Retail Economics

What happened to retail stocks last week? 📈 Leading Stocks: Shoezone Retail Limited (5.1%) outperformed as investor sentiment improved. The value retailer continues to attract attention as cost-conscious consumers seek affordable options amid household budget pressures. Burberry's (3.4%) saw its share price continue its recent upward trend, reflecting strong investor optimism around its brand appeal in global markets. Boohoo Group PLC (1.3%) was boosted by news of Daniel Finley’s appointment as group CEO, following recent calls from Frasers Group to appoint Mike Ashley. Daniel, who was CEO of Boohoo-owned Debenhams until the announcement, will step into the role with immediate effect, with investors hopeful his experience will bring stability and fresh direction. 📉 Trailing stocks: Mothercare PLC (-15.1%) continued to struggle following its recent announcement of weak FY24 results, which highlighted ongoing challenges in a tough retail environment. The decline reflects investor concerns about the company’s ability to navigate persistent market pressures. JD Sports Fashion (-6.3%) slipped after company filings revealed it had sold its majority stake in Total Swimming Group, a business co-founded by former Olympians. The move comes as JD Sports refines its portfolio, focusing on key growth areas such as its expansion into the US market. 🔍 Sector insights: Overall, retail stocks* fell by 3.0% on the previous week. This compares with a c.1.0% decline in the FTSE All share index. *Defined by a weighted basket of 40 food and non-food retailers. #RetailStocks #MarketUpdate #StockPerformance #Investing

Head over to your favourite podcast platform or click the link below to listen to this week's episode of the Retail Roundup Podcast! 🎙️ We cover key stories on Asda, adidas, Vinted and more! Join the conversation and discover what’s shaping the retail landscape. With fresh episodes every Monday at 6 am, the Retail Roundup Podcast is your go-to source for staying informed on the latest happenings in the retail world. Whether you're a seasoned professional or new to the industry, our podcast delivers essential insights and the most current retail news to keep you ahead of the curve. 🔗 Tune in now: https://lnkd.in/e8Urgs3g #RetailRoundup #RetailPodcast #IndustryInsights #StayInformed #MondayMotivation #RetailInsight #Podcast #BusinessPodcast #InsightOnTheGo #RetailEconomics #RetailUpdates

What’s been happening in retail this week? 🛒 Asda has partnered with Virtualstock to extend its online product offerings. Decathlon is among the first brands featured on george.com, bringing quality sporting equipment to a wider audience. 🏬 Lidl GB is set to open 10 new stores before Christmas, funded by a £70m sale and leaseback deal, which will also support 12 more locations, expanding access to affordable food and creating jobs. ✊ Gymshark opened “Twist ‘n’ Sets,” a pop-up hair supply store in Shoreditch, London, addressing hair maintenance concerns to support gym accessibility for Black women. 👗ASOS.com and Hirestreet have launched the UK’s largest retailer-rental subscription, offering access to over 20,000 items for £75 per month, with five-item rentals and standard shipping included. 🛋️ John Lewis & Partners launched MADE.COM’s first London showroom within its Oxford Street flagship. Made.com will also feature on John Lewis's website and in additional store concessions. 🤖 Marks and Spencer plans to introduce self-checkouts in fitting rooms across 100+ stores by 2028, allowing customers to try on and pay without queuing twice. 📈 Next reported a 7.6% increase in full-price sales in Q3, raising its full-year profit outlook to over £1bn, driven partly by early cold weather boosting UK sales by 5.8%. 🖥️ Harrods relaunched its ecommerce platform with Scayle, featuring a refreshed design, integrated systems, and an upgraded mobile app coming soon. 💄 Avon is moving away from door-to-door selling, expanding its franchise presence to 650 Superdrug stores by year-end and planning 2,300 global locations by 2024. 💷 Poundland & Dealz is reducing prices on essentials like milk, bread, and eggs to £1, increasing its £1-or-below range to 1,500 items to address cost-of-living concerns. ♻️ Vinted completed a £282.96m secondary share sale to fund expansion into categories like electronics and books, valuing the company at £4.16bn as it broadens its second-hand market reach. 🍽️ Time Out Group plc is set to open a new food market at 10 Piccadilly Circus, reviving plans for a London food hall with £8m raised for leases and IT upgrades. This is just a selection of news this week. Sign up below for more insight ⬇️ https//lnkd.in/d-z25aM

Autumn Budget: What Retailers & Consumers Need To Know 💰 National Minimum Wage (NMW) From April 2025, the NMW will rise to £12.21/hour, with rates for 18-20-year-olds at £10.00/hour and Under-18s and Apprentices at £7.55/hour. 📈 National Insurance Employer NICs will increase by 1.2% to 15% from April 2025, with the threshold for contributions lowered to £5,000. 🏢 Business Rates For 2025-26, eligible RHL properties will receive a 40% rate relief (down from 75%), capped at £110,000 per business. Permanent lower multipliers for retail, hospitality, and leisure (RHL) properties with a rateable value under £500,000 will take effect from April 2026. Meanwhile, properties with a rateable value of £500,000 and above—such as large distribution warehouses used by online retailers—will see a higher multiplier. 🚔 Retail Crime The government is increasing core funding to boost police forces, adding 13,000 PCSOs to focus on shoplifting and organised retail crime. 📊 Uprating of Benefits Working-age benefits will rise with inflation (1.7%), while the Triple Lock is maintained, increasing State Pensions by 4.1% in 2025-26. ⛽ Fuel Duty The freeze on fuel duty continues, and the 5p-a-litre duty cut is extended by another year. 🏠 Stamp Duty Stamp duty on second homes and buy-to-let properties will rise from 3% to 5% starting 31 October. 🍻 Alcohol Duty A 1.7% cut in alcohol duty will apply to draught products under 8.5% ABV, while non-draught rates will increase with RPI inflation from 1 February 2025. 📚 VAT on Private School Fees Starting January 2025, VAT at 20% will apply to private school fees. For more insights: https://lnkd.in/dA2x2Ww #AutumnBudget #Budget2024 #Retail

What happened to retail stocks last week? 📈 Leading Stocks: Burberry (13.7%) topped the performance table, driven by improved investor sentiment. Halfords (10.5%) saw a rise in share price despite reporting a slight drop in sales for the six months to 27 September. Investors recognised last year’s strong performance would be challenging to match, with budget concerns and unfavourable weather impacting demand. Boohoo Group PLC (3.5%) gained after Frasers Group called for an emergency shareholder meeting to appoint its founder, Mike Ashley, as CEO. This followed news that Boohoo's current CEO John Lyttle will step down after five years. Inditex (1.6%) rose after expanding its repair and resale platform in the US, supporting its goal of achieving net-zero emissions by 2040. This marks Zara’s first move with this initiative outside Europe. 📉 Trailing stocks: Mothercare PLC (-10.2%) dropped after a 13% decline in worldwide retail sales for FY24, due to weak demand. The company also announced a new financing deal with Reliance Brands to support future growth. Travis Perkins (-7.7%) fell after its new CEO projected a 25% drop in annual profits, noting that the business has been "distracted and overly internally focused." Sosandar (-7.0%) lowered its annual sales forecast, prioritising a return to profitability, with expected revenue of £40 million this year, down from £46.3 million in the 12 months ending March 2024. #RetailStocks #MarketUpdate #StockPerformance #Investing

Head over to your favourite podcast platform or click the link below to listen to this week's episode of the Retail Roundup Podcast! 🎙️ We cover key stories on Tesco, WHSmith, Dunelm and more! Join the conversation and discover what’s shaping the retail landscape. With fresh episodes every Monday at 6 am, the Retail Roundup Podcast is your go-to source for staying informed on the latest happenings in the retail world. Whether you're a seasoned professional or new to the industry, our podcast delivers essential insights and the most current retail news to keep you ahead of the curve. 🔗 Tune in now: https://lnkd.in/e8Urgs3g #RetailRoundup #RetailPodcast #IndustryInsights #StayInformed #MondayMotivation #RetailInsight #Podcast #BusinessPodcast #InsightOnTheGo #RetailEconomics #RetailUpdates

What’s been happening in retail this week? 💿 After a 30-year hiatus, WHSmith is bringing vinyl records back to 80 high street stores across the UK, responding to growing customer demand. Vinyl sales rose by 11.7% in 2023, marking 16 years of consecutive growth. 🌸 The Perfume Shop has launched “Eau De-Liveroo Rider,” an on-demand service in London, Manchester, and Bristol through Deliveroo. Customers can order free 5ml samples of popular perfumes via WhatsApp, delivered within 15 minutes—ideal for last-minute fragrance needs. 🏟️ Fanatics, the digital sports platform and merchandise retailer, will open its first standalone UK store on Regent Street, London. The company, which partners with major global sporting organisations, first entered the UK market in 2016. 🔋 Tesco has agreed to purchase nearly two-thirds of the output from the £450m Cleve Hill Solar Park, covering up to 10% of its power needs over the next 15 years. CEO Ken Murphy called it a "significant step" towards Tesco’s carbon neutrality goal by 2035. The site is expected to be fully operational by 2025. 💳 SHEIN has launched its first branded credit card in partnership with Mexican fintech Stori, offering points for purchases. This move comes as Shein prepares for a potential IPO on the London Stock Exchange, having appointed major banks as bookrunners. 🍗 From 30 October, Aldi UK will roll out updated packaging for its fresh chicken products, showcasing increased stocking density standards, giving chickens 20% more space than the industry average. 🎁 Poundland & Dealz's new rewards programme, "Poundland Perks," became the top free app on the Apple and Google Play stores just one day after its nationwide launch on 16 October. 👟 Hotter Shoes is boosting UK manufacturing to produce one million pairs annually, increasing domestic output from 25% to 75%. WoolOvers Ltd, the new owner, has reversed plans to phase out Skelmersdale production to maintain quality and margins. 👓 Snap Inc. launched ‘Snap Street,’ a two-day event on 19-20 October in Brick Lane, London, featuring augmented reality (AR) retail experiences. Brands like Boots UK, Depop, and Cosmopolitan participated, offering AR-enhanced interactions, beauty products, fashion, and pop-up experiences. ⛔ Frasers Group has decided not to pursue a revised £111m bid for Mulberry England, citing governance concerns and a lack of a clear commercial plan. However, it remains supportive of the brand. 🚚 Amazon extended its same-day delivery to over 80 UK towns and cities, including Middlesbrough, Aberdeen, and Plymouth. With demand doubling since 2023, it’s investing £580m in robotics and AI to improve fulfilment efficiency. This is just a selection of news this week. Sign up below for more insight ⬇️ https//lnkd.in/d-z25aM

🔐 Cybersecurity tops the list of retailer risks in 2024 🛡️ Cyber security is the number one risk retailers face, according to Retail Economics and Barclays Corporate Banking recent report on retail resilience, and it was high on the agenda at Barclays’ recent 2024 Retail Conference on Wednesday 9 October. On a panel exploring the topic, our experts flagged how common cyber attacks have become – a significant threat for all kinds of organisations, and the reality of operating a business in 2024. The panel advised retailers to take a range of measures to both prepare for a possible attack, and to mitigate the effects should one occur. 👉 Communication is key: Jack Cordery, CEO of retailer and manufacturer Mole Valley, which suffered a cyber attack in 2023, said a key part of what got the business through the aftermath was strong communication, with leadership visiting stores and sites constantly to keep people informed. Businesses should also expect and acknowledge a sometimes-emotional response from customers and colleagues. 👉 First 90 minutes: Security experts flagged that the first 90 minutes of a cyber attack is critical – ideally, retailers will be able to identify where in their systems the hackers are, and shut everything down to prevent them getting further. 👉 Rehearse responses: Even those businesses who are prepared can be taken by surprise by different elements of the post-attack clean up. Common mistakes include not having policies and systems documented, not having things backed up, and not having a rehearsed response. 👉 Basic measures: Basic security measures such as two-factor authentication and a robust password policy can go a long way towards stopping attacks occurring. 👉 Moving systems on to cloud technology, and ensuring it’s not too easy to move between different systems, can also help limit the damage hackers can do. 👉 New technology: Generative AI is bringing a new wave of risks, such as fake videos and voice biometrics, and disinformation. A significant part of retailers’ ongoing response to this will need to involve colleague engagement and training. 👥 Thanks to our panel: Helena Brown, partner, commercial and data protection and head of data at law firm Addleshaw Goddard Jack Cordery, chief executive of retailer and manufacturer Mole Valley Farmers Stephen Howells, director of intelligence delivery and transformation at Barclays, and Scott T., director of the cyber security operations centre at Barclays. To read more about the risks retailers are facing and how they’re handling them, download Retail Economics’ and Barclays UK Corporate Banking report on Retail Resilience here. 🔗 https://lnkd.in/eNGvUg5G

🏆 Culture is key to retail resilience: Insights from Timpson’s success story Several of the sessions at Barclays Corporate Banking’s recent 2024 Retail Conference investigated how and why culture, people and leadership are the foundation of any work to improve resilience. 💻 Whether retailers embrace technology, training or investment in security to mitigate the various risks they face, this work will have shaky foundations without the right culture. 📚Retail Economics’ chairman Stephen Robertson spoke about how a strong culture has underpinned Timpson Group’s success, where he was until recently a non-executive director. 📈 The family-owned Timpson Group includes Snappy Snaps and Johnsons dry cleaners in addition to its namesake shoe-repair and key-cutting business. It doubled comparable profits to £36.5m in the year to 1 October 2022 and sales rose to £297.4m, up about 40%. 👥 Staff turnover at Timpson is 17%, compared to an industry average of 51%. In July, it topped the Institute for Customer Service’s UK Customer Satisfaction Index, beating well-known brands including Nationwide and John Lewis. 🏗️ Stephen said: “Timpson’s leadership John and James [Timpson] have built a commercially successful business by focusing on their culture. It starts with hiring for personality, not on qualifications. They know that great service comes from people who are naturally friendly.” While a long list of benefits helps boost retention – from free company-owned holiday homes to a week off for anyone getting married – it is this focus on keeping the right people that makes the biggest difference. “Everyone notices if management take no notice of people who have the wrong attitude. It damages the entire team.” To read more on the biggest challenges facing retailers today and how they’re tackling them, download our report, written in partnership with Barclays UK Corporate Banking, here. https://lnkd.in/eNGvUg5G

🌍 Sustainability is still a growing priority despite other immediate risks While sustainability and ESG have fallen down the agenda slightly for retailers, who have been dealing with other, more immediate risks, ESG is still the risk expected to grow the most over the next five years. We partnered with Barclays Corporate Banking on its recent 2024 Retail Conference to explore this topic, among others, and heard from a panel of experts on how it’s evolving. 👉 Profitability: Sustainability efforts are often seen as being at odds with profitability, but our panellists highlighted how they can work in its favour. For some, this will look like cost efficiencies such as lower travel or energy costs, while for others, it will come from increased customer loyalty and lower customer acquisition costs. 👉 Leadership: ESG and environmental efforts need to be embedded into day-to-day and financial targets, or they risk being viewed as non-business critical when times get tougher. Leadership, managers and colleagues all need to be fully engaged, and clear finance-linked targets will help to strengthen sustainability as a priority from a reputational point of view. 👉 Culture: Building the right culture in which teams are motivated to outperform in this area is the best way to generate impressive results. Once leaders have empowered and motivated teams to question and push limits, they are more likely to be able to create a business known for its sustainable leadership. 👉 Embracing technology: Innovations such as digital product passports will become increasingly necessary for retailers as more ESG-focused regulation comes into effect. Using technology to gain a clearer picture of the supply chain will help with everything from tracking scope 3 emissions to verifying suppliers’ claims. 👥 Thanks to our panelists on the day Laura Galvin, global head of sustainable transaction banking at Barclays Andrew Murphy OBE, group chief executive at Teal Group Technologies, Inc Mike Pickering, head of sustainability at The Midcounties Co-operative and Andrew Xeni, founder and chairman of Nobody's Child To read more about the risks retailers are facing and how they’re handling them, download Retail Economics’ and Barclays’ report on Retail Resilience here. 🔗 https://lnkd.in/eNGvUg5G