Today’s news in brief-9/1/25
The BRC-Nielsen IQ Shop Price Index showed shop price deflation at 1% in early December, up from 0.6% the previous month, reflecting strong discounting tied to a later Black Friday. Non-food prices fell sharply by 2.4%, though food inflation remained steady at 1.8%, its lowest since December 2021. BRC CEO Helen Dickinson cautioned that the £7bn in increased costs from the Budget, including higher employer National Insurance and packaging levies, will likely drive up prices in the coming year.
Tesco celebrated record-breaking Christmas sales, with a 4.1% rise in like-for-like UK sales over the festive period, driven by 4.7% growth in food sales and a 10.8% surge in online orders. CEO Ken Murphy attributed the success to investments in pricing, quality, and service, which positioned Tesco as the UK’s cheapest full-line grocer. The supermarket expects to deliver £2.9bn in retail operating profit for the fiscal year.
Boohoo continues its corporate battle with Frasers Group, which has been pushing for governance changes, including the removal of founder Mahmud Kamani. Boohoo’s board, supported by proxy advisor Institutional Shareholder Services (ISS), urged shareholders to reject Frasers’ latest motion, calling it a self-serving tactic aimed at destabilizing the company. The dispute follows Frasers’ criticism of Boohoo’s trading performance and transparency issues, with Frasers advocating for leadership changes to address what it calls Boohoo’s “dismal” results. Boohoo’s board remains steadfast in retaining Kamani, emphasizing his critical role during a strategic business review aimed at unlocking shareholder value.
Quiz announced its shareholders’ approval for delisting from AIM and transitioning to private ownership, with trading set to cease on 23 January 2025. The decision follows increased financial difficulties, including a pre-tax loss of £4.7m for the six months to September 2024 and declining online and in-store sales. Quiz cited the regulatory burden and associated costs of being publicly listed as factors behind the move. The company hopes to navigate its challenges more effectively as a private entity.
B&M experienced mixed fortunes over the Golden Quarter. Despite a 3.5% increase in revenue, shares fell 7% due to cautious profit guidance for FY25, now estimated at £620m–£650m. Seasonal product categories performed well, but like-for-like sales dipped 2.8%. CEO Alex Russo emphasized the company’s commitment to its low-cost model, disciplined store expansion, and operational excellence as key drivers of future growth. B&M also declared a £151m special dividend, signalling confidence in long-term performance despite short-term market pressures.
Marks & Spencer (M&S) reported strong group sales of £4bn for the 13 weeks to 28 December 2024, a 5.6% increase driven by an 8.9% rise in food sales and steady growth in clothing, home, and beauty categories. Online sales grew 11.7%, representing 34% of total sales. M&S’s value-focused ranges and investment in new store formats contributed to its successful holiday season. However, international sales declined due to challenging conditions in India and franchise shipment timing.
