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…?
?Half of UK retailers plan to cut workforce in 2025 - and even more will raise prices.
70 per cent of polled CFOs are ‘pessimistic’ or ‘very pessimistic’ about trading conditions over the coming 12 months.
Two thirds of leading retailers warned they will be forced to hike prices to cope with the increase to?National Insurance?costs amid mounting pressure on the Chancellor.
Two thirds (67 per cent) of 52 chief financial officers surveyed for the British Retail Consortium (BRC) said they would raise prices in response to increases in employers’ National Insurance Contributions from April.
Greggs recently revealed?they would be hiking prices?during the coming year, while clothing retailer Next said they would?implement a one per cent prise rise?to offset some of the costs of increased wages and NI contributions.
Just over half (56 per cent) said they would be reducing their paid number of hours and overtime, while 46 per cent said they have to reduce headcount in stores and 31 per cent said the increased costs would lead to further automation.
Some 70 per cent said they were “pessimistic” or “very pessimistic” about trading conditions over the coming 12 months, while just 13 per cent said they were “optimistic” or “very optimistic”.
The biggest concerns, cited by more than 60 per cent of the CFO’s, were falling demand for goods and services,?inflation?for goods and services, and the increasing tax and regulatory burden.
The impact of the?Budget?on wider business investment was also “clear”, the BRC said, with 46 per cent of CFOs saying they would reduce capital expenditure and 25 per cent expecting to delay new store openings.
Some 44 per cent of respondents expected reduced profits.
The survey follows 81 retail chief executives writing to the Chancellor with their concerns about the economic consequences of the Budget, claiming that the industry’s costs could rise by over ￡7 billion in 2025 as a result of changes to employers’ National Insurance contributions,?National Living Wage?increases and the reformed packaging levy.
?Timpson tops UK customer satisfaction rankings as service failures cost ￡7.3bn monthly.
New UK customer satisfaction rankings revealed: Timpson tops the table while service failures cost UK economy ￡7.3 billion monthly
The latest UK Customer Satisfaction Index (UKCSI) report highlights a persistent low in customer satisfaction, with the all-sector average standing at 76.1 out of 100—nearly unchanged from the previous year. The report, conducted by the Institute of Customer Service, evaluates over 260 leading businesses and identifies significant opportunities for businesses to improve service and boost economic growth.
Top Performers in Customer Satisfaction (January 2025):
Four banks, including Starling Bank, Nationwide, first direct, and Monzo, ranked among the top 10, alongside notable retail performers such as M&S (Food), John Lewis, and Amazon.co.uk.
Key Findings:
Sector-Specific Insights:
Jo Causon, CEO of the Institute of Customer Service, stated: “As we navigate economic uncertainty in 2025, businesses have a clear opportunity to enhance productivity and growth by prioritising customer satisfaction. This year’s UKCSI underscores the strong link between exceptional service, financial performance, and long-term growth.”
?Next batch of Homebase stores to reopen as The Range by end of January.
CDS Superstores, the parent company of The Range,?Wilko, and Homebase, is set to relaunch three former Homebase stores as The Range Superstores by the end of January.
The new openings in Stroud, Leicester, and Blandford Forum will mark the latest step in the company’s transformation of up to 70 ex-Homebase locations since its acquisition.
The new stores, which will open on 31 January, will offer customers a “fresh shopping experience” by combining The Range’s renowned product variety with the home improvement expertise of Homebase, and will feature ‘Garden Centres by Homebase’.
The new stores will join the?rebrands of former Homebase locations?in Pollokshaws in Glasgow, Christchurch in Bournemouth, Kings Heath in Birmingham, Newton Abbot, Felixstowe, and Blyth, which are all set to open this month.
CDS Superstores plans to roll out up to 10 new superstores each month throughout 2025, aiming to transform as many as 70 former Homebase stores into the new format and create up to 1,600 new jobs.
The group is also committed to retaining and transferring staff from acquired Homebase locations to ensure job continuity in local communities.
The discount chain?snapped up the DIY giant’s brand and up to 70 stores?back in November
CDS group chief executive?Alex Simpkin?said: “We’re fully committed to retaining the best of Homebase’s heritage while introducing the broader product range and value that customers expect from us as The Range.
“While those Homebase stores acquired by CDS will continue to trade as they are during the transition period, we’re focused on ensuring a seamless transfer of these locations into our new store format, with nine launches now confirmed for this month already.
“We’re also eager to help consumers nationwide by investing in the Homebase brand with the relaunch of www.homebase.co.uk and expect to have this platform live to support families in all of their home improvement endeavours very soon.”
?Toolstation rolls out rapid delivery service across UK.
Toolstation?is rolling out its rapid delivery service to over 460 UK stores as it looks to meet growing demand for on-site delivery from tradespeople and DIY customers.
The move follows a successful trial in 44 shops in November in a partnership with TradeKart.
With orders delivered to site in as little as 30 minutes, customers can choose from over 10,000 products. The service allows them to schedule a delivery at a time of their choice, including up to seven days in advance.
Toolstation’s customer director Chris Other said: “At?Toolstation?our customers want affordable, quality products in their hands quickly.
“Our rapid delivery service offers convenience and speed above everything else, and rolling this out across the majority of our stores means tradespeople will no longer have to sit in traffic to pick up an unplanned item.
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“They can now have everything they need in as little as 30 minutes without even leaving their site, keeping project schedules on track.”
Customers place their order on the TradeKart app and can then track it from store to door in real time for a ￡5 delivery fee, although TradeKart is offering free delivery on all orders over ￡25 to celebrate the launch if a special discount code is used.
Alistair McAuley, founder and chief executive at TradeKart said: “We’ve had brilliant feedback on the trial from customers and branch colleagues, and I’m delighted this service is now available to support over two million tradespeople across the UK, saving them the valuable time they lose collecting materials.”
?Dobbies sells two stores to British Garden Centres
British Garden Centres has announced its acquisition of two Dobbies Garden Centres in Gloucester and Reading taking the number of stores it owns to 67.
The two stores will join the British Garden Centres family following the Dobbies Restructuring Plan and hope to open in mid to late February.
The immediate priority is to work closely with the existing teams to restock and reopen the centres as soon as possible. British Garden Centres will be retaining all existing centre team members.
Charles Stubbs, Founder and Director of British Garden Centres said: “We are thrilled to announce the addition of two fantastic garden centres to the British Garden Centres family. This marks a significant milestone for the group, as the acquisition of these former Dobbies stores cements us as the largest garden centre group in the UK by stores. We have a clear vision for the growth of these centres and are excited to integrate with the local communities while building on the strong foundations that are already in place.
Further acquisitions of Dobbies sites by British Garden Centres are likely to follow.
?Primark to open first ever standalone homewares store in Belfast this March.
Primark has confirmed its first ever standalone homewares store will open in Belfast city centre this March.
The 8,700 sq ft outlet outlet will open at Fountain House, which previously housed part of Primark’s retail operation during the refurbishment of Bank Buildings.?
The Dublin-based retailer originally bought the Donegall Place building in late 2018 in the aftermath of?the fire which devastated its flagship Belfast store.
Fountain House?went back on the market in late 2022?when Primark reopened its new Bank Buildings store, but it has remained vacant since.
Primark said the move is in response to the growth in the homewares side of its business, which has expanded significantly since 2021.
It said the relocation of its homewares range will create more space for its children’s and menswear ranges in Bank Buildings.
“This is a truly proud moment for Primark as we open our first standalone Primark Home store,” said Fintan Costello, who heads the Primark and Pennys operations on the island of Ireland.
“Belfast felt like the perfect place to bring this concept to life, and Fountain House offers an incredible setting in the heart of the city centre to showcase our expanded homeware range.?
“Our Home collection has always proven to be a real hit among our Belfast customers, and we can’t wait to welcome them into our very first Primark Home store.”
?Quiz considers axing a third of stores in survival bid.
Quiz is reportedly preparing to close up to a third of its stores in a bid to slash costs and stabilise its struggling business.
The move, led by the founding Ramzan family, could result in hundreds of job losses across?the fashion retailer’s store network, which currently consists of around 60 locations and employs approximately 1,500 people.
Quiz, which is set?to delist from the London Stock Exchange’s AIM market and return to private ownership?following a shareholder vote earlier this month, has enlisted restructuring experts at Teneo to explore its options.
Potential measures including a pre-pack administration or company voluntary arrangement (CVA) to facilitate the closures.
“Nothing is being ruled out,” a source close to the situation told?the Telegraph, with a decision expected in the coming weeks.
The store closures are part of a wider effort by the family, including CEO Sheraz Ramzan, to rescue the business as it faces mounting financial pressures.
Sheraz, who took over as chief executive in March 2023, is reportedly focused on cutting costs by offloading the chain’s worst-performing stores.
In the run-up to Christmas, Quiz revealed it was?on the verge of running out of cash,?with liquidity of just ￡2.3m, including ￡400,000 in cash reserves and ￡1.9m in undrawn banking facilities.
Last summer, the company secured a ￡1m emergency loan from Sheraz’s father, Tarak, who founded Quiz in 1993 with a single store in Glasgow. However, with HSBC reportedly reluctant to?continue funding the business, Quiz is now urgently seeking alternative financing, likely on tougher terms.
Quiz recorded losses of nearly ￡7m last year, compared to a ￡2.3m profit the previous year. Chair Peter Cowgill, former JD Sports boss, has been tasked with guiding the retailer through its turnaround.
A formal announcement on the company’s future is anticipated in the coming weeks.
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