Today’s news in brief-8/4/24

The John Lewis Partnership has chosen Jason Tarry, former UK boss of Tesco, as its new chairman. Tarry, with over three decades of experience in retail, will succeed Sharon White in September. White led the company through challenging times, including the COVID-19 pandemic and economic crises. Tarry’s leadership is expected to guide the company through its modernization phase while upholding its values and employee ownership model.

Co-founder Zuber Issa is set to step down as co-CEO of EG Group, with his brother taking over. This transition will occur after completing acquisitions from the business. EG Group has been strategizing to lower debts, including reducing growth capital expenditure and considering the sale of its Australia business. Issa’s departure marks a significant change in the company’s leadership.

Ocado faces potential shareholder dissent over a proposed £15m bonus for CEO Tim Steiner. Shareholders are concerned about excessive pay, especially as the company’s share price remains below the threshold for the bonus. Advisory groups have urged shareholders to vote against the proposed remuneration program. This controversy underscores ongoing scrutiny over executive compensation practices in corporations.

Currys shareholder JO Hambro has advocated for the sale of its mobile phone business, ID Mobile, following failed takeover bids for the electrical retailer. ID Mobile, valued at £350 million, presents an opportunity for Currys to realise shareholder value amidst acquisition setbacks. Hambro’s push for a sale reflects investor pressure for strategic moves to enhance shareholder returns.

Denim brand Levi Strauss & Co reported a net loss of $11m in Q1 2024, despite growth in direct-to-consumer (DTC) revenues. While DTC revenues rose by 7%, the company experienced a decline in overall net revenue due to various factors, including a shift in wholesale shipments and restructuring charges. Levi’s emphasises its focus on DTC growth and strategic priorities to drive future profitability.

Helen Dickinson, CEO of the British Retail Consortium, has cautioned that a crackdown on greenwashing could deter retailers from promoting sustainability efforts. This warning comes after the Competition and Markets Authority (CMA) secured changes from fashion retailers regarding their eco-friendly claims. While transparency is crucial, Dickinson fears retailers may retreat from showcasing their sustainability initiatives. The CMA continues its efforts to ensure accuracy in environmental claims made by businesses.