Today’s news in brief-14/4/25
Currys CEO Alex Baldock has warned of a potential influx of Chinese products into UK and European markets, driven by Donald Trump’s tariffs on Chinese goods. Baldock and other retail executives, including Buy It Direct’s Nick Glynne, expressed concerns that Chinese manufacturers may redirect goods originally destined for the US to platforms like Temu, Shein, and Amazon. Baldock highlighted early signs of “stock being diverted into European markets in a straightforward dumping way,” raising issues around product safety and tax avoidance. While the US has exempted some electronics from its 125% tariffs, the UK and EU are urged to tighten import regulations to prevent an influx of non-compliant goods.
The Financial Conduct Authority (FCA) faces backlash for approving Shein’s potential London IPO. Investor groups, including Aviva and Schroders, argue that the move could undermine the UK’s reputation as a high-quality financial hub, citing concerns over Shein’s supply chain transparency. The fast-fashion giant, which recently slashed its valuation to £23.8bn amid economic pressures, still requires Chinese regulatory approval for its listing. Critics warn that lax governance standards could harm long-term market integrity.
Hilco Capital is nearing a deal to buy homeware retailer Lakeland, which has been seeking funding amid economic challenges. The family-owned business, founded in 1964, operates nearly 60 stores and employs around 1,000 people. Lakeland’s 2023 accounts revealed flat sales of £153m and going-concern uncertainties, prompting talks with Hilco and other investors. A deal would follow Hilco’s previous investments in HMV and Superdry.
Luxury watch retailer Watches of Switzerland plans to close 16 UK showrooms, risking 40 jobs. The company aims to redeploy affected staff where possible, citing operational efficiency as the reason for the closures. Despite the cuts, the group remains on track to meet FY25 targets, with stable UK trading and growth in the US. The move follows the recent opening of its largest Rolex boutique in London.
Iceland Foods is expanding its forecourt presence through a partnership with EG On the Move, doubling its sites from 11 to 21. The frozen food retailer will introduce dedicated ranges in 10 new locations, with the first stores opening in Barnstaple and Rotherham. The collaboration aims to enhance convenience for customers, with Iceland branding featured prominently in-store.
Mytheresa has secured European Commission approval to acquire Yoox Net-A-Porter (YNAP) from Richemont, finalising the deal on 23 April. The merged entity, named LuxExperience B.V., will operate Mytheresa, Net-A-Porter, Mr Porter, Yoox, and The Outnet under one platform. Richemont will hold a 33% stake in Mytheresa post-transaction, with YNAP receiving €555m in cash and a €100m credit facility. The deal aims to create a leading digital luxury group, leveraging synergies across brands.