Today’s news in brief-31/10/24
The UK retail industry has raised concerns following Chancellor Rachel Reeves’ Autumn Budget, which aims to generate £40bn through measures like a rise in employers’ National Insurance to 15% and hikes in minimum wage rates. The British Retail Consortium (BRC) has warned that the new measures, which will add over £2.5bn in costs by 2025, risk hampering growth and investment. BRC CEO Helen Dickinson criticized the tax increases, arguing they disproportionately impact the retail sector already strained by regulatory and operational costs. Though the sector welcomed a 40% business rate discount replacing the expiring 75% discount, Dickinson noted it may not fully offset the industry’s burden, with retail comprising 5% of the economy but shouldering 21% of total business rates.
Ocado Group has appointed Adam Warby as chair of its board, set to assume the role in December. Warby, who has a background as Avanade Corporation’s CEO, will replace current chair Rick Haythornthwaite. Warby expressed enthusiasm about working with Ocado’s innovative team, viewing the company as a unique force in online retail. Ocado anticipates Warby’s leadership will help it expand and adapt in the evolving grocery market.
Sainsbury’s has sold its Argos Financial Services (AFS) credit card portfolio to NewDay Group in a deal valued at around £720m. As part of the sale, Sainsbury’s plans to collaborate with NewDay to launch a new digital credit option under the Argos brand, offering customers more flexibility in managing purchases. This move aligns with Sainsbury’s strategy to streamline its financial services, building on previous sales to NatWest Group and NoteMachine.
Dune has reported a substantial drop in profits, with a £3.9m operating loss over the past year, down from a £7.6m profit the previous year. This decline is attributed to inflation, the rising cost of living, and external market factors impacting consumer demand for its products. Despite challenging conditions, Dune saw modest growth in online sales, with e-commerce up 3.9% and retail sales rising by 1.4%.
