Today’s news in brief-5/4/24

Carpetright has enlisted the help of advisers to explore avenues for cutting costs amidst a challenging market. With weakening demand and intensifying competition, including from newer brands like Tapi, the company is considering options such as store closures. Over the past 14 months, Carpetright reported a decline in revenues to £372.6m, with underlying losses before tax improving to £23.4m. The company’s struggles are attributed to factors like the cost of living crisis and reduced consumer spending on big-ticket items.

Majestic has acquired Vagabond Wines out of administration, safeguarding nine of its wine bars from closure. This strategic move provides job security for 171 Vagabond employees and sets the stage for further investment and expansion. Majestic plans to enhance Vagabond’s offerings, including opening more wine bars and leveraging CRM capabilities. The acquisition underscores confidence in experiential retail and hospitality, reflecting a broader growth trajectory for Majestic since its acquisition by Fortress Investment Group in 2019.

Decathlon has reported a 1.1% increase in revenue to €15.6bn for the financial year 2023. Digital sales accounted for a significant portion of revenue, while the company demonstrated a commitment to sustainability by reducing CO2 emissions and increasing circular sales. Decathlon has also unveiled a new purpose to “Move People Through the Wonders of Sport,” emphasising innovation, sustainability, and customer experience. The CEO praised the company’s efforts in reducing CO2 emissions while maintaining revenue growth, highlighting a dedication to preserving the environment.

The Works has announced plans to transfer shares from the main market of the London Stock Exchange to the AIM market as a cost-saving measure. Shareholders voted overwhelmingly in favour of the move, citing poor valuations, financial costs, and regulatory burdens associated with the main market. The Works reported an adjusted pre-tax loss, prompting the decision to seek a more suitable market. The transfer is expected to enhance efficiency and access to alternative investors, potentially increasing shareholder value.