Tag Archives: retail

Hamleys expansion and investment ‘will be significant and worthy of a 260 year old brand’

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Hamleys is pushing forward with expansion plans for its 260 year old toy selling business which includes a refurbishment of its iconic London store on Regent Street and the potential to open new stores across the UK.

The toy retailer’s current owner Reliance Brands has underlined its plans to for ‘significant investment’ in the Hamleys name, stating that the expansion is a ‘sign of confidence in the brand and strategy’, rather than a ‘foolhardy ambition.’

The plans arrive at an interesting time for the high street, which has been hit by the pandemic and the surge in online shopping that the UK’s lockdown measures have facilitated in recent months. Recent months and weeks have seen numerous British retailers implement job cuts and store closures, citing the coronavirus as the cause of the decline.

However, Summit Yadav, CEO of Reliance Brands told Bloomberg that while ‘it has been quite an eventful journey,’ it would not be holding back making long-term investments. Yadav has declined to say just how much money is being invested in the expansion, but described the sum as ‘significant and worthy of a brand that is nearly 260 years old.’

“The Hamleys experience cannot be diluted,” he said.

Reliance, owned by the richest man in India, Mukesh Ambani, bought the 259-year-old toy retailer from Chinese footwear group C.banner International for £68m.

During the acquisition, Reliance said the transaction would “catapult Reliance Brands to be a dominant player in the global toy retail industry”.

Debenhams puts liquidation firm on standby but insists it is “trading strongly”

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Debenhams has put a liquidation firm on standby to draw up contingency plans for the department store chain should it not find a solution to its current financial crisis. The company, which is now in administration, has hired Hilco Capital to undertake the task should an answer not be found.

The retailer has underlined that it is currently “trading strongly” and that having the firm on standby does not mean that a liquidation was likely. Last week, Debenhams said it would axe 2,500 more jobs on top of the 4,000 job cuts is announced in May this year.

Debenhams filed for administration in April – the second time in a little over a year – and is examining options to exit the process. These include the current owners continuing to run the business, a sale of Debenhams or a joint venture with new or existing investors.

If the administrators fail to find a buyer or new investment, Debenhams faces liquidation, a process that will put 14,000 jobs at risk.

As reported by the BBC, a spokesperson for the department store said: “Debenhams is trading strongly, with 124 stores reopened and a healthy cash position.”

Debenhams began reopening its shops in June after being closed since lockdown in late March to stop the spread of the coronavirus. The company was struggling before the pandemic, however, and had previously issued a strong of profit warnings. Ahead of last year’s administration, Sports Direct owner, Mike Ashley had proposed injecting £200 million in to the retail chain, an offer that was rejected as Debenhams entered a pre-pack administration which allowed it to keep trading.

Debenhams puts liquidation firm on standby but insists it is “trading strongly”

Posted on by

Debenhams has put a liquidation firm on standby to draw up contingency plans for the department store chain should it not find a solution to its current financial crisis. The company, which is now in administration, has hired Hilco Capital to undertake the task should an answer not be found.

The retailer has underlined that it is currently “trading strongly” and that having the firm on standby does not mean that a liquidation was likely. Last week, Debenhams said it would axe 2,500 more jobs on top of the 4,000 job cuts is announced in May this year.

Debenhams filed for administration in April – the second time in a little over a year – and is examining options to exit the process. These include the current owners continuing to run the business, a sale of Debenhams or a joint venture with new or existing investors.

If the administrators fail to find a buyer or new investment, Debenhams faces liquidation, a process that will put 14,000 jobs at risk.

As reported by the BBC, a spokesperson for the department store said: “Debenhams is trading strongly, with 124 stores reopened and a healthy cash position.”

Debenhams began reopening its shops in June after being closed since lockdown in late March to stop the spread of the coronavirus. The company was struggling before the pandemic, however, and had previously issued a strong of profit warnings. Ahead of last year’s administration, Sports Direct owner, Mike Ashley had proposed injecting £200 million in to the retail chain, an offer that was rejected as Debenhams entered a pre-pack administration which allowed it to keep trading.

Online shopping habits could be here to stay, says new research from DS Smith

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The pandemic has accelerated consumers’ move to online shopping, with new research into consumer behaviour indicating that the majority of Brits now plan to stick to their lockdown online buying habits from here on out.

According to a survey commissioned by DS Smith, the London-based packaging specialist, retailers have seen online sales increase dramatically, with 61 per cent of Brits admitting to shopping more online during Covid19. The unsurprising increase in ecommerce is expected to add £5.3bn to UK ecommerce sales in 2020, bringing the total to £78.9bn.

The same survey goes on to reveal that 89 per cent of British shoppers say they will continue to shop online at the same level, or even more, post lockdown. 93 per cent of Brits now feel confident about buying items online.

Groceries has seen the biggest increase, with 39 per cent of British shoppers reporting an increase in online shopping. Lockdown also saw 29 per cent of Brits increase their online shopping for home and garden products – contributing to the 41 per cent of Brits who received a home, garden, or DIY related product since the Covid-19 crisis.

With lockdown easing, DS Smith’s research indicates that many of these new shopping trends will now be here to stay. More than half of Brits are planning to buy groceries (60 per cent), hygiene products (51 per cent), and home and garden products (54 per cent) online at the same rate or higher in the coming six months.

On top of this, almost one third of Brits said they have signed up to a new shopping website that they hadn’t used before lockdown, while spending on meal kits and grocery delivery boxes soared by 114 per cent after people were told to stay home.

Stefano Rossi, packaging CEO at DS Smith, said: “There has been a seismic shift in the way consumers are shopping and we’ve been using our expertise to support businesses of all sizes with the rapid growth of ecommerce so they can survive and thrive through this uncertain time.

“What’s clear is that as lockdown eases further, these trends aren’t likely to fall away. Consumers have found new confidence and convenience in the way they shop, buying a whole range of items online – everything from the family food shop, to toiletries and home and garden products.

“If companies are not already transforming their business to meet this new age of ecommerce, they risk being left behind.”

The survey has gone on to detail the latest statistics around greener packaging, suggesting that green recovery and building back better is becoming a global priority, while sustainability is an increasing concern for Brits post-lockdown. It indicates that 24 per cent of shoppers are more likely to buy online if items are delivered with less packaging or more sustainable packaging, while 21 per cent are more likely to buy online if their products arrive in more recyclable packaging.

Rossi added: “The research shows that greener packaging is a real concern for shoppers and as we help our customers make a green recovery a practical reality and priority through simple measures like adopting sustainable packaging. We’re keen to help brands and businesses navigate this path and work with them so they can benefit from sustainable packaging solutions.”

 

Boots to cut 4,000 jobs and John Lewis to close eight of its 50 stores in amid Covid-19 fallout

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The UK retailer, Boots is to cut 4,000 jobs, its parent company Walgreen Boots Alliance has announced, having been badly hit by the coronavirus pandemic and lockdown measures. The company said it will cut around seven per cent of its UK workforce.

According to Walgreens, sales at Boots have plunged during the lockdown.

“The adverse impact of Covid-19 on sales in the quarter was approximately $700 million to $750 million, with the majority of the impact related to the Retail Pharmacy International division,” the company said in a statement released today. “This reflected a dramatic reduction in footfall in Boots UK stores – down 85 per cent in April, as consumers were advised to leave home only for food and medicine.”

Walgreens Boots Alliance CEO, Stefano Pessina has said: “Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets.

“Shopping patterns are evolving more rapidly than ever as consumers further embrace digital options, spurring us to accelerate our ongoing investments in digital transformation and neighbourhood health destinations.”

Boots’ announcement follows further bad news for retail as John Lewis detailed its own plans to close eight of its 50 stores this morning, including major outlets in Birmingham and Watford. The closure will result in the loss of around 1,300 jobs.

All four of the group’s smaller At Home stores, in Croydon, Newbury, Swindon and Tamworth, are to close as well as two outlets in travel hubs at Heathrow and St Pancras station in London, reports The Guardian.

The Group has said that the eight shops were already ‘financially challenged’ before the outbreak of coronavirus, but that the pandemic had accelerated the move from in-store shopping to online. Figures state that before the virus hit, 40 per cent of John Lewis sales were online, but since the pandemic, this could now be closer to 60 to 70 per cent of total sales this year and next.

Sharon White, the chairman of the department store’s parent group – the John Lewis Partnership, said: “Closing a shop is always incredibly difficult and today’s announcement will come as very sad news to customers and partners. However, we believe closures are necessary to help us secure the sustainability of the partnership, and continue to meet the needs of our customers and wherever they want to shop.

“Redundancies are always an absolute last resort and we will do everything we can to keep as many partners as possible within our business.

“There are many reasons to be optimistic about the Partnership’s future. Waitrose and John Lewis are two of the UK’s most loved and trusted brands and we have adapted to the challenges of the pandemic by responding to the new needs of customers. We will soon announce the output of our strategic review which will ensure our brands stay relevant for future generations of customers.”