Today’s news in brief-22/4/24

Investors from the Middle East and China are eyeing Selfridges following Signa’s financial struggles, leading to restructuring and insolvency. Central Group, a co-owner, is seeking to buy out Signa’s stake, with potential partnerships being explored with sovereign wealth funds and tycoons. Notable entities like Saudi Arabia’s Public Investment Fund and Gucci owner Kering are considering involvement. Additionally, the Qatar Investment Authority may renew its interest. However, London’s Bangkok Bank and others are unlikely to provide backing.

TikTok has entered the luxury market with its ‘Preowned Luxury’ category in collaboration with prominent retailers. This move allows users to discover and purchase authentic luxury fashion directly through the app, enhancing TikTok Shop’s commerce capabilities. With a focus on accessibility and inspiration, this initiative aims to engage TikTok’s fashion community.

Asda has reported a significant increase in profits, reaching £1.1bn in FY23, attributed to sales growth and strategic acquisitions. Like-for-like sales rose by 5.4%, driven by ongoing investment in value and price reductions on popular products. The supermarket’s clothing sales also saw growth. Asda’s loyalty scheme now engages around half of its customers, contributing to its success.

Ocado faces shareholder pressure to transition to the New York stock market, aiming to reposition itself as a tech company rather than an online grocer. Shareholders advocate for this move to potentially enhance the company’s valuation, reflecting a trend among UK-listed firms. Despite recent sales growth and active shopper numbers, Ocado’s share price has significantly decreased. Maintaining its FY23 guidance, the company expects continued revenue growth and EBITDA margin.

Tesco’s chief executive, Ken Murphy, is poised to receive a substantial £10m pay package, driven by a surge in Clubcard customers and online sales. Despite rising grocery prices amid the cost of living crisis, Tesco reports increased profits and sales. Murphy acknowledges the challenges faced by customers and emphasises efforts to reduce prices. Tesco expects continued profitability in the coming financial year.