Today’s news in brief-16/10/24
Inflation in the UK has dropped to 1.7% in September, marking its lowest level in over three years, down from 2.2% in August. This decline, driven largely by falling airfares and petrol prices, is below the Bank of England’s 2% target, which may result in pressure to lower interest rates. Transport prices saw a significant annual drop of 2.4%, the largest since 2015, while food prices increased by 1.8%, rising for the first time since early 2023. Clothing prices also saw a modest rise of 0.8%.
UK supermarket sales saw a 4.7% rise in October, driven by an increase in shopping visits as households prepared for Halloween and Christmas. On average, UK shoppers made nearly five grocery store visits per week, leading to a volume growth of 1.1%. The start of autumnal weather played a role in shaping shopping habits, with confectionery, produce, and meat categories seeing strong growth. However, alcohol and soft drink sales underperformed due to the cooler, wetter weather. Health-related items, such as flu medications, saw a significant rise as the season changed.
Adidas has raised its full-year guidance following a strong third-quarter performance. The sportswear giant now expects revenues to grow by 10%, up from earlier projections of high single-digit growth. This revised forecast is bolstered by a 10% increase in Q3 revenues, which amounted to €6.44bn (£5.39bn). Excluding sales of the Yeezy line, currency-neutral revenue grew by 14%. Adidas also raised its operating profit forecast to €1.2bn (£1bn), following a Q3 profit increase to €598m (£500m), which included a €50m (£41.9m) boost from selling off parts of its remaining Yeezy inventory.
Boots reported a 6.9% rise in sales for the fiscal year 2024, with a strong Q4 contributing to this performance. The company saw significant growth in both in-store and online sales, with digital sales up 18.7% year-on-year, now accounting for 15% of total retail sales. The Boots App also gained traction, with 7.5 million active users contributing 40% of digital sales. Pharmacy services saw a 10% rise in demand, helping drive overall growth.
John Lewis is expanding its financial services by offering personal loans in partnership with Zopa Bank. Loans ranging from £1,000 to £35,000 will be available to the retailer’s 23 million customers through its John Lewis Money website. Zopa Bank will provide a digital-first lending service, allowing customers to access loan quotes in minutes and secure funds within hours.
ProCook reported an 8.8% rise in revenues for Q2 2024, reaching £17m. The company saw growth in both retail and ecommerce channels, with online revenue up 12.2%, partly due to its recent sales relaunch on Amazon UK. ProCook’s like-for-like revenue increased by 4.7% during the period, reflecting continued market outperformance. The retailer is in the process of expanding its store footprint, with plans to open ten new locations by the end of FY25.
