Today’s news in brief-6/3/25

Pepco Group is considering the sale of Poundland as part of a strategic shift to focus on its Pepco brand, which drives the majority of its earnings. Despite a 1.5% increase in group like-for-like sales in early 2025, Poundland has struggled with declining performance, exacerbated by a challenging UK retail environment and additional tax pressures. Pepco CEO Stephan Borchert emphasized the need to separate Poundland from the group, with Barry Williams appointed as its managing director to steer the brand back on track.

Adidas plans to cut 500 jobs at its German headquarters to streamline operations and reduce costs. CEO Björn Gulden cited the need to simplify processes, noting that the roles being eliminated are no longer necessary. The company also lowered its 2025 profit guidance to between €1.7bn and €1.8bn, down from earlier estimates of €2.1bn, amid a volatile market.

Topshop has hinted at a potential return to London’s Oxford Street, with a video featuring Mayor Sadiq Khan reminiscing about the brand’s cultural significance. The retailer, which fell into administration in 2020 and was later acquired by Asos, is also preparing to relaunch its standalone website.

Abercrombie & Fitch reported a 16% increase in net sales to $4.95bn for 2024, with operating income rising 15%. Despite modest 2025 growth expectations of 3-5%, the company plans to expand its UK store estate by opening 8-10 new locations. CEO Fran Horowitz highlighted the brand’s strong performance and commitment to sustainable growth.

Currys has announced a 6% pay increase for its employees, raising the minimum hourly rate to £12.51 (£13.51 in London), as part of an £8m investment. This inflation-beating boost, combined with an uncapped bonus scheme, will push average earnings to £13.47 per hour. Over the past three years, Currys has increased minimum pay by 32%, significantly boosting employee earnings.