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…?
B&M beats lockdown peak as profits boosted by new store openings.
B&M has beaten its lockdown peak, thanks to new store openings and continued demand for its value offer from cash-strapped shoppers.
The value retailer’s statutory pre-tax profits jumped 14% to ￡498m in the 53 weeks to 25 March, up from ￡436m.
Sales surged 10% to ￡5.48bn, up from ￡4.98bn, which it said was underpinned by volume growth in its UK fascia driven by its new store openings.
B&M said it was planning to open at least 45 new stores in the UK this year as part of its target to reach 1,200 locations nationwide. It currently has 741 shops.
The?retailer?said the success of its new shops and continued volume growth “show that we are as competitive as ever and we have plenty of runway ahead”.
It came as the discount chain pointed out its adjusted EBITDA of ￡629m had exceeded its “lockdown” peak of ￡626m.
Chief executive Alex Russo said: “FY24 has been another good year for B&M. The three key components of our business – buying, logistics and retail, are working in balance and we continue to deliver excellent products at everyday low prices to our consumers. We are well set for the years ahead.”
“We have demonstrated strong volume-led momentum in our business throughout our trading history and that has continued, driving our profits ahead of both pandemic and pre-pandemic benchmarks.
“Despite the more challenging comparatives, with continued new store openings, and a laser focus on low prices and best in class retail standards, we remain confident in our outlook for cash generation and profit growth.”
The discount chain also revealed that ex-Bupa managing director Tiffany Hall will become B&M’s new chair in July,?succeeding Peter Bamford?who is set to retire. Hall has been a non-executive director at the value chain since 2018.
Major brands join forces to help households tackle climate change.
A coalition of major brands, including B&Q, Barratt Developments, Starbucks, TSB and Unilever, has been created to support the development of Home Advantage – a series of household trials to support UK homeowners on their journey to net zero.
The brands have been brought together by the Hubbub environmental charity which will develop guidance for how to support households in reducing their climate impact, based on in-depth research and testing that will be being carried out over the coming months.
The qualitative and quantitative research will include UK households being surveyed to understand current behaviours, motivators, and barriers to change and to identify what support they need. In addition, Hubbub will work closely with a sample of homeowners to test behaviour change and messaging approaches, and to test potential policy scenarios.
Insights from the research will then be shared with policymakers, businesses, and campaigning organisations to inform their understanding of how they can best support households on their journey to net zero.
The businesses involved will help to share insights to inform the project, as well as test ideas to help customers save money and live more sustainably.
Gavin Ellis, director, and co-founder at Hubbub, said: “Our experience is that most people want to play their part to protect the planet, but they aren’t always sure what they can do, where to start or whether it will make a difference.
“By fully understanding the everyday barriers faced by households, Home Advantage will provide realistic steps and solutions that people can easily incorporate into their daily lives that will collectively make a real difference, as well as highlighting where systemic support is required.
“The expertise of the coalition of fantastic companies will be invaluable. We’re keen that we have representation from brands that touch on all significant aspects of people’s lives and would particularly be interested to hear from any energy providers and supermarkets who are interested in joining us.”
Amazon hit with ￡1bn damages claim from retailers over data misuse.
Amazon is facing a ￡1bn damages claim on behalf of retailers selling on its UK marketplace, marking the biggest ever collective action launched by UK retailers.
The claim, which will be filed today, alleges that the?ecommerce giant?illegally misused the retailers’ data and manipulated the ‘Amazon Buy Box’ to benefit its commercial operation and overall revenues and profit.
The British Independent Retailers Association (BIRA) will file the claim on behalf of retailers at the Competition Appeal Tribunal (CAT) in London.
It said that the?online giant?used data that belonged to UK retailers on its marketplace which was non-public and belonged solely and specifically to the retailers between October 2015 and present.
The information is alleged to have helped the retailer determine whether to enter a new product segment based on its sales potential and earnings, which elements of the item to copy, how to price a product, and which shoppers to target.
BIRA claimed the businesses were unaware that Amazon was illegally using their data for its own benefit.
Amazon, which is also?facing a legal challenge from GMB?over its an alleged anti-union drive, has continually challenged claims that it misuses the information it collects from third-party companies when it makes and sells its own goods, and that it uses Buy Box to preference its own retail operations.
BIRA CEO Andrew Goodacre said: “The British public has a strong relationship with its local, independent retailers and ensuring they are not put out of business by Amazon’s illegal actions is a key driving force behind this collective action.
“The filing of the claim today is the first step towards retailers obtaining compensation for what Amazon has done.”
An Amazon spokesperson said: “We have not seen this complaint, but based on the reporting so far, we are confident that it is baseless and that this will be exposed in the legal process.
“Over 100,000 small and medium sized businesses in the UK sell on Amazon’s store, more than half of all physical product sales on our UK store are from independent selling partners, and the fact is that we only succeed when the businesses we work with succeed.”
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PrettyLittleThing introduces returns fee for shoppers.
Fast-fashion pureplay PrettyLittleThing (PLT) has become the latest retailer to introduce a returns fee for customers.
PLT previously offered free returns via couriers including Evri, Royal Mail and InPost.
The retailer?will now charge ￡1.99 to return items in the UK, a new policy understood to have come into effect earlier this month.
The ￡1.99 fee will be deducted from the order total when returns are processed.
If customers use alternatives to PLT’s recommended portal, they will take responsibility for the cost of their chosen returns method.
It is understood that the fee will also impact PLT’s premier customers, who pay a flat fee of ￡9.99 for unlimited delivery for a year.
PLT declined to respond to a request from Retail Week for comment.
A spokesperson at retail payments solutions provider Dojo said it was no surprise that PLT had joined fellow fashion retailers?Zara?and?H&M, who both?charge for returns due to the expenses incurred for retailers.
They said: “High amounts of returns can prove very expensive for businesses so it’s no surprise that fast-fashion retailer PrettyLittleThing has discontinued their free returns policy.
“Buy now, pay later has contributed significantly to customers buying more than they usually would, to try different sizes and colours without any money leaving their bank account. This causes mass returns, costing brands money for the returns process.?
“PrettyLittleThing is the latest in a long line of brands to start charging for refunds and we will likely see more brands following suit.
“This is a move to help decrease the amount of unnecessary returns customers are making and to help offset the business costs incurred during the returns process.”
The news comes after pureplay retailer?Oh Polly recently updated its returns policy, which now calculates the cost of returns based on customer return rates.
https://www.retail-week.com/fashion/prettylittlething-becomes-latest-retailer-to-charge-for-returns/7046385.article? (Subscription required)
One in three Asda staff attacked at work, GMB survey reveals.
One in three Asda staff have been attacked at work, according to a GMB survey that included reports of workers being stabbed, punched, and threatened with syringes.
In the poll of almost 1,000 staff at?the supermarket, the union said workers reported they had been spat at, suffered broken bones, hit with bottles, and had death threats against them and their children.
Over half (58%) of respondents said they had suffered injury or illness on the job while delivery drivers said they have been chased by people in cars and been confronted by customers in the nude, while store workers have had watermelons and joints of gammon thrown at them.
In total, 339 Asda workers (35%) told GMB they had been a victim of verbal or physical violence while doing their job, with the poll set to be discussed at GMB’s annual congress in Bournemouth on Tuesday.
Violence against shop workers in the UK has been surging in recent years with daily?incidents against shop workers?up 50%, British Retail Consortium figures revealed.
Retailers have spent ￡1.2bn on safety measures including CCTV, body cameras and increased security personnel over the year, a rise from ￡722m the previous year.
GMB national officer Nadine Houghton called the union’s findings “horrifying” and said, “no one should have to suffer this kind of abuse and violence at work”.
She added: “But this situation is only going to get worse as staff hours are slashed, leaving less people in store and those who are there more vulnerable.”
A spokesperson for Asda told?the Guardian: “Unfortunately, like all retailers, we have seen an increase of violence and aggression towards our colleagues during the last few years. The safety of our colleagues is a primary concern, which is why we have invested over ￡30m during the last three years to upgrade the CCTV systems in stores.
“We work with all of our colleague representatives in the important area of colleague security and also back calls for violence or abuse against retail workers to be made a standalone criminal offence in all parts of the UK, and hope this is a priority for any incoming government.”
This week, Labour also pledged to help the high street by tackling anti-social behaviour through the introduction of new town centre police patrols.
The party’s manifesto will also include laws that clamp down on violence against shop workers. It comes as?shoplifting reached the highest level since records began?last year, the Office for National Statistics reported.
Labour has long campaigned with shop workers union Usdaw to make violence against shop workers?a stand-alone offence. The government agreed to include this in the Criminal Justice bill this year, however, it was ditched when Rishi Sunak called the election last month.
Shadow home secretary Yvette Cooper vowed to make this law if Labour is elected.
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