Today’s news in brief-20/11/24
Ted Baker has re-entered the online retail scene with a UK-exclusive ecommerce platform following its financial collapse earlier this year. The site is operated by United Apparel and Legwear (ULAC), appointed by Authentic Brands Group, which owns the brand. European versions are in development. This marks a strategic pivot after Ted Baker closed its physical stores, following unsuccessful licensing talks with Frasers Group. The brand’s previous partnership with Dutch group AARC was abandoned in early 2024 due to disputes, highlighting challenges in sustaining profitability amid changing market conditions.
Dunelm has acquired Home Focus, an Irish soft furnishings retailer with 13 stores, marking its entry into the Republic of Ireland’s £1bn homewares market. The acquisition aligns with Dunelm’s strategy to diversify its product offerings and enhance its online presence. Home Focus, with its established expertise in categories like curtains and bedding, complements Dunelm’s strengths in home textiles.
Ann Summers is reducing its workforce as part of cost-cutting efforts, following a reported £3.9m loss for the year ending July 2023. Despite a slight turnover increase to £104m, the chain faces mounting challenges, including high taxation and rising operational costs. The Gold family, the brand’s owners, infused £5m via a family-controlled entity to stabilise finances. Chairman Vanessa Gold reaffirmed the family’s commitment to preserving the brand’s heritage while seeking international expansion opportunities.
UK inflation rose to 2.3% in October, exceeding forecasts and the Bank of England’s 2% target, driven primarily by surging energy costs. The increase followed the rise of Ofgem’s energy price cap, adding £149 annually for the average household. Housing and household services saw a significant price jump, while transport costs fell slightly. Food prices also edged higher.
The Body Shop has appointed Penny Brook as chief marketing officer and Sally Dowling as chief financial and operations officer to lead the brand’s next phase of growth. Brook, a seasoned marketer with experience at brands like Mulberry and Canada Goose, expressed enthusiasm for joining the purpose-driven brand.
German luxury retailer Mytheresa reported a 122% rise in operating losses to €30m (£25m) in Q1 FY25, despite improved profitability and a 7.6% net sales increase to €201.7m (£168.1m). Gross Merchandise Value (GMV) grew 6.3% to €216.6m (£180.5m). Adjusted EBITDA margins improved to 1.4%, up from a negative margin the prior year. Key initiatives included collaborations with luxury brands like Chloé and Gucci. The company also announced plans to acquire Yoox Net-A-Porter, with the deal expected to close in 2025.
