Tuesday to Thursday is The New Office Working Week

????BUSINESS SUMMARY SATURDAY – 7th JANUARY 2023????

Happy Saturday everyone and Happy New Year!!!

This is the first Brave, Bold, Brilliant business news of 2023. I hope you all had an amazing Christmas and New Year and you’re ready to start the new year off in style.

Every week I’m here to bring you the latest business news of what’s going on both in the UK but also globally. Feel free to let me know if there’s anything specific you’d like me to cover in future updates.

In the meantime happy reading!

Here’s to a great start to 2023!!

GENERAL

?? ‘Sunshine Saturday’ as UK travel firms gear up for busiest bookings day in years - UK travel firms are preparing for the busiest day of holiday bookings in years, as the traditional peak season arrives free of Covid restrictions and with demand fuelled by Britons hoping to escape strikes and constant crisis. The travel industry trade body ABTA is tipping a bumper day for early bookings this Saturday, on the high street and online. According to its research, around three in five people are planning to go abroad this year, with just over 30% of would-be holidaymakers planning to book earlier than usual in a hunt for the best price.

?? Average UK house price has dropped for fourth month in a row, says Halifax - Property values decreased by 1.5% in December, following a 2.4% drop in November, a 0.4% decrease in October and a 0.1% dip in September, according to Halifax. The annual rate of house price growth more than halved, to 2.0% in December, from 4.6% in November.

?? New car sales hit lowest level since 1992 but supply woes 'beginning to ease' - The sector says supply shortages, which have held sales back, are "beginning to ease". Preliminary data for 2022 released by the Society of Motor Manufacturers and Traders (SMMT) showed around 1.61m new cars were registered. The figure is 2% down on the previous 12 months and 25% down on pre-pandemic levels. However, sales improved as the year progressed.

?? Cost of living fears don’t stop Brits spending record ￡12bn in supermarkets in run-up to Christmas - New figures from Kantar show take-home sales hit ￡12.8bn in the month leading up to 25 December. Aldi and Lidl were the big winners, however, perhaps suggesting more Brits are ‘trading down’ amid inflation concerns.

?? Tuesday to Thursday is the new office working week, data suggests - Analysts Placemake.io and Visitor Insights examined anonymised phone data from more than 500 UK high streets from 2019 to 2022. The study found increased activity in many suburban and small towns, which it linked to the trend for working from home. Mark Allen, chief executive of property firm LandSec, said Tuesday to Thursday was incredibly busy in the City of London, but activity on Mondays was only 50-60% of that level, and Fridays were almost as quiet as weekends.

?? Retail last year saw a big jump in the number of shops closing - More than 17,000 sites shut up shop, the highest number for five years. Total closures were nearly 50% higher than in 2021, the researchers said. The number of retail jobs lost, in stores and online, also jumped as businesses closed or cut costs. More than 150,000 posts were closed, up 43% compared to the previous year.

ON THE UP

? Boots hails strong Christmas and record breaking Black Friday as sales jump 15% - The high street health and beauty giant achieved a record-breaking Black Friday with boots.com recording its biggest-ever day of sales and added that strong high street footfall helped sales increase over the latest quarter. The company, which is owned by US Walgreens Boots Alliance, said like-for-like retail sales grew 8.7% over the three months to November 30, against the same period last year.

? Shell expects $2bn hit from UK and EU windfall tax after reporting record profits in 2022 – Shell said the increased UK Energy Profits Levy, alongside the “solidarity contribution” in the EU (effectively a windfall tax) will see it take on a deferred tax impact of $2bn. Shell said this will not impact its Q4 2022 adjusted earnings as these will be reported as “identified items”. It comes as the oil major has enjoyed whopping profits this year, reporting $26bn pre-tax in Q2 and $11.4bn in its last set of Q3 results in October.

? Odeon sees Christmas boom as Avatar 2 lures Brits back to the big screen - The UK’s largest cinema chain, welcomed over a million viewers during Christmas thanks to the much anticipated Avatar sequel. Cinemas in the UK have started 2023 on a high note after two rough years, according to new numbers released by Odeon. The return of viewers to the big screen was credited to the release of the Avatar sequel, which has hit over ￡1bn in box office numbers and has been ranked as 2022’s biggest hit.

? Dune London accelerates international expansion - Footwear and accessories brand Dune London is accelerating its international expansion as it looks to boost growth. The company said international sales now represent 26% of total sales. With 131 franchise stores and 48 European stores and concessions, Dune is seeing growth both in new and existing markets. The company said its recent online collaboration with Nordstrom and Dillard’s in the US has started above expectations with its occasion wear styles and high leg boots being particularly popular with shoppers.

? B&M upgrades forecast after strong December - Variety discounter B&M European Value has upgraded its full-year profit forecast after a strong third quarter and will pay a ï¿¡200m special dividend as a result. The FTSE 100 company, which trades from more than 700 stores in the UK and 113 in France, said adjusted earnings before interest, tax, depreciation and amortisation would be between ï¿¡560m and ï¿¡580m in the year to March. Analysts had forecast an average of ï¿¡557m, it added. Sales in the 13 weeks to December 24 were up 12.3% to ï¿¡1.57bn, with UK sales rising 10.4%.?

? Next raises guidance as Christmas sales defy retail gloom - Next Plc raised its profit forecast as a December cold snap brought British shoppers back into stores in search of winter clothing, defying gloom about weakening consumption and the UK’s cost-of-living crisis. The UK retailer now expects full-year pre-tax profit of ￡860m ($1bn). Full-price sales unexpectedly rose 4.8% in the last weeks of the year, beating guidance for a 2% decline.?

? Greggs sales soar by a quarter despite snow and strikes - Bakery chain Greggs has revealed its sales surged by nearly a quarter over 2022 as it added around 150 shops to its retail empire. The low-cost food chain said total sales rose 23% over the year to hit ï¿¡1.51bn, up from ï¿¡1.23bn the previous year. Year-on-year sales in the last three months of the year grew by 18% across its own-managed shops, which Greggs said was caused by a boost in visitors over Christmas despite battling bad weather and rail strikes.

? Ryanair raises profit guidance after strong Christmas but sees 'recent softening' in UK - Ryanair has raised its annual profit guidance, saying it enjoyed a better Christmas season than expected but noted a "recent softening" in flights from the UK. The no-frills airline said it had hiked its full year profit after tax expectations from a range of €1bn-€1.2bn to €1.325bn-€1.425bn.

? Aldi sales boosted by Christmas and World Cup in December - Sales grew by 26% and topping ï¿¡1.4 billion in December for the first time. Fresh meat trading was particularly strong with fresh poultry and pork sales both rising by over 28%. Alternative roasting joints such as Specially Selected Decorative Gammon were also popular while sales of chilled desserts and fresh cheeses jumped by almost 30% and 50% respectively. Meanwhile, sales of snacks such as crisps and nuts were up over 40% as the World Cup coincided with the run up to Christmas for the first time.

IN THE DOLDRUMS

?? Samsung profits plunge as demand for gadgets slows - Samsung expects its profits for the last three months of 2022 to fall by 69% to the lowest level in eight years. The world's biggest maker of memory chips, smartphones and TVs forecast its operating profit for the period fell to around 4.3tn won ($3.4bn; ï¿¡2.8bn). It comes as the global economic slowdown hits memory chip prices and demand for electronic gadgets. Technology giants around the world have been hit in recent months as consumers tighten their belts.

?? Amazon to axe 18,000 jobs as it cuts costs - Amazon plans to cut more than 18,000 jobs, the largest number in the firm's history, as it battles to save costs. The online giant which employs 1.5m people globally, did not say which country the job cuts would be, but said they would include Europe. Most of the job losses will come from its shops including Amazon Fresh and Go and its human resources division.

?? Restaurant chain ‘confident’ of rescue deal despite administration threat - The owner of burger chain Byron has filed a notice of intention to appoint administrators but is confident it will secure a rescue deal for the business. The filing provides a short window of time to secure a rescue deal without other creditors able to take legal action. It would be the third restructuring in less than five years for the casual dining chain, which was generating annual sales of ￡90m from more than 70 restaurants at its peak.

?? Joules owed nearly ï¿¡114m when it plunged into administration - The lifestyle retailer was nearly ï¿¡114 million in the red when it called in administrators in November. Joules was acquired by Next and founder Tom Joule, which meant almost 1,500 jobs were saved across stores and head office.?

?? UK pubs and restaurants cut winter hours to weather ‘perfect storm’ in 2023 - Pubs and restaurants face a “perfect storm” of challenges this year as cash-strapped consumers slash spending and the government reduces its energy bills support – forcing many to cut their opening hours. The industry faced a plethora of challenges in 2022, including soaring energy bills, staffing shortages, rampant food inflation and fragile consumer confidence. Trade at bars, pubs and restaurants was further affected by a series of rail strikes which may have cost the industry at least ￡1.5bn in December alone.

ONES TO WATCH

?? Glencore shareholders challenge mining giant's thermal coal plans - A coalition of major investors including HSBC Asset Management and Legal and General Investment Management (LGIM) has challenged Glencore over its thermal coal production, filing a shareholder resolution this week which cites concerns over the impact of the company's plans on climate change. Last year the company saw almost 25% of its shareholders reject its climate plan, but the latest shareholder challenge this week marks the first climate resolution filed specifically against Glencore's thermal coal production.?

?? Dignity funeral services firm targeted in first UK takeover bid of the year - A consortium spearheaded by Direct Line founder Sir Peter Wood has swooped for the funeral services company Dignity in the first UK takeover attempt of the year. A subsidiary of Valderrama – a joint venture between Wood’s investment firm SPWOne and investment house Castelnau Group – has made a possible offer for the London-listed company, whose board recommended the deal to shareholders. Dignity operates more than 700 funeral branches across the UK and last year blamed a steep rise in costs for a plunge in profits.

?? Superstores to benefit from ï¿¡687m cut in business rates over three years - Supermarkets of over 27,000 sq ft are to see their business rates bill cut by ï¿¡687m over the next three years, according to new analysis. The tax cut, which derives from a government revaluation of properties for business rates purposes, will predominantly benefit the traditional big four and Waitrose, according to real estate advisers Altus Group. The new rateable value of superstores over 27,000 sq ft, which is set to form the basis of their business rates bills from 1 April this year, has dropped 15%, from ï¿¡2.86bn to ï¿¡2.43bn in total.

?? Hotel Chocolat looks beyond Europe and signs deal with Japanese corporation - Leading British chocolate brand Hotel Chocolat is looking beyond Europe after Brexit and has signed a new partnership with a major Japanese corporation. The tabletop favourite has teamed up with the Tokyo-based Eat Creator Corporation, after trading in Japan for the last four years. The chocolate maker reported a ￡9.4m loss for 2022 loss in an announcement last month but said “people are still treating themselves with affordable luxury” despite a cost of living crisis.

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