Category Archives: #uk
The supermarket giant said the shake-up is part of a restructure which would see more customer service staff and fewer managers
Morrisons is to axe 1,500 shop floor workers as it becomes the latest supermarket to announce large-scale job cuts.
The supermarket giant said the shake-up is part of a restructure which would see more customer service staff and fewer managers.
Gary Mills, Morrisons retail director, said: “Our aim is to serve customers better with more frontline colleagues in stores improving product availability and helping customers at the checkouts.
“Very regrettably, there will be a period of uncertainty for some managers affected by these proposals and we’ll be supporting them through this important process.
“Our commitment is to redeploy as many affected colleagues as possible.”
Simultaneously Morrisons said it will create 1,700 junior jobs.
It comes just one day after retailer Marks & Spencer announced it is to shut one of its West Midlands shops as part of a closure programme affecting 13 stores.
The outlet in the Kingfisher Centre, Redditch, will close in April with all 66 staff set to transfer to neighbouring stores.
The company has also announced today the planned closure of five other stores by the end of April – Birkenhead, Bournemouth, Durham, Fforestfach near Swansea and Putney in London.
M&S plans closure of 14 more UK stores
British retailer Marks & Spencer said on Wednesday six UK stores would close by the end of April, while a further eight had been identified for closure.
M&S said in November 2016 it would reposition about 25 percent of its clothing and home space through a combination of closures, downsizes, relocations and conversions to food-only stores. In November last year it said it was accelerating this programme.
The group said all staff from the six stores closing in April will move to nearby stores. It said 468 employees would be affected at the eight stores proposed for closure and will now enter a period of consultation.
M&S also said it had reassessed and reduced its “Simply Food” opening programme, and now only plans to open a total of 36 owned and franchise stores over the next six months.
It said these stores would create 1,200 jobs.
Superdry Sport to design Invictus UK team kit for next year’s Games
as agreed a deal to design and provide free bespoke technical sports kit and team clothing for UK Team competitors and supporters at next year’s Invictus Games.
Invictus Games Toronto 2017, UK Team supported by Help for Heroes
Under the deal, Superdry Sport’s in-house team of designers and technicians will create full technical competition wear for the competitors taking part in the international adaptive sporting competition in Sydney.
The Superdry Sport team will work with a selected group of previous competitors, drawing upon their guidance and expertise to ensure the specialist requirements of the Team are met. Superdry Sport will also make training and team leisure clothing. All the specially designed kit will be available for the full UK Delegation – covering competitors, family and friends and staff and Games guests.
The deal has been agreed with the UK Delegation to the Invictus Games, which is a partnership between the Ministry of Defence, Help for Heroes (H4H) and The Royal British Legion (TRBL). H4H are responsible for training, selecting and developing the UK Team, with TRBL taking responsibility for the Friends and Family.
The Invictus Games is an international adaptive multi-sport event, created by Prince Harry, in which wounded, injured or sick service personnel and veterans take part in sports including wheelchair basketball, sitting volleyball, and indoor rowing. Launching the first Invictus Games in London in 2014, the Prince said that the Games would “demonstrate the power of sport to inspire recovery, support rehabilitation and demonstrate life beyond disability”.
At next year’s Games in Australia more than 500 competitors from 17 nations are expected to take part in 10 different adaptive sports. The Games will take place from 20 – 27 October with events being held across Greater Sydney, including Sydney Olympic Park and on and around Sydney Harbour.
The news follows the significant expansion of Superdry Sport’s offering in stores and online and the opening of the first standalone Sports shops. Superdry Sport is designed to push the boundaries; combining extreme colours and graphics with pioneering fabrics, moisture wicking technology and impeccable attention to detail both inside and out.
Euan Sutherland, chief executive of Superdry, said: “The Invictus Games has shown how the power of sport can help injured service personnel, veterans and their families and inspire us all. At Superdry we are very proud to have been chosen to provide the clothing for the UK team and the wider delegation. Our Superdry Sport range represents everything that Superdry stands for – great design, technical expertise, attention to detail and constant innovation.”Sensitivity: Operational
Jayne Kavanagh, UK Team Chef de Mission, said: “We are incredibly pleased and proud to be working alongside Superdry to continue supporting the recovery journeys of those whose lives have been affected by injury or illness.
“The legacy of the Invictus Games is clear to see through the fact that more hopefuls than ever before have registered their interest for a place on the 2018 UK Team. The Invictus Games in London, Orlando and Toronto demonstrated how powerful sport is as a means of rebuilding confidence as well as aiding physical and mental recovery. The Games will continue to get bigger and it is important the UK Team and supporters are comfortable in the kit they wear, something we are confident Superdry Sport will deliver.
“Through offering support to our veterans and service personnel on their Invictus journey, Superdry Sport are helping to empower them to look beyond illness and injury, regain their purpose, reach their potential and have a positive impact on society.”
Bernie Broad, a former Army Major with the Grenadier Guards, was the UK Team Captain at the Invictus Games 2017 in Toronto. Bernie lost both his legs below the knee due to injuries sustained in an explosion in Helmand Province in 2009. He underwent four and a half years of extensive surgery whilst at the same time undergoing rehabilitation at DMRC at Headley Court.
Speaking about the announcement, he said: “The Invictus Games empower and inspire all of us as competitors to be the best version of ourselves. Having a globally-recognised British brand endorse the British team will give athletes an extra sense of pride when they wear the kit and represent their country. Additionally, there will be added motivation to show the world that we can push our limits and that we can still achieve our personal bests in a life post injury or illness.”
United Kingdom : Al-Futtaim buys M&S retail business in Hong Kong & Macau – Apparel News United Kingdom
Al-Futtaim has acquired the retail business of Marks and Spencer (M&S) in Hong Kong and Macau. The sale completed on December 30, 2017 after several discussions, now sees Al-Futtaim become the new sole franchisee for M&S in Hong Kong and Macau. Al-Futtaim has worked in partnership with M&S since 1998 when the first M&S store was opened in Dubai.
“We have substantially reshaped our international business, which has improved profitability and positioned us for growth. As one of the world’s leading retail operators, with strong logistics capabilities and local expertise, Al-Futtaim is the ideal partner for us to develop and grow our business in Hong Kong and Macau,” said Paul Friston, Marks & Spencer’s international director.
“We are delighted to strengthen our long-term partnership with M&S and expand Al-Futtaim’s international footprint to Hong Kong and Macau. Al-Futtaim looks forward to building on our solid foundations as we continue to enrich our customers’ lives and aspirations through the provision of quality products and services in Hong Kong and Macau,” Stephen Rayfield, vice president M&S and sports & lifestyle division at Al-Futtaim said.
The sale follows M&S’s strategic review of its international business in November 2016, where M&S proposed to have a greater focus on its established franchise and joint venture partnerships and operate with fewer wholly-owned markets.
Al-Futtaim operates 43 M&S stores across seven markets in the Middle East, as well as in Singapore and Malaysia. Most recently Al-Futtaim has extended the reach of M&S’s popular chilled food to three markets, and will shortly be opening the first standalone M&S food store in the Middle East. (RR)
Co-op to open 100 new stores in 2018 as it continues expansion
The Co-op has confirmed plans to open 100 new stores across the UK this year, creating an estimated 1,600 jobs, as part of a continued drive to expand its footprint across the country.
The retailer is spending more than £160m on new store launches, with more than 20 set to open in London, 10 in Wales and 18 in Scotland. The group will also invest in major renovations for around 150 existing outlets.
Elsewhere in the country, stores will be appearing in Blackpool, Bristol, Chesterfield, Crewe, Leicester, Liverpool, Manchester, Nottingham, Plymouth, Southampton and York.
Co-op’s rapid growth campaign comes as rival retailers, including Tesco, Asda and Sainsbury’s, have scaled back plans to open new stores amid worries about shifting consumer habits, with customers increasingly preferring to shop online.
Jo Whitfield, chief executive of Co-op Food, said the chain was “positively responding” to the changes occurring within the dynamic retail sector, with the food business going “from strength to strength in what is clearly a challenging retail market”.
Stuart Hookins, Co-op’s director of portfolio and development, said the expansion plans for 2018 meant that the Co-op was on track to have opened at least 100 new stores in each of three consecutive years.
Discount supermarkets Aldi and Lidl are also rapidly expanding their networks, having filed at least 90 planning applications for new supermarkets in 2017, according to figures compiled by Barbour ABI. By stark comparison, Tesco, Sainsbury’s, Asda and Morrisons had together filed a total of just 11 by October of last year.
In November, the Co-op struck a deal to supply 2,500 Costcutter shops across the UK from spring 2018. The contract win came just two weeks after the Co-op narrowly won approval from Nisa members for its £143m takeover of the convenience chain.
Hamleys opens biggest store on the planet
British toy giant Hamleys has opened its largest worldwide flagship store in Beijing spanning over 115,000sq ft.
The 257-year-old store opened the doors its new location just two days before Christmas, accompanied by an exclusive parade to mark the occasion. The British ambassador Barbara Woodward and Sanpower chairman Yafei Yuan.
Marking its third store in China, Hamleys new store will be located in Beijing’s sought after Wangfujing area alongside the country’s most prestigious shops
It will span five stories and display thousands of toys taking cues from its well tested central London store. Thousands of customers are also expected to visit the room daily.
Hamleys store opening coincides with a population boom in China, with childbirth seeing a 7.6 per cent rise and creating a high demand for toys. This has seen sales volumes of toys and games in China more than triple over since 2011, rising more than 20 per cent every year.
The retailer now trades from 25 countries across the globe including China, Ukraine, India, Russia and Germany.
Gerry Gray, who had held the role of chief executive at Poundworld for almost two years following a long career with Tesco, has resigned and left the business. Steve Johnson, executive chairman, is assuming the role until a permanent appointment can be made.
H&M’s Group newest brand, Arket, is set to open its third store in London next spring as the Swedish retail group continues to roll out its latest store concept.
Set to open in spring, 2018, the store will be located in Westfield Stratford City. The third UK Arket store opening comes after the brand’s debut opening this August. Market opened its first store on Regent Street on August 25 to much fanfare. One month later, Arket opened its second store in London at Covent Garden, at 27-29 Long Acre.
Since the launch of the new retail chain, Arket has opened five stores across Europe, including stores in Germany, Belgium, and Denmark. The next store openings following Arket’s third store in London at Westfield Stratford will be the brand’s first store in the Netherlands, in Amsterdam and Stockholm, Sweden.
Arket aims to be a “modern-day market” for men and women, focusing on minimalistic and timeless wardrobe essentials. An exact opening date for its store in Westfield Stratford has yet to be confirmed.
Primark is set to take a 70,000sq ft store in Westfield London’s new 740,000sq ft expansion that is expected to open next summer.
The store will be the second largest in the shopping centre’s £600 million expansion, after John Lewis’s 230,000sq ft anchor.
After the new extension is opened to the public, Westfield London is expected to become the largest shopping centre in Europe.
“We are delighted to announce that Primark will open in the UK in 2018 at Westfield London,” Westfield UK’s director of leasing Keith Mabbett said.
“The arrival of this much-loved brand will be hugely popular amongst customers as one of the most requested new stores to the centre.
“Primark has attracted millions of visitors to Westfield Stratford City, and the expansion of Westfield London has enabled us to provide large-scale modern retail space for this important retailer.”
Alongside Primark, luxury beauty retailer Space NK has taken an 820sq ft store, lingerie brand Bravissimo will take a 4800sq ft store, and Emperor will open its first 581sq ft UK store.
A number of retailers which currently have a presence in Westfield will expand their footprint thanks to the new extension.
These include H&M, Adidas, Boots, Lush, The White Company, Monsoon, Guess, UGG and Cath Kidston.
Christo Wiese. Photographer: Waldo Swiegers/Bloomberg
South African retail tycoon Christo Wiese dropped from the billionaire ranks earlier on Thursday after the stock of Steinhoff International Holdings, the retail conglomerate where Wiese serves as the chairman, fell 80% in the course of two days. The company’s shares plunged after its CEO, Markus Jooste, resigned due to accounting irregularities, causing Wiese, who debuted on Forbes’ Billionaires list in 2011, to lose more than $3 billion of his net worth. He now sits on a fortune estimated at $742 million, according to Forbes Real Time Rankings.
Wiese made a fortune with his portfolio of publicly traded companies, most of which target rural and low-income areas with reasonable prices for furniture and home goods. “The business has basically been built on one slogan: Low prices you can trust. Just very, very low everyday prices,” the magnate told Forbes in a 2016 profile. Wiese said about Steinhoff: “I suppose we could be described as the Wal-Mart of Africa.”
The 76-year-old retailer also has an 18% stake in the largest retailer in Africa, Shoprite Holdings, which operates supermarkets, furniture stores and fast food outlets in 15 countries across Africa and the Indian Ocean islands. Wiese also owns an estimated 23% of the retail conglomerate, Steinhoff, which had moved its listing in December 2015 from the Johannesburg Stock Exchange to the Frankfurt Stock Exchange to focus on the European market. Steinhoff made up about 90% of Wiese’s net worth until its shares fell by more than 60% on Wednesday, followed by Thursday when the stock took a hit by 46%, erasing $743 million from the South African’s fortune. Wiese had borrowed heavily to purchase shares of Steinhoff; Forbes estimates that he holds about $2.4 billion in debt.
Since he joined the billionaires ranks in 2011 with a net worth of $1.6 billion, Wiese’s fortune fluctuated significantly. Forbes pegged the retail businessman’s fortune at $6.3 billion in March 2015, and two years later, at $5.9 billion, when he was the sixth-richest person in Africa.
Steinhoff released a statement this week, announcing that it has asked accounting firm PwC to investigate the accounting irregularities. As the company deals with the tumult, Wiese will temporarily be the executive chairman, the statement said. Wiese could not be reached for comment.
• News comes ahead of the busy Christmas period, a crucial time for high street
• Stores will remain open during the Christmas period and into the New Year
• In September, the company’s US arm filed for bankruptcy protection
Toys R Us is preparing to shut a quarter of its UK stores, with the loss of hundreds of jobs.
The news comes ahead of the busy Christmas period, a crucial time for high street retailers which have been struggling to compete with online shopping.
The toy retailer, which has been a family favourite since the 1980s, could close at least 25 of its 105 stores.
The grim news comes ahead of the busy Christmas period, a crucial time for high street retailers which have been struggling to compete with online shopping
The company is preparing to launch a process called a company voluntary agreement as early as next week, which will require the approval of 75 per cent of its shareholders.
Toys R Us says its stores will remain open during the Christmas period and into the New Year, but the news paints a desperate picture for the business.
In September, the company’s US arm filed for bankruptcy protection in order to restructure debts of £3.7 billion.
The move was used as a guarantee that the retailer’s suppliers would be paid ahead of Christmas. At the time, the firm insisted that its UK stores were safe.
The toy retailer, which has been a family favourite since the 1980s, could close at least 25 of its 105 stores
Retail analyst Richard Hyman said: ‘The vast majority of UK retailers have too many stores. Many have closure programmes that tend to be modest.
‘When an event triggers a bigger intervention, as with Toys R Us, a more realistic closure plan can emerge and this is what we are seeing here.’
Toys R Us recorded a loss of £500,000 in the year to January. It is understood to have made a loss in seven of the past eight years.
Thomas Cook has announced it plans to close high street branches. PIC: Lewis Stickley/PA Wire
Travel giant Thomas Cook is to close 50 high street shops, putting 400 jobs at risk, just weeks before Christmas.
The closures will affect Thomas Cook and Co-operative Travel branded stores and will take place between now and March 2018.
Thomas Cook said that the affected stores are either in close proximity to other outlets or are located where a decline in footfall has impacted profitability.
A rise in online travel bookings was also flagged as a reason for the closures, with the group saying that just 47% holidays were booked in store this year while online sales in the UK grew by 27%.
Thomas Cook retail and customer experience director Kathryn Darbandi said: “We continually review our network of stores across the UK to make sure we’re offering customers the best of Thomas Cook, and it is clear that to succeed we have to operate as a truly omni-channel business.
“We’re one Thomas Cook to our customers and we will offer them a world-class service whichever channel they chose to book, be that retail or online.”
The announcement caps a torrid week for the high street, with RBS, Lloyds and Yorkshire Building Society all also outlining store closure plans and job cuts.
Last month, Thomas Cook revealed a 40% plunge in UK earnings as it suffered amid “challenging” trading and a hit from the weak pound.
The holiday giant reported underlying earnings of £52 million for the UK division in the year to September 30, down from £86 million the previous year after it was knocked by rising hotel prices, the pound and intense competition in the Spanish market.
It also said its costs were sent surging after facing a torrent of fraudulent illness claims, and after supporting 10,000 customers caught up in the devastating Hurricane Irma.
The group said it has launched action to return its UK division to profitable growth by slashing costs, taking legal action against illness fraudsters and focusing on fast-growing holiday destinations Turkey and Egypt as demand returns to the countries.
Situated on Meadowhall’s High Street, the 4,000 square foot shop was designed by creative agency Dalziel and Pow.
Simon Brown, managing director and founder of Joe Browns, said: “I’m absolutely delighted with the store, I think we’ve achieved what we set out to do, which was to create an impressive three- dimensional version of our catalogue. It crystallises our brand in a physical space perfectly.”
The opening coincides with the conclusion of Meadowhall’s £60 million refurbishment which will be completed before Christmas. Some 73 brands, including All Saints, Hollister, House of Fraser and Hugo Boss, have invested £38 million in redesigning and refitting their stores to reflect the centre’s new contemporary feel.
Richard Crowther, asset manager for British Land, said: “The opening is an exciting step for Joe Browns, and as its very first physical location, is a testament to Meadowhall’s appeal as a leading UK retail and leisure destination. Our True Value of Stores research shows that stores improve brand awareness, customer service and trust and that physical also contributes to online sales that do not directly touch the store.”
Over the last 18 months, Meadowhall has signed up 30 new brands including Flannels, Tag Heuer, Nespresso, Neal’s Yard and Godiva. In September, the centre also secured a resolution to grant planning consent for a £300 million leisure hall extension.
The deal saw private equity owner 3i offload the business for an undisclosed sum, although a price tag of £80 million has been mooted.
Hobbs has become the latest British retailer to fall into South African hands after it was acquired by The Foschini Group.
The deal saw private equity owner 3i offload the fashion company for an undisclosed sum, although a price tag of £80 million has been mooted.
Hobbs, a favourite of the Duchess of Cambridge, has 140 outlets globally, including a concession in Bloomingdales, and booked revenues of £120 million last year.
Royal visit to Norfolk
Foschini, which also owns Phase Eight and Whistles in the UK, said it will look to enhance Hobbs’ online presence.
Foschini chief executive Ben Barnett said: “Hobbs is a strong British brand with rich design heritage. (Hobbs chief executive) Meg Lustman and her team have successfully repositioned and reinvigorated the brand, offering an excellent platform for further growth.
“We share their ambitions, not only in terms of maximising the success of their well-established UK presence, but also in their strategic approach towards leveraging the international appeal of the brand, via their physical store portfolio, carefully aligned concession partners and evolving e-commerce proposition.”
It is the latest in a long line of British retailers to get new owners from South Africa.
Struggling fashion chain New Look is owned by investment group Brait, while Steinhoff is the parent firm of Harveys and Bensons For Beds.
But the deal comes at a difficult time for the high street, with retailers across the board struggling with rising costs and falling consumer confidence as Brexit-fuelled inflation hits the sector hard.
On Tuesday new data from the British Retail Consortium showed that growth in non-food sales hit a record low in October
Premium department store Harvey Nichols has unveiled its Christmas windows for 2017, its largest visual scheme of the year.
For this year’s festive season, the luxury retailer looked for inspiration from the Autumn/Winter 2017 fashion weeks and pre-spring collections, selecting the most vibrant colours to catch customer’s eyes. During the dark winter season, Harvey Nichols opted to design window displays which ‘delight customers’.and help spread ‘a positive message’ during the holiday season by using a vivid colour palette, innovative lighting techniques and an upbeat sentiment.
Harvey Nichols unveils its Christmas Windows for 2017
The result is a series of celebratory window schemes in a rainbow of hues, bold textures and graphic patterns filed with star shapes and Christmas motifs. Harvey Nichols incorporates unique lighting techniques for the first time, such as rotating mirror balls, LED lights and holographic backgrounds. Potential gift ideas are also included in the window display within giant Christmas baubles in a playful, fun manner.
“Themes of joy and positivity ran through the AW17 and SS18 shows, evoking a determination not to dwell on the uncertain times of the current climate,” commented Janet Wardley, Head of Visual Display. “This inspired us to create a high energy scheme that uses dazzling colours, lights and shapes to entertain our customers – some of the vinyls are so bright that the team had to wear sunglasses during the install!”
Harvey Nichols Christmas Windows can now be seen at Harvey Nichols stores across the UK and Ireland.
If plans to transform Oxford into a pedestrianised area go through, the Western section of Oxford Street may well become the ‘world’s best outdoor shopping experience.’ Ambitious plans for the transformation of the shopping district where unveiled today by the Mayor of London, Sadiq Khan and Deputy Leader of Westminster City Council, Cllr Robert Davis.
Depending on approval, the plans, which are currently under public consultation until December 17, include the transformation of Oxford Street and the creation of new, traffic-free public spaces. Plans include all east-west traffic restricted from entering Oxford Street between Orchard Street and Oxford Circus but maintaining the north-south routes through the section.
Plans for the region include new seating areas placed along the street, an 800-meter long work of public art to fit in the former carriageway, which would be level with existing pavements and new and extended taxi ranks close to Oxford Street. Two bus routes will be rerouted to provide connections for locals and visitors and the TfL and Westminister City Council will also consult on creating new high-quality cycle routes along quieter roads to the north and south side of Oxford Street.
“This is a hugely exciting moment for the capital. Oxford Street is world famous with millions of visitors every year, and in just over a year the iconic part of the street west of Oxford Circus could be transformed into a traffic-free pedestrian boulevard,” said Sadiq Khan, Mayor of London. “Whether you’re a local resident, a business, or shop in some of the area’s famous stores, our plans will make the area substantially cleaner and safer for everyone, creating one of the finest public spaces in the world. Alongside the arrival of the Elizabeth Line, the Oxford Street area will be truly transformed over the coming years.”
Asda has hired Carrefour’s former chief merchandising officer Jesús Lorente for a similar role as the Big 4 grocer undergoes a leadership overhaul.
The news comes a week after Asda announced that deputy chief executive Roger Burnley will replace current chief executive Sean Clarke from January 1.
Lorente will succeed Andrew Moore, who is stepping from the chief merchandising officer role in January after almost 10 years with Asda, three of which were in his current role.
Burnley and Lorente will form part of a new executive team that will work to continue the momentum of financial recovery that Clarke has brought about since Asda’s parent company Walmart parachuted him into the role in June 2016.
Lorente has already joined Asda and is in the process of being introduced to the business to ensure a smooth transition.
He first joined French retailer Carrefour in November 2009 as director of supply chain in its Spanish business.
He then chief merchandising officer for the company’s Spanish arm in December 2012 – a role he held until July this year.
Before Carrefour, Lorente’s career spent almost 20 years with Unilever in the UK, Spain and the US.
The 60 second TV commercial is set in a magical Argos distribution centre where a troupe of Argos elves are helping Santa to deliver gifts across the country.
Created by CHI & Partners and directed by Gary Freedman, the advert aims to highlight Argos’s commitment to speedy delivery and its Fast Track same-day delivery service.
The action begins when a child’s long-awaited Christmas present, a Teksta voice-recognition robotic puppy, is found wandering the aisles of the distribution centre by an elf. The quick-thinking elf scans it in at the “elf station” to reveal its intended recipient on-screen whose family’s gifts are departing from gate nine. This leads to a blockbuster-style chase across the distribution centre in which the elf pulls out all the stops to ensure the robotic puppy makes it to the child in time for Christmas.
Argos is also giving three children the opportunity to feature in the advert. From Tuesday 7 November, parents can visit Argos’s Facebook and Twitter channels to submit an image of their child using the hashtag #ReadyForTakeOff. The chosen winners will appear on national TV in the Argos advert for a whole day each on Friday 10, Saturday 11 and Sunday 12 November.
In addition, parents will get a chance to see their child’s face in a personalised social media version of the advert by uploading their child’s photo on the Argos Facebook or Twitter sites.
Gary Kibble, marketing director at Argos, said: “We love this edge-of-your-seat, high-energy Christmas campaign, which aims to surprise and delight across all channels – showcasing Argos’s Fast Track delivery commitment to getting customers what they want, how and when they want it, faster than anyone else.
“We hope our super-swift, stop-at-nothing Argos Christmas elves help us once again to break the traditional retailer advertising mould by adding some excitement, energy and above all speed to the nation’s Christmases this year.”
Kibble said Argos will deliver 1.7 million items and process 27 million in-store transactions over the festive period.
The Argos ‘Ready For Take-Off’ advert forms part of a 360° campaign spanning TV, digital, print and in-store and social media activity.
Cormac Tobin had been with the Celesio group for more than 10 years
Cormac Tobin, managing director of Lloydspharmacy’s parent company Celesio UK, has left the company “with immediate effect”, the multiple has announced.
His departure comes just one week after Mr Tobin – who had been with the Celesio group for more than 10 years – told Lloyds employees that 190 “commercially unviable” branches of the multiple would have to close or be sold.
Celesio UK said the remaining members of its board would manage the business “whilst a successor is sought”.
Brian Tyler, chairman of the management board of McKesson Europe – which owns Celesio – said Mr Tobin had “built a strong leadership team for Celesio UK”, and added “his warm and engaging personality made him many friends across community pharmacy and beyond”.
“I am grateful for the dedication that Cormac has shown over the last few years and his leadership through an ever-changing external environment,” Mr Tyler said.
by The Retail Bulletin
In the three months to 29 October online sales climbed by 13.2% but sales in the retailer’s stores were down 7.7%.
In a statement, Next said the lower clearance rates seen in its summer end-of-season sale this year had continued into the third quarter, both in the mid-season sale and its clearance operation. As a result total sales, including markdown sales, were up 0.8% in the three month period and down 1.2% for the year to date.
Next said its sales performance has remained “extremely volatile” and is highly dependent on the weather. In August and September sales were significantly up on last year as cooler temperatures improved sales of warmer weight stock.
Looking ahead, Next said the volatility was making it difficult to determine any underlying sales trend but added: “We believe the most reliable guide to sales for the balance of the year are the full price sales for the year to date, which are down -0.3%. This number is at the mid-point of the sales guidance we gave in September and so we are maintaining the central profit guidance we issued at that time, albeit we are narrowing the range.”
Next now expects its full year pre-tax profit to be between £692 million and £742 million compared to a previous guidance of £687 million to £747 million.
Hugo Boss has launched its first digital showroom in Berlin, Germany, marking a shift in the company’s strategy.
The German fashion brand presented its Hugo pre-fall collection for 2018 at a pop-up space in Berlin to showcase its digital showroom last week. Via a 65 inch touchscreen, which resembles a table, viewers were able to browse through the entire collection, go through numerous colour and combination options and directly order pieces from the collection.
Specially developed for Hugo Boss, the dedicated application was developed in a short period of time using the ‘scrum method’ – a technique which uses a form of agile project management to enable the rapid visualization of solutions for complex issues within a flexible framework.
The launch of the digital showroom signals a change in Hugo Boss order system – from now on the German fashion brand will no longer prepare complete collections of physical samples for its order phase. The collection, including the entire range of available colours and combinations options, will be offered to customers exclusively in digital form.
Hugo Boss aims to roll out its digital showroom to its global market in 2018 following its launch in Berlin.
by The Retail Bulletin
He will succeed current chief executive Sean Clarke who has held the position since July 2016. In a statement, the company said Clarke will be “taking some time out” but will “remain engaged” with Walmart.
Burnley returned to Asda as chief operating officer and deputy chief executive in October 2016 and at the time was identified as a future chief executive.
Dave Cheesewright, chief executive of Walmart International, said: “Roger was purposefully brought back to Asda to partner with Sean ahead of the transition to Roger taking up the position of CEO. He and Sean have worked as a great team and I’m really confident in Roger’s ability to continue building upon our returning momentum.”
Clarke will remain Asda’s chief executive until 31 December and will work closely with Burnley to ensure a smooth transition.
Cheesewright added: “After more than 21 years with the company, Sean has worked across five international markets including serving as president and CEO of Walmart China and obviously here in the UK too. He’s continually shown the ability to lead critical transformation and the last 15 months are no exception.”
M&S clothing boss leaves weeks after starting new role while John Lewis director quits
A senior boss is leaving M&S’s clothing division
Marks & Spencer’s clothing recovery has been dealt a fresh blow after one of its senior directors quit while John Lewis’s boardroom is facing a reshuffle with the departure of a senior director.
Industry experts said that the departures were fresh signs of the challenges faced by retailers who are struggling to adapt to changing shopping habits in a tough environment.
Tom Athron, who most recently led John Lewis’s new venture business, is leaving, having lost out to Paula Nickolds earlier this year in the race to replace Andy Street.
Mr Athron has been with the partnership since 2005 as head of financial strategy before becoming buying director of Waitrose and finance director of Waitrose. After being overlooked for the John Lewis role the former investment director has been pushing John Lewis’s expansion into home services, such as approved tradesman who visit customers’ homes.
Paula Nickolds is now boss of John Lewis
Friends of Mr Athron said that he had resigned and was now looking for opportunities in digital retail after being pipped to the post by Ms Nickolds.
Meanwhile Jo Jenkins, who was made Marks & Spencer’s director of clothing earlier this month, is leaving to become chief executive of casual fashion chain White Stuff.
Her departure comes less than a month after the arrival of her boss Jill McDonald, who joined Marks & Spencer from Halfords to run its non-food business.
There is speculation that Ms Jenkins had wanted to be in charge of the division, but the retailer felt this would be too much of a leap and M&S wanted to recruit someone from outside the business with a strong operational background, rather than in just buying.
Ms Jenkins is leaving M&S to become CEO of White Stuff
Ms McDonald has no fashion retail experience but her stint running the UK arm of fast food chain McDonald’s is said to have given her a sharp awareness of how to use customer data.
With Ms Jenkins gone, Ms McDonald will be able to have a greater say in shaping her team rather than inheriting one. An M&S insider played down the chances of any disruption to the crucial Christmas trading period and said that festive lines had already been decided by July.
Stemming the steady decline in clothing sales remains a priority for M&S, with chief executive Steve Rowe only recently relinquishing control of the division. Mr Rowe has previously said the retailer gave customers “too many reasons not to shop with us” and has tried to wean the company off a destructive discounting cycle.
He has also set up a panel of retail shareholders who feed into the company on their views in an effort to address customer complaints about ill-fitting clothes, poor quality and excessively young ranges.
The efforts seem to be paying off so far, with M&S reporting a 1.2pc drop in like-for-like sales in the 13 weeks to July 1, compared to the 5.9pc plunge a year earlier.
Ms Jenkins, who has a six-month notice period, started at M&S as a range selector in 1987 before spending 15 years at rival Next. She returned in 2013 as director of lingerie and beauty, before taking responsibility for womenswear two years later.
“We’re delighted for Jo – she’s been a real talent here at M&S, which is reflected in the progress she has made both professionally and for the business,” the retailer said.
“Becoming chief executive at a company like White Stuff is a natural next step for her. We wish her all the very best with her new role.”
Privately owned White Stuff has 131 shops and 53 concessions, and turned over £153.6m last year. Ms Jenkins will replace Jeremy Seigal, formerly CEO of Superdrug-owner AS Watson UK, who announced his intention to stand down in July.
M&S stock dipped 0.6pc in morning trade but recouped its losses and was trading flat at 344.50p by early
He will join the audit and remuneration committees and will become chairman of the audit committee in January 2018 when Mark Rolfe steps down from the Debenhams board.
With 30 years retail experience, Adams is a former finance director and deputy chief executive of House of Fraser and has also been chairman of Jessops and Moss Bros and a non-executive director at HMV.
He is currently chairman of Conviviality and a non-executive director at Halfords.
Sir Ian Cheshire, chairman of Debenhams, said: “We are delighted to welcome David Adams to Debenhams. He has had a long and distinguished career in the retail and consumer goods industries. His knowledge of the consumer and leisure sectors as well as his financial credentials will be a great addition to the board.”
Marc Jacobs opens first online flagship store in China
Oct 18, 2017
Marc Jacobs has recently launched first online flagship store in China with Viplux, the flagship luxury channel for international luxury and premium brands on vip.com. The Marc Jacobs China-based online flagship is offering its hip hop-inspired fall 2017 collection to 300 million vip.com members.
Marc Jacobs chose Viplux as its partner due to Viplux’s dedication to creating end-to-end, high-end shopping experiences.
“The cooperation between Viplux and Marc Jacobs is a testament to Viplux’s expertise in understanding how to “become one” with the spirit of the specific brand, and to match that with market growth,” said vip.com co-founder, Arthur Hong.
Vip.com launched in 2008 its first foray into the luxury brands e-commerce field with Viplux. Marc Jacobs is among several fashion labels to open flagship stores on Viplux, including Armani, Versace, Salvatore Ferragamo, Diesel, Roberto Cavalli, Sergio Rossi and Trussardi.
Womenswear brand Galvan is set to open its debut retail concept, which will comprise of a showroom, bridal atelier, office, and archive space for the independent label.
Located at Clarendon Cross, Notting Hill, the studio will allow customer to purchase current collection, pre-order from next collection, as well as place orders from Galvan’s archive of previous collections, ahead of the service being launched online next year.
The studio will also be a bridal atelier for its upcoming bridal collection, which will offer “effortless, timeless and clean” options for all kinds of weddings from civil ceremony to late night party to daytime brunch, the brand states on its website, as well as looks for bridesmaids.
“Our philosophy is to put the customer at the core of everything we do, and to make the shopping experience as easy as possible,” said Paul O’Regan, chief executive officer at Galvan. “Galvan Studios provide the antidote to anonymous shopping. Intimate and transparent, these are spaces which give customers insight into the brand and its vision. We are excited to offer a suite of services that truly address the shopping desires and habits of our London customers.”
In addition, the studio can assist with complimentary fittings for online purchases, as well as offer free home delivery for any purchases made in the studio. Additional services launching includes complimentary fittings at home for up to 8 garments, with purchases only being charge after fitting.
London-label Galvan opens ‘studio’ retail concept
The womenswear label known its eveningwear as worn by A-list stars including Emma Watson and Rosie Huntington-Whiteley, has also confirmed that has plans to open further studios in New York and Los Angeles.
London-based Galvan launched in 2014 by four women from the worlds of fashion and contemporary art, Anna-Christin Haas, Sola Harrison, Carolyn Hodler, and Katherine Holmgren.
The contemporary label is stocked globally including Harvey Nichols, Selfridges, Saks Fifth Avenue, Neiman Marcus, Opening Ceremony, Bergdorf Goodman, Elyse Walker, Boutique 1, Avenue 32 and Moda Operandi, as well as online at matchesfashion.com and Net-a-Porter.
Sainsbury Cuts Jobs as Brexit Puts Online Retailers Off U.K.
The U.K. retail industry’s Brexit-linked turmoil deepened as J Sainsbury Plc said it would cut as many as 2,000 jobs, Zalando SE said the market is losing attractiveness and rival online fashion site Asos Plc discussed contingency plans.
Sainsbury’s move follows Tesco Plc, which announced 1,200 head-office job cuts in June. Asos, which sells clothing and accessories online, said Tuesday it may handle more of its distribution activities out of Germany if the U.K. falls out of the European customs union. That could put a damper on growth prospects for its 4,000-employee warehouse in Barnsley, England (a town where 68 percent of voters favored Brexit), although the company is continuing to invest in the site for now.
Brexit is heaping more upheaval on an already embattled industry. The country’s grocers have been grappling with discount rivals and higher staffing costs, while fashion retailers struggle against consumers’ preference to spend their disposable income on leisure activities rather than clothing.
The pound’s decline since the Brexit vote has pushed up sourcing costs: U.K. inflation climbed to its highest rate in more than five years in September, led by food and transport. And the risk of the U.K. falling out of the customs union leaves retailers wondering how they will be able to stock their shelves amid backlogs at ports.
Zalando, a German online clothing retailer that’s Europe’s biggest response so far to Amazon.com Inc., said Wednesday that Britain’s decision to leave the European Union is weighing on the market’s prospects.
“We would like to ramp up investments in our U.K. business, but Brexit is posing a problem,” Zalando Co-Chief Executive Officer Rubin Ritter said in a phone interview. “If the new regime limits the flow of goods, it would be a challenge.”
Sainsbury said 1,400 payroll and administrative jobs in its supermarket business may be made obsolete by the introduction of a new information-technology system. It will also ax as many as 600 further human-resources roles due to a restructuring that will consolidate activities among Sainsbury’s supermarkets, home-goods and electronics seller Argos and Sainsbury’s Bank.
Asos on Tuesday reported sales growth in the U.K. decelerated to 16 percent, making it the company’s worst-performing region. That pales in comparison with the 47 percent spurt in its international business. Asos now gets almost two-thirds of its 1.88 billion pounds ($2.49 billion) in annual retail sales outside its home country.
Sainsbury’s latest round of cuts is the largest single amount the grocer has made under Chief Executive Officer Mike Coupe. The London-based retailer is in the final year of its three-year plan to slash costs by 500 million pounds and has said a new three-year plan to cut 500 million pounds of costs will begin next year.
Lifestyle retailer Fat Face will extend its closing times during the festive break and plans to shut 40 stores on Boxing Day, Drapers has learned.
The Boxing Day closures, which take place on the same day its winter Sale period starts, are four times greater than last year’s pilot, when 10 shops shut on the day. The exact store locations are expected to be confirmed next week.
Fat Face boss Anthony Thompson told Drapers it is also closing stores at 2pm on Christmas Eve to prepare for its Sale period, marking the first time the retailer will shut its doors earlier than its high street rivals.
Meanwhile, 210 of Fat Face’s 222 UK stores will close on New Year’s Day. Thompson said that although it has closed some stores on 1 January in previous years, it has “not been done on such scale” before.
The retailer outlined its plans to staff in an internal conference last week.
Thompson said: “We are preparing to go into the season at full price, as we believe customers want price integrity at Christmas.
“Family and price integrity are very important issues to us. We’re taking the opportunity to give time back to both our customers and our teams to spend with their families, as well as reassuring customers they can buy from us with confidence, and get real value with their purchases.”
The retailer has also vowed not to slash prices during discounting extravaganza Black Friday (24 November) and in the lead-up to Christmas again this year.
If any of the retailer’s prices change in the period from 15 November to 23 December, it has said it will refund the difference for customers.
It emerged in January that Fat Face’s stance against discounting before Christmas delivered 7.9% growth on full-price sales for the 54 days to 24 December 2016, compared with the same period in the previous year.
The retailer said in January that it had a record week of full-price sales in the week to Christmas Eve, and had 22% less inventory going into Sale than 2015.
Fat Face also operates six stores in the US, bringing total store count to 228. These will remain open on Boxing Day and New Year’s Day.
Topshop and Topman New Zealand to close stores
Topshop and Topman New Zealand are closing its Auckland and Wellington store after a failed attempt to find a buyer for the fast-fashion retailer.
Topshop and Topman is operated by Top Retail in New Zealand, with the firm entering voluntary administration in early September on the back of consecutive losses.
The UK-based retailer came to New Zealand in 2014, with Kiwi clothing firm Barkers, Christchurch property investor Philip Carter and fashion designer Karen Walker taking the rights to own, develop and operate the brand locally.
Topman/Topshop opened on Auckland’s Queen Street and on Wellington’s Lambton Quay, with plans to add two more stores as well as an online store by the end of the year 2017.
Conor McElhinney and Kare Johnstone of McGrathNicol said in a statement that “after conducting a detailed assessment of the business and following conclusion of a sale process for the business and assets in whole or in part”, the stores would close after 1 October 2017, but could close earlier if they run out of stock, according to local media.
“It is with regret that we have had to inform staff today that the business is unable to continue trading and that Topshop and Topman will no longer have a presence in New Zealand from Sunday,” the receivers said.
“We would like to thank the directors of Top Retail for their support, which has enabled gift cards to be redeemed during the receivership trading period, and staff for their commitment since our appointment.”
Topshop’s Australian arm was put into receivership in May 2017.
(Photo by Peter Macdiarmid/Getty Images)
Primark fans, take a deep breath, because we’ve got some amazing news for you.
Primark is set to open a brand new store – and it’s going to be bigger and better than ever. The biggest in the UK, in actual fact.
The new store, which is going to be inside centre:mk shopping complex in Milton Keynes, Buckinghamshire, will be opening its doors to customers next year.
The store is going to be spread across 75,000 square feet and will feature every single item in the Primark range.
We can’t cope.
Of course, we’re sad that the store is only opening in Milton Keynes – we’d like to have a gigantic Primark everywhere we go.
But apparently, it’s come in response to lots of requests by shoppers who were asked where they would most like to do a bit of Primark shopping.
Kevin Duffy, centre manager of centre:mk, is excited about adding the Primark store to the shopping complex.
He said: ‘We are thrilled to announce that Primark will be joining our fantastic selection of fashion and beauty brands at centre:mk next year.
‘Primark is a firm fashion favourite, and so we look forward to attracting more visitors by expanding the centre’s fashion retail mix.’
Currently, we’re unsure of when the store will be opening and how many floors it’s going to include.
So right now, we’re just going to have to sit back, attempt to relax, and pray that there’s going to be an entire section dedicated to Primark’s false nails
Primark takes biggest letting in 25 years at Centre:MK
Primark is set to take over the former BHS store at Centre:MK in Milton Keynes, marking the shopping centre’s largest letting in quarter of a century.
The discount fashion retailer has penned a deal to move into the 75,000sq ft space, a year after BHS vacated the premises.
Of the 160 BHS stores which now stand vacant, only around 40 per cent have been filled as demand for large retail spaces falters.
Brands like Primark and Sports Direct have taken around 25 of the 160, while a further 35 have planning permission or have secured tenants for the near future.
The space will see the former BHS location on Silbury Arcade extended and is set to be handed over to Primark for fitting next year.
Over £60 million has recently been earmarked for investment in the shopping centre in what is being dubbed the “re-imagining an icon strategy”.
Joint owners Hermes Investment Management and AustralianSuper said the letting was a milestone in their rejuvenation strategy, following repeated visitor surveys highlighting Primark as the most requested brand.
British department store chain House of Fraser half-year earnings fell to an 8.6 million pound loss for the 26 weeks to July 29, 2017, down significantly from its EBITDA profit of 900,000 pounds for H1 2016.
House of Fraser’s like-for-like sales and profits for the first half of the year dropped after being heavily disrupted by HoF’s new online platform launch and “significant discounting” of its in-house womenswear labels. Like-for-like sales fell 5.2 percent compared to 2016 and online sales dropped 9.8 percent during the 26 week period following the roll-out of House of Fraser’s 25 million pounds revamped online store in April. Gross profit slipped 5 percent from 207.2 million pounds in H1 2016 to 196.9 million pounds in H1 2017 as HoF cut prices to move old stock.
HoF sees 5 percent decline in profits for H1 2017
However, in spite of the sales and profits hit HoF remains upbeat about achieving growth in its final quarter, as the impacts caused by its new online platform and womenswear ranges were mainly over. House of Fraser’s new ecommerce system is said to be “working well” as “good progress” has been made to recover sale volumes. The department store group announced that it aims to be trading normally by the beginning of its final quarter in its trading update.
HoF also announced that it has completed the launch of its new womenswear in-house labels, which saw five existing womenswear brands dropped and the remaining four relaunched for AW17. The new collections have been “well received” so far, with “initial revenues” exceeding expectations” added the company. In addition, HoF also began its 18 million pound investment scheme in its distribution centre to increase capacity, drive operational efficiencies and improve profitability during the first half of the year.
The department store chain predicts this investment will deliver 5 million pounds of efficiency savings during the second half of the year, increasing to a run rate benefit of 15 million pounds of efficiency savings by the time the project is completed by mid-2018. House of Fraser also opened its first new store in the UK in nine years time during the first half go 2017. Located in Rushden Lakes, the store opened its doors on August 24. HoF also closed a loss-making store in Leicester and aims to shut an additional location in Aylesbury.
“My observations after a few weeks are that since Sanpower acquired the business in 2014 the primary focus has been on stabilising an enterprise that had been starved of investment for many years,” said Alex Williamson, CEO of House of Fraser. “Whether it be refinancing the business, the investment of over 100 million pounds in capital expenditure since the acquisition or a root-and-branch upgrade of the executive team, much has already been done to prepare us for significant transformation.”
“House of Fraser has much to be optimistic about. This is just the start of our journey with several other projects designed to provide additional sales and costs savings as part of the overall Transformation Programme due to commence shortly. I am excited about what lies ahead for the business and I am optimistic for the future. With the support of Sanpower, we are building the right foundations that position us well to deliver on our ambitions for sustainable profit growth.”
Fat Face has promoted four of its senior staff to director level as part of an ongoing investment drive to improve its products and ecommerce divisions.
Emma Shaw has been promoted from head of design to design director, while Kate Brown was promoted from head of buying and quality to buying and quality director.
Shaw and Brown have been with the lifestyle and fashion retailer since 2011 and 2014 respectively.
Meanwhile, Nick Stevenson has been promoted from head of merchandising and sourcing to director of the same area, and Paul Wright has been promoted from head of ecommerce to ecommerce director.
Both Stevenson and Wright have been with Fat Face since 2011.
Fat Face chief executive Anthony Thompson: “I always think that internal promotions are a reflection of the talent in any organisation, and I am delighted for Emma, Kate, Nick and Paul.
“This announcement also reflects our determination to continue to invest in product and develop a truly multichannel business.”
half-year earnings sunk to an £8.6m loss
Profits at House of Fraser have come under strain after the launch of a new web platform and “significant discounting” took its toll on the retailer.
The department store chain said half-year earnings sunk to an £8.6m (€9.7m) loss, down from a £900,000 profit in 2016, as website sales suffered from the roll-out of a £25m online sales platform.
Gross profits also slipped 5pc to £196.9m over the period, as the group slashed prices on old stock to pave the way for a new womenswear brand.
Gross transaction value hit £545.8m, with like-for-like sales dropping 5.2pc compared to last year.
However, the retailer said it was optimistic about delivering growth in the final quarter, as the impacts of launching the new online platform and womenswear range were largely behind it.
Chief executive Alex Williamson, who joined the firm earlier this year, said: “My observations after a few weeks are that since Sanpower acquired the business in 2014 the primary focus has been on stabilising an enterprise that had been starved of investment for many years.
“Whether it be refinancing the business, the investment of over £100m in capital expenditure since the acquisition or a root and branch upgrade of the executive team, much has already been done to prepare us for significant transformation.
“And House of Fraser has much to be optimistic about.
“Our new House Brand Womenswear collections for autumn/winter have been launched and our customers’ response to date has been very encouraging.
“Our new web platform greatly improves our customers’ experience and online margins whilst our investment in the distribution centre will deliver cost savings through improved operational efficiencies.”
House of Fraser, which employs 5,000 people and has 59 department stores in the UK and Ireland, opened its first store for nine years in August at Rushden Lakes in Northamptonshire.
Online sales at BHS grow 35% thanks to new start-up mentality.
The MD of BHS.com has revealed sales at the online retailer have increased by over a third in Q2.
Speaking to the Press Association, BHS.com MD Kevan Mallinder said sales grew 35%, bolstered by its womenswear clothing range which increased 350% over the period.
He told the Press Association: “Because we are privately owned by the Al Mana Group, they want to see the business succeed over the long term, which brings a different aspect to the decisions.”
Mallinder was bought in to direct the e-tailer six months ago, coming from food delivery firm Abel & Cole.
The much-loved British brand, BHS, entered administration in April 2016 leading to the loss of 11,000 jobs. An ongoing enquiry is investigating the controversy surrounding the retailer’s pension deficit.
Following the openings of Arket and Weekday on London’s Regent Street in August, parent company H&M has announced plans to open two new Monki stores, one at Westfield Stratford and the other at Buchanan Galleries in Glasgow. Both stores will adopt the Monki World concept, leading customers into an imaginery universe that has inspired 115 stores.
With fitting rooms decorated across a spectrum of rainbow colours, Sea of Scallops tables, shimmering features and exclusive Monki World facade, the new stores will offer the full storytelling experience.
Although technically the Swedish fashion brand’s debut in the Scottish market, the 480 sq m Glasgow store will cater to an existing fan base that already gets its fashion fix online.
The 370 sq m Westfield Stratford store will mark Monki’s third retail space in England, alongside its Carnaby Street and Bristol stores.
McDonald’s workers are staging their first UK strike since the US burger chain opened in Britain over forty years ago, amid a heated row over zero-hours contracts and claims of workplace bullying.
The 24 hour strike began at midnight at two outlets owned by the fast food giant which has been selling its burgers to Britons since 1974.
The Baker’s, Food and Allies Workers Union (BFAWU) said the staff had been left no alternative but to take “the historic step” after McDonald’s management failed to meet calls for better job security by ending controversial zero-hours contracts.
<img class=”responsive article-body-image-image” src=”/content/dam/business/2016/02/18/McDonalds_Burger_E_3299494b_trans_NvBQzQNjv4BqpJliwavx4coWFCaEkEsb3kvxIt-lGGWCWqwLa_RXJU8.jpg?imwidth=480″ alt=”Burger”>
Credit: Fir Mamat/Alamy
The fast food workers in Crayford, near Dartford, and Cambridge are not officially unionised but are being represented by the BFAWU on this matter. The union’s ballot found 95.7pc in favour of strike.
“Despite all the attempts to change McDonald’s approach and help them become a fairer employer, nothing has been done on their side. Nothing has changed. Empty promises have been made. Yet nothing has been delivered,” said Ian Hodson, national leader of the BFAWU.
The staff are calling for pay to be increased to £10 an hour, up from the minimum wage of £7.50 for staff aged 25 and above. BFAWU said the fight for higher wages follows a campaign in the US, where staff are fighting for $15 an hour.
McDonald’s, which employs about 85,000 people in the UK, said it gave its staff the choice of flexible or fixed contracts with minimum guaranteed hours, but 86pc chose to stay on flexible contracts.
A spokesman for the fast food giant said the grievance is related solely to internal procedures and would affect less than 0.01pc of its workforce across just two of its 1,270 UK restaurants.
“McDonald’s UK and its franchisees have delivered three pay rises since April 2016, this has increased the average hourly pay rate by 15pc,” the spokesman added.
Mr Hobson said the voice against low pay “will not go away”.
“There is growing global movement calling for the fair and decent treatment of workers. In the US for example, the Service Employees International Union have shown the importance of collective action – with their ‘Fight for $15’ campaign having seen more than 10 million workers move towards a $15 minimum wage, and with 20 million workers in total having won wage increases since 2012,” he said.
“Hopefully, senior figures at McDonald’s will be listening,” he added.
The ew store is part of the first phase of The Knightsbridge Estate K1 development (1, Sloane Street) and will see Burberry relocating its local flagship from nearby Brompton Road where it currently trades from twin men’s and women’s shops. The new move to a site not far from Harvey Nichols will give it the chance to consolidate all men’s and women’s product into one flagship location on four floors and covering an area of over 15,000 sq ft.
The fashion brand and the property company have worked together before with Chelsfield having been responsible for the label’s Bond Street flagship back in 2005.
Despite a raft of openings in recent years, Burberry is carefully targeting its investment at present and only recently scrapped plans to revive the Temple Works mill in Leeds as well as delaying a decision about building a new factory on a neighbouring site. It is also reported to be looking at its London offices with a view to cutting costs.
But the brand is clearly still investing where it can see major returns. It has invested heavily refining its product offer, adding new star bags that appear to be making a major impact on its balance sheet. And it has licensed its beauty ops to specialist Coty, as well as opening a China-specific website.
The new Knightsbridge store is part of this very focused strategy with the area being a key beneficiary of the booming luxury tourist trade in London.
Burberry new store London at 1 Sloane Street
British handbag and accessories brand Radley is set to return to the American market, following its withdrawal six years ago, after signing an exclusive deal with US department store chain Macy’s.
The deal, will see Radley opening concessions in 100 Macy’s stores by Christmas, with as many as 300 possible within the next 12 months, as the handbag brand attempts to crack the US market, according to reports in The Times.
“It was poorly thought through and the execution was even worse,” chief executive Justin Stead said in an interview with The Times. “This time around we’re going back with a very well thought through plan. I think it’s going to pay huge dividends.”
The move follows the private equity-backed company selling its products on TV shopping channel QVC, which was declared a success as Stead told the newspaper that during its hour-long show it sold out of its 750,000 dollars of product in just 30 minutes.
Acquired by private equity house Bregal Freshstream last year, it said at the time it saw “significant potential” in expanding Radley to the international market.
Radley was founded in 1998 and has around 32 standalone UK stores, it is also sold in John Lewis, House of Fraser and other department stores and independent retailers, as well as via its website.
Poundland given one of the biggest ever retail food safety fines as mouse droppings found on baby clothes
The discount chain had to close one of its busiest stores when evidence of mouse droppings and urine were found on food shelves alongside gnawed and soiled packets of biscuits, nuts, sweets and popcorn
Poundland has been fined one of the biggest ever retail food safety fines (Image: PA)
A mouse infestation – with droppings found on baby clothes – has landed Poundland with one of the biggest ever retail food safety fines.
The discount chain had to close one of its busiest stores when evidence of mouse droppings and urine were found on food shelves alongside gnawed and soiled packets of biscuits, nuts, sweets and popcorn.
The problem, at the shop in Wandsworth, London, was deemed to be a widespread and uncontrolled rodent infestation by health inspectors.
Droppings were found throughout the store and the behind-the-scenes storage areas of the discount store, including on baby clothes.
The retail giant is now counting the cost of ignoring the major mouse infestation at its store in Wandsworth, London, after being hit by magistrates with what is believed to be one of the country’s heaviest ever retail food safety fines.
The problem was found to be widespread (Image: EyeEm)
The company copped the whopping fine after a court heard the London shop had to be closed using emergency powers in January last year after food safety inspectors uncovered the infestation.
Cllr Jonathan Cook, community safety spokesman, said: “This was a very serious rodent infestation in a busy and popular retailer so there was a very real and significant risk to public health.
“When our inspectors uncovered the scale of the problem they had absolutely no option other than use their emergency powers to order the entire store’s immediate closure.
“It was not permitted to reopen until the company was able to prove it had dealt with the problems and taken adequate steps to prevent it happening again.
“This episode showed a complete lack of regard for customer’s health and welfare and is reflected in the very substantial fine imposed on the company by the court .
“Food retail businesses must ensure that they do not jeopardise public health in any way if they don’t want to suffer a similar fate.”
Wimbledon magistrates court heard that Poundland Limited had been previously prosecuted on three occasions for similar outbreaks at other stories, including a £73,000 fine at Birmingham crown court, a £12,000 fine at Highbury Corner magistrates’ court and a £33,000 fine at Luton magistrates’ court.
In this case Poundland Limited pleaded guilty to four offences and in addition to the £100,000 fine the company was also ordered to pay £12,368 towards Wandsworth Council’s costs in bringing the case to court, reports the Daily Record .
The chief executive of New Look is to step down just over two years after his turnaround of the high street fashion chain paved the way for its £2bn sale.
Sky News has learnt that Anders Kristiansen is to leave the company, which is majority-owned by South African investor Brait, in the coming weeks.
His departure is expected to be announced on Friday, according to a person close to New Look.
Mr Kristiansen, who previously ran a major Danish retailer’s huge Chinese operations and also held a senior job at Staples, the office supplies group, is expected to move to an undisclosed role elsewhere in the coming months.
His nearly-five year tenure at the company was characterised by significant expansion of its store network in China, where New Look is targeting 500 shops over the next few years, and the stellar growth of its digital business into the UK’s third-largest online fashion brand.
He has also presided over a recent shake-up of his executive team, recruiting Paula Dumont Lopez from Zara-owner Inditex to sharpen its product offering.
Brait’s takeover of New Look in 2015 cemented the presence in the UK retail and leisure sectors of South Africa’s Wiese family, which also has interests in chains such as Iceland and Virgin Active.
News of the change in leadership at New Look will nevertheless come during a challenging period for the mid-market clothing retailer and many other British fashion retailers hit by weakening consumer spending and the weakness of sterling.
Earlier this month, New Look reported a 7.5% fall in UK like-for-like sales in the quarter to June 24, with underlying operating profit declining sharply to just over £12m.
Mr Kristiansen is expected to be replaced temporarily by Danny Barrasso, New Look’s UK and Ireland managing director, while its board hunts a permanent successor.
The company now trades from nearly 600 outlets in the UK and almost 300 more in international markets – including more than 125 in China.
Announcing the results this month, Mr Kristiansen described the UK as a “difficult” market, saying: “As expected, the UK market has remained difficult, which has resulted in a disappointing quarter of trading.
“We have managed the business accordingly by controlling costs, tactical investment in our strategic initiatives and enhancing our product proposition.
“We remain committed to our long-term strategy of diversifying the business and reducing our dependence on the UK high street, and are confident that we will see improvements, but expect these to take time.”
Mr Kristiansen, who has in recent weeks been a vocal advocate for improved clothing factory conditions in the UK, could not be reached for comment on Thursday night.
A New Look spokeswoman declined to comment.
Arcadia, which owned BHS until it was sold to Dominic Chappell-led consortium, reaches deal with store’s liquidators
Sir Philip Green’s Arcadia retail empire has agreed to pay £30m to unsecured creditors of BHS following the collapse of the department store chain with the loss of 11,000 jobs.
Arcadia, which owned BHS until it was sold to a consortium led by Dominic Chappell for £1 in 2015, on Friday agreed the deal with BHS’s liquidators, FRP Advisory, which will drop legal action filed against Green’s company.
A spokesman for FRP said: “The liquidators of SHB Realisations, formerly BHS, reached an agreement with Arcadia Group in relation to a number of matters, including Arcadia’s floating charge dated 14 April 2015.
“We can confirm that as part of the agreement, over £30m was released from reserves held in relation to Arcadia’s secured claim into the monies available for BHS unsecured creditors and the floating charge is to be released.”
The settlement avoids the prospect of the retail billionaire fighting a lengthy legal battle over the demise of BHS.
Green avoided another legal battle with the pension regulator by agreeing to pay £363m to rescue the BHS pension scheme.
Chappell is to be prosecuted by the pensions watchdog for failing to provide information for an investigation into its sale.
Chappell headed Retail Acquisitions, the company that acquired BHS. A year later, it collapsed with the loss of 11,000 jobs and a pension deficit of £571m.
The Pensions Regulator is prosecuting Chappell for failing to comply with three notices for information issued under section 72 of the Pensions Act 2004. Failure to provide such information without a reasonable excuse is a criminal offence that can result in a fine.
Green, who was pictured on Instagram spraying bottles of champagne among women in bikinis, also on Friday announced a deal to buy four franchise-run Topshop stores in Australia which collapsed into administration in May.
Tiffany reported its financial results for the three months (“second quarter”) and six months (“first half”) ended July 31, 2017. In both periods, modest net sales increases and improved operating margins contributed to growth in diluted earnings per share.
In the second quarter: Worldwide net sales increased 3% to $960 million, while comparable store sales declined 2%. Management noted an increase in wholesale sales of diamonds, increased wholesale sales in the AsiaPacific region and strong e-commerce sales growth. Overall, growth in fashion and designer jewelry sales contrasted with softness in other jewelry categories. Net earnings rose 9% to $115 million, or $0.92 per diluted share, from $106 million, or $0.84 per diluted share in the prior year.
In the first half: Worldwide net sales of $1.9 billion were 2% higher than the prior year, while comparable store sales were 2% below the prior year, due to similar trends as noted above. Net earnings rose 8% to $208 million, or $1.66 per diluted share, from $193 million, or $1.53 per diluted share, a year ago.
The head of retail for Gant’s UK and Irish arm has resigned after almost five years in the position.
Darren Whelpton-Smith has moved on to rugby leisurewear brand Raging Bull as its head of retail, wholesale and ecommerce.
Whelpton-Smith is a former area manager for fashion chains Levi’s and Republic, and his last role before Gant was working as Fat Face’s area manager for nothern England for four years.
He joined Gant in 2012, and under his leadership he oversaw the opening of the brand’s new global flagship on Regent Street in London less than 12 months ago.
Meanwhile, Raging Bull was founded by former England rugby union player Phil Vickery and its collections are primarily sold through department stores and via its own website.
Dominic Chappell, the former BHS owner, is to be prosecuted by The Pensions Regulator for failing to provide information to an investigation into the sale of the collapsed retailer.
Mr Chappell headed up Retail Acquisitions, the company that acquired BHS for £1 from billionaire Sir Philip Green in 2015.
The TPR said it is prosecuting Mr Chappell for failing to comply with three notices issued under Section 72 of the Pensions Act 2004.
Sir Philip Green sold BHS to Chappell in 2015 for just £1 (PA)
The notices were issued to Mr Chappell on April 26 2016, May 13 2016 and February 20 2017, it added.
Mr Chappell has been summonsed to appear at Brighton Magistrates’ Court on September 20 2017 to face three charges of neglecting or refusing to provide information and documents without a reasonable excuse.
BHS plunged into administration last year, impacting 11,000 jobs and around 19,000 pension holders, leaving a £571 million pension deficit.
BHS went into administration last year (Lauren Hurley/PA)
The Pensions Regulator has pledged to flex its muscles recently, saying in July that it “will not hesitate” to prosecute companies or individuals if they refuse to hand over information.
After a drawn-out saga that included a parliamentary inquiry and public outcry over both Mr Chappell’s and Sir Philip’s conduct, the Topshop tycoon agreed to pay £363 million to settle the BHS pension scheme in February.
Under Mr Chappell’s tenure as owner of BHS, £8.4 million was taken out of the chain by Retail Acquisitions, with £6 million still owed when it collapsed last year.
Retail Acquisitions was put into liquidation in May although Mr Chappell, a former bankrupt, said at the time he would challenge the court ruling.
Our most recent UK Customer Satisfaction Index (UKCSI) reveals striking evidence that customers hold the power when it comes to business performance.
The index reveals Aldi as the highest performing supermarket for customer satisfaction, overtaking heritage brands M&S and Waitrose, while also making the largest gains in sales and market share.
The three supermarkets with the lowest customer service levels – Tesco, Asda and Co-Op Food – all saw small drops in market share. Our analysis finds food retailers with satisfied customers saw a sales growth of 10.7 per cent, compared to only 1.8 per cent for those with satisfaction falling below average. Indeed, in each of the last 11 UKCSI reports, we have consistently seen that, on average, supermarkets with the highest customer satisfaction outperform the sector for sales and market share. Customer service is a clear driving force behind those who reaped the benefits of this sector growth – and a clear issue for those who were left behind.
Retailers would do well to take note. Indeed, wider analysis from the Institute of Customer Service presents a clear correlation between customer satisfaction and business performance. It shows, for example, that in 60 per cent of cases, when customer satisfaction increases or decreases, share price follows suit. Ignoring this places organisations at risk of huge potential loss.
The UKCSI suggests that not only is Aldi satisfying its current customers and securing the repeat custom which comes with this success, but the retailer is also increasing market share through customer recommendation. In addition, the effort customers are having to make to get what they want is lower for customers of Aldi than both heritage brands – meaning that their customers are experiencing a more seamless customer experience.
The prospect of inflation rising faster than incomes may well lead to more exacting demands over both price and service, so it is also interesting to note that Aldi significantly outperforms the sector as a whole in two key areas: satisfaction with price and complaint handling. It does seem that if food prices continue to rise, Aldi appears well placed to satisfy the needs of price-conscious customers whilst widening its appeal to broader segments for whom service and the overall experience is a key concern. I hope other retailers recognise this – customer satisfaction is a crucial differentiator and the realigned expectations of consumers must be met, particularly in an environment where competition is so fierce.
For those supermarkets who recognise that there needs to be a step change in their approach and a commitment to the customer service agenda, our recommendations are as follows:
• Get it “right first time”
Making the customer journey even easier, straightforward and intuitive and maintaining a high focus on getting it “right first time” is essential to convert customer satisfaction to stronger loyalty and recommendation.
• Prevent problems
Organisations must focus on preventing problems at their source in key areas such as the availability, quality and reliability of goods and services, which account for the largest proportion of problems.
• Maintain relentless focus on complaint handling
Dealing with complaints quickly and effectively is crucial. Key expectations of staff include listening carefully, showing understanding of the problem, taking responsibility and following up complaints.
• Develop engaged, competent people
Employees’ attitudes and competence are amongst the most important attributes of the retail customer experience. Investing in employees’ knowledge, emotional intelligence and problem-solving skills is therefore central to improving customer service. Organisations should commit to employee engagement, training and development as proactive, ongoing business strategies.
It may seem obvious that customers are key to business performance, but service too often falls by the wayside in boardroom conversations. Our research offers a clear imperative: retailers should place the customer at the centre of their business strategy, or risk losing out to those who do.
The athleisure trend sweeping the UK is predicted to drive the sportswear market’s value to £2.5 billion in 2017.
According to a new report from GlobalData, sports clothing has jumped eight per cent year-on-year as retailers rush to cash in on the trend and release their own athleisure ranges.
This is nearly four times the growth of the total UK clothing market, which rose 2.1 per cent.
The trend has seen a resurgence in brands like Kappa and Ellesse, while more contemporary retail giants like Boohoo, Topshop, New Look and H&M have released their own ranges in an effort to establish a foothold against sportswear specialists.
The popularity of athleisure fashion has been largely driven by the wellness trend, according to GlobalData’s retail analysts Fiona Paton.
“The health & wellbeing trend, influence of high profile fitness bloggers and continued investment from the government in initiatives such as improving cycle routes will increase consumer participation in sport and exercise – providing retailers with a larger, more varied activewear customer base,” she said.
“Sales growth in athleisure is set to peak in 2017 but it will remain a very popular category over the next five years, outperforming total clothing.
“As fashion retailers such as New Look, Primark and ASOS invest in affordable, trend-led own brand sportswear ranges, female shoppers have access to more choice, will spend more on impulse and will purchase athleisure pieces in replacement of core casualwear items.
“GlobalData believes non-sports specialists can lean on their fashion credentials and skills in interpreting seasonal trends quickly to ensure regular newness and that collections remain relevant, thereby forcing sports players such as Sports Direct to up their fashion game.”
Despite being a 150-year-old department store, the UK’s John Lewis brand has been quick to evolve with the times and set its own standards in retailing.
The retailer is famed for its ‘fair’ approach to business from its ‘partnership’ status to its ‘Never Knowingly Undersold’ promise to consumers.
Winning repeated accolades for its customer service, and consistent ‘quality’ product in the eyes of its consumers, John Lewis has openly adopted new technologies, new ranges, new services to its customers and new partnerships with industry-shapers to stay on top.
Find out more about its retail approach and tactics in our 30 facts below:
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Image credit: John Lewis
1. John Lewis is a British department store and heritage retailer that opened its first store on Oxford Street, London in 1864.
2. The original Oxford Street store remains the flagship branch, and was refurbished in late 2007 at a cost of £60 million.
3. The Oxford Street store has its own roof garden and pub which reportedly had 171,000 visitors last year (2016).
4. John Lewis is owned by its permanent staff who are called ‘partners’ and the profits are shared amongst them every year.
5. There are 86,700 partners who collectively own 48 John Lewis shops, 354 Waitrose supermarkets, an online business, a catalogue business, a production unit – and a farm!
6. The business has reported annual gross sales of over £11bn.
7. The retailer is known for its ‘Never Knowingly Undersold’ promise to customers which pledges to stock the ‘best quality products, responsibly sourced’. If a national high street competitor is offering a better price for the same product – John Lewis will lower the price on that product in all of their shops – even if it’s a ‘sale’ price.
8. John Lewis partners reportedly stay with the company twice as long as the industry average.
Image credit: John Lewis
9. John Lewis has acquired other stores throughout the years which continued to operate under their original names until 2002. The two exceptions are Peter Jones in Chelsea and Knight & Lee in Southsea.
10. The John Lewis Partnership was the first department store group in the UK to adopt central buying, launching the ‘Jonell(e)’ name for its own brand merchandise in 1937. Since 2001 own brand merchandise has been known as ‘John Lewis’ merchandise. Additional own brands include Collection by John Lewis, as well as John Lewis & Co. and Collection Weekend by John Lewis.
11. In March 2017, John Lewis announced the launch of its own denim brand AND/OR in 15 stores.
12. In 2009, John Lewis launched the first of 12 John Lewis at Home stores in pre-existing shopping regions focusing on Electrical, Home and Technology products.
13. John Lewis will hire its first ever manager of brand experience for its new Oxford store, which is due to open in October 2017.
14. The new Oxford store will dedicate 20% of retail space to services and will have a concierge to greet customers and help them book appointments.
15. John Lewis permanently added a visual search tool to its website after 90% of users reported it to be a helpful function, leading to higher sales. The retailer was trialling FindSimilar – an app which lets shoppers upload a picture to search products.
16. Online retail accounted for 36% of the business last year (2016) and is expected to rise to 50% by 2020.
17. Inspired by the success of a “click and collect” offering, John Lewis has announced an £8 million programme to equip staff with iPhones – boosting them with technology to better assist customers on the spot.
Image credit: John Lewis
18. For a competitive edge, John Lewis is aiming to boost its range of exclusive products from 30% to 50% (time frame undisclosed).
19. John Lewis’ Christmas TV advert has become ‘event TV’. Its 2016 Christmas advert was named the world’s biggest, attracting 21 million global views on YouTube. The campaign cost £7 million.
20. 40% of John Lewis’ profits are reportedly made during the five weeks before Christmas.
21. In December 2016, the retailer reported a 31% year-on-year sales increase in the run-up to Christmas compared to 2015. This is accredited to two extra days of trading afforded by the additional bank holiday and the fact the sales started at 5pm on Christmas Eve.
22. John Lewis has recently topped a UK ranking of consumer perceptions of quality and reputation, conducted by YouGov.
23. John Lewis was amongst the top 5 brands named as offering the best customer service in the UK alongside Amazon, ASOS, M&S Food and Waitrose. The survey was conducted by the UK Customer Satisfaction Index (UKCSI) from The Institute of Customer Service.
24. In May 2017, John Lewis joined the Timewise Scheme, designed to help part-time employees, particularly in senior roles, progress their career and combat the challenges of flexible working.
25. In 2014, John Lewis set up JLAB, a global start-up accelerator programme run in association with innovation specialists L Marks. Waitrose joined the programme in 2017 creating the UK’s largest retail technology accelerator.
26. The 12 week programme offers 5-10 successful recipients access to John Lewis’s resources, industry-leading insight, free workspace, senior mentors and the opportunity to apply for funding in exchange for equity.
27. The themes for this year’s JLAB applicants included: Amazing Food Experiences, Amazing Store Experiences, Effortless Shopping; Help Me Live a Healthier Life; Smarter Supply Chain and Surprise Us – for miscellaneous innovations.
28. The retailer is currently exploring the possibility of renting out empty floor space as co-working offices for freelancers. A decision will be made in early 2018.
29. John Lewis was recently awarded ‘Best In Store Experience’, ‘Best Furniture Retailer’ and ‘Best Homewares Retailer’ at the 2017 Verdict Customer Satisfaction Awards and ‘Retailer of the Year’ at the 2017 Sunday Times Style Beauty Awards.
30. John Lewis has a written constitution that sets out its principles, governance system and rules. The ‘happiness of its members’ is cited as the partnership’s ultimate purpose.
As you can see with John Lewis it always comes back to the customer. But in order to offer such dedicated service the company also focuses on empowering and rewarding its staff. If retailers are going to remain competitive in the future both of these things will be vitally important.
The multi-level store in Downtown Dubai was opened in 2014
British luxury retailer Fortnum & Mason has closed down its store in Dubai, it confirmed on Thursday.
Located in Downtown Dubai, the multi-level store was opened in 2014 as Fortnum & Mason’s first location outside London.
However, the brand said in a brief statement that the slowdown in the economy had led to the outlet’s closure last month.
“Due to the well-documented ongoing challenges with market conditions in Dubai, we have made the considered decision with our partner Al Khayyat Investments (AKI) that we will cease trading on the 9th of July,” it said.
“Fortnum’s will continue to be an English brand with a global palate. Our products are available to our customers in Dubai and around the world as part of our offer on fortnumandmason.com,” it added.
The British brand started in London in the early 1700s, and is most famous for its tea, confectionery and hampers.
In a statement, AKI also confirmed the news but added that it will continue to be a “key market leader for our other international brands”.
According to its website, the other food and beverage brands in the company’s retail portfolio include Il Caffe di Roma, Espressions – that also features Lavazza products and Burger Fuel.
Despite the softening in regional economic conditions, consumer spending in the UAE is growing strongly, according to recent research released by the Dubai Chamber of Commerce and Industry.
Spending is expected to exceed $261bn in 2021, compared to nearly $183bn in 2016, the report found.
The research, based on recent data from Euromonitor International, revealed that consumer expenditure per household during 2016 in the UAE (around $103,000) was the highest when compared to other GCC countries.
Looking at consumer spending in the UAE in 2016, while housing was identified as the top category with $75.7bn, food and non-alcoholic beverages came second with $24.8bn worth of spending during the year.