Next and Morrisons: What a difference a year makes September 16, 2016 What a difference a year makes. This time in 2015, shares in clothing retailer Next were up after it reported a jump in sales in its first half. Meanwhile, Morrisons warned of a “long recovery” as it made plans to sell its underperforming M Local stores amid falling sales and profits. Yesterday those fortunes reversed: [...]
FTSE 100 dips to a six-week low on US rate hike fears September 12, 2016 Shares on the FTSE 100 fell to their lowest since the beginning of August today, as investors showed their nerves over a potential rate hike. After ending last week 1.7 per cent lower than it started, the index was 1.4 lower in mid-afternoon trading, at 6,685 points The fall was led by Primark owner Associated British Foods (ABF), which [...]
Primark owner Associated British Foods warns Brexit-related currency volatility could hurt profit margins in the new year September 12, 2016 Primark owner Associated British Foods (ABF) has been feeling the benefits of post-Brexit currency volatility since June – but warned that it may start to see a negative impact in the new financial year. Shares in the company have dropped by 10.68 per cent so far today. [stockChart code="ABF" date="2016-09-12 15:25"] The company said [...]
Seven numbers explaining the demise of BHS July 25, 2016 The demise of BHS has been a long and uncomfortable journey – and today MPs have pointed at Sir Philip Green as the one ultimately responsible for its collapse. BHS ended up in liquidation after no buyer came forward to take on the high street brand as a going concern. 11,000 Administrator Duff & Phelps announced that while it continued to try [...]
Sugar sales and weak pound sweeten revenues at Associated British Foods July 7, 2016 Revenue growth at Associated British Foods (ABF) has been sweetened by the retail giant's sugar business and a weakened pound has created favourable trading conditions across the board. The figures Group revenue at the Twinings Tea, Ovaltine and Primark owner was up one per cent year-on-year in the 40 weeks to June 18, the company said [...]
Clouds gather over BHS pension scheme as it emerges applicants could be waiting two years to know if it will enter the PPF June 5, 2016 City A.M. understands that it could take up to two years for the scheme to enter the Pension Protection Fund (PPF), meaning BHS employers entitled to a pension face a long wait to find out what they will receive in retirement. The BHS pension scheme must go through an assessment period by the PPF, during [...]
Could a focus on customer experience have saved BHS? June 3, 2016 Retailers have learnt harsh lessons about failing to stay relevant; the collapse of BHS is just the latest casualty. Like Woolworths and GAME before it, when BHS went into administration, the most common reaction was shock. However, the downfall of BHS cannot be considered a surprise. The company failed to keep up with the internet revolution and being outmanoeuvred [...]
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 [...]