Today’s news in brief-7/11/23

Fast fashion brand Shein has reportedly expressed interest in acquiring Topshop. This comes shortly after the acquisition of Missguided and its intellectual property rights from Frasers Group. Asos, the current owner of Topshop, has been considering selling the brand to bolster its financials following a significant loss of nearly £300m in the previous financial year. Sources suggest that Shein might not be the preferred bidder for Topshop. Shein also extended its partnership with Forever 21 and Authentic Brands to create a new sub-brand, as part of its strategy to strengthen its fashion credentials. Primark reported a 17% increase in sales surpassing £9bn for the year ending 16 September 2023. However, the adjusted operating profit dropped 3% to £735m, with an 8.2% operating margin. This was attributed to selective price increases aimed at protecting profitability. Operating profits for Primark surged 30% to £717m, suggesting a return to historical margin levels. The company's growth was supported by the successful launch of new stores, increasing their count to over 430 from 408 the previous year. Analysts emphasise Primark's ability to navigate inflationary pressures while maintaining value for customers. Naked Wines has revised its full-year guidance downward due to challenging trading conditions. Recent trading in the US fell below expectations, leading the group to anticipate a 12% to 16% decline in full-year revenues. This is a change from the earlier projection of an 8% to 12% decline. The adjusted EBIT is now expected to be between £2-6m, down from the previous estimate of £8-12m. The group's CEO, Nick Devlin, is stepping down immediately. The UK and Australia also experienced declines in revenues, while sales to new and repeat customers dropped significantly. Founder and Chairman Rowan Gormley will serve as interim executive chairman during the CEO transition. Kantar reports that grocery price inflation has fallen below 10% for the first time since July 2022, now at 9.7% for the four weeks ending October 29, 2023. Take-home grocery sales saw a 7.4% rise compared to the same period the previous year. Price decreases were observed across categories, particularly in sparkling wine prices. Lidl emerged as the fastest-growing retailer, followed by Aldi and Waitrose. Sainsbury's and Tesco also experienced sales growth. The data reflects consumer emphasis on value amidst cost-of-living pressures. Own label products have outperformed branded ones, indicating a trend towards affordability. Watches of Switzerland reported a Q2 revenue increase to £379m, attributed to strong demand for luxury watches. US revenue saw an 11% rise at constant currency, driven by the opening of new mono-brand boutiques. UK and Europe revenue remained in line with the previous year at £214m, with domestic clientele continuing to be a significant driver. The company acquired 19 luxury watch showrooms from Ernest Jones, further expanding its portfolio. Despite a slight dip in H1 revenues from the previous year, the company remains optimistic about its performance in the luxury watch market. Total UK retail sales increased by 2.5% in October, as consumers postponed Christmas spending in anticipation of Black Friday deals. Food sales grew by 7.9% over the three months to October, while non-food sales decreased by 1.0%. In-store non-food sales decreased slightly, and online non-food sales declined by 2.5%. The proportion of non-food items purchased online fell to 36.5% from 36.6% in October 2022. The “Lipstick Effect” was noted as consumers focused on lower-priced indulgences. Retailers are investing in price reductions and operational efficiencies to offer affordable options for customers, though rising business rates pose a challenge.

Today’s news in brief-7/11/23

Check out our free weekly podcast

Read Next

Tesco donates 1.9 million meals to charity in November

UK retail spending rises 2.3% ahead of Christmas, Visa finds

Abaci selects London Designer Outlet for first UK store

FCA approves N Brown’s £191m takeover

Miniso opens new store at London Stansted Airport

Tesco donates 1.9 million meals to charity in November

UK retail spending rises 2.3% ahead of Christmas, Visa finds

Abaci selects London Designer Outlet for first UK store

FCA approves N Brown’s £191m takeover

Miniso opens new store at London Stansted Airport

Ocado customers missing Christmas items amid warehouse malfunction

The Range to open at three former Homebase stores in January

Aldi to invest over £40m in Scotland over next two years

Footfall rises ahead of Christmas but remains lower than 2023 levels

Today’s news in brief-23/12/24

Tesco donates 1.9 million meals to charity in November

Check out our free weekly podcast

Read Next

Tesco donates 1.9 million meals to charity in November

UK retail spending rises 2.3% ahead of Christmas, Visa finds

Abaci selects London Designer Outlet for first UK store

FCA approves N Brown’s £191m takeover

Miniso opens new store at London Stansted Airport

Related Articles

Ocado customers missing Christmas items amid warehouse malfunction

The Range to open at three former Homebase stores in January

Aldi to invest over £40m in Scotland over next two years

Footfall rises ahead of Christmas but remains lower than 2023 levels

Today’s news in brief-23/12/24

Tesco donates 1.9 million meals to charity in November