Today’s news in breif-13/8/24
UK wage growth has fallen to a two-year low, with wages excluding bonuses growing by 5.4% in the three months ending June 2024, the lowest since 2022, according to the Office for National Statistics. Factoring in inflation, wage growth drops to 3.2%. Public sector pay rose by 6%, while private sector wages increased by 5.2%. Despite expectations of a rise, unemployment fell from 4.4% to 4.2% in July. Economists had predicted an increase to 4.5%.
Shein is exploring potential warehouse locations in the Midlands ahead of its expected £50bn listing on the London Stock Exchange. The fast fashion giant has been evaluating sites within the Midlands’ “golden logistics triangle,” including Castle Donington, Coventry, Daventry, and Derby. The targeted warehouses range between 300,000 sq ft and 400,000 sq ft, with some as large as 600,000 sq ft. The decision on the warehouse will depend on the London IPO and negotiations with Super Smart Services, which currently handles Shein’s UK orders from a Cannock warehouse..
Sainsbury’s has achieved its largest market share gain since 1997, with take-home sales rising by 3.8% in the four weeks to 4 August 2024, according to Kantar data. Sainsbury’s market share increased by 0.5 percentage points to 15.3%, with sales up 5.2%. Tesco, the largest UK grocer, has maintained its streak of market share gains since August 2023, now holding 27.6% with sales up 4.9%. Asda’s market share stands at 12.6%, while Morrisons holds 8.6%. Discounters Lidl and Aldi saw sales growth of 7.8% and 10.0%, respectively. Ocado, an online-only retailer, continued its growth with an 11.3% sales increase and a market share of 1.8%. Waitrose also saw a market share increase to 4.5%, with sales up 4.5%. Grocery inflation rose for the first time since March 2023, reaching 1.8% in August, up from 1.6% in July.
Pandora reported a 15% organic growth in Q2 2024, reaching DKK 6.77bn (£744m), driven by 8% like-for-like growth, network expansion, and phasing of sell-in to partners. Operating profit increased from DKK 1.18bn (£134.9m) to DKK 1.33bn (£152m), with a gross margin at an all-time high of 80.2%. UK sales rose by 1% to DKK 694m (£79.36m), while US sales grew by 5% to DKK 2.1bn (£240m). The company added 25 concept stores and 20 Pandora-owned shop-in-shops in Q2.
David Brayshaw, a non-executive director of Frasers Group, has retired from the board after nearly eight years. Brayshaw, with over 30 years of experience as a senior investment and commercial banker, was praised by chair David Daly for his significant contributions. The current board includes Michael Murray (CEO), Chris Wootton (CFO), David Al-Mudallal (COO), Ger Wright (managing director, Sports), David Daly (non-executive chair), and several non-executive directors.
