion in renewable energy to reduce its climate footprint. “Households are connected to around 60 per cent of global greenhouse gas emissions, consuming around a third of the energy and 10 per cent of the water used globally,” Ikea UK chief sustainability officer Peter Jelkeby said. “Therefore, small actions taken within them can make a significant difference, and why Ikea is so committed to making sustainable living more affordable, attractive and accessible. As one of the biggest brands in the world, we recognise our unique opportunity to help lead that change. “Through Buy Back we hope to make circular consumption mainstream; making it easier for customers to acquire, care for and pass on products in circular ways.” The Buy Back service is available in full-sized Ikea stores nationwide, excluding order and collection points in Tottenham Court Road, Norwich and Aberdeen. Buy Back will launch in Reading and Belfast on May 17.
82% of UK Amazon delivery drivers forced to drive dangerously to hit targets
Over 80 per cent of Amazon delivery drivers say they are being forced to drive dangerously to hit unmanageable delivery targets.
A recent poll of 700 UK Amazon delivery drivers conducted by campaign group Organise, 82 per cent said they are forced to break the speed limit in order to meet targets and avoid being reprimanded.
A further 92 per cent said they never take a break while working, while 86 per cent said they did not have time to wash their hands between deliveries.
One driver told Organise: “We just don’t stop during the day. Drivers are exhausted but we have to go on. Imagine driving a van 10 hours a day, without eating or drinking and hopping in and out continuously.”
Over nine in 10 drivers also said they had been forced to urinate into a bottle during shifts as they have no access to a toilet and can’t afford to stop.
In the US, Amazon has begun asking its drivers if they are “able to find restrooms” while working after it was forced to apologise for denying that many are forced to urinate in bottles.
According to a report from Business Insider, Amazon has begun polling its drivers on whether they are able to access public restrooms at any time during their shift.
Despite informing Amazon that they were unable to use bathrooms during their shifts, the drivers complained that the multiple-choice questionnaire did not allow them to state it was because they didn’t have enough time, which they said “was the main problem”.
In March, the official Amazon News Twitter account responded to reports circling in the media that its ‘delivery associates’ were being forced to urinate in bottles while working over fear of wasting too much time and risking penalties.
Responding to Wisconsin congressman Mark Pocan, Amazon said: “You don’t really believe the peeing in bottles thing, do you? If that were true, nobody would work for us.”
The response was quoted around 9000 times within the next 12 hours, but Amazon fell further into a PR backlash after leaked documents emerged suggesting that not only were the allegations true, but Amazon had been aware since May 2020.
Organise has shared the results of the survey with business secretary Kwasi Kwarteng, while Liberal Democrat MP Sarah Olney has called on him to challenge Amazon directly and consider new rights for gig economy workers.
An Amazon spokesperson said: “We do not recognise these figures which do not reflect the positive feedback we receive from drivers every day. We’re hugely proud of the Amazon delivery service partner drivers who do such great work across the country, getting customers what they want, when they want, wherever they are. We are committed to ensuring drivers are fairly compensated and treated with respect.”
Next hikes profit targets as store reopenings spark quarterly sales bounce
Next has lifted its profit targets for the year after recent quarterly sales bounced above expectations. The fashion retail giant said it reported £75 million more in sales than predicted for the 13 week period ending May 1. It said the first quarter sales were only 1.5 per cent below the same three months in 2019, before the Covid-19 pandemic hit the UK. Next had originally expected a 10 per cent fall. The sales improvement has led the retailer to raise its profit targets by £20 million to £720 million for the current financial year. Next revealed that store sales surged after it reopened shops across England and Wales from April 12 as part of the easing of lockdown restrictions on non-essential retail. It said total full price sales have risen by 19 per cent over the past three weeks as a result. Sales from retail stores increased by two per cent against pre-pandemic levels, but growth was still significantly driven by its online business, which reported a 52 per cent lift. However, the firm told shareholders this morning that it expects the surge in sales to ease back. “Evidence from last year suggests that this post lockdown surge will be short lived, and we expect sales to settle back down to our guidance levels within the next few weeks,” Next said in a statement. It is still expecting total sales to rise by three per cent over the year, with retail store sales falling by a fifth due to the impact of virus curbs. Next stressed that its robust recent sales have been driven by online channels, which saw 65 per cent growth over the past three weeks. It said it was “not the case” that almost all lost store sales were transferred online, with the company buoyed by online sales of Next homeware, third-party brands and childrenswear.
Tesco issues warning to Clubcard holders
Tesco has issued a warning to its Clubcard holders after an error in the expiration date of its vouchers. The Big 4 grocer told shoppers that it will extend its Clubcard vouchers expiration date – but some coupons will still become void at the end of the month. Tesco had initially confirmed that Clubcard vouchers would expire on May 31, before extending the date by six months to November 31. However, not all coupons have been extended. Vouchers that have already had their cut-off date pushed back, ones that were due to expire in November 2020 but are now due to last until May 2021 – will still expire then. This means that shoppers will have to use these vouchers by the end of the month to avoid losing them.
Majestic Wine to launch new stores after rebranding over 20 shops
Majestic Wine has completed a rebranding on over 20 of its stores in an effort to accelerate the business in a new direction. The initiative affects 10 per cent of its nationwide estate and is part of a wider strategy based around improving its physical presence. The sites, which are scattered across the country including Edinburgh, London, Manchester, Harrogate and elsewhere, had been adapted to a vibrant pink colour with a wine glass logo. Majestic Wine’s Wakefield store has now received its third rebrand in just three years; moving from original Majestic, to a short lived ‘Naked Wines’ conversion, before being turned pink only to now be finally back in original dark grey and green livery. The retailer has plans for further revamps of existing stores expected throughout the year to add features such as shelving, new tasting counters and fine wine areas, alongside extra infrastructure to act as delivery hubs for its commercial business. There is also a pipeline for new store openings, including in Knutsford, Oxford Summertown set for the coming months. “We firmly believe that our stores offer an experience you simply cannot get elsewhere,” Majestic Wine chief executive John Colley said. “As the country emerges from Covid, we want to ensure we’re on the front foot and continue to offer all the brilliant tastings, expert advice and unbeatable range which people associate with Majestic. “That means having stores which really look the part too, in locations we’re proud to be. We now have a clear strategy, brand and vision for what that looks like – and are ready to put our turbulent past behind us. “We’re excited by the next chapter for high street retail and our new stores play a key role in bringing this to life across the UK.”
Superdry full year sales slump 21%
Superdry has said it can “clearly see the light at the end of the tunnel” as it returned to sales growth amid the reopening of stores across the UK. The fashion retailer reported a 0.8 per cent increase in revenues to £118.3 million for its fourth quarter ending April 24. However, while it trading had improved in the final quarter, for the year as a whole it said total sales tumbled by 21 per cent to £556.6 million after being weighed down by the pandemic. The fashion retailer said it was “substantially impacted” by Covid-19 disruption which resulted in store closures for large periods of the year. Its UK stores were able to welcome customers again from April 12 as part of the latest stage of the government’s road map out of lockdown restrictions. Superdry said trade since reopening its stores has been “encouraging”, with an initial improvement in like-for-like trading. However, the retailer said that EU trading remains suspended as a result of “continued restrictions”. Superdry said it suffered an average loss of 69 per cent of trading days during the past three months, which caused store sales to be cut by more than half against the same period last year. Online sales jumped by 26.6 per cent in the past quarter as it also improved its trading margins. “Our strengthened e-commerce presence has helped mitigate the impact from enforced closures of our stores,” Superdry chief executive Julian Dunkerton said. “We returned to revenue growth in the fourth quarter, and our commitment to a full-price stance over the period has seen significant online margin improvement. “The early signs following the reopening of our UK stores are encouraging, as lockdown restrictions start to lift, and we can clearly see the light at the end of the tunnel. “In short, we are on track with our reset of the brand and there’s a lot to look forward to.”
Zalando raises full year outlook after standout first quarter
Zalando has upgraded its outlook for the 2021 financial year thanks to a “standout” first quarter. The online retailer delivered its strongest quarter of growth since before it went public, with revenues up 46.8 per cent to €2.2 billion (£1.9 billion), while profits rose 4.2 per cent to €93.3 million (£80.7 billion). Active customers on its platform reached 41.8 million at the end of the period, which drove gross merchandise values up 55.6 per cent to €3.2 billion (£2.7 billion). Zalando said it now expected sales on its platform to grow between 26 per cent and 31 per cent to €10.1 billion (£8.7 billion) to €10.5 billion (£9.1 billion) and profits to come in between €400 million (£346 million) and €470 million (£406 million) for the financial year. “In the first quarter of 2021, Zalando delivered the strongest growth ever since going public in 2014,” Zalando chief financial officer David Schröder said. “We see our platform business unfolding at increasing speed, creating benefits for customers and partners alike, and allowing us to make fast strides on our journey towards being the ‘starting point for fashion’.” Zalando said that, in order to capitalise on its momentum, it would continue to expand its network of European fulfilment centres, adding a further five by the end of 2023.
Harrods completes food hall restoration with new Chocolate Hall opening
Harrods has officially opened its new Chocolate Hall as it marks 150 years of chocolate making as well as the end of a four-year restoration scheme of its food halls. Situated within Harrods’ iconic Knightsbridge flagship, the Chocolate Hall offers high-end chocolates that have been ethically and sustainably sourced, live demonstrations from on-site chocolatiers, and products from confectionery partners and brands from around the world. Harrods opened its first confectionery counter in 1870, before beginning its own in-house chocolate production in the early 19th century. By the 1970s, over 100 tonnes of chocolate were produced on-site at Harrods’ world-famous Knightsbridge store. The opening of the Chocolate Hall also coincides with a milestone in the luxury retailer’s broader Masterplan redevelopment of the store – a £300 million investment to refurbish much of the 1,000,000sq ft Knightsbridge site. A significant part of the redevelopment has taken place throughout Harrods’ Grade II listed food halls, with the opening of the Chocolate Hall concludes that part of the redevelopment programme. “The opening of our redeveloped chocolate halls is a hugely special moment for us,” Harrods managing director Michael Ward said. “It is the final stage in our ambitious investment and redesign of our historic food halls – a project that has continued with passion and drive despite the challenges of the last year. “It is also a perfect demonstration of what Harrods does best: harnessing the greatest strengths from our heritage while re-imaging luxury for a modern customer. “The launch of the Chocolate Hall not only brings the most evocative chocolate craftsmanship to life in an unparalleled setting, but also marks an important commitment towards responsible sourcing and welfare standards, something that we are proud to uphold as the cornerstone of chocolate production at Harrods.”
Asda trialling secure delivery boxes so shoppers can take deliveries while not home
Asda is launching a trial of new secure lock boxes at customers homes allowing them to receive deliveries while they are out.
According to The Grocer, Asda has begun installing the ‘delivery boxes’ in customers homes across Yorkshire, Wales, the north east and the south.
The boxes, which come in two sizes, have enough room to store either four or six bags of shopping and will feature insulating material to keep items at the “correct product temperature”.
Delivery drivers will access the box with a code and will then lock it to keep the items secure until the customer arrives home.
The trial will last for 12 weeks, and Asda says it plans to expand its reach later this year.
According to iParcelBox, British police recorded 3715 instances of parcel theft throughout 2018 and 2019, but this number is has risen significantly throughout the pandemic.
A University College London study reported that statistics on UK package theft throughout the pandemic are hard to come by, but figures from the US suggest between 18 and 36 per cent of households have been victims of “porch piracy”.
One study suggested that 90,000 items were stolen or mis-delivered each day in New York alone.
Zara to sell first every beauty range
Zara is set to launch its own beauty range both in-store and online from May 12 as it seeks to expand its offerings. The collection will include products for eyes, lips, face and nails in more than 130 colours. Zara said the range will be as inclusive as possible, offering products that “anyone – regardless of skin colour, gender, age or personal style – will want to use”. The collection was developed in partnership with British make-up artist Diane Kendal, and New York and Paris-based creative agency Baron & Baron developed the packaging, taking inspiration from the ‘z’ in Zara’s logo. Zara said its beauty products are made with high-quality ingredients, refillable packaging and are not tested on animals. The beauty shopping experience will include virtual ‘try-on’ features, and there will also be dedicated beauty zones in some stores. “Our goal was to create something truly inclusive in which many can participate – innovative products with a playful, personal and individualistic character, all made with the high-performance ingredients and true colour innovation,” Zara head of beauty Eva Lopez-Lopez said. “Those were mutual ambitions that we shared with Diane, so she is the perfect person for us to work with.”
Dixons Carphone to increase pay of 12,000 colleagues
Dixons Carphone has announced it will invest £25 million over the next two years to upgrade its colleagues’ training and wellbeing. The retailer will also increase the hourly pay of 12,000 colleagues, including in-store, call centre, supply chain and ShopLive workers, to match the real living wage. The hourly pay rate will increase from an average of £8.88 to £9.50, while those in London will see an added boost to £10.85 per hour. The pay increase is set to take effect from October as a thank you for the work Dixons’ employees have put in during the Covid-19 pandemic. “We’ve managed not just to survive but thrive throughout this very challenging year that none of us would have wished for or wanted, and the success that we’ve had is really down to the resilience, determination, adaptability and ingenuity of our people,” chief people officer Paula Coughlan said. “It’s a thank you and recognition for that, but also a recognition of how important these colleagues are for our future. It’s something that’s going to benefit over 12,000 of our frontline colleagues. “What we’ve seen through the course of the pandemic is that customers are changing the way that they shop. “More of them like to shop online and that’s been a trend that all retailers have seen, but what we’ve also seen is that they still like to come into stores – and actually most of our customers like the mixture of both. “That blended model is really important for our future, so in a nutshell, we’re investing in our colleagues – in their pay, rewards, wellbeing and tools – to make this blended way of working a real success. “We’ve offered and they’ve consumed about 2.5 million online learning modules – and a lot of that happened during furlough. “We were really surprised by the hunger for learning. We’ve also had this mass movement of colleagues moving to different parts of the business – and training is one thing but you can’t undervalue new experiences.” The retailer has trained 6500 of its colleagues on its new selling framework, and redeployed 3500 to roles in other areas of the business. It has also trained 1000 colleagues as mental health first aiders, offered a membership to the Calm app, and created a mental health corner of its intranet – which has been turned into physical spaces when stores reopened.
10p plastic bag charge to come into force in England on May 21
The single-use carrier bag charge will increase from 5p to 10p and extend to all retailers in England from May 21, the government has confirmed. Under the extension, all stores, including corner shops and small retailers, will have to apply the charge. Previously only retailers with 250 employees or more had to charge per bag and smaller shops could chose to do so voluntarily. The 5p levy on plastic bags was introduced in England in 2015, with the most recent figures showing that the number of single-use bags distributed by large supermarkets has fallen more than 95 per cent. The average person in England now buys just four single-use bags a year, compared to around 140 in 2014. A survey in December for waste and resources body Wrap found 73 per cent of consumers supported the levy. However, the same poll found that 26 per cent of consumers still buy single-use bags at the till when shopping for food. By extending the charge to all retailers, it is expected that the use of single-use carrier bags will decrease by 70 per cent to 80 per cent in small and medium-sized businesses, the Department for Environment, Food and Rural Affairs (Defra) said. “The introduction of the 5p charge has been a phenomenal success, driving down sales of harmful plastic bags in supermarkets by a remarkable 95 per cent,” environment minister Rebecca Pow said. “We know we must go further to protect our natural environment and oceans, which is why we are now extending this charge to all businesses. “Over the next couple of weeks I urge all retailers of all sizes to make sure they are ready for the changes, as we work together to build back greener and strengthen our world-leading action to combat the scourge of plastic waste.” Association of Convenience Stores chief executive James Lowman said: “We strongly welcome the inclusion of local shops and other small businesses into the successful plastic bag charging scheme, which not only helps the environment, but is also a great way for retailers to raise money for local and national charities.” WWF sustainable materials specialist Paula Chin said: “Plastic pollution is one of the most visible symptoms of the environmental crisis, damaging natural habitats and putting precious wildlife at risk. “Measures to reduce plastics consumption need to go much further. The UK Government must consider a complete ban on single-use bags and make sure this is not undermined by the sale of ‘bags for life’, which are currently cheaply available and all too often end up as single-use items.” Greenpeace’s Sam Chetan-Welsh said: “The government is still tinkering at the edges of the plastic pollution crisis. “Real action on bags would include phasing out the billion-and-a-half heavy-duty ‘bags for life’ used in the UK each year. “While the Government avoids legislation to reduce single-use plastic and delays acting on promises, like delivering a bottle return scheme, their claims to be a world-leader on tackling plastic pollution ring hollow.” John Lewis said it was trialling the removal of single-use bags from its Cheltenham, Kingston and Leeds stores from May 21. Customers will be asked to bring their own bags or buy a reusable bag made from 100 per cent recyclable material costing 50p for a medium size and 75p for a large size. John Lewis Partnership sustainability director Marija Rompani said: “It has become the norm to take our own bags when we go food shopping but we have a different mindset when shopping for clothes, beauty and home products. “We expect our customers will be supportive of this change and will be listening to their feedback.” Icaro surveyed 2010 adults in England for Wrap in December.