Fenwick one of few credible premium retailers left, CEO says
Fenwick chief executive John Edgar has reportedly said the department store chain is one of the “few credible premium retailers left” as it prepares to reopen from mid-April. The family-owned department store business has brought shop staff back from furlough, added new clothing and furniture brands and is preparing to launch a vegan restaurant by a Michelin-starred chef in one of its stores. However, Edgar said Fenwick expects a “slow recovery” once its nine UK shops reopen, The Telegraph reported. Fenwick’s most recent accounts for the year to the end of January 2020 showed losses widening from £44 million to £47 million for the year to the end of January 2020. It has also taken out a £40 million loan from Lloyds in June, which the company says it hasn’t drawn on, and has a pension deficit of £28.5 million. Last year, Fenwick received approval to turn the upper levels of its Bond Street store in London into offices as it sought to make use of extra space. Meanwhile, Edgar said the 138-year-old retailer has also had to contend with the shift to online shopping as Covid-19 led to store closures and more Brits shopping from home. Similar to John Lewis and Marks & Spencer, Fenwick has added 140 new labels to its offering over the last 12 months.
Peacocks rescued from administration
Collapsed fashion retailer Peacocks has been bought out of administration by a senior executive with backing from an international consortium, it has been announced. Edinburgh Woollen Mill Group’s (EWM) chief operating officer Steve Simpson will take over the business, saving 2000 jobs and 200 stores, which he hopes to reopen once lockdown restrictions on non-essential retailers ease. Peacocks was part of the Philip Day-owned EWM fashion retail empire which collapsed in November last year. During the pandemic and leading up to EWM’s collapse, Peacocks shut down 200 stores – around half its estate – and made 2000 redundancies as it struggled to manage under the various restrictions. Peacock also had a poor online presence compared with rivals and – along with Arcadia Group and Debenhams – struggled to recoup business through its websites, leading to its collapse. Day was the biggest creditor of Peacocks and is owed money by the business he once owned. Administrators from FRP negotiated a deal with him by signing a deferred loan agreement between a consortium of investors and the businessman which will eventually see him get his money out of the retailer. The consortium of international backers are primarily based in Dubai, where Day lives. A similar deal was set in place with EWM’s Bonmarche, Ponden Home and the flagship Edinburgh Woollen Mill fascias, while Jaeger was sold to Marks & Spencer, where it will become an online-only business. The deal essentially sees all the former EWM brands – excluding Jaeger – reform under the old management led by Simpson. However, Day will not be in control of the business – ending several decades of involvement in the UK high street. He will still hope to recoup the cash he invested as a secured creditor through the rescue deals. Unsecured creditors, including landlords, suppliers and the taxman, will lose out and are unlikely to get their money back. According to reports, Sports Direct tycoon Mike Ashley was also said to be interested in the Peacocks brand, although administrators failed to reach an agreement with him.
Poundland open 30 new stores, creating 250 jobs
Poundland has announced it is ready to reopen and create new jobs in an effort to support the UK’s recovery. The discount retailer has transformed stores over the past year while shoppers stayed home. Poundland said 55 of its “hibernating” stores in England & Wales are set to reopen next week. It has created over 400 jobs created in 2020/21 with at least 250 more expected by September. The retailer plans to open 25 to 30 Poundland & Dealz stores in the UK and Republic of Ireland over the 12 months to September 30. As an essential retailer, the majority of Poundland stores have remained open throughout lockdown. Over 130 of its stores now have chilled and frozen food with the ranges set to be added to new locations over the coming months, including stores in Northern Ireland for the first time. Launching this week in every store is an extended grocery range with more of day-to-day brands such as Nutella, Marmite and Old El Paso. Poundland also confirmed it is pressing ahead with the £25 million transformation programme launched last July, including new store openings and relocations, store revamps and investment in its chilled and frozen food distribution network following the 2020 acquisition of Fultons Foods. New stores recently opened include Maesteg, Ballymena, Macclesfield and Stratford upon Avon, with new openings and relocations at Armagh Spires Retail Park, Birmingham St Andrews, Aberdeen, Broxburn, Cowes, Cookstown and Arnold. “It is fantastic news that our high street neighbours are preparing to get back to business – not just other retailers but the cafés, gyms and hairdressers who make our town centres the vibrant places people love,” Poundland managing director Barry Williams said. “We know too that many will be making their first tentative steps back into their town centres after being away for some time – we can’t wait to welcome them and say hello. Come see how we’ve changed. “We’re cracking on with our transformation programme and our investment in new stores, refurbishments, new ranges and distribution. “With the challenges faced by high streets, that’s good news for our customers, our colleagues and our communities.”
Browns launches new destination store
Browns has opened a new destination store in London, featuring four storeys as well as a sustainable restaurant. The central London emporium has opened at 39 Brook Street, and occupies 9149sq ft space inside a Grade II * listed building. Browns said the new opening is part of its flagship relocation from London’s South Molton Street. Browns’ new ground floor has a Focus area, concentrating on an exclusive capsule collections; while upstairs there is an immersive room, featuring original oil paintings of Roman empresses and centurions. Meanwhile, a Fragrance Corner; Shoe Room; menswear; fine jewelery section; style advisor and concierge is also included. The sustainable restaurant Native, features an interior courtyard garden, with 100 per cent recycled marble tables and recycled cotton blankets made in Cornwall; sun-lit bar and a natty terrazzo flooring. The store will open to the public once non-essential retailers in England are allowed to reopen on April 12. “I am thrilled to see us open our flagship, Browns Brook Street, as we kick off 2021. There is an overall feeling of optimism for this new year and I can’t think of a better way to honor our role in luxury fashion over the past five decades, as well as set the tone for our next 50 years by clearly placing our foot firmly in the future of luxury retail,” Browns chair Holli Rogers said. Brown was recently appointed as chief brand officer of luxury online retailer Farfetch. Browns was acquired in 2015 by Farfetch, making it the only physical retail space within the online platform. “Our new magical home will inspire customers as well as usher in a fundamental shift in the way people shop, as layered into this connected, tech-enabled experience is a thoughtful and human side – which is so crucial in the current landscape where personal and personalization is pivotal,” Rogers said. “The space is truly sensorial; sight, sound, smell, taste and touch – offering a unique experience through each visit.” Farfetch founder and chief executive José Neves said: “This is such an exciting milestone for Browns and for the Farfetch’s vision for Luxury New Retail (LNR), which we believe is the future of retail. “Our Farfetch Platform Solutions (FPS) and Store of the Future Teams have worked with Browns to bring Farfetch’s state-of-the-art omnichannel retail technologies to the store to serve the changing needs of the luxury customer – both online and in this incredible physical space.”
Covid vaccine passports could be needed in high street shops
The UK Government has hinted that Covid vaccination passports may be needed for shoppers to enter some shops later this year. Earlier this week, Prime Minister Boris Johnson suggested that the UK was moving towards a system of vaccine passports, although certain “essential areas” of life would be unaffected by it. A government spokesman has since confirmed that such passports would not be needed for when non-essential retail reopens across England and Wales next Monday. However, the documents – either in paper form or on an NHS app – could be introduced later this year. A government review into “Covid status certification” found they could “potentially play a role” in settings such as theatres, nightclubs and mass events, and might also be used in pubs and restaurants to reduce social distancing restrictions. The prospect of having to show a certificate to access shops or bars has outraged members of the Covid Recovery Group (CRG) of Conservatives, while Labour hit out at the “discriminatory” and “poorly thought-through” proposals. The government’s review also suggested that if an official system is not introduced, businesses – including retailers – could still ask customers for proof of Covid status in order to access their premises anyway. While the interim findings of the government’s review said public transport and essential shops or services would not require vaccine passports, it left open the prospect of non-essential retailers being forced to check on their customers. When asked if they might be needed for customers to be able to access high street shops at a later stage this year, the spokesman told The Times: “We are looking at how Covid status certificates could have an important role to play domestically as well as internationally,” he said. “We will come forward with more detail on them and how they may work in due course.” Little is known about how the vaccination passports will work and Johnson faces a battle to introduce them after running into fierce opposition from Tory critics and Labour. The use of certificates – which would include vaccination status, test results or evidence of someone having contracted and recovered from Covid-19 – is opposed by at least 40 Conservative MPs. With Labour’s opposition also hardening, along with the SNP raising concerns, the government would face difficulties in getting the measures through the House of Commons if Johnson pushed them to a vote. The BRC also criticised the proposals. “While Covid status certification may play an important role in certain activities, such as international travel, our members are clear that it would not be appropriate or useful in a retail setting,” chief executive Helen Dickinson said. “High streets and other shopping destinations rely on impulse and ad hoc purchases from customers who visit; this would be badly affected by the additional barriers to trade. “Instead, we believe that continuing to follow the existing strict safety protocols, including regular cleaning, face coverings, and regular hand washing are the best course of action to protect staff and customers in stores.”
Ryman owner Theo Paphitis urges business rates reform
Ryman owner Theo Paphitis has reportedly called on Chancellor Rishi Sunak to reform business rates or prepare for the “destruction” of bricks-and-mortar retailers. Paphitis, who also owns hardware business Robert Dyas and lingerie retailer Boux Avenue, said the government needs to provide further support to businesses amid the pandemic, Retail Week reported. Although retailers have benefited from a business rates holiday and a review of the system has been undertaken, a publication of a final report on plans has been delayed until the autumn. Ryman generated EBITDA of £7.8 million in the year to the first week of the first lockdown in March 2020. Robert Dyas made an EBITDA loss of £3.1 million versus a profit of £1.8 million as it invested in infrastructure and building ecommerce operations, while Boux Avenue made an EBITDA loss of £14.9 million. Although Boux Avenue and Robert Dyas have performed strongly online, Ryman has suffered overall due to the shift to working from home. Business tycoon Paphitis said the last year has seen the acceleration of online retail shift by at least five years, and that Boux Avenue was benefiting from improvements made by a new leadership team and product improvements. At Robert Dyas, online sales have risen from 20 per cent of the total before the pandemic to almost 50 per cent.
Atterley closes £3m funding round as it drives growth strategy
Atterley has reportedly closed a £3 million funding round as it seeks to execute its growth strategy. The investment, which also includes commitments from development agency Scottish Enterprise and existing shareholders, was led by private equity firm Maven Capital Partners, Drapers reported. The online fashion marketplace currently works with more than 250 independent retailers and 3000 brands. Existing investors include Sir Terry Leahy, former chief executive of Tesco. “This investment is a game changer for us and really sets us up for our next big phase of growth,” Atterley founder and chairman Mike Welch said. “We have always taken a ‘test and learn’ approach to our investments in growth and that has not only kept us in control of our destiny as shareholders but has carried us through some of the most testing times for businesses that we have ever seen.” Maven partner David Milroy said: “The retail sector is going through unprecedented change creating huge opportunities for online fashion marketplaces. “We were drawn to the company’s ethos, which places its boutique partners front and centre, and in so doing, it is able to offer consumers a vast range of premium, emerging and undiscovered labels, expertly curated by some of the world’s most talented fashion buyers.”
Barbour confident for 2021 despite significant covid19 impact
Barbour has seen its turnover rise by 7.8 per cent to £242.8 million thanks to the consistency of its long-term strategic focus, despite the pandemic. For the 12 months to the end of April last year, the retailer said the Covid-19 impact was “significant” during the final quarter. However, its revenues still showed progress, although profit was lower year-on-year. Gross profit fell to 49.4 per cent from 54.2 per cent, while operating profit fell to £35 million from £38 million. Net profit dropped to £28.94 million from £31.37 million. Despite the decline, Barbour said its balance sheet remains strong with cash held in the business rising to £97.4 million from £87.2 million. This allows it to focus on its long-term investment objectives. The company said that one key investment focus will be technology and also enhancing its sustainability credentials. Meanwhile, its Barbour Europe operation that focuses on Germany, Austria, Switzerland and the Benelux region managed to swing from a net loss of £398,000 in the previous year to a profit of £36,000. Operating profit for the unit was £147,480 after a loss of £308,171 in the previous year.
Weird Fish hails ecommerce transformation following record-breaking sales
Weird Fish is set to focus on digital investment and the development of its destination stores this year, after bucking lockdown retail trends with record sales in 2020. The retailer saw an 84 per cent surge in ecommerce sales last year, driven by a 105 per cent increase in new customers. During the brief period in summer when non-essential shops were allowed to open in between the first and second lockdowns last year, Weird Fish saw an overall 11 per cent increase in store like-for-like sales. An exact sales or profit figure for the year was not disclosed. Nonetheless, Weird Fish said sales spikes showed no signs of waning in 2021, with a 354 per cent uplift in ecommerce sales driven by the launch of new full price campaigns, and overall sales uplifts of 108 per cent in the first quarter despite stores being closed amidst the latest lockdown. As part of its digital investment, Weird Fish introduced a new customer management platform, enhanced its website user experience, and upgraded its stores to allow customers to place online orders on site. A new YouTube channel was also launched, with dedicated video brand awareness campaigns across Weird Fish’s social networks. “We recognised the need to be agile throughout lockdown and continually adapt in line with changing market conditions, so decided to heavily invest in our digital channels and marketing throughout 2020,” Weird Fish customer director Ben Mercier said. “A key element was developing a deeper understanding of our customers and their buying habits, so we committed to various new initiatives to help give us accurate insights and shape our marketing decisions.” Weird Fish highlighted three key pillars to continue driving its growth in 2021: integrate digital technology into all areas of the business, make 80 per cent of its products sustainable by 2022, and introduce more new product ranges across all categories. The success of retailer’s sustainable bamboo fabric ranges, launched last year, surpassed expectations and opened new avenues for further development into the growing athleisure sector. Weird Fish managing director John Stockton said: “Our digital progression was turbo-charged during lockdown. “The relaxed, easy-going lifestyle ranges we offer really found favour with existing loyal followers, as well as attracting many new customers. “We expect that growth to continue as we add more new sustainable ranges in 2021. “We also know shoppers still crave an in-store experience, as our stores saw an overall 11 per cent like-for-like sales uplift between July and August 2020. “Holiday accommodation providers including Campsites.co.uk saw bookings and enquiries rise by as much as 300 per cent when the government’s roadmap was unveiled a few months ago, meaning more people will be flocking to staycation hotspots which host our stores. “We look forward to reopening our destination stores and continuing to develop and improve that much missed in store experience.” Following government advice, allowing non-essential retailers in England to re-open from April 12, Weird Fish confirmed that it would reopen all 18 of its stores on that date, complete with safety, hygienic and social distancing measures in place.
VF Corp opens new warehouse in Leicestershire
VF Corp has begun operations at its new multimillion pound fulfilment centre in Bardon, Leicestershire. The new 600,000sq ft centre, which is the equivalent of 10 football pitches, will employ approximately 250 people during peak periods. The warehouse will also enable VF Corp to provide more distribution services for its brands’ wholesale, ecommerce and retail customers in the UK – serving almost 90 per cent of the market within a day. Speed and efficiency are at the centre of the warehouse, with direct flow of parcel shipments having a capacity of 200,000 units per day, in addition to 18 stations with the capacity to pick 170,000 units per day. The new fulfilment centre in Bardon was also been designed to reflect VF Corp’s sustainability commitments, with a number of green technologies including low water usage fittings and electric solar gain devices to reduce energy and heat waste. The new centre builds on VF Corp’s significant investment in the UK in the past two years, including the launch of a new business hub and brand new Timberland and Vans flagship stores in London. “We are extremely proud to mark the opening of the VF’s most technologically advanced fulfilment centre in the region,” VF Corp EMEA president Martino Scabbia Guerrini said. “This exciting new development, which supports the evolution of our supply chain business model, bolsters our UK presence, our number one market in EMEA. “It also underlines our commitment to be a consumer-minded, retail-centric and hyper-digital enterprise as part of our company transformation and long-term growth strategy.” VF Corp EMEA supply chain vice president Darren Miller said: “Expanding into this prime location will allow us to further strengthen our operations to ensure we can continue a high-quality service to our many retail and ecommerce customers across the UK. “Investing in cutting-edge and technologically-advanced equipment also allows us to integrate our online and in-store operations, reducing lead times and driving efficiencies to meet customer demand more effectively.” VF Corp distribution director Matthew Hibberd said: “In line with VF’s ‘people first’ culture, the new centre has been designed with employees’ welfare in mind. “It offers a safe and comfortable working environment, with open space and breakout areas for colleagues to collaborate and meet informally. “In addition, there is an onsite canteen and gym, to encourage a healthy work-life balance.” VF Corp currently has 1800 employees in the UK, across 90 owned and operated stores, seven offices and two distribution centres. Alongside Timberland and Vans, the firm also owns The North Face and Supreme.
ASOS profits skyrocket 253% in first half as sales almost bit £2bn
Asos has revealed that sales and profits soared during its first half period as bricks-and-mortar stores endured lockdowns and other restrictions. Revenues at the online fashion retailer jumped 24 per cent year-on-year to £1.98 billion in the six months to the end of February, while half-year pre-tax profits skyrocketed 253 per cent to £106.4 million. Asos said it benefited particularly from strong UK sales during the period – which covered the a brief lockdown in November in England and Wales, the subsequent tiering system and the current UK-wide lockdown. High street fashion rivals have been unable to open their doors throughout 2021 so far, but will be allowed to welcome back customers from next Monday in England and Wales. In the UK, Asos half-year sales were up 39 per cent year-on-year to £800.4 million, compared with 18 per cent in the EU, 16 per cent in the US and 16 per cent in the rest of the world. “Overall we saw a net Covid-19 tailwind of £48.5 million – a benefit which we expect to reverse once we see restrictions lifted on the hospitality and tourism sectors,” Asos said. The integration of the Topshop brands, which Asos bought out of administration earlier this year, is also progressing to plan, the online giant said. It added that it has remained flexible in responding to demands for “lockdown” products, as sales of formal and outfits for social events remained low. Instead, shoppers turned to “activewear” and “casualwear” categories. However, profit margins fell during the period by 200 basis points – or two per cent – due to increased freight and duty costs, alongside foreign exchange rate movements going against the company. Asos bosses said they hope to be in a strong position, ready to capitalise on “event-led” products, when social restrictions ease. “We believe the shift to online retail as a result of the pandemic and the accelerating consolidation of offline retail has increased consumer confidence in shopping online,” Asos said. “In the coming months we expect a portion of consumer demand will move back to stores as restrictions are eased throughout our markets, but we expect online penetration to remain structurally higher than pre Covid-19 levels.” Asos chief executive Nick Beighton said: “We are delighted with our exceptional first-half performance and proud of the work our teams have put in to achieve this. “These record results, which include robust growth in sales, customer numbers and profitability, demonstrate the significant progress we have made against all of our strategic priorities and the strength of our execution capability. “The swift integration of the Topshop brands and the impressive early customer engagement is also especially pleasing. “Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built, and excited about delivering on our ambition of being the number one destination for fashion-loving 20-somethings.”
£870 million in business rates relief has not been paid back by essential retailers
Hundreds of millions of pounds in business rates relief has not been paid back by ‘essential retailers’ which remained open during lockdown.
Since April 1 2020 all UK retailers have not been required to pay business rates as part of an unprecedented support package which has collectively saved the industry billions.
Between April 1 2020 and March 31 2021, £3.03 billion of the collective business rates holiday has been given to essential retailers, representing more than a quarter of the total cost of rates relief in England according to figures from Altus Group.
Many of the UK’s largest retailers including the Big 4 supermarkets opted to repay the business rates relief as a gesture of goodwill, with many of them actually seeing an increase in trading during lockdown as they were allowed to remain open.
According to Altus Group, 14 major retailers have paid back £2.16 billion in business rates relief, meaning £870 million has not yet been paid back.
In England, the tax relief will continue until the end of June, before becoming a reduced discount until the end of March 2022. In Wales and Scotland, the business rates holiday was extended for another 12 months.
This three-month extension is expected to provide a further £758 million tax break for essential retailers, but around £490 million has been refused so far under the new opt out provision.
“Some parts of the retail sector thrived during the pandemic and the rates holiday was the icing on an already very sweet cake,” Altus Group’s UK president of property tax Robert Hayton said.
Footfall recovers in March with 48% rise expected as retail reopens
New research has found that footfall recovered in March – the last full month of lockdown – with an annual decline of 28.1 per cent, down from 61 per cent in February. Pent up demand will see footfall rise by 48 per cent week on week as non-essential retail in England reopens from April 12, Springboard found. However, this will fall to an increase of 10 per cent in the following weeks, as consumers direct spend to the reopening of indoor dining on May 17. In comparison with footfall in March last year, it was 55.2 per cent lower this year. Footfall declined from 2019 by 63.7 per cent in high streets, 66.6 per cent in shopping centres and 25 per cent in retail parks. In high streets, the annual decline moved from 65.9 per cent in the first week of March to 58.4 per cent by the final week of the month. In shopping centres, it moved from 69 per cent to 62.5 per cent and in retail parks it halved from 29.8 per cent in the first week to just 14.8 per cent by the final week.
Dunelm expects to be modestly ahead of profit forecasts
Dunelm expects to slightly outperform market expectations this financial year as it prepares to reopen again next week when lockdown on non-essential retail is lifted in England and Wales. The home furnishing retailer said it had been propped up by online sales in the last three months, and was now on track to beat pre-tax profit forecasts – which analysts have set at between £120 million and £125 million. Dunelm said it would be “modestly ahead” of these predictions – so long as most of its 174 shops can reopen on Monday and no further Covid-19 restrictions are introduced before June when its financial year ends. The retailer added that it expected a “strong consumer response” to shops reopening next week. It will allow the businesses to take some of the weight off its website, which has provided a crutch to the retailer through the pandemic. In the first three months of 2020, online sales were less than 23 per cent of Dunelm’s total £284 million. However, in the three opening months of this year – Dunelm’s third quarter – that has ballooned to more than 92 per cent of the total. It represented a tripling of online sales compared with the same period last year, with the company offering customers deliveries to their door or the ability to pick up orders at a shop. It helped ensure that total sales only fell to £237 million – 83.2 per cent of the previous financial year’s levels. Click-and-collect orders covered approximately 35 per cent of in-shop sales from the same period last year. “In a quarter when we were largely unable to open our stores, it has been very encouraging to see the strength of our digital channels which have enabled us to cover over 83 per cent of sales from the same period last year,” Dunelm chief executive Nick Wilkinson said. “We are now looking forward to reopening, with colleagues ready to welcome back customers through our doors. We have worked hard to rebuild inventory levels and our stores are well stocked across our extensive product range.” However, Dunelm’s pleasure at managing to remain above water was tempered by its competitors. As people have been stuck at home with time on their hands, many have taken to refurbishing their flats, houses or gardens in recent months. This has given a strong boost to the homewares markets, yet Dunelm said that it underperformed the rest of the market in the first three months of 2021. That is partly because some supermarkets – which sell homewares alongside the food that makes them essential retailers – have been able to stay open. Wilkinson has previously said he agrees with rules that allowed his supermarket rivals to keep selling homewares even as Dunelm was forced to close. “Some local districts tried to prevent that happening, but customers just said: ‘Look, I’m here, why can’t I buy a saucepan?’ And I think from a customer point of view, I’m sort of with them,” he said in February.
M&S reveals latest reopening plans with new campaign
Marks & Spencer has become the latest major retailer to outline its reopening plans as non-essential retailers in England and Wales prepare for reopening from Monday. The retailer said that around two thirds of customers are “looking forward” to dressing up in smarter or more stylish clothes than they have worn in lockdown. Online demand for dresses has steadily grown since the end of February and last week M&S saw search increases for sandals & sunglasses, with its “new in” womenswear page now the most visited on M&S.com. M&S’s “Bring On” campaign will put a spotlight on the products customers are searching for online as social events start to return and the summer season kicks off – from relaxed tailoring in soft fabrics perfect for outdoor gatherings, to denim staples. The campaign will extend across M&S Food. “We know lots of customers are excited about dressing up for picnics and alfresco dining with friends & family and our stores will be bursting with tiered dresses, pretty tops and new seasonal denim,” M&S head of clothing and home for retail Alison Grainger said. “Whilst it’s no longer all just about loungewear, as you would expect we’re going to be dedicating more space to casualwear in our shops than pre-pandemic. “In store customers will also see wardrobe essentials redefined – with relaxed t-shirts and sweats which have now become mainstays updated in fresh, vibrant colours. “Optimistic slogan tops have been popular online, and I think lots of customers will pick these up when they visit us in store.” Meanwhile, M&S will allow customers at 250 stores which sell lingerie to choose from a contact-free bra fit from its expert colleagues, or a virtual at home appointment with an M&S expert via video. M&S is offering click-and-collect with an 8pm cut off for free next day pick up at over 800 stores. The retailer is also trialling new innovations like Express Collection and Digital Check-In at around twenty stores to make collecting orders even easier for customers. Nearly 100 M&S cafes will be open for takeaway, with 14 also open for ‘dine-out’ in dedicated outdoor seating areas. In the last year, M&S has seen a 200 per cent increase in downloads of its App and over one million transactions via its Mobile Pay Go digital shopping option – having rolled out from a small trial to all foodhalls in 2020. M&S said it was rebranding MPG and bringing together all of its digital store shopping options together under the Scan and Shop banner. Additionally, M&S is expanding its popular on-the-spot payment service Pay With Me – introduced in the run up to Christmas to help bust queues at 200 of its busiest foodhalls – to 50 of its top lingerie stores. M&S is also set boost its rewards system, with every M&S store set to reward one Sparks customer with their entire shopping for free. Running for a limited two weeks from April 12, the campaign comes as M&S recently hit its 10 millionth Sparks customer, with over 2.5 million new customers joining since it relaunched in July last year. “The last year has accelerated many of the trends and shopping patterns we were seeing pre-crisis, and we have responded as part of our Never the Same Again transformation programme to build a shopping experience that’s fit for the future and one that enables customers to shop the way they want,” M&S retail director Sacha Berendji said. “As we start to reopen our Clothing & Home space, we’ve pulled out all the stops to deliver the stylish, relevant products our customers are searching for, and help deliver a more flexible, easier and rewarding shopping experience for our customers so that they have everything they need to be ready to bring on the summer.”
Debenhams to briefly reopen stores for final closing down sale
Debenhams has confirmed that its remaining stores in England and Wales will reopen on April 12 to complete its final closing down sale as the retailer prepares to exit the high street for good. The collapsed retailer said its 97 stores in the two countries are reopening as part of its final stock liquidation process and will continue to trade for a limited number of weeks until the stock in the stores is fully cleared. These stores will start to close permanently from May 2, with the stock clearance completed and final stores expected to close by May 15. The closing down sale will offer limited-time discounts, with up to 70 per cent off fashion and home products, and up to 50 per cent off beauty and fragrance lines. “This is the last chance for customers in England and Wales to visit their local Debenhams before sadly our stores close for good,” a Debenhams spokesperson said. “We will be reopening with a fantastic range of offers and discounts across all of our customers’ favourite brands and products. “Stocks are limited and expected to sell out quickly so customers should visit their nearest store quickly to avoid disappointment. “We are very grateful for the efforts of our staff who have worked so hard throughout the most difficult of circumstances to keep the business trading.” Last month Debenhams said it would not reopen its 15 of its stores in Scotland when the country’s lockdown for non-essential is lifted later this month. This decision resulted in 647 job losses. The Scottish Government previously stated that the reopening of non-essential stores there would not begin until April 26 at the earliest, and that this would then be on a tiered basis. Debenhams’ administrators said this timeline did not align with those expected in other parts of the UK, prompting it to make the decision to not reopen its Scottish stores briefly as it plans to do so in England and Wales. The department store has not yet provided information regarding its remaining six stores in Northern Ireland, although a target reopening date for non-essential retail has not yet been confirmed by Stormont. Debenhams went into liquidation in December, after an administration process failed to secure any buyers to save the department store chain. About a month later, its brand and assets were purchased by Boohoo Group in a £55 million deal. Boohoo’s deal only includes Debenhams’ brand and other business assets – including all the in-house brands and websites – and will see Boohoo take ownership of Debenhams’ ecommerce operations and products around the start of its next financial year in March. Administrators said at the time that it would continue running closing down sales across Debenhams’ remaining shops – which counted 118 in December – once they are allowed to reopen. With all of Debenhams’ stores closing down permanently as part of the liquidation and wind-down process, it means up to 12,000 staff would not have their jobs saved. Since it fell into administration last April, Debenhams had already announced significant job losses and store closures – including the more recent announcement of six store closures, of which its flagship outlet on London’s Oxford Street was a part. That administration itself was the second of its kind that Debenhams had launched within the space of 12 months. Shortly after the first administration, it launched a CVA that saw it close down scores of stores immediately after the 2019 Christmas trading season. At its peak and before the first administration in 2019, Debenhams operated from around 160 stores across the UK.
Kurt Geiger to open 9 new sites when it reopens all stores next week
Kurt Geiger has announced that it will open nine brand new stores as part of its lockdown exit plans starting next week. These new standalone stores will are part of its 131-strong store estate that will reopen once non-essential retail is allowed to reopen in England and Wales from April 12. The new Kurt Geiger stores will open in Westfield Stratford London, Moreley’s Brixton, Chester Oaks, Swindon, Bridgend, Selby’s Holloway Road, West Midlands Cannock, as well as two new stores in Leeds. The new Stratford store is in addition to the store already located in Westfield Stratford City, while the stores in Brixton and Holloway Road are department store concessions. The new stores will also create 50 new jobs, and fashion retailer said it wanted to re-employ staff made redundant from its Debenhams concessions. “I am so happy to be opening our stores again and especially pleased to be opening these new stores,” Kurt Geiger chief executive Neil Clifford said. “At Kurt Geiger, we continue to believe passionately in the high street, and continuing to protect our employees’ jobs as much as possible is a priority for us.” As part of its reopening plans, the fashion retailer said its signature rainbow icon would continue to be at the forefront of its campaign to represent kindness, creativity and love for the community. It comes after it launched the People Empowered campaign, featuring activists for disability, diversity, mental health and social justice. Meanwhile from the outset of Covid-19, Kurt Geiger made contributions of over £1 million in support of the NHS and frontline workers. It started its efforts by launching its “We Are One” product range which gives 100 per cent of proceeds to NHS Charities Together, and so far over £100,000 has been raised. Kurt Geiger then offered a 50 per cent discount on all its products to key workers through its partnership with Blue Light Card, which has to date has totalled over £500,000 worth of discounts. Kurt Geiger has also donated gift cards worth £100 each to critical care workers in the 70 hospitals located near its UK stores, worth a value of over £400,000, and donated £20,000, – its first month of store profits – to NHS Charities Together when shops reopened last June after the UK’s first lockdown. Furthermore, Clifford suspended his salary in 2020 and Kurt Geiger said it has continued to pay its staff’s salaries. “We have learnt a lot from lockdown and Covid-19 and our mission throughout has been to be kind and inclusive which has led to a fundamental change in the way we do business and has resulted in a significant proportion of our profits last year being donated to charities,” Clifford said. “Many people would say we can’t afford to do this, our view is that we can’t afford not to. “Our customers by the hundreds and thousands have responded positively and endorsed this approach. “There are many lessons to be learnt for the fashion and retail industry and we are in a new era where customers want to support those brands that they can empathise with and respect.”
Uniqlo owner Fast Retailing revenue drops
Uniqlo owner Fast Retailing has recorded a 23 per cent rise in operating profit to Y167.9 billion (£1.1 billion) during the first six months of its financial year. However, revenues dropped by a mere 0.5 per cent to Y1.2 trillion (£8 billion). The group now expects to deliver an operating profit of Y255 billion (£1.7 billion) in 2020/21, compared with its previous estimate of Y245 billion (£1.6 billion). Fast Retailing said a “strong rise in profit” in its native Japan and the Greater China region drove its profit gains. “Sales and profits in China exceeded our projections. Profitability rose because we were able to limit discounts as we tried to improve our product value and branding,” Fast Retailing chief financial officer Takeshi Okazaki said. Fast Retailing expects to have 2337 Uniqlo stores worldwide by the end of August, 813 of which will be in Japan. However, the company has suffered fires at two of the Myanmar factories that make its clothes and is also facing the same consumer backlash over forced labour concerns in cotton fields in Xinjiang, China as H&M. Fast Retailing founder Tadashi Yanai said: “Of course, we take a close interest in all factories or production of cotton. If we find such problems, we will immediately terminate our business transaction. “But, beyond that, it becomes a political issue rather than a human rights issue. So, no comment.”
Boohoo signs lease to open 4th warehouse
Boohoo Group has exchanged contracts and agreed a long-term lease to open a new warehouse in Daventry, Northamptonshire. The facility, due to become operational in the second quarter of the online retail giant’s financial year, would become its fourth warehouse. This site will aim support Boohoo Group’s expansion and adds capacity in addition to its existing warehouses in Burnley, Sheffield and Wellingborough. Together, these sites are expected give the Boohoo Group net sales capacity in excess of £4 billion. The new Daventry warehouse is also scalable, with the online retailer expecting to invest over £50 million in the coming years, increasing capacity and operational flexibility as it grows. The site is expected to secure up to 500 jobs and in the future create up to a further 1000 jobs as capacity increases. The new warehouse announcement comes after Boohoo Group unveiled plans to work with its “compliant” UK manufacturers in an update on its supply chain review, which was prompted after it was embroiled in modern slavery allegations last year.
ASOS targets £500m fundraise for global expansion
Asos has launched a £500 million fundraising scheme to help bolster its global expansion plans. Through its subsidiary Cornwall (Jersey) Ltd, the online fashion retailer priced its offering of £500 million of senior unsecured guaranteed convertible bonds due 2026 at par. The bonds will carry a coupon of 0.75 per cent per annum payable semi-annually in arrear in equal instalments on April 16 and October 16 in each year, with the first interest payment date being October 16 this year. The initial conversion price is set at a premium of 47.5 per cent above the reference share price of £54. Settlement and delivery of the bonds is expected to take place next week around April 16. Asos said the bonds would provide it with “additional flexibility to continue to invest” in its global growth strategy. It added that it would help the business refinance its February acquisition of Arcadia Group brands Topshop, Topman, Miss Selfridge and HIIT. Details of Asos’ plan to raise £500 million of new debt comes after the publication of its half-year results yesterday. Revenues at the online fashion retailer jumped 24 per cent year-on-year to £1.98 billion in the six months to the end of February, while half-year pre-tax profits skyrocketed 253 per cent to £106.4 million. In the UK, Asos half-year sales were up 39 per cent year-on-year to £800.4 million, compared with 18 per cent in the EU, 16 per cent in the US and 16 per cent in the rest of the world.
Frasers Group to open its first new Frasers store in Wolverhampton
Frasers Group is set to open the doors to its very first Frasers store in Wolverhampton next week in time with the reopening of non-essential retail in England and Wales. The 34,000sq ft department store is located in the Mander Centre, in a unit once that was once occupied by Debenhams, and will offer beauty, fashion, premium and contemporary accessories and designer childrenswear from a range of 120 brands. Frasers will also feature homewares in an interactive Frasers House area of the department store, and a new in-store restaurant. With adjoining Flannels and Sports Direct stores – both with separate entrances – and Frasers at the heart, the three shops combined create a 60,000sq ft space where all of Frasers Group’s fascias are available under one roof. The new Frasers fascia is the luxury offshoot of House of Fraser, which the Mike Ashley-owned Fraser Group acquired in August 2018 in a £90 million pre-pack administration deal. Speculation has been rife that the firm was eyeing up several House of Fraser stores – and other possible locations – to be converted into Frasers, as part of Ashley’s ambitions to turn the department store chain into “the Harrods of the high street”. Frasers Group had taken over the empty Debenhams unit in Wolverhampton back in October 2019 and so far the only other site that is confirmed to become a Frasers site is in Sheffield’s Meadowhall shopping centre, in the unit currently occupied by House of Fraser. “[The Wolverhampton launch] is a pivotal moment for the group as we open our first multi-fascia destination to feature a Frasers store,” Frasers Group head of elevation Michael Murray said. “We are committed to raising the bar for retail and delivering aspirational stores with a focus on experience, brands and service, Frasers Wolverhampton demonstrates our dedication to, and our vision for, the brand’s future. “Not only are we opening brand-new flagship stores in some of the UK’s biggest cities, but we are also investing in elevated propositions in smaller towns like Wolverhampton setting the benchmark for regional retail and demonstrating the ambition and scale of our strategy. “This new lifestyle proposition means residents of Wolverhampton no longer need to travel to Birmingham to seek the best luxury, fashion and beauty brands, and we hope they will welcome these much-needed additions to the city with open arms.”