Consumer Industries

🇬🇧 Top UK retail stories from the last week, if you want to see more of these do drop a like. 💡 Breaking: Want to hear my predictions on the future of retail and see some cutting edge tech in the process? Register for Aura’s retail event live at the Royal Opera House: https://lnkd.in/e9Rx6ZZb 📈 The Co-op reported a surge in pre-tax profits to £58m for H1, despite a 19% increase in leakage costs (£39M H1), driven by a robust performance in the food segment and strategic investments, said CEO Shirine Khoury-Haq. 📈 Amazon UK's return to corporation tax payments post-super deductions given during Conservative gov. Amazon sees a £18.7m tax payment on £27bn sales this year, Amazon release statement that they remain a top direct taxpayer (£4.3bn in 2023) and investor in the UK (£12bn). 📈 Morrisons' Q3 sales rose 2% to nearly £4bn, driven by enhanced product availability, loyalty programs, and strategic price matching with Aldi and Lidl, per recent company statements. 📈 Frasers Group has launched its largest flagship store at Meadowhall, showcasing an extensive range of premium brands and innovative retail concepts, reinforcing its commitment to redefining the shopping experience. 📉 Asda in the news a fair bit, sources say they are struggling to find a new CEO, prompting new strategy from leadership. A bug halted payment processing in numerous stores, they have also announced a focus on converting IT systems in smaller stores over Christmas to minimize Project Future disruptions, aiming for full Walmart infrastructure independence by early 2024. 📉 Dobbies is closing 17 unprofitable stores affecting 465 employees to return to profitability, with temporary rent reductions at nine other sites while ensuring no impact on suppliers. 📉 Asos is cutting 200 head office roles to streamline operations and return to profit amid £120m half-year losses. 📈 Iceland partners with Deliveroo to offer rapid grocery delivery of over 3,000 products from 53 stores initially, expanding to 800+ locations by October's end, enhancing convenience and market reach. 📈 Co-op MD Matt Hood has publicly highlighted surging shoplifting costs (£39M H1) and toll on staff wellbeing, despite significant investments in security. 📉 A new ASOA report highlights that UK supermarkets are falling short in ensuring responsible antibiotic use by their supply, risking public health and fairness for high-standard UK farmers. 📈 Wacoal Europe acquires Bravissimo, enhancing growth potential while Bravissimo retains its independent operations and leadership. 📊 Under shareholder pressure, Boohoo is considering splitting off top brands like Karen Millen and Debenhams to revitalize its share price, which has dropped over 85% in 5 years. 📈 M&S is eyeing a new 1m sq ft warehouse in Northamptonshire to boost online fashion and homeware sales amid significant supply chain modernisation.

Coffee supply squeezes have more precedent than other commodities like oranges and chocolate, however on average prices have been substantially higher this year and are predicted to rise above historical records. Since the start of 2024, coffee prices have risen by by 42.16% (up 79.38 US cents/Lbs), as reflected in contracts for difference (CFDs) that track the commodity's benchmark market.. The all-time high was 339.86 US cents/Lbs in April 1977, and we have seen similar spikes and corrections in recent decades. Arabica coffee futures are now above 260 cents per pound, hitting a 13-year high due to severe drought in Brazil, the top arabica producer. Brazil's driest weather since 1981 has hit key regions like Minas Gerais, which saw no rain in recent weeks. At the same time, robusta prices are climbing after Typhoon Yagi impacted crops in Vietnam. Analyst projections forecast coffee to trade at 253.89 USd/Lbs by the end of this quarter. Over the next 12 months, prices are expected to rise further, reaching an estimated 277.26 USd/Lbs, with a price correction less likely as global demand continues to outstrip failing supply.

🇬🇧 Top UK retail stories from the last week... 📈 THG to demerge its booming tech platform Ingenuity, as sales grow in beauty division (+5.7%) but dip overall (-1.7%), and partner with Frasers Group to boost future growth. 📈 Frasers Group accelerates its Benelux expansion with strategic acquisitions and new store openings, solidifying its ambition to dominate the multi-brand sports retail market. 📈 Pret A Manger's sales surged 22% to £1.1bn in 2023, with a 10% increase to £569m in H1 2024; international markets, particularly New York, and innovations like a children's menu driving growth. 📈 As Asda co-owner Mohsin Issa steps back to focus on EG Group, Lord Rose and TDR's Rob Hattrell assume leadership, while Asda searches for a new CEO. 📈 Footasylum's pre-tax profits soared by 112% to £6m, driven by double-digit growth in online (+15%) and wholesale sales (+87%), bolstered by strategic store expansions and tech investments. 📈 Asos' partnership with TikTok Shop has driven significant sales growth, attracting 57% new customers by integrating influencer-driven shoppable videos. 📲 Morrisons consolidates its online grocery apps into a single, enhanced platform to streamline customer experience and drive loyalty with new features and the ‘Pay Less with More Card’ campaign. 🚀 Waitrose's new BrandsNew programme will invest £2m in its first year to support innovative new brands with dedicated resources and confirmed retail space, enhancing their strategy of offering premium, feel-good food. 💼 Next to launch premium fashion subsite Seasons with brands like A.P.C. and Marc Jacobs, following Reiss success and rising mid-to-high-end sales; ups profit forecast to £995m. 📈 Ocado Retail boosts year sales forecast to low double digits as Q3 sales soar 15.5% to £658m, driven by 14.7% rise in weekly orders and 10.3% growth in active customers to 1.06m. 📈 Next upgrades full-year profit guidance to £995m after H1 pre-tax profit rises 7.1% to £453m, driven by 22.8% growth in international online sales. 📉 Despite weak big-ticket sales and a 1.8% dip in group sales, Kingfisher's H1 profit rose 2.3% to £324m, driven by strong ecommerce and TradePoint, as UK market share grew and early housing market recovery signs emerged. 📉 Asda and Aldi's market shares dropped to 11.8% and 10.3%, while Ocado and M&S saw sales jump 15.4% and 12.4% amid a 4% total till sales dip, driven by cooler weather and cost-of-living impacts. 📉 Boohoo Group opens a 6,700 sq ft showroom in Soho for core brands amidst facing declining profits, fierce competition, and shuttering its US distribution centre. 📉 Frasers Group slashes its stake in Currys from 10.9% to 2.8%, just a year after declaring its 9% holding a "strategic investment" aimed at deepening industry ties and leveraging retail expertise. Follow Kyle Monk for more.

🇬🇧 Top UK retail stories from the last week... 📉 Despite initial impacts from civil unrest, British Retail Consortium Sensormatic IQ (Sorry Andy Sumpter) data showed UK retail footfall in August saw a shallower decline compared to July, improving to -0.4% from -3.3%. Retail parks were hit hardest at -2.6% year-over-year. 📉 In 2024, PwC reports 6,945 store closures, averaging 38 per day, surpassing 4,661 openings. Net closures have stabilized at 12 per day, with analysts and industry leaders calling for community and policy intervention for high streets. 📈 Lidl GB's 9.1% sales boost and Ocado Group's 12.9% growth contrast sharply with Asda's 5.6% decline as grocery price inflation drops to 1.7%, according to Kantar, amidst ongoing consumer concerns. 📈 Mountain Warehouse plans to open 50 new stores next year, driven by surging demand for in-store shopping, totaling approximately 370 locations after record sales of £386m and a £26.2m profit. 🛠️ Screwfix aims to open up to 20 city-focused stores by year-end, with a goal of reaching 100 in the coming years. These stores will provide over 3,000 essentials via click-and-collect and next-day pickup for an additional 31,000 items, diversifying locations beyond London. 📈 Sostrene Grene Grene reports a 15% rise in pre-tax profits to £24m, with sales up 22% to £247m, despite economic challenges, as it expands UK stores and invests £11m in tech advancements. 🛍️ KENJI (UK) LIMITED is accelerating UK growth by doubling its store count, with new hires of retail veterans Eddie Shepherd and Suzanne Harlow leading the charge. 📉 Wickes' H1 adjusted pre-tax profit dropped nearly 25% to £23.4m, with sales down 3.4%—despite record market share gains and 14% TradePro growth—amid a tough home improvement market. 📉 Despite record sales, a 19% increase to £475m, BIRKENSTOCK missed profit estimates due to costly global expansion efforts and increased production investment. 📈 John Lewis has revived its 'Never Knowingly Undersold' pledge, leveraging 'AI' for price matching and boosting cross-brand loyalty programs. JLP also announced plans to close all stores on Boxing Day, following the lead of wilko, The Range and Home Bargains. 🛒 Morrisons and Amazon have enhanced their partnership, now offering loyalty points, weekly delivery options, and budget-friendly products, aiming to simplify and add value to the grocery shopping experience for millions of UK shoppers. Follow Kyle Monk for more insight & analysis.

🇬🇧 Top #UK #Retail stories from the last week. 📉 According to ONS figures, retail sales in the UK took a hit in June, with a 1.2% drop following May's 2.9% rise; non-food stores, online spending, and food stores all affected, reflecting consumer caution amidst colder, wet weather and economic uncertainties. 📉 June saw a drop in inflation for groceries and clothing in the UK, with food prices down by 0.2% to 1.5% and clothing prices decreasing by 1.2% to 1.6%, attributed by analysts to falling energy prices and a stronger pound. 🛑💳 Fatal Error: Global Microsoft cybersec vendor issue causes chaos for UK retailers including Waitrose, Morrisons, Co-op, Aldi & Halfords, with card payment outages impacting huge swathes of UK retail. All due to a single file, within a single cybersecurity supplier. Reports saying the issue will take weeks to fully rectify. Time to audit your security stack! ☕️ Central Perk: Pret A Manger revamps its subscription model launched during the pandemic. Model now offering 50% off on barista-made drinks for £10/month, much to the chagrin of ‘power users’. Some customers did the math, and the change will cost heavy users hundreds of pounds extra each year. Whether these customers stick or switch remains to be seen. 📦 Amazon Prime Day in the UK saw a record £633m spent on its first day, marking a 9.1% increase from last year, with electronics boasting the highest discounts and BNPL schemes up by 4.7%. Amazon workers in Coventry narrowly rejected union recognition with 50.5% against, GMB fell short by 29 votes; GMB considering legal challenge. 🛋️ Tapi saves Carpetright from being swept under the rug in multi-million pound deal, acquiring brand, 54 stores, saving over 300 jobs, with 1,000 job cuts and headquarters excluded. 🛒 Ocado Group CEO Tim Steiner believes the rapid grocery delivery market won't surpass big basket market, as the company narrows losses with sales rising 12.6% to £1.54bn in half-year results. 📈 B&M's first quarter sales rose 2.4% to £1.34bn, driven by volume growth and disciplined store openings, despite a 3.5% decline in like-for-like sales in the UK attributed to strong comps and poor weather. 💼 Frasers Group reports a 13.1% jump in profits to £544.8m, driven by diversified portfolio, upmarket shift, and operational efficiencies, despite a 0.9% sales dip to £5.53bn in a break-out year. 🛏️ Dunelm surpasses expectations with total sales up 4% to £1.7bn, predicting pre-tax profits of around £200m thanks to strong final quarter growth across store and digital channels. 👓 Eyewear giant EssilorLuxottica acquires Supreme for £1.15bn, marking its first foray into apparel and surpassing VF Corporation Corp's 2020 purchase price by $600m. Any other stories you want covered? Follow Kyle Monk for more insights.

🇬🇧 #UK #Retail top stories from the last week. ⚽ Despite the disappointing result on Sunday, the Euros are slated to add £3.1bn to the UK economy. Research from VoucherCodes suggests that football fans spent £405m before the final, with retailers seeing a £280.1m rise in sales. As always, the category winners were food, drink, and home entertainment. 📈 MANGO achieves record-breaking first half sales of £1.3bn, with a 6.3% revenue increase driven by successful collections and global expansion plans. 📈 adidas set to achieve highest profit margin in three years as Nike faces sales decline, with analysts predicting 51.4% profit margin and 4.5% sales increase for Adidas in second quarter. 📈 Fast Retailing, owner of UNIQLO, reports a 29% surge in third-quarter operating profit to ¥144.7bn, driven by strong overseas sales growth despite challenges in China, with a forecasted full-year profit rise of 23% to ¥475bn. 📈 Hobbycraft's expansion with 7 new stores in 2025 has created 325 jobs in the last 3 years, contributing to a 11% rise in sales of stitching kits and 43% in fabric, with workshop session sales up 23% year-on-year. 📈 Myprotein, owned by THG Nutrition, expands its snacks range to 300+ WHSmith stores nationwide, targeting a broader shopper base with on-the-go treats in key travel locations. 📈 Decathlon launches Decathlon Pulse subsidiary to drive long-term growth through innovative investments in sports brands and distributors, with Franck Vigo appointed as CEO and Barbara Martin Coppola as chair. 📉  Carpetright, facing financial pressures after a software attack, has filed for administration, putting 1,852 UK jobs at risk as administrators seek a buyer within the next ten days. 📉 Superdry to delist from London Stock Exchange, beginning turnaround plan after receiving approval for restructuring programme, ensuring avoidance of insolvency with £10m equity raise and rent reductions announced. 📉 Pepco Group's Q3 sales fell below expectations with like-for-like sales at Poundland dropping 6.9% to £404m, despite a 8% rise in group sales to £1.18bn on constant currency basis. Bond confident of reaching EBITDA of around £758m, a 20% increase from last year. 💰 Entrepreneur Mike Jatania, known for building personal care brands, set to buy The Body Shop out of administration for nearly £156m, aiming to retain UK shops with ex-Molton Brown CEO Charles Denton. 💰 Czech billionaire Daniel Kretinsky plans to invest £800m in 20,000 parcel lockers to boost Royal Mail's market share amid fierce competition in the delivery industry. 💰 Frasers Group increases stake in HUGO BOSS to £415m, now owning 7.99% of total share capital, amid Hugo Boss's shares dropping over 40% this year. 🚚 AO invests over £2m in transitioning 90% of their fleet to CNG by 2030, reducing carbon emissions by up to 85% compared to diesel, also increasing capacity with new longer moving double deck semi-trailers. Anything we missed? Follow Kyle Monk for more.

🇬🇧 #UK #Retail news from the last week: 📉 Luxury brands like Michael Kors and Burberry are reported to be struggling as UK sales plummet. Reasons given include overall reduced discretionary consumer spending, and potential price hikes looming in the face of rising material costs. 🔶 The Lib Dems propose scrapping business rates in their manifesto, replacing it with a “commercial landowner levy”. Labour, meanwhile, have promised a replacement - a 'revenue neutral system'. Good news for the nation's high streets. 🏠 OKA interiors brand plans a CVA to avoid insolvency, with closure of stores and job losses pending approval from creditors. Founder steps down, while private equity firm commits millions in funding. 🇺🇸 IKEA is exploring expanding production in the US and Americas to mitigate supply chain volatility. They aim to reduce dependencies & address some ongoing availability constraints on select products, naming global conflicts as the cause. 🛍️ Luxury ecommerce platform YOOX NET-A-PORTER to shut China operations, focusing on core markets for profitability amidst global restructuring. 🍝 Waitrose & Partners elevates its premium No.1 range with nearly 200 new and improved products, featuring innovative offerings like Tomato & Vodka Pasta sauce and keralan-inspired fish curry. 📈 Superdry shareholders back £10m equity raise & delisting plan to avoid insolvency, with Chairman noting this as a crucial step towards restructuring and return to growth. 🛒 Aldi UK invests over £90m in store improvements to enhance their shopping experience, including energy-efficient features and store upgrades, aligning with its commitment to high-quality products and reduced environmental impact. 🏠 Tesco's new(est) marketplace focuses on expanding food and home product ranges, distancing itself from trying to emulate Amazon, while showing promising early customer reception. 📺 Football still a huge driver in TV sales: John Lewis & Partners reports a 47% increase in TV sales ahead of UEFA Euro 2024, with customers opting for larger screens and higher-quality soundbars to enhance their home entertainment experience. 🇺🇸 White Stuff is expanding its presence in the US through strategic wholesale partnerships, aiming to double its business in the next 4 years and cement itself as an internationally recognised fashion brand. ⚽ Specsavers launches new ad campaign translating their famous slogan into 24 languages for the UEFA Euro football championship, aiming to unite fans in frustration over something we have all seen - dodgy referee decisions. 🤖 On (sportswear) and Verity (automation, drones) are collaborating on AI and robotics in warehouses. Both are working to help sportswear giant On maximize efficiency, improve inventory tracking, and increase customer satisfaction. Follow Kyle Monk or Consumer Industries for more.

Must read retail, top stories from the last week: 🛍️ TDR Capital becomes majority owner of Asda as Zuber Issa sells his stake, while brother Mohsin steps in as sole CEO of EG Group 👗 Fashion retailers like PrettyLittleThing.com and Oh Polly are implementing returns fees to tackle rising costs and address issues with inconsistent sizing and high return rates, impacting customer experiences and highlighting the challenges of managing returns in the online retail landscape. 🛒 New openings: MINISO USA’s new blue store at Bluewater Shopping Centre opens. QUIZ Clothing opens a new flagship store in Trafford Centre, Manchester. RESERVED expands its London presence with new Westfield store. 🧥 Marks and Spencer freezes school uniform prices for the fourth year, introduces 20% off early bird offer and 100-day returns, focuses on value and quality amidst ongoing concerns about the cost of living. 🍷 Booker Group, owned by Tesco, acquires premium wine merchant Venus to boost alcohol offerings, expanding reach to bars and restaurants. 📈 N Brown Group achieves return to profit amidst sales decline, focusing on sustainable growth through new product lines and online expansion. 🥐 Greggs is set to open a new frozen production and logistics facility in Derby, creating 600 jobs, partnering with Swisslog for automation, and emphasizing sustainable practices and future growth potential. 🍽️ Waitrose & Partners’s acquisition of Dishpatch will bring high-quality meal kits from top UK chefs to a wider audience, aligning with Waitrose's mission to provide the best food experiences for customers. 🛍️ Administrators set deadline for bids to sell The Body Shop, as former owner AURELIUS is not expected to submit an offer. ⚖️ Investor lawsuit hits Boohoo Group PLC following allegations of modern slavery breaches, causing a £1bn share price drop, as investors seek damages for failing to disclose labour rights violations. 🏗️ Marks and Spencer faces delay in London flagship demolition plans amidst legal battle with government over redevelopment of Oxford Street store, raising concerns about revitalization of the shopping district. 🌍 Sainsbury's introduces innovative packaging changes saving 694 tonnes of plastic yearly, leading the way in sustainable retail practices. 🏠 John Lewis & Partners appeals for planning permission to build over 400 homes in West Ealing, London, as part of their somewhat divisive diversification plans.

JD Sports released their full year figures on Friday, not much to see here, but some interesting investments & acquisitions announced. Trying something new by visualising the data, let me know what you think in the comments. 📈 Key Performance Indicators (mostly 52w): + Sales Growth: Premium Sports Fashion sales up 9.8%, like-for-like sales increased by 3.8% + Revenue: Increased 2.7% to £10,397.2m despite disposals + Gross Margin: Slightly down to 48.2% + Operating Profit: Fell 8.1% to £1060.3m + Profit before tax: Rose 66.7% to £811.2m + Overall Q1 Performance met expectations, maintaining full-year PBT guidance of £955m-£1,035m 🚀 Strategic Highlights: + JD Brand Expansion: Opened 200+ new JD stores; plans for another 200 in FY25, exceeding sales expectations by 20% + Acquisitions & Divestments: Acquired ISRG and MIG; announced acquisitions of Courir (Europe) and Hibbett (North America); disposed of non-core businesses + Infrastructure: New distribution center operational in Heerlen, Netherlands; new website platform rollout planned from FY25 + Investments in People: Over £70m invested in staff, strengthened governance, relaunched JD Foundation, maintained strong Carbon Disclosure Project ratings Follow Kyle Monk for more, click here for my latest post retail top stories on Linkedin: https://lnkd.in/e7cz_rfQ