Today’s news in brief-31/1/24
The Body Shop is set to sell parts of its business in Europe and Asia. The deal involves an agreement with an international family office, covering around 14% of the business. This move is part of The Body Shop’s strategy to prioritise key markets and global franchise partner relationships. The sale, however, won’t impact the company’s operations in the UK. The focus remains on strengthening digital platforms, developing new sales channels, and enhancing retail experiences to create a modern and dynamic beauty brand.
Morrisons has agreed to sell 337 petrol forecourts to Motor Fuel Group (MFG) in a £2.5bn deal. The transaction includes acquiring more than 400 associated sites for Ultra-Rapid electric vehicle (EV) charging development across the UK. Morrisons will take a minority stake of approximately 20% in MFG and continue supplying food and groceries to the petrol forecourts. The sale proceeds will fund further investments in Morrisons’ grocery and food businesses, strengthening its capital structure. The deal aims to create synergies in fuel retail, promote EV charging infrastructure, and enhance the convenience retail proposition.
HMV, owned by Sunrise Records and Entertainment, reported rising profits and sales driven by the resurgence of vinyl sales. Pre-tax profits increased from £1.9m to £5.2m, with turnover rising to £178m. The boost in sales is attributed to the revival of vinyl, as well as the expansion of pop-culture, anime, and K-pop offerings targeting younger audiences. HMV’s return to its iconic Oxford Street location in November 2023 further contributed to its success, providing a hub for entertainment in London with a wide range of music, film, merchandise, and technology products.
John Lewis Partnership, led by Dame Sharon White, is poised to return to profit this year, following a £234m loss in the previous year. Despite potential job cuts and cost reduction measures, White assured staff of the company’s commercial performance improvement, emphasising efforts to achieve sustainable profitability. The retailer is undergoing a transformation plan, including job cuts, reduced redundancy pay, and a £900m cost-cutting initiative. The return to profit is seen as a positive outcome of the strategic changes implemented over the past year.
H&M announced the appointment of Daniel Ervér as its new CEO, succeeding Helena Helmersson, who decided to step down after four years. Despite a 4% decrease in Q4 2023 sales, the full-year results showed a 6% increase in revenues, reaching SEK 236,035m (£17.8m). Operating profit, including allocation to the H&M Incentive program, increased to SEK 14,537m (£1.1m ), with a focus on sustainability and climate goals. Ervér, with 18 years of experience in the H&M group, expressed commitment to creating unbeatable value for customers and driving profitable growth.
