Kenyatte Nelson

As a retail expert I discussed whether John Lewis & Partners can reverse its fortunes with Drapers news editor Elizabeth Howlett: There's a long road ahead, however, with current turnaround efforts expected to take until 2027/28 to bear fruit. John Lewis's interim results, released on 14 September 2023, painted a bleak financial picture for the retailer as operating profit declined by 6% year on year to £277.1m for the 26 weeks ended 29 July. Its losses narrowed by 14% year on year to £57.3m in the period. “The question is whether John Lewis is going the same direction as Allders, Arcadia Group, Debenhams and House of Fraser,” said Andrew Pepper, partner at business advisory RESOLVE.  (I was Administrator of Allders and advised the lenders on House of Fraser. I see lots of similarities.) “They will look at their property portfolio and look at their most successful premises and their least and explore if there is a way to right size its portfolio to be smaller on footprint, but more profitable.”   Pepper also pointed out that strong staff loyalty has some disadvantages. The partnership currently has a score of 3.8 out of 5 on open company review platform Glassdoor, with 70% of the 4,451 anonymous reviews from current and former employees recommending the company to others, with many citing good wages and employee benefits. While this has been a huge benefit to John Lewis over the years, as it has likely meant lower staff turnover and a good employer brand reputation, it could also mean larger redundancy packages. “John Lewis [and Waitrose] is a lovely place to work, so they likely had good redundancy terms and had people who had worked there for 20 years. Unlike other retailers, the movement of staff through [John Lewis] likely isn't that much,” explained Pepper. “By implication that means you have lots of people working there for 10-20 years, and the [redundancy] cost will be disproportionately higher.” Read more via Drapers, below. https://lnkd.in/eD5JPxHx #ForwardWithReSolve #privateequity #debtfinancing #thebodyshop #restructuring #administration Turnaround Management Association (TMA UK) Institute of Directors (IoD) R3 Association of Business Recovery Professionals Richard Obank Retail Trust #turnaround UK Government Investments (UKGI) Foot Anstey LLP M&G plc Barings BlackRock Russell Jarvis Evelyn Partners Philip Kirkpatrick Kirkland & Ellis Close Brothers Arbuthnot Latham Bank Leumi בנק לאומי UK PNC Metro Bank (UK) Santander HSBC RESOLVE Maddox Legal Limited CMS UK Shawbrook Bank ABN AMRO Commercial Finance Praetura Commercial Finance Arnold Vos Retail Realisation Rothschild & Co #venturecapital Bantry Bay Andrew Buchanan Buchanan #retail British Land Mike Thompson MBE @CVC Capital Partners #ForwardWithReSolve #retailnews #turnaround

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This morning I joined Abbie Morris Compare Ethics at Salesforce Tower to discuss the impact of upcoming legislation on fashion brands and retailers in the UK and EU. Speaking alongside David Leigh-Pemberton from the British Fashion Council and Rob Don from the Competition and Markets Authority, we discussed: ✅ Sustainability compliance doesn't have to be a burden - it should be seen as a competitive advantage 💭 Educating key stakeholders, getting buy in and influencing the C-Suite will be crucial when it comes to accelerating sustainability initiatives 🛑 Don't wait for compliance to come into force, get prepared now and embed product transparency as a key strategic priority 👟 Be proactive, identify gaps and develop a roadmap 💶 Make sustainability pay - develop initiatives that provide an ROI whether that be through improving efficiencies, reducing waste or establishing better connections with consumers through new retail models like repair services, re-sell and recycling - sustainability can be a triple win for business, compliance and the planet 🤝 Collaboration is key - the industry needs to work together to drive systemic change that will tick the compliance box while advancing sustainability and circularity long into the future #DPP #compliance #fashion #retail

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Peter Ruis, executive director at John Lewis & Partners, kicked off Drapers Inner Circle Summit 2024 with a fireside chat about the next phase of the retailer's transformation. "Burberry is nothing without its check and John Lewis is nothing without "Never knowingly undersold". It’s about staying true to your brand." Find out more below. #JohnLewis #fashionretail #DrapersInnerCircleSummit

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Victoria Ward has written an interesting article here about the difference between a Merchandise Strategy and a Merchandise Plan and why retailers need both to succeed https://lnkd.in/eR5dPH9U

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Asos plunges to £120m loss as sales nosedive amid turnaround plan Asos losses widened to £120m in its half year as sales plummeted amid its turnaround plan. Adjusted pre-tax losses fell by almost a third over the half to 3 March, as group sales were down 18%. Despite this, Asos reiterated its full-year guidance of a revenues fall of between 5 to 15% alongside positive adjusted EBITDA. The online retailer said it was ahead of plan with its stock reduction process, as it continued to push ahead with its turnaround plan. Asos offloaded 83% of its autumn collection, making it a 17% improvement from the same time last year. #asos #online #retailer #ecommerce #stock #sales #plan

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Peter Ruis, executive director at John Lewis & Partners, kicked off Drapers Inner Circle Summit 2024 with a fireside chat about the next phase of the retailer's transformation. Read more here. #fashion #fashionnews #retail #retailnews #JohnLewis

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Behind the optimistic headlines of 3.5% YoY growth in UK retail sales in March, the picture is less rosy. According to a recent British Retail Consortium report, the growth is mainly driven by the food sector, which saw a 6.8% increase due to early Easter and inflation. Non-food sales in physical stores, however, remain flat and down 1.1% so far this year. Leaving many retailers out there praying for sun! Check out the link below for more details. https://lnkd.in/eFCcftxt

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Here are some interesting stories from the world of retail for Sunday, June 30: 🏥 Sebastian James is quitting as chief executive of Boots UK as its American owners, Walgreens Boots Alliance, abort a sale of the business for the second time in two years. James is set to leave in November. 💊 On Friday, RITE AID was cleared to exit bankruptcy after a court approved a restructuring plan that avoids liquidation by handing control of a slimmed-down business to key creditors. 🇺🇸 The US Farm Bureau reports a 5% increase in the cost of a Fourth of July cookout in 2024, with an average expense of $71.22 for 10 people, compared to $67.73 last year. 🧵 Marks and Spencer has partnered with repair and tailoring business SOJO to launch a clothes repair service through its website. The service will allow customers to send in their clothes for repairs, with prices starting from £5. 🥦 The biggest problems affecting grocery retailers are theft and fraud. 85% of food retailers cite increasing theft and fraud as the biggest problems negatively affecting business, according to an FMI survey. 🐶 The pet industry is booming. Across the world, the market is projected to swell to almost $500bn by the end of the decade. In the US alone, it is expected to attract more than $150bn in spending this year. 🧱 Lego products, especially the pricier sets that range from over $100 to $1,000 or more, are being targeted for theft both by individual shoplifters and larger organized retail crime rings because they are easy to resell. 🍑 Luxury fruits, which have a long history in parts of Asia, are gaining popularity in the United States, as new varieties are being grown and imported, including those developed over several years. 🏅 Unsponsored athletes are commanding attention at the US Track & Field Olympic Trials this year, decked out in all-black, logo-less gear. The 35 athletes are supported by apparel company Bandit Running’s Unsponsored Project. 📱 In May, Apple's iPhone shipments in China saw a nearly 40% increase from the previous year, largely due to significant price cuts on their Tmall site and strong promotional efforts. 🍺 Tilray Brands is set to launch a new brand of premium non-alcoholic beverages. The Runner's High Brewing brand is aimed at consumers who want the taste of beer without the alcohol. 🇮🇹 Italian department store chain COIN SPA is working with advisers at KPMG to address its debt issues. Coin has faced pressure from the retail industry slowdown and has imminent debt maturities. 🧴 Adore Beauty is set to acquire beauty brand iKOU for A$25m. The purchase will bring iKOU's range of organic skincare, bath and body products, home fragrance, herbal tea, and spa lifestyle accessories to Adore Beauty's platform. #retail #retailnews #economy #DailyRetailNews

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Here are some interesting stories from the world of retail for Monday, April 29: 📦 Tomorrow it’s the turn of Amazon to report quarterly results and analysts expect the world’s biggest online retailer to have made sales of $142 billion in the first three months of the year. 📈 The FTSE 100 is expected to be boosted as soon as next month when the Chinese online giant SHEIN announces that it has decided to float its shares in London. 👖 Urban Outfitters shoppers will have a new way to shop for secondhand clothes. The retailer is rebranding and restructuring its vintage and secondhand offerings online to make up a new program called Vintage + Remade. 🚚 Walmart has announced Ultra Late-Night Delivery, expanding its delivery hours until midnight. The service is available nationwide for orders placed by 10:30pm. Walmart's delivery will now be available from 6a, to midnight. 👞 Steve Madden’s wholesale woes are expected to be a continued factor in its upcoming first quarter results this week.  Large wholesale accounts are still cautious with their buys in the first quarter, which may affect sales in the period. 🥗 Rising food prices are sending more shoppers to ALDI USA. The German grocer keeps prices low with smaller stores, fewer staffers and a slimmer menu of product choices than bigger supermarkets. 👗 The European Corporate Sustainability Due Diligence Directive is set to have a big impact on fashion firms, requiring them to monitor and correct their supply chains for the use of forced labor and negative environmental impacts. 🧴 Reinold Geiger, the billionaire owner of L’OCCITANE Group International, is close to making an offer to take the skin-care company private, in a deal that could value it at about $7bn including debt. 🍣 Looking for a bite at your local mall? As US malls race to reinvent themselves, they’re turning to sushi conveyor belts, craft-beer membership clubs and Korean barbecue to replace burgers and fries. 🦊 The day after 33 Foxtrot stores and two Dom's Kitchen & Market locations abruptly closed their doors, a lawsuit was filed on behalf of now-former employees. 📱 Brands on TikTok Shop face increased fees and an uncertain future. Brands are bracing themselves for when social media company will likely roll back benefits even more — all while a threat of an outright US lurks on the horizon. 🥫 Ahead of the release of Kraft Heinz's first-quarter results this Wednesday, new chief executive Carlos Abrams-Rivera talks to the Wall Street Journal about his commitment to making the company's products healthier. 🍕 Domino's is launching a promotion today that rewards customers who tip $3 or more per order with a $3 coupon good for their next order, as long as that order takes place the following week. #retail #retailnews #economy #DailyRetailNews

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John Lewis & Partners CEO Nish Kankiwala will revert to the role of a non-executive, advising the retailer's board. "It’s been the privilege of my life to lead the partnership as CEO during this period of intense transformation." Find out more details below. #retailnews #fashionnews #fashion #JohnLewis #CEO #peoplemoves

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Wondering what consumers actually want when they talk about sustainability in the grocery sector? Our latest Grocery Eye report has some of the answers. But not all of them, I won't lie, it is complete topic! #Savanta #GroceryEye #Sustainability #MakeBetterDecisions #Supermarket #fmcg

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The strategic growth of the convenience channel is hard to miss. Yet the challenge is for greater transparency on prices in convenience stores, especially where loyalty and promotion prices are not the same as those offered in other stores. These are other inputs to the BBC https://lnkd.in/ectmZuMW Circana BBC

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What’s been happening in retail this week? · Asda's total revenues, excl. fuel, increased 6.6% to £5.3bn; with like-for-like sales up 1.4%. George – the UK market leader in kidswear and third-largest fashion retailer by sales volumes – grew clothing revenues by 3% to £293m in Q1, and 3% on a like-for-like basis. · Sainsbury's is starting a five-year strategic partnership with Microsoft, helping the retailer to integrate AI capabilities to drive the grocer’s strategy. Built on “smart cloud foundations”, the partnership will drive better productivity, CX and leverage their data to enhance their capabilities. · Waitrose & Partners will open its first takeaway GAIL's Bakery’s on 6 June at London’s Canary Wharf. This follows the addition of Gail’s sections in 64 Waitrose stores. The new 280 sq ft bakery features click-and-collect and delivery services. · WHSmith introduced its first own-brand food range, "Smith’s Family Kitchen," in over 300 UK travel stores. The range includes over 30 products, targeting time-pressed customers. · IKEA delayed the opening of its Oxford Street store for a second time to spring 2025 due to water ingress issues in the Grade II listed building. · Lidl GB is increasing hourly pay for UK employees for the third time in 12 months, investing over £2.5m, effective 1 June. This follows a total investment of nearly £50m in pay raises over the past year. · Temu faces EU legal challenges by 17 companies, accused of "manipulative practices" and lack of transparency. Allegations include making it harder to delete accounts, misleading pricing, untraceable traders, and unclear product recommendations, violating EU laws. Temu committed to addressing these concerns and has made agreements with German and South Korean consumer organisations to improve compliance. · Currys plc expects to surpass its profit guidance in the year to 27 April 2024, with anticipated adjusted pre-tax profits of £115m-£120m, up from "at least" £105m. Group like-for-like sales grew by 2% in the final 16 weeks, with like-for-likes also rising by 2% in the UK and Ireland. · Burberry reported a 4% drop in revenues to £2.9bn and a 40% decline in pre-tax profits to £383m for the year ending 30 March 2024. Adjusted operating profit fell 25% to £418m. The retailer warned of a 25% decrease in wholesale revenue, a potential £30m revenue hit due to currency headwinds, and a £20m hit to operating profit in 2024/25. Burberry identified cost savings to offset inflation. This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM · Don't forget to sign up for our webinar "Outlook for 2024 & Beyond: Retail Prospects & Shifts in Consumer Affluence" in partnership with beBettor 4 June at 12pm ➡ https://lnkd.in/eBfhA9Xb

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A new study has found 73% of UK consumers want online orders to be shipped from the store closest to them, limiting the environmental impact of deliveries while providing the fastest fulfilment service. The survey of 1,000 UK consumers for Centra’s latest report What UK Shoppers Want from Fashion Brands in 2024 showed consumers are now considering the speed and price vs environmental impact of the online shopping journey. Although this survey focuses on Fashion, I would guarantee that the thinking would be exactly the same for Home and Garden. You can read more here - https://lnkd.in/eunShkX4 #retail #consumers #ecommerce #sustaainability

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The rise of superhero services: The 7% increase in beauty sales at John Lewis is advantageous for me as a retail artist, especially as we enter Q4, when demand is highest and the pace quickens. Effective, service-driven strategies are crucial for customer retention and engagement. This growth reflects key retail trends, including a rising preference for personalised experiences that enhance shopping enjoyment through consultations, makeovers, and events. As beauty products become more complex, customers increasingly seek expert advice, making product knowledge essential. Social media platforms like Instagram and TikTok significantly influence consumer ideas and purchasing decisions, making it vital for brands to create engaging content and nurture community interactions. By utilising these platforms, brands can enhance visibility, attract new customers, and drive sales growth, emphasising the need for tailored services and investment in staff training. Charlotte Tilbury has achieved an impressive 230% increase in booking numbers, with 38,000 appointments booked in-store and 73,000 appointments from virtual consultations and masterclasses. This demonstrates the effectiveness of their digital marketing strategies and customer-focused approach. These beauty experiences, both in-person and online, not only engage customers but also educate them about skincare and makeup techniques while promoting Charlotte Tilbury’s products. This success aligns with John Lewis's commitment to investing £800 million in beauty, highlighting the potential for growth in this sector. #charlottetilbury #buisnessstrategy #services #business #marketing

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Sainsbury’s eyes £1bn retail profit as it hails ‘strongest year of grocery performance’ Sainsbury’s expects strong profit growth in the year ahead as it beat expectations for its 2023/24 financial year. Pre-tax profit for the year to 2 March edged up 1.6% to £701m, topping last year’s figure, as it achieved record grocery market share gains and volume growth that accelerated in every quarter. The UK’s second-biggest grocer said it expects to make up to £1.06bn in underlying operating profit from its retail operations in 2024-25 – up from £966m last year. The group posted a 6.8% rise in retail sales, excluding fuel, driven by a 9.4% jump in its grocery business. Chief executive Simon Roberts said: “We said we’d put food back at the heart of Sainsbury’s and that’s what we’ve done. Our food business is firing on all cylinders.” Its general merchandise, which includes Argos, business had a tougher time with sales down 0.5% and clothing sales fell 6.4%. #sainsbury #growth #retail #grocery #profit #sales #business

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Wet Weather Impacts Grocery Sales; Asda Continues To Lose Market Share As Tesco And Sainsbury’s Make Gains Latest Kantar: take-home grocery sales up just 1.0% 4 weeks to 9 June, slowest increase since June 2022 (poor weather, falling inflation), average shopper supermarket visits 16.3 this month – down from 16.4 in June last year. While the drop in grocery price inflation is contributing to slower market growth, it appears to be leading to improved consumer sentiment. Kantar’s data shows the rate now stands at 2.1%, marking the sixteenth consecutive month that it has fallen. In a survey by the firm, 36% of households described their financial position as comfortable in May 2024, a proportion not surpassed since November 2021. Kantar: McKevitt commented: “Cost-of-living crisis: 22% of households say they’re struggling, i.e. unable to cover expenses or are just making ends meet. But positive signs, many don’t need to restrict spending quite so much, ( inflation). Looking at individual retailers, Ocado was the fastest-growing grocer for the fourth month in a row, increasing its sales by 10.7% over the 12 weeks to 9 June – ahead of the total online market, which saw a rise of 4.0%. Lidl increased its market share by 0.4 percentage points to 8.1%, matching its sales growth over the period. Aldi had another disappointing month, with sales up by just 0.8% and its market share slipping to 10.0%. Tesco achieved its highest market share since February 2022, growing 0.6 percentage points to 27.7% after a 4.6% rise in sales. Sainsbury’s saw its sales increase by 4.9%, with its share of the market increasing to 15.2%. Meanwhile, Asda continued its poor run despite the recent roll-out of several initiatives aimed at boosting trade. Its sales fell 4.0%, with its market sliding from 13.7% to 12.8% over the year. As Morrisons celebrates its 125th anniversary, the grocer’s sales rose by 1.1%, but its share edged down to 8.7%. Iceland saw its sales climb 4.4%, and it now holds 2.4% of the market, up from 2.3% a year ago. This marks the first annual market share increase for the frozen-food specialist since March last year. Waitrose welcomed 188,000 new shoppers through its doors over the 12 weeks, a greater increase than any other grocer. Its sales grew by 3.5%, with its market share holding at 4.5%. NamNews Implications: ·       21% of households still struggling with inflation… ·       …although others appear to be less uncomfortable… ·       …all reflected in slightly more willingness to spend. ·       As a result, Tesco & Sainsbury’s appear to be matching consumer needs and are growing share at the expense of Asda and Morrisons. ·       Meanwhile, discounter growth is being diluted by Aldi, resulting in a combined share with Lidl of 18.1%. ·       Much now depends on Asda’s debt management for them to realise their growth ambitions… ·       …and to justify any real shift in supplier strategies. #MarketShares

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