Today’s news in brief-4/3/25

The Competition and Markets Authority (CMA) is close to approving Topps Tiles’ £9m acquisition of CTD Tiles after both companies offered to divest stores in Aberdeen, Inverness, Edinburgh, and Dorking to address competition concerns. The CMA had initially warned that the merger could reduce market competition, prompting an in-depth investigation. Topps Tiles acquired CTD Tiles’ brand, assets, and 30 stores in August 2023 after CTD fell into administration. The deal is expected to help Topps expand into the housebuilder segment and increase its share in the A&D market. Shop price inflation in the UK remained at -0.7% in February, despite a surge in food prices, particularly for breakfast items like butter, cheese, eggs, bread, and cereals. Food inflation rose to 2.1% year-on-year, with fresh food inflation at 1.5% and ambient food inflation at 2.8%. Non-food inflation, however, fell to -2.1%, offsetting the rise in food costs. The British Retail Consortium (BRC) warned that geopolitical tensions and upcoming government policies, such as new packaging taxes, could push inflation higher later in the year. Supermarket sales in the UK grew by 3.6% in February, with Ocado leading as the fastest-growing retailer for the tenth consecutive month, achieving a 9.6% increase in spending. Kantar data showed that grocery price inflation held steady at 3.3%, with 27.6% of sales coming from promotional items. Tesco maintained its position as the largest grocer with a 28.3% market share, while Aldi and Lidl saw significant growth, with Aldi attracting 377,000 new shoppers. Online shopping continues to grow, accounting for 12.3% of the market, up from 8.6% in February 2020. Oak Furnitureland reported a 19% reduction in losses to £12.4m for the fiscal year ending June 2024, despite a 17% drop in revenues to £236m due to market challenges and Red Sea disruptions. The company attributed its improved performance to operational efficiencies, a focus on digital transformation, and securing £10m in additional funding. Oak Furnitureland also saw a strong start to FY25, with a 9% increase in bookings during the 16-week period to December 2023. Greggs achieved record sales of £2.01bn in 2024, an 11.3% increase, with like-for-like sales up 5.5%. The bakery chain opened 226 new shops, bringing its total to 2,618, and plans to open 140-150 more in 2025. Greggs also invested in expanding its logistics capacity, including a new frozen facility in Derby and a National Distribution Centre in Kettering. The company’s evening trade grew to 9% of sales, and it remains on track to double sales by 2026. Prada is nearing a €1.5bn deal to acquire Versace from Capri Holdings, with an agreement expected within weeks. Capri, which also owns Michael Kors and Jimmy Choo, initially sought €3bn for Versace but lowered its asking price after prolonged negotiations. The sale was accelerated after a failed merger between Capri and Tapestry, owner of Coach, due to antitrust concerns. Prada, which owns brands like Miu Miu and Church’s, has maintained strong financial performance despite a slowdown in the luxury sector.