Today’s news in brief-21/2/25
UK retail sales saw a 1.7% rise in January 2025, driven primarily by a 5.6% surge in food sales, the largest monthly increase since March 2020, according to the Office for National Statistics (ONS). Despite this rebound, sales volumes over the three months to January fell by 0.6% compared to the previous quarter, though they were up 1.4% year-on-year. Food sales, including supermarkets, specialist stores, and alcohol and tobacco retailers, benefited from more people eating at home. Non-store retail sales also rose by 2.4%, recovering from a December slump, but non-food stores, including clothing and household goods, saw a 1.3% decline due to weak consumer confidence.
Frasers Group withdrew its offer to acquire Norwegian sporting goods retailer XXL ASA after learning that major shareholders would not support the deal. Frasers had initially proposed a voluntary offer valuing XXL at NOK 246.4m (£17.45m) but cited unmet conditions as the reason for pulling out. XXL, which operates 85 stores across Norway, Finland, and Sweden, has been struggling with profitability and stock availability issues.
Aldi announced a pay rise for its store assistants, increasing hourly rates to at least £12.75 nationally and £14.05 within the M25 from March 2025. This move reinforces Aldi’s position as the UK’s highest-paying supermarket, with further increases planned for September 2025. The retailer also highlighted its unique offer of paid breaks, valued at approximately £1,370 annually per employee.
Primark is set to open its first standalone homewares store in Belfast on 6 March 2025, marking a new retail concept for the brand. The 8,700 sq ft store, located in the Fountain House building, will feature a wide range of homeware products, allowing Primark to expand its kidswear and menswear offerings in its existing Bank Buildings store. This follows the recent launch of a small-format store in Portugal, showcasing Primark’s innovative approach to retail.
Birkenstock reported a 19% increase in Q1 FY25 revenues to €362m (£299m), driven by strong holiday season demand. The company saw growth across all regions, with a notable 47% surge in APAC sales. Birkenstock’s adjusted EBITDA rose by 25%, and it returned to profitability with a net income of €20m (£16m). The company opened four new stores during the quarter, bringing its total owned stores to 71.
