Today’s news in brief-11/1/24

Marks & Spencer emerged as the top-performing grocer in volume growth during the Christmas period and the quarter. Food sales rose by an impressive 10.5%, with like-for-like sales up 9.9%. Clothing and home sales also experienced growth of 4.8%, attributed partly to reduced promotions. Supply chain improvements contributed to better supermarket availability. The retailer expressed confidence in meeting market expectations for the year despite anticipated economic uncertainties in FY25. Very UK reported a 3.4% increase in retail sales during the seven weeks leading to December 22, with standout categories including toys, gifts, beauty, and electricals. Sales in these categories rose by 8.8% and 7.4%, respectively. The Christmas and Black Friday performance outpaced the UK online non-food retail market, contributing to a growth in market share. Tesco experienced a 6.9% increase in sales for the 19 weeks ending January 6, 2024, surpassing volume growth expectations. The strong performance led to an upward revision of the retail adjusted operating profit guidance to around £2.75bn. Sales in the UK rose by 7.5%, while the Republic of Ireland recorded a 7.3% increase. Despite a 1.6% Christmas sales increase in Central Europe, overall sales in this region dropped by 0.3%. Sainsbury's is in talks with the UK government to address potential shipping delays in the Red Sea region due to recent unrest. CEO Simon Roberts emphasised efforts to mitigate disruptions and ensure product availability. Delays have occurred as container ships divert their routes due to Houthi rebel attacks in the Suez Canal. Roberts highlighted the majority of ships opting for the longer route around South Africa's Cape of Good Hope. The company remains in regular communication with the government to stay informed about potential impacts. Boohoo is accused of adding "Made in the UK" labels to clothes manufactured overseas, according to BBC Panorama. The investigative show claims that plain t-shirts and hoodies had labels replaced at Boohoo's Leicester factory. Boohoo attributed this to a misinterpretation of labelling rules, labelling it as "human error." The company stated steps have been taken to prevent a recurrence. Boohoo is currently considering closing its Thurmaston Lane factory in Leicester. The move follows the revelation that less than 100 employees may be affected. Frasers Group announced the appointment of Jefferies as its new joint corporate broker, replacing Liberum. Jefferies will work alongside Barclays Bank plc and Deutsche Numis. The change comes after Frasers Group acquired Matches business from MF Intermediate Limited for an estimated £52m. The acquisition involves purchasing all shares of six companies and acquiring senior and junior debt owed by these companies. The board expressed gratitude to Liberum for its support in implementing the group's growth strategy through the Elevation strategy.

Today’s news in brief-11/1/24

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