Today’s news in brief-13/1/25
Asda announced a significant overhaul of its operations, cutting 13 regional manager roles and consolidating management of supermarkets and express stores into 22 sub-regions from 30. The changes, driven by poor Christmas performance with a 5.8% drop in sales and a decline in market share to 12.5%, mark Allan Leighton’s initial steps as chairman to “restore Asda’s DNA.” Leighton projects a three-to-five-year turnaround process focusing on leadership, pricing, and availability.
Boots delivered strong Q1 results, with retail sales up 8.1% YoY, boosted by an 11% rise in beauty sales driven by fragrances, premium skincare, and Korean beauty products. Digital sales surged 23%, representing 22% of total sales, while in-store investments in flagship locations further contributed to growth. Black Friday saw record-breaking sales for the retailer, with nearly five orders per second during peak hours. In healthcare, pharmacy sales increased 10.9%, supported by flu, Covid-19, and travel vaccinations, alongside NHS Pharmacy First consultations.
Wine retailer Majestic celebrated its strongest Christmas season yet, achieving a 1.9% sales increase during the six-week festive period, fueled by 70,000 new customers and robust demand for fine wines, sparkling wines, and niche varieties such as Georgian and Lebanese wines. Investments in seven new stores and the acquisition of Vagabond Wines in 2024 further solidified its market position.
Poundland announced significant investment in store security under its “Against Retail Crime” initiative, addressing the rise in theft and colleague abuse over the past 18 months. Measures include anti-theft technology, additional undercover guards, and the use of CCTV to aid prosecutions. Christina Jesty, head of loss prevention, underscored the importance of protecting employees while maintaining affordability for customers, emphasising the need for action to curb retail crime.
The Perfume Shop launched its upgraded Store+ app, integrating online and in-store shopping experiences. The initiative, live in 24 stores with a broader rollout planned for 2025, offers features such as QR code scanning, smart product information, and loyalty card access. Designed in response to customer demand for more informed perfume purchases, the app allows shoppers to favorite products tried in-store for future online purchases. Online Business Director Laura Wilkinson highlighted the app’s role in enhancing customer engagement and satisfaction.
Sainsbury’s CEO Simon Roberts criticised the abrupt introduction of a £25bn tax hike, including an increase in employer National Insurance from April. Roberts highlighted the strain on planning and potential impacts on costs, estimating a £140m hit to Sainsbury’s alone. Tesco echoed concerns, warning of possible price hikes for consumers, while additional net-zero levies on packaging are expected to add £2bn in sector costs. Retail leaders called for phased implementation to mitigate the financial burden.
