Today’s news in brief-27/1/25
WH Smith is exploring the sale of its high street arm to focus on its global Travel business, which now contributes 75% of revenue and 85% of profits. The potential sale, managed by bankers at Greenhill, comes amid a 9% decline in high street profits to £39m, although group revenue rose 7% to £1.9bn for the year ended 31 August. High street stores have faced sluggish performance compared to the growing Travel division, which includes over 1,200 outlets in 32 countries.
Lakeland’s owners are considering a sale after six decades amid rising costs and economic pressures. The kitchenware retailer, which employs 1,000 staff and operates 59 stores, reported flat sales of £153m in 2023. Auditors have flagged concerns about its financial stability. Advisors from Teneo and PwC are working on the sale process, though the structure of any deal remains uncertain. Lakeland seeks to ensure long-term sustainability while navigating a challenging retail landscape.
Asda has relaunched its search for a permanent CEO, following Roger Burnley’s departure in 2021. Chair Allan Leighton is reportedly seeking a collaborative leader to address stiff competition and drive performance. Meanwhile, Asda has initiated its largest Rollback price-cutting campaign in years. Co-owner Mohsin Issa temporarily assumed leadership in 2022, but a fresh approach is now sought to revitalise the supermarket’s management.
Dr Martens reported a 3% rise in Q3 revenue to £267m, driven by 9% growth in wholesale sales, although direct-to-consumer revenue increased modestly by 1%. The Americas outperformed with 4% DTC growth, while EMEA saw a 5% decline due to subdued retail performance. CEO Ije Nwokorie expressed confidence in the brand’s iconic appeal and outlined efforts to improve US performance and reduce inventory, maintaining an unchanged outlook for FY25.
Hotel Chocolat recorded its best Christmas sales yet, with a 10.4% year-on-year increase during the festive period. The chocolatier plans to open 25 new UK stores, including its largest ever in Manchester, while expanding into the US market with two stores in Chicago. The Velvetiser café concept also saw a 33% rise in sales. CEO Angus Thirlwell credited the success to strong product demand and an effective price-point strategy, reflecting consumer preference for quality.
The Original Factory Shop (TOFS) is close to being sold to Baaj Capital after 17 years under Duke Street. The discount retailer operates over 180 UK stores, offering products ranging from beauty brands to DIY tools. Other bidders reportedly included Mike Ashley’s Frasers Group and Poundstretcher, though Baaj Capital appears the frontrunner. A deal could be announced imminently, marking a new chapter for the retailer established in 1969.
