Today’s news in brief-9/9/24
Asos has declined a £215m bid for Topshop from Shein and Authentic Brands Group, choosing instead to proceed with a joint venture alongside Heartland, an investment firm owned by retail billionaire Anders Povlsen. This decision values Topshop and Topman at £180m, with Asos selling a 75% stake for £135m. The move, aimed at enhancing shareholder interests, grants Asos design and distribution rights in exchange for a royalty fee, promising future EBITDA growth despite a projected £10-20m dip for FY25.
Auréa has finalised its purchase of The Body Shop marking its largest investment yet. Tasked with reviving the ethical beauty brand, Auréa plans to leverage its expertise to restore The Body Shop’s market leadership. The acquisition follows The Body Shop’s administration earlier this year, necessitated by underwhelming holiday sales. Auréa aims to innovate product offerings and enhance customer experiences while maintaining the brand’s ethical integrity, under the leadership of Charles Denton as CEO.
The Cotswold Company has reported a robust sales growth of 15% to £40.1m for H1 2024. E-commerce drove 80% of sales, supported by expanded showrooms and targeted digital marketing strategies. The company’s investment in brand and supply chain optimization yielded significant gross margin gains, with plans underway to open a new showroom in Stamford and enhance delivery services through expanded facilities.
Aldi unveils its largest annual investment plan of £800m, bolstered by a 16% sales increase to £17.9bn and a tripling of pre-tax profits. The supermarket chain plans to open 23 new stores and refurbish 100 existing ones by year-end, alongside expanding distribution and technology infrastructure. Aldi’s commitment includes substantial price cuts, increased support for British suppliers, and enhanced employee benefits, aiming to strengthen its market position and community presence.
Sarah Burton has assumed the role of creative director at Givenchy. Known for designing HRH The Princess of Wales’s wedding dress, Burton brings extensive experience and a visionary approach to Givenchy’s women’s and men’s collections. Her appointment marks a pivotal moment for the Maison, promising innovative designs and a continuation of Givenchy’s legacy in haute couture. Burton will debut her inaugural collection in March 2025, heralding a new chapter for the iconic fashion house.
