Today’s news in brief-10/10/24
Asos has finalised the sale of Topshop and Topman to Heartland, a joint venture led by Bestseller, with Heartland acquiring a 75% stake for £135m while Asos retains 25%. This move follows Asos’ September decision to divest these brands amidst a business refinancing. Asos will retain design and distribution rights for the brands in exchange for a royalty fee, aiming to continue online sales. Despite an anticipated initial negative impact on FY25 EBITDA, the transaction is expected to be increasingly profitable over time, with plans to relaunch Topshop.com.
N Brown has returned to profitability in H1 FY25, reporting a pre-tax profit of £200,000 despite a 6.7% revenue decline to £277.2m, attributed to lower product revenue influenced by weather conditions. The retailer highlighted successful initiatives like a mobile-first JD Williams website and a new product management system, aiming to enhance customer experience and support sustained profitability amid challenging trading conditions.
Uniqlo’s parent company, Fast Retailing, reported a 24.9% increase in Uniqlo’s international operating profits to ¥283.4bn (£2.46bn) and a 12.2% rise in total group revenues to ¥3tn (£16.2bn) for FY24. This growth was driven by strong performance across global markets, including significant expansions in sales and profitability in various regions. Fast Retailing anticipates further revenue growth in FY25, supported by strategic expansions and continued operational efficiencies.
Waitrose has partnered with Just Eat to expand its on-demand grocery delivery services across the UK, capitalising on a 140% increase in weekly on-demand grocery sales. Under the multi-year deal, customers in major UK cities can now order groceries from 229 Waitrose locations for delivery within 30 minutes. This collaboration aims to meet growing demand for convenient grocery options and enhance customer accessibility to Waitrose products, including a broad selection of Christmas offerings later this year.
Amazon has launched new AI-powered tools, including AI Shopping Guides for customers and Vision-Assisted Package Retrieval (VAPR) for delivery drivers. The AI Shopping Guides use generative AI to offer tailored product recommendations and guidance across various categories, aiming to improve customer shopping experiences. Meanwhile, VAPR enhances delivery efficiency by automating package retrieval and sorting within delivery vans, reducing delivery times and operational complexities for Amazon’s logistics network.
