UK's Ocado Retail keeps outlook as quarterly sales rise
Reuters
23-09-19 06:25
Ocado Retail, the joint venture between Ocado Group and Marks & Spencer, reported a 7.2% increase in revenue for the third quarter, reaching £569.6m ($705m). The online supermarket's growth accelerated from 5% in H1 2023, as it benefited from a 1.5% rise in active customers to 961,000. Ocado Retail maintained its full-year outlook, expecting "mid-single digit" revenue growth and "marginally positive" core earnings for 2022-23, compared with a £4m loss in the previous year.
AutoZone posts strong quarterly results on auto parts demand
Reuters
23-09-19 11:32
Auto parts retailer AutoZone reported better-than-expected profit and revenue for the fourth quarter, driven by strong demand for its do-it-yourself automotive parts. The company posted a nearly 2% increase in domestic same-store sales for the quarter. Quarterly net sales rose 6.4% to $5.69bn from a year earlier, beating analyst expectations. Net income for the quarter was $864m, or $46.46 per share, up from $810m, or $40.51 per share, a year ago.
Biden’s U.N. sales pitch: His America is a partner
Washington Post
23-09-19 15:52
President Biden has addressed the UN General Assembly, saying that the US seeks to work with countries in every region, linking them in common cause. Biden also vowed to push back against China on issues like freedom of navigation, human rights, and fair trading practices, but said that the US seeks to responsibly manage the competition between itself and China. Biden also denounced Russia's invasion of Ukraine, but said that Russia alone had the power to end the war in Ukraine.
H&M starts charging shoppers £1.99 for online returns
The Independent
23-09-19 14:47
Fashion retailer H&M has introduced a £1.99 ($2.57) charge for returns made in store or online, with the cost deducted from the refund. The company follows rivals including Zara, Boohoo, Uniqlo and Next in implementing the charge, which retail experts predict others will also adopt. Analysts said the move discouraged bulk buying and the subsequent return of most items, a trend that has become more prevalent during the coronavirus pandemic. Shoppers who belong to H&M's membership programme would be exempt from the charge.
Sales of electric vehicles (EVs) are being driven by fleet and company car sectors rather than private buyers, with just 37,000 battery-powered vehicles being sold to private buyers in H1 2021, compared to 41,800 during the same period in 2020. This is in part due to generous tax breaks for fleet and company car sectors, which allow middle managers and delivery workers to be presented with EVs when they need new vehicles. However, sales to private buyers are stagnating, indicating that consumers are not choosing EVs when given the choice.
Instacart under-promises in hope of overdelivering
Reuters BreakingViews
23-09-19 18:16
Instacart's shares began trading at $42 each, 40% higher than the price set the previous evening. While the $14 billion valuation is a comedown from its peak of $39 billion two years ago, it is still reasonably valued. Instacart experienced significant growth during the pandemic, with a 300% increase in gross transaction value in 2020. The current valuation is in line with expectations, and Instacart is projected to generate $672 million in adjusted EBITDA by the end of 2024. Additionally, Instacart is more profitable than many companies that went public in 2020 and 2021. However, technology companies have fallen out of favor, and investor concerns about valuations may have led Instacart to underprice itself.
Shoplifting gangs ‘escape justice’ as police will not attend if they flee
Telegraph
23-09-20 00:01
Independent retailers in England and Wales have called on police forces to proactively investigate reports of intimidation and assault, warning that violent shoplifting gangs are escaping justice because police are not attending crime scenes if offenders have fled. The retailers have described shoplifting as the “primary trigger for violence and abuse of shopworkers” and have called for the collection of evidence to be prioritised by police forces. The British Retail Consortium estimates that theft costs retailers nearly £1bn ($1.3bn) per year, while the Association of Convenience Stores says 90% of workers have experienced verbal abuse in the past year.
Facing 'torrent of theft', UK retailers press for police action
Reuters
23-09-19 23:06
A coalition of British retail industry groups and shopworkers union USDAW has written to police leaders in England and Wales calling on them to back a plan to counter a "torrent of theft". The British Retail Consortium estimates the cost of theft in the sector has reached 1 billion pounds ($1.24 billion) a year and local convenience stores are reporting the highest levels of shop theft recorded in the last decade. They also want police resources targeted on getting prolific repeat offenders off the streets, and want forces to prioritise collecting evidence of violent attacks against shopworkers.
‘Violent attacks on shop workers not being responded to by police’
The Independent
23-09-19 23:01
A business coalition made up of the Association of Convenience Stores (ACS), the British Retail Consortium (BRC), the British Independent Retail Association, the Federation of Small Businesses, the Federation of Independent Retailers, and shopworkers’ union Usdaw has written to police and crime commissioners in England and Wales calling on them to tackle a rise in theft and violent attacks on shop staff. The letter called for police action in three areas: making it easier for retailers to report crime and submit evidence, identifying prolific offenders, and prioritising the gathering of evidence related to violent attacks.
Warm weather, cost of living tempers Kathmandu’s momentum
The Sydney Morning Herald
23-09-20 02:10
Retailer KMD Brands, the owner of Kathmandu and Rip Curl, has reported $1.01bn in sales for the first time in its history. Sales for Kathmandu rose over 10% to $422.2m, while Rip Curl reported a sales increase of 8.3% to $571.5m. However, the company revealed that demand for outdoor clothing was tempered in the last three months of the year due to a warmer winter in Australia and rising living costs, causing a slowdown in consumer spending.
Supermarket chains in the UK are increasingly competing over wages, terms and conditions in order to recruit and retain staff. Despite a cooling economy, the jobs market remains tight with labour demand still outstripping supply. According to official figures, average regular weekly pay rose at an annual pace of 7.8% in the year to July 2022, the joint fastest rate since data were first gathered in 2001. The primary driver of Britain’s higher rate of food inflation is the battle for staff.
Fashion retailer H&M has confirmed that it will not charge shoppers for returning online purchases in-store, contrary to information previously displayed on its website. The company has since amended the information. H&M members will still be able to return items for free, whether in-store or online. In contrast, rival retailers such as Zara, Boohoo, Uniqlo and Next charge for online returns. Returns can be costly for retailers and have an environmental impact, due to the use of delivery trucks. Retail expert Jonathan de Mello said that H&M had “done the right thing” but that it was understandable for firms to make changes to returns policies “by stealth”.
Fashion retailer H&M has confirmed that it will not charge shoppers for returning online purchases in-store, contrary to information previously displayed on its website. The company has since amended the information. H&M members will still be able to return items for free, whether in-store or online. In contrast, rival retailers such as Zara, Boohoo, Uniqlo and Next charge for online returns. Returns can be costly for retailers and have an environmental impact, due to the use of delivery trucks. Retail expert Jonathan de Mello said that H&M had “done the right thing” but that it was understandable for firms to make changes to returns policies “by stealth”.
Shoplifting costing us £70m a year, says Co-op boss
Telegraph
23-09-21 17:27
UK supermarket chain the Co-op is estimated to lose £70m ($82m) to shoplifters this year, according to CEO Shirine Khoury-Haq. The firm has already lost £33m to shoplifting and fraud during the first six months of the year. The Co-op has spent £200m on security measures, including body cameras, extra CCTV and covert guarding. Khoury-Haq has accused police of failing to take action against criminals, saying that gangs operate "seemingly exempt from consequences".
Despite China’s iPhone Ban, Buyers and Scalpers Are Flocking to Apple Stores
Bloomberg
23-09-22 03:52
Despite government restrictions and local competition, Chinese customers have flocked to Apple stores to buy the latest iPhone 15. This is seen as an encouraging sign for Apple as China is the company's largest overseas market. The release of the iPhone 15 is a key test for Apple to see if refreshed specifications and features can help the company return to growth. China, which accounts for about a fifth of Apple's sales, will be of particular interest. The Chinese government is expanding a ban on iPhone use in certain agencies and state-owned enterprises, and rival Huawei Technologies has just introduced its highly touted Mate 60 Pro. Scalpers were seen outside Apple stores, but there appeared to be fewer compared to previous releases. Premiums asked by scalpers were modest.
Mass tourism is pushing Venice to a tipping point, with the influx of visitors driving out residents and local businesses. The number of tourists in Venice is expected to beat the record of 5.5 million in 2019. With the loss of residents, services and amenities have also dwindled, including shops, schools, and doctors. The high number of Airbnb rentals has pushed up rents, forcing locals to live on the mainland. The city has taken measures to address overcrowding and maintain the city, banning large cruise ships from visiting central islands. However, ships still travel through the lagoon and private yachts dock near St. Mark’s Square, causing damage to the city. Advocacy groups are pushing for measures similar to those implemented in New York City, such as limiting short-term rentals and converting existing buildings to hotels. The city council has approved a €5 fee for day-trippers entering the city’s historic center on the busiest days of the year. However, critics argue that the fee is a “Band-Aid” solution that does not address the root of the problem.
Amazon’s New Challenge: Bargain Retailers Who Are Playing a Different Game
WSJ
23-09-22 03:00
The rise of shopping platforms Temu and Shein has proven to be a challenge for Amazon. Unlike Amazon, Temu and Shein focus on offering bargain items that may take longer to arrive. Despite the longer delivery times, American customers have been increasingly willing to try these platforms, with monthly unique visits from US customers growing significantly. While Amazon has not taken steps to match the prices of items on Temu, it is reportedly considering how to respond to these competitors. Amazon executives have seen that there is a market for bargain items and are exploring whether to make such offerings more discoverable on their own site. However, Amazon faces the challenge of maintaining its reputation as a reliable retailer while potentially offering lower-priced products that may sacrifice quality. Both Temu and Shein face regulatory scrutiny in the US, with lawmakers and attorneys general pressing the companies on their sourcing practices in China's Xinjiang region.
Retail sales in the UK rebounded in August after a decline in July due to wet weather, according to data from the Office for National Statistics (ONS). Shop sales rose 0.4% in August, driven by a 1.2% increase in food store sales which partially reversed a 2.6% drop in July. However, the recovery fell short of economists' expectations of a 0.5% rise. The number of car fuel transactions fell 1.2% in August following a sharp rise in petrol prices caused by oil supply cuts by Russia and Saudi Arabia.
Live Markets UK competition chiefs set to approve Microsoft’s $69bn Activision deal - latest updates
Telegraph
23-09-22 07:20
The UK's Competition and Markets Authority (CMA) has indicated that it is prepared to approve Microsoft's $69bn takeover of Activision Blizzard. The CMA had previously announced that it would block the deal, despite it being cleared by regulators in Europe. Microsoft had warned that the decision made the UK a less attractive destination for investment than the continent, and the US efforts to block the deal were struck down in court. However, Microsoft offered a restructured merger deal, which involves spinning off the right to stream Activision's video games to France's Ubisoft. Ubisoft can then market those games directly to consumers or rival console companies. The CMA will consult on the proposals until 6 October.
British retail sales rebound as shoppers return to high streets
Financial Times
23-09-22 06:53
British retail sales rebounded in August with a 0.4% increase in the quantity of goods bought, following a drop in July. The growth was slightly below the 0.5% expansion forecast by economists. Food and clothing sales were the main drivers of the rebound, although fuel sales fell due to high prices. Internet sales also dropped slightly as people returned to shopping in person. In the three months to August, sales were up 0.3% compared with the previous three months. Separate data showed that UK consumer confidence rose to the highest level since January 2022 in September.
