Today’s news in brief
Asda announced plans to cut 475 head office roles and reduce hybrid work arrangements, requiring staff to be in the office at least three days per week from January 2025. This decision is part of a turnaround strategy aimed at streamlining the company’s structure amidst challenging market conditions. The layoffs, affecting less than 10% of Asda’s office workforce in Leeds and Leicestershire, will also see the departure of temporary IT contractors working on the company’s digital transformation, which is nearing completion. These changes come after Asda reported a 2.2% decline in revenue, excluding fuel, to £5.3bn from April to June 2024.
Sainsbury’s reported a 4.7% rise in profit before tax, reaching £356m for the first half of the year, driven by 4.6% growth in sales excluding fuel. The grocery segment led this growth with a 5% increase, although the general merchandise and clothing segment dropped by 1.5%, with Argos and fuel sales down by 5% and 4.4%, respectively. Despite this, Sainsbury’s retained its full-year outlook, expecting retail operating profits of £1.01bn to £1.06bn, a projected growth of 5-10%.
Pandora achieved 11% organic growth in the third quarter, with like-for-like sales increasing by 7% to 6.1bn DKK (£681m). Key European markets saw 4% growth, while U.S. sales remained solid at 6%, and other regions reported a 14% increase. Pandora’s gross margin rose to 80.1%, bolstered by its vertically integrated model and cost efficiencies. Engraving services, a growing part of its personalization strategy, surged by over 100% in Q3, supported by the installation of 1,250 engraving machines globally.
Mamas & Papas reported record sales of £154.3m for fiscal year 2024, a 7.1% increase driven by strong performance across 36 UK concessions with M&S and Next, where sales grew by 48% due to new locations. The company’s adjusted pre-tax profit rose by 33% to £9.1m. Mamas & Papas, headquartered in Huddersfield, aims to expand its retail presence across the UK and strengthen its market share, which has doubled in the last four years. The company has also bolstered its ESG efforts, notably through the “Loved for Life” program, which encourages recycling and reusing baby products.
