Today’s news in brief-12/12/23
Fast-fashion giant Shein is reportedly exploring the possibility of an initial public offering (IPO) on the London Stock Exchange. Chairman Donald Tangmet reportedly met with LSE executives in London to discuss the potential move. The talks are said to have focused on a UK listing, with Shein also considering raising funds through a public share sale. While the group has filed documents for a potential New York flotation, sources indicate that a US listing remains the most likely outcome, with a dual listing in London and New York considered unlikely. Earlier reports suggested Shein’s plans to raise £1.6bn in new funding, making it one of the largest floats in the last decade.
Waitrose, the UK-based supermarket chain, has revealed plans to boost its international exports business after experiencing a 14% increase in export sales compared to the previous year. Global demand for Waitrose products has risen by 92% over the past decade, prompting the company to target a 10% growth in 2024. Discussions with various international supermarkets and distributors are underway to expand its product portfolio into new and existing markets across Asia, Africa, the Caribbean, and Europe. Currently shipping products to 42 territories, including Malaysia, Chile, Jordan, Singapore, Vietnam, Thailand, and nine Caribbean islands, Waitrose aims to capitalise on its popularity worldwide, offering over 2,000 own-label products globally.
Pepco Group, the owner of Poundland, has announced a notable 17.7% increase in revenues, reaching €5.6bn (£4.8bn) for the fiscal year ending on September 30. While Pepco and Poundland achieved growth of 24.8% and 8.4%, respectively, the underlying pre-tax profit declined by 33.7% to €202m (£173m), attributed to investments in stores, expansion, supply chain costs, inflation, and higher interest costs. The group opened 668 new stores during the year, resulting in a 16.9% YoY increase. Despite the profit setback, Pepco Group plans to open an additional 400 new stores in FY24. Andy Bond, the Executive Chair, emphasised the commitment to the UK as the group’s largest market and outlined a strategy to achieve more measured growth with a focus on profitability and cash generation.
Total till sales at UK supermarkets increased by 6.8% in the last four weeks ending December 2, according to data from NIQ. The growth rate slowed due to consumers prioritising saving and delaying spending to leverage seasonal promotions during Christmas week. Increased promotional activity, up to 25%, was well-received, with 38% of branded sales and 16% of private label sales purchased on promotions. Online grocery shopping recorded a robust value sales growth of 8.2% compared to in-store shopping (+5.3%), raising online market share to 11.5%. Sales for meat and poultry (+10.1%) and confectionery (+10.2%) surged, compensating for a 7% decline in general merchandise sales. Sainsbury was the best-performing supermarket of the ‘big four,’ while Lidl and Aldi maintained their position as the fastest-growing retailers. NIQ’s Mike Watkins highlighted the importance of value for money during the festive season, emphasising low prices, quality, and availability for successful Christmas grocery shopping.
