Today’s news in brief-23/10/24
Chancellor Rachel Reeves is reportedly considering imposing higher taxes on Amazon as part of a broader effort to support British high streets, which have been struggling to compete with online giants. The proposed measures could come after her upcoming autumn budget, which is expected to introduce tax hikes and spending cuts to address a £22bn shortfall in the UK’s public finances. According to industry sources, Reeves may launch a consultation on these tax reforms, with a particular focus on reviewing the business rates paid by companies like Amazon.
Asda is strengthening its leadership team with new hires in preparation for its growth plans in 2025. Lauren Lepley, currently group supply chain director at Morrisons, will join as vice president of Central Operations, while Mark Henry, who previously held senior roles at Lidl Finland and M&S, will take over as vice president of Retail South in January. These new appointments come as part of a broader leadership overhaul under Asda’s incoming chief operations officer Matt Heslop.
Virgin Wines has returned to profitability for the fiscal year ending 28 June 2024, reporting a £2.4m improvement in profit before tax, rising from a £700k loss in the previous year to £1.7m in profits. Total revenues remained steady at £59m, but the wine retailer saw a significant boost in adjusted EBITDA, which jumped 59% to £2.8m. The company also reported an 8% rise in gross profits, which was attributed to improved margins and operational efficiencies.
Shein is launching its first-ever branded credit card in collaboration with Mexican fintech Stori. The Mastercard-branded credit card will offer customers points for purchases on Shein’s website, with double points for clothes orders. The card will initially be available to new clients, not existing ones. Shein has experienced rapid growth in Latin America and is expanding its operations in the region, including plans to build a plant in Mexico and a distribution network in Brazil.
AllSaints has appointed Liam Pryce as its new global ecommerce director. Pryce previously served as a digital director at FatFace, where he oversaw the migration of the company’s operations to the Next Total Platform. Pryce brings with him extensive experience from working with various high-profile brands, including John Lewis, New Look, and L.K.Bennett.
Marks & Spencer CEO Stuart Machin has criticised Chancellor Reeves’ reported plans to raise taxes in the upcoming budget, calling the move “the easy way out” in an open letter published in The Times. Machin expressed concerns that increasing employer national insurance contributions and other taxes would hinder the government’s commitment to promoting economic growth.. M&S has recently posted strong financial results, with profit-before-tax rising to £672.5m for the year ending 30 March 2024, up from £475.7m in the previous year.
