Today’s news in brief-20/12/24
Retail sales in the UK edged up by 0.2% in November, falling short of analysts’ 0.5% forecast. The slight increase followed a 0.7% decline in October, with food sales rising for the first time in three months, up 0.5%, while non-food revenues rose by 0.2%. However, clothing sales fell sharply by 2.6%, hitting their lowest point since January 2022, largely attributed to mild weather and subdued consumer sentiment. Online spending plunged 4.3%, marking the largest drop since March 2022. The British Retail Consortium cited higher energy bills and delayed Black Friday spending as factors impacting retail performance, with hopes pinned on strong December sales to salvage the Golden Quarter.
Fast-fashion retailer Boohoo faced a tense boardroom battle as it blocked journalists from attending its annual general meeting, where shareholders voted on Frasers Group’s demand to install Mike Ashley and restructuring expert Michael Lennon to its board. Frasers, Boohoo’s largest shareholder with a 28% stake, has criticized the company’s governance, urging the removal of co-founder Mahmud Kamani over supply chain concerns and poor financial performance. Boohoo rejected Frasers’ proposals, claiming Ashley has “ulterior motives” to disrupt its turnaround and potentially acquire assets cheaply. Proxy adviser ISS backed Boohoo, advising shareholders to vote against the motion, citing insufficient plans for change and conflicts of interest. If Frasers’ stake exceeds 30%, a formal takeover bid would be triggered.
Network Rail reported a 10% rise in retail sales to £233.7m for Q2, marking an increase of £21m year-on-year. The strong performance, spanning July to September, was supported by new store openings and upgrades across its 19 managed stations. Grocery led like-for-like growth, while London Waterloo posted the highest total sales increase, up 47%. Birmingham New Street and Charing Cross also saw significant gains, at 24% and 23%, respectively. Network Rail’s annual retail sales surpassed £842m, reflecting sustained growth and an effective retail strategy. With Christmas driving consumer spending, Network Rail expects continued momentum in its “destination stations” over the festive period.
