Today’s news in brief-9/4/24
No Ordinary Designer Label Limited (NODL), the retailers of the Ted Baker brand in the UK and Europe, will close 11 stores by 19 April. This decision follows the appointment of administrators and is aimed at improving the company’s performance. Authentic Brands Group, the intellectual property owner of Ted Baker, is seeking a new operating partner for its retail and e-commerce business in the UK and Europe. The closures are expected to result in around 120 job losses, with additional redundancies in head office roles. The move comes as a necessary step to ensure profitability in the future, according to joint administrators. The affected stores include Birmingham Bullring, Bristol, and others across the UK.
Tesco has joined with four other global grocery retailers to establish W23 Global, a venture fund with a $125m investment over five years. The fund aims to support innovative start-ups addressing sustainability challenges in grocery retail. Each retailer is an equal partner in the fund, with their CEOs sitting on the investment committee. Tesco’s contribution over five years will be $25m. The initiative brings together leading grocery retailers from around the world to drive innovation in the sector and support scalable solutions.
UK retail sales surged by 3.5% year-on-year in March, buoyed by the early Easter period. Food sales saw a significant increase of 6.8% year-on-year, although slightly below the growth recorded in March 2023. Non-food sales, however, experienced a decline of 1.9% year-on-year for the same period. In-store non-food sales dropped by 1.1%, while online non-food sales decreased by 1.4%. The boost in sales was attributed to early Easter shopping, with consumers purchasing items such as cookware and home textiles. Retailers are optimistic about improved consumer confidence as warmer weather approaches.
ProCook’s revenue surged by 4.8% to £13.2m for the 12 weeks ending March 31, 2024. The company expects its full-year underlying profit before tax for FY24 to be between £0.5m to £1.0m, slightly above market expectations. The positive performance was driven by retail revenue growth, including like-for-like revenue growth of 1.5%. Despite challenges in the market, ProCook remains confident in its proposition, focusing on enhancing customer experience and gaining market share.
Robbie Feather has been promoted to the position of group CEO at The Very Group, succeeding Lionel Desclée. Feather, who previously led the company’s retail team, brings extensive experience from his tenure at Fenwick and Sainsbury’s Argos. Under Desclée’s leadership, The Very Group delivered robust results, recording significant growth in revenue and customer satisfaction. Feather’s appointment is expected to drive the company’s continued success and growth in the retail sector.
Puig, the owner of beauty brands including Charlotte Tilbury, intends to raise over €2.5bn through an initial public offering (IPO). The offering will consist of both primary and secondary shares, with the Puig family retaining a majority stake and voting rights. The funds raised will be used for general corporate purposes, including refinancing and strategic investments. Puig aims to leverage its unique portfolio of brands and family-owned structure to compete effectively in the global beauty market.
