Today’s news in brief-27/8/24
UK shop prices have fallen for the first time since October 2021, with the BRC-NielsenIQ index reporting deflation of 0.3% in August, down from July’s 0.2% inflation. Non-food items saw a deeper deflation of -1.5%, driven by heavy discounts on summer stock, while food inflation slowed to 2%, with fresh food prices notably decreasing.
Over 3,500 current and former Next employees, predominantly women, have won an equal pay claim against the retailer, potentially amounting to over £30 million in compensation. This marks a significant legal victory, establishing that sales consultants were paid less than warehouse operatives for work deemed equal in value, despite Next’s intentions to appeal certain aspects of the ruling.
Marks and Spencer plans to trial a new clothing-only store format at London’s Battersea Power Station, responding to renewed demand in its fashion sector, particularly among younger customers. The retailer aims to capitalise on increased sales in lingerie and cashmere jumpers, targeting a more diverse demographic than its traditional customer base.
Frasers Group, led by Mike Ashley, is seeking shareholder approval for a £585m share buyback scheme. This move would involve buying back shares from Ashley himself, potentially reducing his stake from 73% to 68%, while emphasising that such actions would only be pursued if deemed beneficial for the company and its shareholders.
Modella Capital has acquired Hobbycraft from Bridgepoint, marking a new phase for the UK’s largest arts and crafts retailer. This acquisition is expected to leverage Modella Capital’s retail expertise to further expand Hobbycraft’s footprint and capitalise on its growing online presence, following consistent profit growth since the Covid-19 pandemic.
Lanvin Group has reported a 20% decline in revenues to €171m in H1 2024, attributing the decrease to global market challenges and strategic adjustments within its brands like Wolford and Sergio Rossi. Despite these setbacks, the group remains focused on cost reduction and enhancing brand marketing strategies to navigate ongoing market volatility.
