Today’s news in brief-28/10/24
Mike Ashley, founder of Frasers Group, has indicated readiness to step into the CEO role at Boohoo to initiate a turnaround strategy, following Frasers’ acquisition of a 27% stake in the fast fashion retailer. He criticised Boohoo’s management and recent refinancing, which he termed unsatisfactory for shareholders. Boohoo’s refinancing agreement in October, covering a £222m debt with additional short-term repayments, was labelled a setback by Frasers, though Boohoo contested these claims as unfair.
FatFace, following its acquisition by Next, reported a £3.2m pre-tax loss for the 35 weeks leading up to January 2024, down from a £19.5m profit the previous year. This loss was attributed to £7.9m in costs linked to its integration with Next, which acquired a 97% stake in the company for £115.2m in October 2023. Despite the loss, FatFace recorded a £4.6m trading profit and reported a channel shift with in-store sales strengthening as customers returned to the high street.
Lidl has announced plans to open 10 new stores by Christmas, a move expected to create around 400 jobs nationwide. In London, three new stores will open, with others spread from Bristol to Devon. This expansion, part of a sale and leaseback deal valued at £70m, includes 12 additional store locations.
Marks & Spencer (M&S) is enhancing customer experience by installing self-checkouts in changing rooms across its clothing stores to minimise checkout wait times. Currently implemented in 28 stores, M&S plans to expand this feature to 100 locations by 2028, allowing customers to finalise purchases directly in the fitting room. Despite some concerns over potential shoplifting associated with self-checkouts, M&S will position staff in these areas to monitor transactions.
At Amazon, Tony Hoggett, head of the company’s grocery division, has announced his departure after nearly three years. Hoggett, a former Tesco executive, shifted Amazon’s grocery strategy away from technology-driven solutions, notably discontinuing the cashierless Just Walk Out system. Reflecting on his tenure, Hoggett expressed optimism for Amazon’s future in grocery, underscoring the importance of improving the customer shopping experience.
The John Lewis Partnership (JLP) plans to recruit a record 12,500 seasonal employees to meet the anticipated demand of the holiday season. This includes 7,700 roles at Waitrose, covering positions from supermarket assistants to customer delivery drivers, and 2,000 roles for John Lewis retail locations. Additionally, JLP is hiring 2,800 supply chain positions through recruitment agencies to handle a projected increase in online orders.
