Today’s news in brief-18/11/24
Sephora is poised for an ambitious UK expansion, planning 20 new stores by 2027, doubling its physical footprint. CEO Guillaume Motte attributes renewed confidence in the UK market to an improved competitive landscape. The brand, which re-entered the UK in 2022 after a 17-year absence, currently operates six stores, with new locations slated for Liverpool and Bluewater Shopping Centre. Motte also seeks to bolster Sephora’s online presence, underlining a dual-channel growth strategy.
Boohoo faces backlash for reinstating a supplier previously implicated in a modern slavery scandal. GN Euro, which now operates under the name Euro Touch in Morocco, was delisted in 2021 after reports of paying workers below minimum wage. Although GN Euro now adheres to Boohoo’s updated ethical standards, critics question the brand’s commitment to transparency. Boohoo emphasises rigorous vetting for suppliers, following governance reforms prompted by a 2020 report exposing poor working conditions in its Leicester supply chain.
Shein is gearing up for an early 2025 IPO on the London Stock Exchange after pivoting from New York due to regulatory challenges. Founder Chris Xu and executive chairman Donald Tang are engaging institutional investors ahead of an official roadshow. Shein, collaborating with major banks like Morgan Stanley and Goldman Sachs, aims to navigate complex geopolitical tensions while courting global investors to support its continued growth.
Frasers Group plans to appoint Sir Jon Thompson, former Financial Reporting Council chair, as its next chairman, succeeding David Daly. Thompson joined the Frasers board in June and has strong ties to CEO Michael Murray and founder Mike Ashley. This leadership shift coincides with Frasers’ ongoing rivalry with Boohoo, reflecting broader boardroom dynamics in the UK retail sector.
Go Outdoors, owned by JD Sports, reported a £1.5m pre-tax loss for the year ending February 2024. Rising costs, including staffing and distribution expenses, outpaced a modest 2% turnover increase to £344.7m. Despite challenges, the retailer expanded its store network, with 15 new outlets, and saw robust in-store demand. However, online sales contracted, and high freight costs impacted margins. Looking forward, Go Outdoors plans to upgrade stores and expand larger outlets while addressing profitability issues.
AllSaints continues its global retail expansion, opening new stores in the UK, US, Europe, Asia, and Africa. Recent launches include a flagship in London’s Brompton Road, a pop-up in New York’s SoHo, and its first Chinese outlet in Shanghai. The brand is also strengthening its European presence with a store in Outletcity Metzingen. CEO Peter Wood highlighted the milestone as part of AllSaints’ 30th-anniversary celebrations, reaffirming the brand’s commitment to providing immersive retail experiences globally.
