Today’s news in brief-30/1/25
Retail crime in the UK has surged to record levels, with theft losses hitting £2.2bn in 2023/24, according to the British Retail Consortium (BRC). The trade body warned that organised crime groups are “systematically” targeting stores, while violence and abuse against retail workers spiked by over 50%, averaging 2,000 incidents daily. Despite £1.8 billion invested in security measures like CCTV and body-worn cameras, retailers expressed frustration with police responses, with 61% rating them as “poor” or “very poor.”
H&M reported a 28% rise in annual operating profits to SEK 17.3bn (£1.2bn) for the year ending November 2023, despite weaker-than-expected fourth-quarter sales. Quarterly revenue of SEK 62.19bn (£4.53bn) fell short of forecasts, partly due to Black Friday’s later timing shifting some sales to December. CEO Daniel Ervér expressed confidence in the retailer’s direction, citing strong online growth, store optimization, and improved margins. The group opened 88 new stores, expanding its global footprint to over 4,200 locations. Ervér highlighted progress in product presentation and cost control, with annual earnings per share rising 34% to SEK 7.21.
Mulberry has unveiled a turnaround strategy, “Back to the Mulberry Spirit,” alongside appointing Billie O’Connor as CFO. The plan follows an 18.3% revenue decline in the 13 weeks to December 2024, driven by a 20.3% UK sales drop and challenges in Asia. The strategy prioritizes simplifying operations, refocusing on the UK and US markets, cost management, and leveraging British heritage to reconnect with global audiences. CEO Andrea Baldo emphasised restoring profitability through gross margin recovery and new wholesale partnerships, including deals with Flannels and John Lewis. O’Connor, formerly of Milk and More and Selfridges, brings turnaround experience to the role as Mulberry targets £200m+ annual revenue and 15% operating margins.
Asda has relaunched its Rollback pricing initiative, cutting prices on over 4,000 products by an average of 25% both in-store and online. The move forms part of a broader effort to establish “Asda Price” as the benchmark for affordability, with many items priced 5% below competitors’ promotions. Executive chairman Allan Leighton stated the initiative reaffirms Asda’s commitment to being the “cheapest traditional supermarket,” targeting cost-conscious shoppers. The discounts span all categories, including Express stores, as the grocer seeks to regain its value-focused reputation amid intense market competition.
