Today’s news in brief-31/10/24
The UK retail industry has raised concerns following Chancellor Rachel Reeves’ Autumn Budget, which aims to generate ยฃ40bn through measures like a rise in employers’ National Insurance to 15% and hikes in minimum wage rates. The British Retail Consortium (BRC) has warned that the new measures, which will add over ยฃ2.5bn in costs by 2025, risk hampering growth and investment. BRC CEO Helen Dickinson criticized the tax increases, arguing they disproportionately impact the retail sector already strained by regulatory and operational costs. Though the sector welcomed a 40% business rate discount replacing the expiring 75% discount, Dickinson noted it may not fully offset the industryโs burden, with retail comprising 5% of the economy but shouldering 21% of total business rates.
Ocado Group has appointed Adam Warby as chair of its board, set to assume the role in December. Warby, who has a background as Avanade Corporationโs CEO, will replace current chair Rick Haythornthwaite. Warby expressed enthusiasm about working with Ocadoโs innovative team, viewing the company as a unique force in online retail. Ocado anticipates Warbyโs leadership will help it expand and adapt in the evolving grocery market.
Sainsburyโs has sold its Argos Financial Services (AFS) credit card portfolio to NewDay Group in a deal valued at around ยฃ720m. As part of the sale, Sainsburyโs plans to collaborate with NewDay to launch a new digital credit option under the Argos brand, offering customers more flexibility in managing purchases. This move aligns with Sainsburyโs strategy to streamline its financial services, building on previous sales to NatWest Group and NoteMachine.
Dune has reported a substantial drop in profits, with a ยฃ3.9m operating loss over the past year, down from a ยฃ7.6m profit the previous year. This decline is attributed to inflation, the rising cost of living, and external market factors impacting consumer demand for its products. Despite challenging conditions, Dune saw modest growth in online sales, with e-commerce up 3.9% and retail sales rising by 1.4%.