Staples dragged down by failed Office Depot merger May 18, 2016 Staples, the US office supplies retailer that was forced to cancel its plans for a takeover of Office Depot earlier this month, has posted first quarter results marginally ahead of analyst estimates. The retailer reported quarterly sales fell by three per cent to $5.10bn, blaming store closures that knocked revenue growth by around two per cent, and a strong dollar. Staples said [...]
Burberry to axe its headcount as it warns of “challenging environment” that has sent profit and revenue lower May 18, 2016 Luxury retailer Burberry will cut jobs over the next three years as part of its turnaround plan. Chief financial officer Carol Fairweather said “some headcount reduction” would take place but declined to comment on specific numbers or where in the business the cuts would come. The company is targeting £100m of cost savings over the next three years. Burberry's share price [...]
Target’s earnings come in ahead of expectations, but revenue falls short in the first quarter sending shares south May 18, 2016 US retailer Target has posted mixed results for its last three months of trading, beating expectations on profit but missing on like-for-like sales. The second-largest discount retailer in the US behind Walmart reported net earnings for the three months to 30 April came in at $632m (£433m) or $1.29 per share, down slightly on the same period of 2015. [...]
Retail Acquisitions boss Dominic Chappell is being hauled in front of MPs over the £1 BHS deal May 18, 2016 The man who bought BHS for a £1 just over a year before it entered administration is to be hauled in front of the two committees investigating the retailer's demise, MPs confirmed today. The Business, Innovation and Skills committee and the Work and Pensions select committee – which are probing the handling of the sale of BHS [...]
Parliament’s BHS inquiries: Everything you need to know May 18, 2016 Two parliamentary committees will come together for a second time next week as part of an ongoing investigation into the collapse of BHS. The Work and Pensions select committee and the Business Innovation and Skills select committee held a joint hearing last week, grilling the chief executives of the Pension Protection Fund and The Pensions Regulator over the [...]
Before the bell: What you need to know before the US market open May 18, 2016 Japan avoids a recession and the oil price could be about to climb over $50 per barrel for the first time this year. Here's what you need to know before the US market open at 2:30pm London time. Markets look flat before the open. S&P futures are dead-centre, not even a point off. The Nasdaq is down by 0.01 [...]
How “serial returners” are harming online retail businesses May 18, 2016 Three in 10 small and medium enterprise (SME) online retailers complain that so-called “serial returners” are harming their profit margin. Serial returners, or consumers who deliberately over-purchase to take advantage of free delivery and returns, are causing a “dilemma” for smaller businesses, which need to make a profit while keeping up with larger rivals. According [...]
Juice merger could be orange squashed after CMA warns of reduced competition and higher prices May 17, 2016 A merger between the country's two biggest suppliers of freshly squeezed fruit juice may have to undergo a thorough probe after an initial investigation found it could lead to higher prices for retailers and consumers. Hain Frozen Foods UK bought Orchard House Foods on 21 December, but they are the only two suppliers to supermarkets in the country [...]
We’ve hit peak stuff: Why we now spend on “doing” rather than “things” May 17, 2016 Earlier this year Ikea’s head of sustainability suggested the West was approaching “peak stuff” – the idea that consumer appetite to own ever more goods was probably waning. Indeed it seems that we’re seeing a fundamental shift in consumer behaviour from buying products to spending money on experiences. We’ve been keeping an eye on this trend at Visa [...]
Five challenges Amazon faces plotting its own-brand products May 17, 2016 Reports that Amazon is branching out into private-label groceries make sense for the retail giant. In a sluggish market own label is one of the few healthy areas, growing by 1.5 per cent in the first quarter of 2016. Retailers aren’t seen as credible without an own label range, but developing a strong offer takes time and Amazon will [...]