Today’s news in brief-1/11/23

Asda has successfully finalised its acquisition of EG Group's UK business, a deal valued at a substantial £2bn. This strategic move allows Asda to take ownership of EG Group's UK&I operations, which encompass fuel, foodservice, grocery, and merchandise businesses. Notably, EG Group has clarified that it will retain operations in several countries, including the USA, Australia, and several European nations, along with 32 sites in the UK. Furthermore, certain foodservice brands, such as Cooplands, and franchise partnerships with prominent brands like Starbucks, KFC, and others, will remain with EG Group. This acquisition aligns with EG Group's broader vision to expand its convenience retail offerings globally. Online fashion giant Asos has reported a notable pre-tax loss of £296.7m for the fiscal year ending on September 3, 2023. This figure marks a significant increase from the £31.9m loss recorded in the previous year. The company also anticipates a second consecutive year of declining sales, projecting a decline ranging from 5% to 15% for FY24. However, Asos is optimistic about a return to growth in FY25, targeting EBITDA margins comparable to pre-pandemic levels. Matches, a prominent luxury shopping destination, has disclosed an adjusted EBITDA loss of £33.7m for the fiscal year ending on January 31, 2022. While the retailer experienced a slight dip in revenues, order demand surged by an impressive 12%, reaching £758.2m. In an effort to improve its financial performance, Matches has announced plans to implement operational cost-saving measures, aiming for a substantial reduction in losses incurred. Next has revised its full-year profit outlook upwards for the fourth time in 2023 despite a 7% drop in sales in September due to unseasonably warm weather. The company's latest Q3 results reveal that sales rebounded as colder weather set in, showing growth of 4%. Next now expects a 1.7% increase in underlying pre-tax profits, reaching £885m for the year. This positive outlook is attributed to strategic moves, including the acquisition of Fat Face. Secret Sales, a platform specialising in off-price retail for fashion, sportswear, and beauty, has announced its expansion into the Irish market. This new venture opens doors for brands and retailers to tap into a potential audience of 3.4 million Irish online consumers. The platform will offer Irish shoppers access to over £700m worth of off-price inventory from 450 premium brands. This expansion aligns with Secret Sales' ambitious international strategy, aiming to establish itself as the go-to destination for non-full-price retail in major European markets by 2025. Deloitte's Consumer Tracker report indicates a growing inclination among UK consumers to increase their Christmas spending compared to the previous year. The study, which surveyed over 3,100 UK consumers, revealed a seven-percentage-point rise in those intending to spend more during the festive season. Notably, many consumers plan to distribute their expenses over the quarter, with 32% aiming to complete the majority of their gift shopping in November, capitalising on events like Black Friday and Cyber Monday. Furthermore, there is an uptick in respondents intending to make in-store purchases, indicating a preference for physical retail experiences. This information serves as a valuable insight for retailers as they gear up for the competitive holiday season.

Today’s news in brief-1/11/23

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