This week's retail news 'you may have missed'......
At mdj2, we’re passionate about retail and always looking to share our news, views, and insights. With so much information out there, we wanted to share just a small selection of retail news headlines from last week that we found interesting…?
?Morrisons announces sale of Petrol Forecourts worth ￡2.5bn.
British supermarket group?Morrisons?has agreed to sell 337 petrol forecourts to Motor Fuel Group (MFG) in a deal worth ￡2.5 billion, it was announced today.
The deal will see more than 400 associated sites across the UK being used for?electrical vehicle (EV) charging?development.
The grocery retailer plans to use the proceeds from the deal to invest in its grocery offerings and strengthen its capital structure.
The proposed ￡2.5 billion transaction forms a new strategic partnership between the two companies, and Morison’s will take a minority stake of approximately 20% equity interest in MFG.
Morrisons will also enter into commercial and supply agreements with the company.
"The proposed transaction will create significant synergies across fuel retail and ancillary services, as well as scale advantages and growth opportunities for both businesses," the companies said, adding the deal would be a significant creator of jobs.
As part of the move, there are not expected to be any compulsory redundancies in connection with the implementation of the transaction.
Both Morrisons and MFG are owned by US private equity group Clayton, Dubilier & Rice (CD&R).
CD&R paid ￡7 billion for Morrisons in 2021, leaving it with a hefty debt burden.
Morrisons, which is scheduled to report 2022/2023 results on Wednesday, has been losing UK grocery market share, ending 2023 with 8.8%, down 30 basis points on the year, according to researcher Kantar.
?Amazon launches AI-powered shopping assistant Rufus.
Amazon has released a new shopping assistant that uses generative artificial intelligence that can help customers with questions about the retail giant’s vast catalog of products.?
Named Rufus, the AI bot can answer specific questions as well as those that are vaguely worded. The new tech can help customers learn what to look for in product categories; get help comparing product categories; shop for special occasions; get recommendations; and ask specific questions about products.?
Amazon President and CEO Andy Jassy said in a LinkedIn post on Thursday that Rufus can help guide shoppers with a variety of questions, such as:
“Rufus is built on a large language model that’s trained on our expansive product catalog, customer reviews, community Q+As, and the broader web — and is seamlessly integrated with Amazon to make it easy to take action in the shopping experience …” Jassy wrote.
Jassy said the technology is out in beta form for a small group of U.S. customers. The assistant will roll out?to U.S. customers in the coming weeks, he said.?
Customers using the beta version of the new shopping assistant can type their questions in the Amazon app or speak the questions out loud into the app search bar, the company said in a press release announcing Rufus.?
“Customers can expand the chat dialog box to see answers to their questions, tap on suggested questions, and ask follow-up questions in the chat dialog box. Customers can dismiss Rufus to return to their traditional search results at any time by swiping down to send the chat dialog box back to the bottom of their screen,” the company said.?
The AI model is trained on Amazon’s database, but the company acknowledges that users will have to use their best judgment because “the technology won’t always get it exactly right.”
Amazon said that it anticipates the responses will improve over time, as Rufus fine-tunes its responses to questions.?
The retail giant announced the launch?of the new AI bot the same day it released its?2023 fourth quarter earnings report, which showed a net sales increase of 14% to $170 billion year over year.?
The results beat analyst expectations causing the company’s stock to eclipse 8% in after-hours trading.
?Ryman launches new app with aim of disrupting online greeting cards sector.
High street stationery retailer Ryman has launched an innovative app in a move designed to disrupt the online greetings card sector.
Priced at ￡2.99, the new offering will allow shoppers to personalise their cards through the Ryman app and collect them from one the retailer’s 190 stores in just 60 minutes. In addition, each card will include a charity donation to contribute to a ￡100,000 pledge to key dyslexia charities
The initiative is being driven by Ryman owner and TV dragon Theo Paphitis who is keen to disrupt the online greeting cards industry and help customers on the go.
Paphitis said: The Ryman app will now enable us to offer something completely unique in the online greeting card industry using the strength of the high street.
“Like others, you can download the app and personalise one of thousands of cards, but what makes ours unique is that you can then collect that card in a Ryman store within just 60 minutes.
“So, if you’re a last-minute Larry or Lucinda, or just a commuter wanting to save on postage, this is a game changer.”
Available from the Android and iPhone app stores, the service will allow customers to browse, design and send over 2,000 greeting card designs, ready for collection from over 190 stores nationwide. Shoppers can personalise their cards on the go from their mobile devices and have the option to add messages and upload images straight from their camera roll.
Once ordered, personalised cards can be collected within the hour from any Ryman store nationwide or be selected for next-day delivery.
?Wickes Apprentices Set To Graduate From UK’s First Bathroom Apprenticeship.
Following the success of the kitchen installation apprenticeship, home improvement retailer Wickes will see its first cohort of students graduate from its bathroom installation apprenticeship, the first of its kind in the UK, in just under a year's time.
领英推荐
Running over 18 months, the course provides students with key life skills. Once complete, they receive a Level 2 Fitted Furniture accreditation with the opportunity to set up their own business and become an approved Wickes bathroom installer.
With the first set of bathroom graduates set to complete the course in January 2025, keen applicants can find out more and register their interest via the?Wickes Careers website, providing they have a full driving licence and access to a car.
Available in varying locations across England, students will work Monday-Friday, learning in real life situations with a Wickes Approved Installer. Teaching a wide range of essential skills, from plumbing and tiling, to shower and bath installation, students will produce a portfolio and attend in-house training to help them set up their own business once the programme is completed.
Alongside the hands-on experience, apprentices will have access to a wide range of resources, including a training provider, a skills college and product suppliers, who can provide additional training.
The bathroom installation scheme follows the success of Wickes’ kitchen installation apprenticeship with the very first graduate,?Nathan Taylor, now running his own business.
“The program teaches you all transferable skills needed in your career. Participants are offered the chance to learn about all the different aspects of furniture fitting,?from how to fit worktops, to controlling a tool correctly, to learning how to deliver?excellent?customer service,?and so much more.
“As part of the program, I got the opportunity to meet people from all over the country and, with?seven?weeks together at the training centre in Nottingham, we had the chance to build some great friendships.”
Sophia Fearon, a current Wickes bathroom apprentice says:?“The bathroom installation apprenticeship is a great opportunity to learn a trade whilst working. I’ve learnt so much already and I know this is a career I want to stay in. There is a lot to learn but it’s a great opportunity to strengthen my skills and work alongside experts in the trade. Once the apprenticeship finishes, I want to set up my own business and this gives me a great foundation to start creating my future.”
Sonia Astill, Chief of People at Wickes says,?“We are excited to be the first bathroom apprenticeship course in the UK. As a home improvement retailer, we take pride in using our expertise to give younger generations the opportunity to hone their skills and become installation experts themselves. Igniting passion in the next generation,?the scheme finds and nurtures young talent, and we look forward to seeing what this new cohort achieves.”?
For more information on the Wickes Apprenticeship Scheme and for application forms, visit?Bathroom Installation Apprenticeships | Wickes (wickescareers.co.uk)
Source: Wickes
?Boots launches NHS Pharmacy First service in England
Boots will now be offering the NHS Pharmacy First Service service in all its stores in England.
The move means that customers will be able to access advice and treatment, including some prescription-only medicines, for seven common conditions without the need for a GP appointment or prescription. The conditions include sinusitis, sore throat, earache, infected insect bite, impetigo, shingles, or an uncomplicated urinary tract infection in women.
Under the new offering, Boots pharmacists will provide advice and treatment if appropriate. This may include the offer of an over-the-counter medicine or a prescription-only medicine, depending on the clinical needs of the patient. Any medicines supplied by the pharmacist will be recorded in the patient’s NHS record, which GPs have access to.
In addition, most Boots stores will offer a private consultation room in the pharmacy area for confidential discussions about patients’ health concerns if necessary.
If the patient needs additional support, the pharmacist will refer them to a GP or another healthcare provider.
Seb James, managing director of Boots?UK and ROI, said:?“The launch of Pharmacy First in England is good for patients, pharmacy teams and GPs and follows the success of similar initiatives in Scotland and Wales.
“The service makes it quicker and easier for patients to access the advice, care and treatment they need, allows our pharmacy team members to further utilise their professional skills and reduces pressures on GP surgeries. It is one of the most significant changes in how we can serve our customers and patients in our 175-year history.”
?Morrisons shoppers to join management meetings as chain seeks revival.
Morrisons is inviting shoppers to management meetings and holding monthly customer roundtables in stores as part of a strategy to “start a new chapter” for the struggling supermarket chain under its new boss.
Rami Baitiéh, who?took over from David Potts?as the chief executive of Morrisons in November, said he would announce new plans for the business in March, adding that “listening to customers and colleagues will show us the way”.
The Bradford-based chain has struggled amid heavy competition with rivals on price and the cost of servicing heavy debts since its?￡7bn takeover?by the US private equity firm Clayton, Dubilier & Rice in 2021. The German-owned discounter Aldi overtook Morrisons to become the UK’s fourth largest grocer in 2022.
“We are developing plans to reinvigorate, refresh and strengthen Morrisons and to start a new chapter,” said Baitiéh, the former head of the France’s Carrefour chain who has a reputation as a turnaround expert.
“Since the pandemic, Morrisons has not been on peak form. Our market share has slipped slowly and consistently and [underlying] sales have been below the pack for a while,” he said.
Under a new regime intended to draw back shoppers, Baitiéh said Morrisons would not have any major meetings without the presence of a customer panel that could offer insights into where it could improve.
The customers will give views on pricing, service and products at the chain asking questions of management, and being asked their opinions by executives.
Baitiéh said the voice of store managers would also be given more emphasis within the business to gain insight from the shop floor. He said all stores would have monthly shopper roundtables and those that were particularly “challenged” would host one every week.
“We are beginning to have a new mindset in the company, a high performance culture,” he said.
Baitiéh said there was “work to do” on improving quality, price, ranges and profit margins, but he was “confident that Morrisons has the people, the talent, the assets and the desire to chart a bright future in UK grocery”.
Morrisons said on Wednesday that sales had risen 3.3% in the three months to the end of October 2023 on the same period a year earlier – well behind the rate of inflation.
The UK’s fifth largest grocer, which has about 500 supermarkets, said its pace of growth had improved throughout last year so that total sales rose 2.7% to ￡14.9bn in the year to the end of October.
Underlying sales growth, which excludes the impact of store openings and closures, rose 1.8% for the year, indicating a fall in the amount of goods sold as food price inflation was more than 5% throughout the year.
Annual underlying profits rose 6.5% to ￡970m, but that figure does not include interest payments on Morrisons’ debts of about ￡5.5bn, which are thought to top ￡400m a year.
?
?