Today’s news in brief-18/9/24
UK inflation held steady at 2.2% in August, unchanged from July and slightly above the Bank of England’s 2% target. The stability came despite falling food and energy prices, offset by a 1.2% rise in transport costs, driven notably by a 22.2% increase in air fares. Clothing and retail prices continued to decline, while restaurant and hotel prices saw their lowest increase since July 2021. The Monetary Policy Committee of the Bank of England, following a rate cut in August, awaits September’s inflation data for further policy decisions.
UK supermarket till sales grew by 4% in September, down from 5.5% in August, influenced by cooler weather and returning routines post-summer. Online FMCG spending increased to 13%, with online sales growing by 6.1%, outpacing brick-and-mortar growth. General merchandise sales fell by 4.5%, while fresh food, especially produce and meat, saw significant boosts.
Footasylum reported a doubling of profits to ยฃ6m for FY24, driven by robust online and wholesale sales. Record revenues of ยฃ319.5m marked a 7% increase, with online sales constituting 42.2% of total sales. Expansion efforts included new flagship stores across the UK, supporting strong performance into FY25.
Moonpig expects to meet its full-year guidance for FY25, despite a challenging market environment and reduced consumer spending on larger gifting items. The company forecasts mid-to-high single-digit revenue growth, driven by strong order performance within the Moonpig brand. Moonpig’s medium-term goals remain unchanged, targeting double-digit annual revenue growth, with an expected adjusted EBITDA margin of 25% to 26% and mid-teens growth in adjusted earnings per share.
Waitrose invested ยฃ10m in price cuts on nearly 250 products, continuing its New Lower Prices campaign. This latest phase, focusing on premium and organic items, is part of a broader ยฃ140m investment in reducing prices over the past 18 months. The initiative aims to enhance affordability across its product ranges, particularly benefiting its Organic Duchy offerings amidst Organic Month celebrations.
