Today’s news in brief-3/10/24

Tesco has reported a robust first half of the financial year, marked by increased sales and profits, prompting an upward revision of its full-year guidance. The supermarket giant achieved a 10% rise in retail operating profits to £1.56bn, with statutory operating profits climbing 13% to £1.6bn. This growth was supported by a 2.9% increase in like-for-like retail sales and a 4% rise in group sales to £31.5bn.

Topps Tiles faced a challenging year with a 5.7% decline in group sales, reaching £248m for the fiscal year. The tile specialist noted a slight improvement in sales trends in the fourth quarter compared to earlier periods, largely due to weaker year-ago comparatives. Persistent difficulties in the Repair, Maintenance, and Improvement (RMI) sector, particularly for larger projects, contributed to a broader market decline of 10-15% annually.

British Land acquired seven retail parks for £441m, bolstering its portfolio with assets boasting high occupancy rates and major superstore anchors. This move aligns with British Land’s strategy to capitalise on the resilience of retail parks as preferred formats for retailers. The acquisition is expected to enhance earnings per share (EPS) from FY25 onward, supported by a proposed equity placing of approximately £300m.

Sainsbury’s CEO Simon Roberts urged government action to boost consumer confidence ahead of the holiday season. Despite favourable economic indicators like falling inflation and stable employment, UK consumers remain cautious about spending on higher-ticket items amid uncertainty over future tax policies. Sainsbury’s, with its significant exposure to non-food products, faces particular sensitivity to discretionary spending trends. Roberts emphasised the importance of clarity in fiscal policies and interest rate adjustments to stimulate household spending and ensure a robust Christmas trading period.

Marks and Spencer announced plans to recruit over 11,000 new customer assistants across its UK stores. This recruitment drive reflects M&S’s commitment to delivering exceptional customer service during its busiest period. The retailer highlighted the integral role of these temporary hires in supporting its Christmas operations, including the rollout of the Christmas Food to Order service. Operations director Sacha Berendji underscored the opportunities for career development within M&S, noting that many seasonal recruits have transitioned to permanent roles within the company.