Today’s news in brief-17/1/25
Retail sales in the UK fell by 0.3% in December, disappointing analysts who anticipated a 0.4% rise during the Christmas season. The decline, attributed to the poorest supermarket sales since 2013, was partly offset by a 4.4% rise in clothing sales. The Office for National Statistics (ONS) reported that food sales volumes dropped 1.9%, while non-food sales rose 1.1%. Despite a late-year boost from beauty, books, and electricals, the retail sector faces headwinds with £7bn in new costs anticipated by 2025 due to increased national insurance contributions, a higher National Living Wage, and new levies.
CDS Superstores is accelerating the transformation of former Homebase locations into The Range outlets. Three new sites in Stroud, Leicester, and Blandford Forum will open on 31 January, with plans to launch up to 10 new stores per month in 2025, creating 1,600 jobs. The new stores will merge The Range’s diverse product selection with Homebase’s DIY expertise, incorporating “Garden Centres by Homebase.”
UK customer satisfaction has stalled near its lowest levels since 2015, as revealed by the UK Customer Satisfaction Index (UKCSI), scoring 76.1 out of 100. Service failures are costing the economy £7.3bn per month in lost productivity. Nonetheless, organisations like Timpson and M&S (food) excel, achieving high satisfaction ratings through consistent service quality. Customers increasingly value service excellence, with 31% willing to pay more for better experiences. The retail (non-food) sector saw its satisfaction score rise to 80.6, with companies such as John Lewis and Amazon leading the rankings.
Aldi has announced plans to open nine new stores in London in 2025 as part of a £650m investment across the UK. The initiative includes £55m dedicated to developments within the M25, such as a Colindale store expansion. With ambitions to open 100 more stores in London, Aldi aims to create 3,500 jobs while providing affordable groceries to more city residents.
Dene Jones has been appointed CEO of Retail at N Brown Group, succeeding Sarah Welsh, who leaves after five years in the role. Jones, previously a senior executive at Constellation Automotive Group and The Very Group, will lead N Brown’s retail division starting 1 February 2025. His responsibilities include driving the company’s brand proposition, overseeing product and marketing strategies, and integrating data analytics into commercial planning.
DFS has reported robust first-half results for FY25, with profits expected to rise to £16m-£17m, up from the prior year’s £9m. The growth was driven by a 10.1% increase in group order intake, with Sofology seeing a 19.1% rise in orders. Operating cost savings and margin improvements helped offset inflationary pressures. Despite challenges from rising national insurance contributions, a higher living wage, and interest rate increases, DFS remains optimistic about achieving full-year growth.
