Today’s news in brief-10/9/24
Burberry has faced a significant downturn, with its market value plummeting to £2bn, its lowest since 2009. Barclays downgraded Burberry, citing poor performance relative to other luxury retailers and doubts about its ability to maintain premium status due to pricing and strategic issues. CEO Jonathan Akeroyd was replaced by Joshua Schulman, former Coach CEO, as part of efforts to revitalise the brand, which included cutting jobs and suspending dividends. Despite creative efforts, Burberry continues to struggle to resonate with consumers, prompting ongoing strategic realignment.
JD Sports has announced the closure of its Derby distribution centre, potentially displacing nearly 200 employees. The decision follows a strategic review aimed at optimising its global supply chain network. The company is exploring alternative roles within the business for affected staff. JD Sports had leased the 514,000 sq ft facility just three years ago, highlighting a shift in operational strategy amidst competitive pressures in the retail sector.
Wickes saw its adjusted profits fall to £23.4m, down from £31.1m for the first half of the year. Despite a 3.4% drop in revenue to £799.9m, the company managed to keep operational costs stable amid inflation. The brand’s focus on strategic categories like décor and garden contributed to record market share gains, driven by store expansions and refurbishments. CEO David Wood remains optimistic, citing improved Q3 trends and reaffirming full-year guidance amidst challenging market conditions.
Avalara has appointed Kevin Sellers as its new Chief Marketing Officer, bringing over 25 years of global marketing experience. Sellers, known for his roles at Ping Identity and Intel, will oversee all marketing functions, aiming to drive demand generation and enhance brand identity. His appointment underscores Avalara’s commitment to expanding market presence and strengthening customer engagement strategies.
Beaverbrooks has invested £1.6m in refurbishing its Bracknell store, doubling its size and introducing a dedicated open-plan diamond room — a first for the brand. The expansion includes new luxury watch brands like Omega and Breitling, positioning the store as a premium destination in Berkshire. Managing Director Anna Blackburn highlighted the strategic investment to enhance customer experience and drive business growth amidst a competitive retail landscape.
Mountain Warehouse plans to open 50 new stores next year, continuing its expansion strategy driven by strong demand for physical retail experiences. The outdoor retailer reported robust financial performance, including £386m in sales and £26.2m in pre-tax profit, buoyed by recent store openings. CEO Mark Neal expressed optimism about high street retail, emphasising ongoing opportunities despite broader industry challenges.
