Today’s news in brief-7/3/25
Walgreens Boots Alliance (WBA) has agreed to be acquired by private equity firm Sycamore Partners in a deal worth £23.7bn. The transaction is expected to close in late 2025 and will see WBA become a private company, delisting from Nasdaq.WBA shareholders will receive $11.45 per share in cash, with potential additional payments. The deal, fully financed by Sycamore, aims to enhance operational performance and strengthen WBA’s balance sheet. CEO Tim Wentworth highlighted the transaction’s benefits for shareholders and the company’s focus on navigating the evolving pharmacy and retail landscape.
HMV has paused its UK expansion plans due to rising wage costs, opting instead to open stores in Ireland and Belgium. Managing director Phil Halliday cited challenges in maintaining profits despite a 6.5% sales increase to £189.6m, driven by vinyl and CD sales. Pre-tax profits fell by over 6% to £4.9m attributed to rising costs. Halliday called for business rate reforms to offset increased national insurance and minimum wage costs. HMV plans to expand its online store to Europe and remains hopeful for future UK growth if conditions improve.
Zalando reported a 4.2% revenue increase to €10.6bn in FY 2024, with adjusted EBIT rising to €511m. The company’s active customer base grew to 51.8 million, and it expects further growth in 2025, with GMV and revenue projected to increase by 4-9%. Zalando’s logistics arm, ZEOS, will partner with Next to fulfil online orders across Europe, expanding its services to 10 additional markets. Co-CEO Robert Gentz emphasised the company’s ecosystem strategy and plans to invest in growth areas like loyalty programs and lifestyle offerings.
John Lewis is investing £114min employee pay, raising minimum hourly rates to £12.40 outside London and £13.85 within the M25. This voluntary investment, exceeding National Minimum Wage requirements, follows a £295m pay increase over the past three years. Employees with enhanced skills or exceptional contributions can earn up to £14.96 per hour. Interim executive director Jo Rackham highlighted the company’s commitment to its co-owning partners and their role in delivering exceptional customer service.
UK retail footfall saw a modest 0.2% increase in February, driven by retail parks, which recorded a 2.0% rise. High streets and shopping centres saw marginal growth of 0.1%. Wales and England experienced year-on-year increases, while Northern Ireland and Scotland saw declines. British Retail Consortium CEO Helen Dickinson noted retail parks’ consistent performance and called for government support to address rising industry costs. Retail consultant Andy Sumpter highlighted the need for retailers to enhance convenience and choice to attract customers, especially with Easter falling later this year.