Today’s news in brief-2/7/24
Shop price inflation in the UK saw a significant slowdown in June, dropping to 0.2% from 0.6% in May, marking the lowest rate since October 2021. This decline was driven by a 1% decrease in non-food prices and a deceleration in food inflation to 2.5%. Helen Dickinson of the BRC highlighted that retailer investments in operational efficiencies helped mitigate global cost pressures, benefiting consumers with lower price increases.
Sainsbury’s reported a 2.6% increase in retail sales for the 16 weeks ending June 22, 2024. Grocery sales were up 4.8%, while general merchandise and clothing sales declined. Despite challenges in some areas like Argos, which experienced a 6.2% sales drop, Sainsbury’s gained market share and started a £200m share buyback program.
Sherilyn Paterson, Chief Operating Officer at JD Sports, retired after 12 years with the company, during which she played a crucial role in global strategy and operations. Despite a recent 8% decline in pre-tax profit for JD Sports, the company saw a 2.7% increase in full-year revenues and significant growth in organic sales. JD Sports remains committed to expansion, planning over 200 new stores for FY25, reflecting their strategic progress in a challenging retail environment.
Shoe Zone expects its adjusted profits before tax to be at least £10m for the fiscal year ending October 2, 2024, citing ongoing cost pressures. These pressures include rising shipping costs due to disruptions in the Middle East and changes in shipping routes away from the Suez Canal. Despite flat profits reported earlier in the year, Shoe Zone continues to navigate challenges from increased National Living Wage and its store strategy.
Virgin Wines appointed Danny Cooper as Chief Information Officer, Gareth Beaty as Head of Customer Growth, and Andy Potts as Trading Director of Warehouse Wines. These appointments are part of Virgin Wines’ strategy to enhance digital capabilities and customer acquisition efforts. CEO Jay Wright highlighted their commitment to sustainable growth and delivering high-quality customer experiences, underscoring the importance of these new roles in driving the company forward.
