Today’s news in brief-28/11/24
Consumer confidence remains subdued as the festive season nears, according to the British Retail Consortium (BRC). While personal retail spending rose slightly to +3 in November from +2 in October, and overall spending expectations stayed at +17, worries about the broader economy persist. Financial expectations improved marginally to -3, but expectations for the economy dipped to -19.
Dr. Martens reported a £28.7m loss in the half-year ending September, a stark reversal from last year’s £25.8m profit. Revenues fell 18% to £324.6m, with declines across all regions: EMEA (-16%), Americas (-22%), and APAC (-12%). Wholesale revenues plummeted 29%, while direct-to-consumer (DTC) revenue fell 7%. The company reduced inventory and net debt and secured refinancing with a £250m loan and £126.5m credit facility.
The Very Group widened its loss-before-tax to £22.9m in the first quarter, up from £17.1m last year, as sales dropped 5% to £450.2m. Fashion and sportswear sales plunged 8.6% amid a highly discounted market, although beauty and home categories rose by 4.2% and 2.5%, respectively. Electrical sales declined by 4.4%.
Morrisons announced plans to halt deliveries from Ocado’s Erith fulfillment center, opting instead to shift online order processing to its Dordon facility and in-store fulfillment. The move is expected to free up Ocado’s capacity for growth without requiring additional capital expenditure. Both companies affirmed their commitment to their partnership, with Morrisons’ CEO Rami Baitiéh highlighting the importance of Ocado’s technology in maintaining service quality.
Retailers expressed concern over the government’s decision to raise the National Minimum Wage, with John Lewis warning of “unavoidable” price hikes and job losses. The wage for 18-20-year-olds will rise by 16.8% to £10 per hour, while apprentice pay increases to £7.55. Industry leaders, including John Lewis distribution head John Munnelly, said the changes add to an already challenging economic environment.
