Today’s news in brief-2/1/25

Lidl reported its best-ever Christmas performance, with turnover surpassing £1bn for the first time, a 7% increase over the four weeks to December 24, 2024. The retailer attracted over 2m additional customers, with December 23 marking its busiest day. Key contributors included the expansion of its British supply base by 20% and the strong performance of its Deluxe and Partytime ranges, which saw sales jump by 32%. Highlighted products like British vegetables, cream liqueurs, and panettone drove festive sales, while community initiatives, including the donation of 1.25m meals and nearly 100,000 toys, further enhanced its reputation.

Quiz posted disappointing results for H1 2024, with pre-tax losses widening to £4.7m due to an 8% revenue decline to £39.1m. The decrease was attributed to inflation’s impact on consumer spending, leading to a 15.9% drop in online sales and a 7.7% fall in-store revenues. Amid “weak” footfall trends, the company closed three stores but opened one in Sunderland. Revenues for August to November were down £1.5m compared to the prior year.

Retail store closures surged in 2024, with nearly 13,500 shops shuttering, a 28.4% increase from 2023. Over half of these closures stemmed from insolvency proceedings, while cost-cutting measures accounted for the remainder. Independent retailers were hit hardest, responsible for 84.1% of closures, marking a 45.5% year-on-year increase. The Centre for Retail Research projected an even bleaker 2025, with store closures potentially rising to 17,350..

December 2024 saw a modest 0.4% year-on-year increase in footfall across UK retail destinations, bolstered by a 1.2% rise in retail parks and slight growth in high streets. However, shopping centers experienced a 0.1% decline, reflecting continued cost-of-living pressures. December footfall improved 7.1% month-on-month, with shopping centers seeing a notable 13.2% boost. Christmas falling midweek contributed to a pre-holiday shopping rush, but Boxing Day sales underperformed, with footfall down 4.9% compared to 2023. Retailers anticipate a challenging start to 2025, as financial pressures from the Autumn Budget loom large, with concerns about rising operational costs.

Barbour achieved a 12.3% increase in operating profit to £39.6m in the year to April 30, 2024, despite a 6.2% drop in turnover to £321.8m. Profitability was boosted by cost reductions and foreign exchange gains, while turnover was impacted by a challenging wholesale market. The company’s gross profit margin rose to 48.1%, up from 43.6% the previous year. Barbour expanded its workforce and launched its “New Heritage” retail concept, combining industrial design with traditional craftsmanship, opening flagship stores in Leeds, Covent Garden, and Soho.

Co-op announced plans to open 75 new stores in 2025, alongside refurbishments for 80 existing outlets. These developments align with the retailer’s strategy to expand its convenience-focused offerings, which go beyond groceries to include parcel services, payment options, and quick online deliveries. Franchise stores will form a significant part of the expansion, allowing Co-op to reach new markets, including university campuses.