Today’s news in brief-23/4/24

UK’s grocery regulator is closely monitoring Tesco’s imposition of online supplier fees akin to Amazon. The Grocery Code Adjudicator initiated assurance processes after Tesco’s move to charge extra for online sales last year. Tesco claims rising online operation costs prompted the fee, starting at 12p per branded item and 5p for own brands. While smaller suppliers with contracts under £250,000 are exempt, concerns arise over potential supplier hardships and unfair treatment. Tesco now must submit monthly reports to ensure compliance with regulations, assuring no penalties for fee refusal. The adjudicator urges suppliers with concerns to reach out, affirming fee refusal won’t face repercussions.

THG’s first-quarter sales have seen a 4.5% rise, bolstered by a remarkable 11.1% surge in THG Beauty revenues. Targeted geographic strategies and operational improvements contributed to this growth. However, THG Nutrition revenues declined by 5.8%, while THG Ingenuity revenues faced a 4.9% drop. CEO Matthew Moulding credits investments in infrastructure and technology for the positive results, signalling optimism despite macroeconomic challenges.

Primark’s parent company, ABF, reported a 37% increase in pre-tax profit, driven by strong sales growth and operational improvements. Primark itself witnessed a 7.5% rise in sales and plans to launch a click and collect service across its British stores by 2025. This expansion aligns with ABF’s strategy for sustainable growth, despite ongoing consumer cost pressures and geopolitical risks.

JD Sports announced the acquisition of US sports retailer Hibbett for £899m, a move that strengthens its presence in North America. The deal is expected to increase JD’s revenues in the region significantly and enhance its brand partnerships. This strategic acquisition aligns with JD’s growth objectives and underscores its commitment to expanding its footprint in the US market.