Mrs M&S: Steve Rowe’s first blunder? May 25, 2016 Marks & Spencer's new chief executive Steve Rowe has been on the front foot today, setting out his new strategy of ditching promotions and fashion-focused clothing in favour of cheaper prices and wardrobe staples. It's well needed, given that the retailer announced profits down by almost a fifth today, driven by sluggish clothing sales. Under Rowe's [...]
Retailers rocked by sales shocker May 6, 2016 The high street has suffered its sharpest drop in sales since the credit crunch as retailers battle erratic weather, increasing competition from online rivals and jittery consumer confidence. Like-for-like sales fell by 6.1 per cent in April compared with the same month last year, according to BDO’s latest monthly tracker, published this morning. The accountancy [...]
What Next for the UK’s struggling high street? May 5, 2016 Retailers are having a tough old time of it. After last week’s casualties (BHS and Austin Reed) it seems likely that others could follow, and yesterday’s update from one of the high street’s more reliable traders underscored just how jittery the market has become. As a rule, Next tends to downplay its confidence about any [...]
Rivals set to win customers on back of BHS’ demise April 27, 2016 BHS has entered administration, confirming what I have previously written about in this column; its loyal customers have deserted it in recent years. Although BHS will continue to trade while a buyer is sought, the retailer has been in trouble for some time as it failed to modernise its offering. It has been losing market [...]
BHS administration “more significant than Woolworth’s” as cost to taxpayer stacks up April 26, 2016 The collapse of BHS could be "more significant than Woolworths" – and the business is unlikely to survive in any meaningful form, experts have told City A.M. Parent company Retail Acquisitions called in administrators Duff & Phelps yesterday afternoon, a year after buying the debt-laden business from Sir Philip Green for £1. Managing directors Phil [...]
Now BHS is in administration, the bidders are circling – but wouldn’t it be wiser to let it die with dignity? April 26, 2016 After the sale of BHS by Sir Philip Green to the previously unheard-of Retail Acquisitions last year, it was only a matter of time before we reached this point. Bought for £1 because of the heavy debt and pensions liabilities, too much work was needed for the 88-year-old retailer to find its footing again. Even [...]
BHS administration: Who has blood on their hands as yet another retailer falls into administration? April 25, 2016 The loss of a UK retailing stalwart from our high streets is always a sad affair. There is, of course, a sense of nostalgia as old photos of where we once shopped appear. And the human tragedy of those losing their livelihoods – in the case of BHS that’s 10,000 current employees, and thousands more [...]
BHS is in administration: Here’s what analysts say was to blame (and what the future holds) April 25, 2016 BHS is in administration having notched up £1.3bn in debt, it has been confirmed this afternoon. Duff & Phelps has been appointed to handle the iconic retailer's administration, with managing directors Phil Duffy and Benjamin Wiles sounding confident about finding a new buyer. City A.M. understands more than 30 enquiries have already been made, and now [...]
Primark parent Associated British Food’s share price rises as profits climb but currency woes take their toll April 19, 2016 Profits were up across the board at Associated British Foods for the first half of the year – but currency woes have hurt top line growth. The figures Group revenue for the Weston-owned business stood at £6.12bn over the 24 weeks to 27 February, down two per cent on an actual basis or up two [...]
Sweet tooth for peckish Primark-owner Associated British Foods as it snaps up Africa’s largest producer of sugar April 8, 2016 Primark-owner Associated British Foods (ABF) has finally filled a long-standing hole this morning, completing a £262m purchase of Illovo Sugar Limited, Africa's largest producer of the sweet stuff. The extra calories failed to put much energy behind ABF shares in London, however, with the firm up just 0.41 per cent to 3,401p in the first minutes [...]