Today’s news in brief-13/2/25
Fast-fashion giant Shein is relocating some Chinese supplier operations to Vietnam to circumvent U.S. tariffs imposed during the Trump administration, including a 10% levy on Chinese goods and the removal of a $800 de minimis exemption. Incentives for suppliers include procurement price hikes of up to 30%, alongside Vietnam’s lower labor costs and free-trade agreements like the EU-Vietnam pact. This mirrors broader industry efforts to diversify supply chains amid geopolitical risks. Concurrently, Shein faces EU tax scrutiny, abandoned a UK warehouse plan, and saw its potential London Stock Exchange float stumble over MPs’ criticism of opaque supply chains and forced labor allegations. Reports suggest its valuation may drop from £50bn to £40bn.
The UK economy grew 0.1% in Q4 2024, defying forecasts of a 0.1% contraction, as a 0.2% rise in services and 0.5% construction growth offset a 0.8% production decline. December saw a 0.4% GDP boost, driven by wholesale, pharmaceuticals, and hospitality. However, GDP per capita dipped slightly. The Bank of England cut interest rates to 4.5%—the lowest since June 2023—after inflation fell to 2.5% in December, down from 2.6% in November, easing hotel and tobacco prices despite fuel cost rises.
Tesco pledges 1,500 apprenticeships by 2027 under its Stronger Starts programme, targeting youth unemployment barriers. Following a 2024 pilot with 82 apprentices, 450 spots are available in 2024, including 10 at One Stop stores. The scheme requires no prior qualifications, pays retail-equivalent wages, and offers GCSE-equivalent certifications. Partnering with Lifetime Training and the King’s Trust, it aims to transition apprentices into permanent roles. Tesco urges the government to expedite the Growth and Skills Levy to enhance sector-specific training, citing research highlighting a “lost workforce” of 6 million, particularly disadvantaged youths.
Birkenstock’s UK turnover rose 25.1% to £59.8m in FY2024, with pre-tax profit up 50% to £1.8m, driven by brick-and-mortar expansion and wholesale growth (88% of sales). A new Ashford outlet and 8% existing store sales growth contributed, despite inflation pressures. The brand plans further full-price stores and pop-ups, leveraging partnerships with luxury labels like Dior and Manolo Blahnik.
Bluestar Alliance, following its Off-White acquisition, purchased luxury streetwear brand Palm Angels, known for blending skate culture with Italian design. CEO Joey Gabbay highlighted the brand’s cultural resonance, while COO Ralph Gindi emphasized its appeal to “cultural trailblazers.” Founder Francesco Ragazzi exits, expressing confidence in its future under Bluestar, which aims to expand the label’s global footprint.
