Today’s news in brief-17/3/25
Fenwick, the family-owned retailer, is facing significant financial challenges, with pre-tax losses widening to £38.1m in the year to January 2024, up from £28.4m the previous year. The company has been operating at a loss for six years due to high inflation, increased costs, and tough market conditions. Despite efforts to reduce costs and improve its online operations, heavy discounting from competitors has hindered progress. Fenwick has enlisted restructuring professionals from AlixPartners to address mounting losses and cost pressures. While the retailer has no immediate plans for store closures, it aims to improve efficiency across both physical and online operations.
Former Morrisons CEO David Potts is reportedly a leading candidate for the CEO role at B&M, following Alex Russo’s departure. Potts, who has extensive retail experience, is eager to return to the sector after an unsuccessful attempt to acquire The Range. B&M has faced challenges recently, including a profit warning and its exit from the FTSE 100, attributed to economic uncertainty and exchange rate volatility.
Sainsbury’s CEO Simon Roberts remains confident in the retailer’s ability to compete despite intensifying competition, particularly from Asda’s price cuts. Sainsbury’s has grown its market share to 15.7% and projects a 7% increase in operating profits this year. Roberts highlighted the importance of value for money and the resurgence of weekly shopping trips as people return to offices. However, Sainsbury’s has scaled back its Aldi price match campaign, reflecting mounting pressure on pricing across the industry.
Screwfix has announced plans to open 35 new stores across the UK and Ireland by January 2026, creating over 400 jobs. The expansion includes its new Screwfix City format, which offers Click and Collect services and rapid delivery through Screwfix Sprint. The retailer has also made significant strides in sustainability, reducing direct carbon emissions by 50% and equipping new stores with air-source heat pumps.
New Look is set to open a new concept store at Bluewater, featuring an omni-hub space that integrates digital and physical shopping experiences. The store, which relocates to a larger space, will showcase womenswear, menswear, and the 915 collection for girls. The design draws on lessons from New Look’s £3 million investment in its Manchester stores, aiming to improve product merchandising and customer experience.