Kieran Grundy (Assoc. CIPD)’s Post

🎄 ⭐ As we enter the 'Golden Quarter' in retail, a report by BDO suggests that retail sales are 'sluggish' despite increased footfall. However, some retailers aren't feeling the squeeze. 📈 • Montirex LTD. opened it's first standalone pop-up store in Liverpool One, with hundreds queuing to buy the exclusive products. 👕 👖 • Frasers Group offer of £83million to buy Mulberry England was rejected but today announced its plans to buy further shares. 👜 👝 • Marks and Spencer is exploring a deal for a new giant warehouse in the Midlands as the retailer see's big growth in online sales across fashion and homeware. 💻 🏡 • Aldi UK could overtake ASDA as the UK's 3rd largest supermarket with an £800million expansion plan after posting record profits. 🥕 🥐 • Represent expands its in store presence with a new permanent space in Harrods, before its first UK store opens in the next few weeks. 👕 👟 • JD Sports Fashion CEO announced 'record' interim results with group revenue of £5.0billion as its internal expansion continues. ⚽ 🌍 Zachary Daniels

Thursdays = Retail Roundups! 🌟 Congratulations to Marks and Spencer for being named the UK's best brand for 2024 in a recent YouGov survey! CEO Stuart Machin highlights their dedication to quality and trust - something we will continue to hear a lot from the big retailers in 2024. Cheers to M&S and their ongoing success! 💼 Tesco's legal team have been busy this week, initiating a High Court appeal on their clubcard logo injunction from last year. On top of that, changes to their clubcard price strategy will change to include unit prices. Continued development on price transparency is crucial in the cost of living, so will be well received by consumers and Which? alike. How this impacts promotions like this across the market in the long-run let's see.... 💷 Lidl GB seeks investors for expansion plans, offering a £91m leaseback deal to support the addition of 12 new stores to its UK portfolio. A break from their existing real estate approach, I don't think this is a warning sign of any cash flow issues, more so a creative adaption to their portfolio management. This is perhaps with an eye to free up capital to focus on their supply chain and fulfilment operations, given their investment in this area and re-prioritization away from new store openings. I will be doing a separate piece on the current equity market in UK retail this week, given the influx in stories around Currys, Body Shop & Superdry as this is a huge topic at the moment. But what are your thoughts on these stories? Are there others that attracted your attention more this week? Let me know - as always, happy to talk! letstalk@squaregoose.co.uk

It’s been another rough year at U.S. department stores so far, at least for those making their financial filings public. Several of them — public and private — have embarked on turnarounds or are contemplating changes that could be a final test of a challenged retail model. #departmentstores #retailstrategy #turnaroundstrategy #retailsales

Here are some interesting stories from the world of retail for Thursday, February 15: 🥫 Ahold Delhaize’s US sales and comps turn negative. The grocer reported Wednesday that its same-store, digital and net sales were all down during its fourth quarter by at least 1%. 🏪 Foxtrot's parent company has named a new CEO. Rob Twyman, a grocery veteran who worked for decades at Whole Foods Market Foods, succeeds Liz Williams, who held the role for just under a year. 🛋️ Z Gallerie has a new owner, Karat Home. The Karat Home brand is sold by major U.S. retailers online and was a major supplier to Pier 1 Imports and Bombay Co. Now it’s planning to bring back Z Gallerie stores. 🏬 The CEO of Macerich is to retire. Thomas O’Hern is retiring after 30 years of service. Filling O’Hern’s chair will be Jackson Hsieh, who will take the reins as CEO and president, effective March 1. 👩⚖️ Neiman Marcus Group pushes back against charges of bias in hiring. The charges, which came on an anonymous employee platform, were investigated by a law firm last year that cleared the company. 💳 Americans who are already facing some money trouble are more intensive users of Buy Now, Pay Later offerings, with the majority of them tapping the short-term installment payment programs five or more times a year. 🇲🇽 Mexican regulators have ordered online retailers Amazon and Mercado Libre to reveal their algorithms and to wall off TV streaming to avoid stifling competition. 📉 Consumers are seeing some relief on rising prices as the Federal Reserve Board keeps interest rates at elevated levels and commodity prices weaken. But the inflation battle seems to be advancing only by inches. 🧳 Away lays off 25% of internal staff. The DTC luggage brand is undergoing a reorganization that also includes “the elimination of a traditional executive team structure.” 💎 While many shoppers today are on the hunt for dupes — products that offer the same quality or look for a cheaper price — premium brands like lululemon are increasingly out to prove that their higher-priced products are superior. 🏗 Big Lots, Express and Children’s Place could spell more trouble for commercial real estate, Barclays says. The uptick in corporate bankruptcies comes as the buffer of low pandemic interest rates evaporates. 💰 ContextLogic, which does business as Wish, has agreed to sell the online marketplace for about $173 million in cash to Singapore-based Qoo10, which operates localized marketplaces in Asia. 🚚 Seattle's minimum pay ordinance is hurting delivery drivers it meant to help. Seattle's app-based worker minimum payment law has taken a toll on delivery orders, gig workers and delivery app companies warn. 🇦🇺 Wesfarmers has posted a better-than-expected 3% increase in half-year profit, reflecting a strong performance from its retail operations. It made A$1.42bn ($930m) in the six months to December 31. #retail #retailnews #economy 

Indefinite-Lived or Not? Saks Fifth Avenue’s parent company, HBC, is acquiring the Neiman Marcus Group in a $2.65 billion deal. Neiman Marcus is a recognizable luxury brand, so it's likely that HBC will allocate a significant portion of the purchase price towards the Neiman Marcus “brand name” intangible asset (or its equivalent). However, as I read the CNBC article, I began to wonder whether this intangible asset will be classified as indefinite-lived (lasting “forever”) or long-lived (value diminishing over time). The classification makes a significant difference for accounting purposes: > Indefinite-Lived Assets: These are not amortized but tested annually for impairment. > Long-Lived Assets: These are amortized over a specified period of time. Typically, consumer brand names that have been around for a very long time are considered indefinite-lived. However, the article mentions that “the deal comes amid what’s been a turbulent period for traditional brick-and-mortar retail in the wake of the ecommerce boom.” This raises the question of the brand’s ability to "last forever", which could challenge the appropriateness of an indefinite-lived classification. Should be an interesting analysis for the HBC technical accountants. _ _ _ _ Need technical accounting support? Contact me at pmadara@gaaptus.com #ifrs3 #asc805 #businesscombinations #technicalaccounting https://lnkd.in/eKEsVyEY

Nearly 1,300 stores are closing across the US in 2024 A Business Insider tally of disclosures from nine retail chain brands found as many as 1,290 stores have closed or are set to close across the US in 2024. Analysts at UBS think the total number of US retail closures could reach 45,000 over the next five years, led largely by smaller stores going out of business, even as larger firms such as Walmart, Costco, Target, and Home Depot continue to expand. Topping this year's list is the Dollar Tree-owned Family Dollar, which is set to close at least 600 locations, with more to come as leases expire. At least nine retail brands have said they're closing US stores in 2024, totaling some 1,280 locations. https://lnkd.in/gyj_nWKT 

Nearly 1,300 stores are closing across the US in 2024 A Business Insider tally of disclosures from nine retail chain brands found as many as 1,290 stores have closed or are set to close across the US in 2024. Analysts at UBS think the total number of US retail closures could reach 45,000 over the next five years, led largely by smaller stores going out of business, even as larger firms such as Walmart, Costco, Target, and Home Depot continue to expand. Topping this year's list is the Dollar Tree-owned Family Dollar, which is set to close at least 600 locations, with more to come as leases expire. At least nine retail brands have said they're closing US stores in 2024, totaling some 1,280 locations. https://lnkd.in/gyj_nWKT 

B&M Retail announces revenue increase in preliminary results B&M European Value Retail SA has reported a revenue increase of 10.1% to £5.5b, as the company proceeds with further store estate expansion. The preliminary results count for the 53 weeks financial reporting period to 30th March 2024 compared to the reporting period for the 52 weeks ended 25th March 2023. In the UK, the retailer’s revenue rose 8.5% compared to 4% in 2023 after opening 47 new stores. In France revenue leaped 19.2% after 11 new stores were opened but this is a drop in percentage growth from 2023 which saw a 22.1% growth in the territory. Overall pre-tax profits for the discount retail store, including its Heron Foods brand, rose 14.1% to £498m. The group has reported strong post-tax free cash flow of £382m, compared to £464m in 2023, achieved with a disciplined approach to inventory management. Group inventory reached £776m, a slight increase from £764m last year. #retail #results #financials #retailer #toys #toyindustry

US Retail Shake-Up: Over 1,290 Stores Closing Amid Industry Transformation In a significant industry shift, 1,290 stores across the US are slated for closure in 2024, according to a Business Insider analysis. While this number is lower than previous years, the retail landscape remains dynamic. Analysts predict that over the next five years, a staggering 45,000 US retail closures may occur, primarily affecting smaller stores. Despite this, retail giants like Walmart, Costco, Target, and Home Depot continue to expand. Dollar Tree’s Family Dollar tops the closure list, while companies like Express and Foxtrot face financial challenges. As shopping behaviors evolve, retailers adapt their strategies to stay competitive. #RetailNews #StoreClosure #ConsumerNews https://lnkd.in/exWBcQhD

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