Today’s news in brief-6/8/24

UK retail sales saw a slight uptick of 0.5% year-on-year in July, driven by improved performance in food sales and summer clothing purchases amidst favourable weather. However, non-food sales declined by 1.7% over the same period, with in-store sales particularly affected, reflecting ongoing shifts in consumer spending habits. The online penetration rate for non-food items rose marginally to 35.5%, underscoring a continuing trend towards digital retail channels.

Garment factories in Bangladesh have been indefinitely shut down following political turmoil and protests demanding the resignation of Prime Minister Sheikh Hasina. This disruption, marked by significant violence and casualties, is expected to impact global fashion retailers heavily reliant on Bangladesh for manufacturing, such as H&M and Zara. Bangladesh’s garment industry, a cornerstone of its economy, faces uncertainty as international scrutiny and concern over human rights intensify.

Zalando has recorded a 3.4% increase in revenues for the second quarter of the year, bolstered by rising demand in sportswear and expanded lifestyle offerings. The company’s Gross Merchandise Volume (GMV) reached €3.8bn, with adjusted EBIT rising to €171.6m. Zalando remains optimistic about its full-year prospects, maintaining its guidance amidst positive customer response and strategic growth in both Business-to-Consumer (B2C) and Business-to-Business (B2B) segments.

Sainsbury’s has entered a seven-year agreement with NCR Voyix to implement advanced AI-driven checkout technologies across its stores. This initiative aims to modernise the shopping experience by upgrading Point of Sale (POS) systems and self-checkout capabilities, enhancing operational efficiency and customer service. The move underscores Sainsbury’s commitment to innovation and responsiveness to evolving consumer expectations in retail.

Asos has unveiled plans to introduce a Value Creation Plan (VCP) as part of its revised remuneration policy, aimed at aligning executive incentives with the company’s growth objectives. The proposal comes amidst Asos’s ongoing efforts to reverse financial losses and transform its business model. The retailer seeks shareholder approval for the VCP, signalling a strategic shift towards sustainable profitability and long-term value creation.