Today’s news in brief-10/12/24
Supermarket sales are set to surpass £13bn in December for the first time, boosted by festive spending and rising grocery prices. Data from Kantar reveals take-home grocery sales climbed 2.5% in the four weeks to 1 December. The average Christmas dinner for four has risen 6.5% to £32.57, largely due to costlier turkey and vegetables. Despite this, grocery inflation held steady at 2.6%. Tesco reached a 28.1% market share, its highest since 2017, as its sales grew 5.2%. Sainsbury’s market share increased to 15.9%, while Lidl was the fastest-growing brick-and-mortar grocer, up 6.6%. Online sales also rose, with Ocado leading at 8.7% growth.
Pepco Group faced a £675m impairment charge on Poundland following a challenging year marked by rising costs and competitive pressures. Poundland’s revenue edged up just 0.2%, but EBITDA dropped 21.5% to £126.6m, resulting in a net loss of £548m. CEO Stephan Borchert acknowledged struggles, particularly with clothing and general merchandise after a transition to Pepco-sourced products. Despite this, Pepco Group posted record revenues of £6.2bn, up 10.2%, driven by better performances from its other divisions, including Dealz.
Moonpig reported steady growth in the first half, with revenues rising 3.8% to £158m for the six months to 31 October. Adjusted EBITDA increased slightly to £41.8m, while pre-tax profits rose 9% to £27.3m, driven by strong trading and reduced interest costs. The greeting card and gift retailer launched AI tools to enhance customer experience, including personalised handwriting, sentiment-based gift recommendations, and improved search functionality.
Castore has strengthened its leadership team with the appointment of Danny Downs to oversee commercial operations. Downs, who spent 15 years at Fanatics International, brings expertise in e-commerce, data-led solutions, and licensing. At Fanatics, he spearheaded international growth and built partnerships with major sports clubs and leagues.
