Today’s news in brief-11/10/24
Ikea reported a 5.3% decline in retail sales to €45.1bn (£37.7bn) after implementing significant price reductions across 63 markets. Despite the sales decrease, the strategy led to a 4.5% increase in store visits and a notable 21% rise in online traffic, driven by heightened consumer demand. This period also saw Ikea expand its omnichannel capabilities and open 56 new customer meeting points globally, including stores and Pick Up and Order Points.
THG successfully raised £95.4m to support the demerger of its Ingenuity arm, marking a milestone in its strategic evolution. This funding, backed by existing shareholders and CEO Matthew Moulding’s personal investment, underscores confidence in THG’s future. The demerger aims to streamline operations, enhance financial flexibility, and focus on THG Beauty and THG Nutrition post-spin-off. Despite a slight dip in third-quarter sales, THG noted robust performances in its Beauty and Ingenuity sectors, reflecting ongoing strategic adjustments and market resilience.
River Island reported a pre-tax loss of £32.2m for 2023, attributing it to competitive pressures and supply chain disruptions affecting sales, which fell 15% year-over-year to £701.5m. The retailer is undergoing a reset phase, enhancing product offerings and digital experiences to regain momentum amid challenging market conditions.
Quiz announced the impending departure of CFO Gerard Sweeney, who played a pivotal role in the company’s financial stewardship over eight years. The recruitment process for his successor is underway, with Sweeney staying on until March 2025 to ensure a smooth transition. Quiz remains optimistic about its turnaround under CEO Sheraz Ramzan’s leadership amidst ongoing operational refinements.
Aldi plans to hire 3,500 staff ahead of the festive season, reflecting its commitment to meeting increased consumer demand and expanding its store network in the UK. The supermarket chain offers competitive wages and benefits, including paid breaks, as part of its strategy to maintain service standards and support its workforce during peak periods.
