Today’s news in brief-13/11/23

Retail theft is projected to cost UK retailers £7.9bn in 2023, with a notable increase in employee theft. Thruvision Group plc and Retail Economics conducted the research, revealing that shoppers contribute to 60% of the theft (£4.7bn), while employees, particularly in distribution centres, contribute 40% (£3.2bn). Employee theft in DCs is under-reported, with 42.6% (£1.4bn) going unnoticed. Two-thirds of retailers believe the opportunity for crime in DCs has increased over the past decade, driven in part by financial pressures from the cost-of-living crisis. Changes in stolen products, with a shift towards smaller items and valuable electrical products, are also noted. The reliance on temporary staff and structural shifts in the labour market are considered key drivers of theft. Majestic Wine, following its acquisition by US private equity firm Fortress, aims to open 50 new stores in the next four to five years. CEO John Colley emphasised the importance of physical stores, stating that they are "sacrosanct" for the company. The expansion will target suburbs, focusing on market towns like Henley and Marlow. The plan includes the introduction of smaller stores alongside warehouse-style outlets. This move comes as Naked Wines, which separated from Majestic in 2019, experiences a sales decline, lowering its full-year guidance amid challenging trading conditions. Ingka Group, the owner of Ikea, has reportedly acquired Brighton’s Churchill Square Centre for £145m. The shopping centre will be converted into a new Ikea store, set to open within two years. This marks Ingka's second UK shopping centre acquisition, following the purchase of Kings Mall in Hammersmith three years ago. The move reflects Ikea's strategy to target city centres for new stores, adapting and evolving traditional shopping centres to meet local community needs. The Range reports losses widening to £11.7m in the financial year ending January 2023 despite a 26% increase in revenues on pre-pandemic levels and a 17.3% rise in like-for-like sales. Gross profit margins dropped from 33% to 31.9% due to higher costs of goods, freight costs, and increased price discounting. The company anticipates a return to pre-pandemic profit levels by the end of the current financial year. The Range recently acquired the Wilko brand, relaunching it online and introducing Wilko products in its stores. Richemont has appointed Karlheinz Baumann to its Senior Executive Committee (SEC) as group director of operations. With 27 years of experience in luxury and automotive industries, Baumann will oversee manufacturing, research and innovation, customer service, logistics and supply chain, indirect procurement, responsible sourcing, and security. His role is crucial for advancing the group's decisions on digitalization, flexibility, and resilience, especially in manufacturing and distribution. The sale of footwear retailer Dune has been delayed as it has not received a bid matching its valuation. Offers from Footasylum owner Aurelius and Next for founder Daniel Rubin’s controlling stake did not meet expectations. KPMG was appointed to run the sales process in March, aiming to accelerate growth. Dune reported a 73% increase in EBITDA to £10.9m for the year ending January 28, 2023, with sales up 20.8% to £141.4m in the same period. Daniel Rubin, the founder, expressed the intention to realise his investment in Dune after 47 years in the footwear industry.

Today’s news in brief-13/11/23

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