Today’s news in brief-23/12/24
Fashion retailer Quiz plans to delist from the Alternative Investment Market (AIM) and re-register as a private company following weak sales and financial strain. A shareholder vote, requiring a 75% majority, is scheduled for 8 January 2025, with the transition set for 23 January if approved. The company cited regulatory costs and operational constraints of AIM listing as reasons for the move, noting only £1.2m liquidity headroom after a disappointing November. Founder Tarak Ramzan and key investors back the proposal.
Fast fashion retailer Boohoo sold its Soho headquarters for £49.5m to Global Holdings UK, using part of the proceeds to clear its term loan due in August 2025. The move strengthens Boohoo’s balance sheet, leaving a £125m revolving credit facility. CEO Dan Finley was formally appointed to the board amid ongoing disputes with major shareholder Frasers. Frasers’ founder Mike Ashley unsuccessfully pushed for board representation and called for co-founder Mahmud Kamani’s removal, alleging transparency issues and supply chain concerns. Boohoo resisted, accusing Frasers of ulterior motives to disrupt its turnaround.
The British Retail Consortium (BRC) predicts a tough start to 2025 for retailers, as consumer spending intentions dropped 6 points and economic confidence plunged 8 points to -27 in December, according to a BRC-Opinium survey. Despite steady personal financial sentiment at -3, savings improved slightly to -5. BRC CEO Helen Dickinson warned of a “New Year spending squeeze” and urged government reforms to avoid higher business rates. Retailers face £7bn in added costs from 2025’s Budget, risking price hikes, store closures, and hiring freezes.
The Confederation of British Industry (CBI) has forecasted a decline in private sector activity for Q1 2025, with expectations at a two-year low (-24%). Sectors including consumer services (-37%) and manufacturing (-31%) expect steep declines, while hiring intentions in services (-17%) are the weakest since 2020. Price growth expectations have surged, reflecting persistent inflation. CBI interim deputy chief economist Alpesh Paleja called for government action, including apprenticeship levy reforms and industrial strategy stability, to counter tepid demand and rising costs exacerbated by Budget measures.
UK retail spending rose 2.3% over the holiday season, driven by a 6.1% surge in online shopping, according to Visa’s Retail Spend Monitor. While online accounted for 41% of total retail spend, in-store shopping remained robust at 59%. Department stores benefited from a late Black Friday, reporting a 6.9% sales boost. However, clothing and accessories saw a 2% decline, and electronics grew modestly by 1.3%. Visa’s Alicia Ngomo Fernandez noted consumer resilience but highlighted mid-December’s slowdown following early holiday purchases.
