Today’s news in brief-15/11/23

Central Group, a Thai conglomerate and co-owner of Selfridges, has reportedly become the largest shareholder by converting a €364m loan into equity. This move follows reports of financial troubles at Signa Group, the other key shareholder. Restructuring efforts were initiated due to rising borrowing costs and falling property valuations. Selfridges, jointly acquired by Signa and Central Group in a £4bn deal last year, assured that the change in ownership wouldn’t impact its operations.

UK inflation decreased to 4.6% in October, beating expectations, primarily driven by lower energy prices. Housing and household services prices fell by 0.3%, with a significant drop in gas and electricity costs. Despite the decrease, energy prices remained higher compared to recent years. Food and non-alcoholic beverage prices rose by 0.1%, contributing to an annual rate of 10.1%. The overall drop in inflation is attributed to reduced energy costs and stable food prices.

Aurelius Group has acquired The Body Shop from Natura and Co for £207m, including an earn-out of £90m. The retail group, headquartered in London with operations in 89 markets, plans to leverage its expertise to drive operational excellence in the omni-channel retail and wholesale markets. The Body Shop, known for its cruelty-free and natural ingredient focus, anticipates working with Aurelius to adapt and flourish in new global retail environments while maintaining a commitment to sustainability.

UK supermarkets witnessed an 8.7% increase in total till sales despite cautious consumer spending and a slowdown in inflation. Aldi and Lidl continued to grow market share significantly. The data revealed a shift in consumer behaviour with an increase in average spend per visit to £20.20. However, shoppers remain cautious, impacting sales for general merchandise. Online sales saw growth, and as the holiday season approaches, retailers are expected to focus on Christmas campaigns to boost spending.

Asda announced a £300m reduction in its debt during Q3, paying off a £200m loan used for its acquisition of over 100 Co-op stores and £100m of other debts. Despite this, the debt has risen back to £4.6bn due to the acquisition of EG Group’s UK business. Q3 saw a 2.8% increase in like-for-like sales, with food sales growing by 3.2%. Asda’s two price drop campaigns and focus on Just Essentials value range contributed to the sales growth amid a cost-of-living crisis.

Michael Truluck has been appointed as chairman of Joe Browns, a Leeds-based fashion and home retailer, following his departure as CEO of La Redoute International. The appointment aligns with Joe Browns’ growth ambitions, marked by plans to open ten new stores by 2024. Truluck expressed excitement about the brand’s unique offerings and its strong leadership team, while Simon Brown, founder of Joe Browns, emphasised the significance of Truluck’s strategic vision for the company’s future.