UK Retail News

Tesco chief Sir Terry Leahy to retire
Tesco has announced that chief executive Sir Terry Leahy is to retire from the supermarket chain next March. Sir Terry has led the chain for more than 13 years and has overseen its rise to become the UK’s leading supermarket. He is to be replaced by international and IT director Philip Clarke, who said he was “honoured and delighted” to succeed Sir Terry. BBC NEWS

BRC-KPMG Retail Sales Monitor May 2010: Sales Revive But Uncertainty Remains
UK retail sales values rose 0.8% on a like-for-like basis from May 2009, when sales had fallen 0.8%. On a total basis, sales were up 3.0% against a 0.8% increase in May 2009. BRC NEWS

Tesco and Sainsbury’s are ‘most likely’ World Cup winners in retail
Tesco and Sainsbury’s are going into the World Cup with the “competitive advantage” over their supermarket rivals, according to market analyst Verdict Research. RETAIL TALKS

Morrisons appoints new Group Commercial Director
Morrisons has announced the appointment of Richard Hodgson as Group Commercial Director. Group Trading Director Martyn Jones will move into a new role as Group Corporate Services Director. IDG RETAIL ANALYSIS

WH Smith sees sales hit in ash cloud crisis
WH Smith posted a fall in third-quarter sales as travel disruption due to the Icelandic volcanic ash cloud hit the firm’s airport business. The company said its financial position was in line with market expectations. CITY AM

Northern Rock to cut 650 jobs by year end
Nationalised bank Northern Rock has said it plans to cut 650 jobs by the end of this year as part of its ongoing restructuring process. It has pledged to avoid compulsory redundancies “wherever possible”. Chief executive Gary Hoffman said the bank had to “align our staffing level to match the smaller size of the business”. http://tinyurl.com/2vfplu8

BOOTS & MOTHERCARE: Adding to a growing partnership with clothing
The two already have an agreement through which Boots sells toys from the Early Learning Centre which Mothercare bought in June 2007 for £85m. Now a range of children’s clothing and accessories is to be sold in Boots. CITY AM.

http://tinyurl.com/ygrnf8v

SAP: Leo Apotheker – Gone after 8 months…
He had taken the helm at SAP, the world’s third-biggest software firm, only in May. Mr Apotheker resigned after SAP’s supervisory board had decided not to extend his contract. THE ECONOMIST

http://tinyurl.com/yf8p4aq

GENERAL MOTORS: Opel arm on product offensive, and GM heading into India
Opel unit will invest 11bn euros ($15bn; £9.7bn) over the next five years to develop new products. Video discussion on developing into the Delhi markets by GM India chief, Karl Slym. BBC NEWS.

http://tinyurl.com/yjd56qj

IT SYSTEMS: Epicor Retail Business Intelligence 2.0.
New and enhanced features help retailers gain critical and timely business insight to gauge and improve execution and assist in enterprise decision-making, a new enhanced user interface, and an extended data model. RETAIL TECHNOLOGY REVIEW

http://tinyurl.com/ycdtmko

Trinity Mirror Group buys local paperS
TMG has agreed to buy Guardian Media Group’s local newspapers for 44.8 million pounds to extend its regional reach, the first major step in consolidating Britain’s battered local media. REUTERS UK

http://tinyurl.com/yzpet5t

Threat of the first ever IT staff strike back in talks at Fujitsu
Unite union members at Fujitsu have called off a strike as talks take place to solve the UK’s first ever national IT workers’ strike. More action threatened next week over pay, pensions and redundancies. CIO

http://tinyurl.com/yk5wrpb

CMG MONTH NEWS ROUND UP

As the year end draws to a close we’d like to wish all of you a very HAPPY NEW YEAR for 2010

Online Organisation Tools are the next big thing for business

Imagine a day, which won’t be too far in the future, when as part of your media buying campaign you’ll buy access to many millions of individuals through this location-based service as the phone becomes a mini-billboard. CITY AM.

http://tinyurl.com/yfulbee

Cadbury’s ongoing defence against Kraft

Cadbury has been granted three extra days to put together a trading statement which could be critical to its defence against a £10.3bn hostile bid from Kraft. FINANCIAL TIMES. 

http://tinyurl.com/yzs2jgm

Fujitsu sign deal with EPoS Distributor

The agreement will see EPoS Distributor become the first UK distributor of Fujitsu’s point-of-sale (PoS) retail hardware products. EPoS Distributor will commence reselling Fujitsu’s retail hardware products in January. RETAIL TECHNOLOGY REVIEW.

http://tinyurl.com/yzpz58v

TED BAKER – Planning for continued growth

Ted Baker’s continuing global growth means it needs to enhance and consolidate its planning processes, for which the company has chosen the Maple Lake application. RETAIL TECHNOLOGY REVIEW.

http://tinyurl.com/yfjxxgn

T’was a good Christmas for mid-sized retailers

Mid-sized retailers enjoyed a decent Christmas with both sales and margins improved, according to BDO’s High Street Sales Tracker. Total sales were up 2.4% for the members of BDO’s index, with fashion up 2.5% and non-fashion up 3.6%. RETAIL WEEK.

http://tinyurl.com/ylxxs6z

Tough year ahead for British Retailers say BRC

2010 will be a difficult year for retailers, but no worse than 2009, according to a survey of its members by the British Retail Consortium. Four out of five retailers surveyed said they expected sales in 2010 to be the same. RETAIL WEEK.

http://tinyurl.com/yh8hvxw

 Australia’s FOOD GROUP RETAIL bets big on the Indian Market

Betting big on the $12-billion Indian retail market, Australia’s Retail Food Group (RFG) plans to make its proposed venture here to be bigger than its domestic operations within the next 15-20 years. INDIA RETAILING.

http://tinyurl.com/yh4lcb8

CBI: Recession is the catalyst for a decade of Business Change

The recession has raised concerns about commercial models, supply chains and finance that will reshape business behaviour well into the next decade, the CBI said today.

Retail & Company News

Draper Awards

Client successes were fervent at the Draper Awards Last week with White Stuff taking two awards for Best Smaller Multiple & Multiple Retailer (beating John Lewis!), and ASOS took etailer of the year. Congratulations!

 Cosmen Family Ups Interest in National Express

The Cosmen’s rose their stake twice in the last week to 19.72% from 18.97% ahead of a vital vote on National Express’s £360million rights issue. They would rather a tie-up with rivals such as Stagecoach. Voting takes place this Friday.

Sports Direct Hire a new permanent Chairman – Keith Hellawell

Hellawell says he is ‘delighted to join the board of Sports Direct and … looking forward to contributing to its continuing success in the retail sector.” 

Bollands Exit Creates a Gap

Following on from last weeks revelation that Mark Bolland was moving to M&S there is wide spread speculation about who will fulfil his role are Morrison’s.

Postal Strikes cost online retailers £53million in lost growth in October

‘the decline in e-retail sales values and volumes during the second half of the month shows that consumer confidence was affected by the Royal Mail strikes’.

 Comment

Google’s winning streak is based on apparently ‘giving something for nothing’ but…

‘if it doesn’t include consumers in its business plan, by giving them a cut of the value created by their personal information..’ then someone else probably will.   

India News

Kellogg’s breakfast dominance threatened due to shelf space allocation

Future Group and Kellogg are reportedly in a margin-tussle over having to allot significant shelf space to the brand because of the large pack sizes, while margins are not commensurate with the shelf-space allocation.

M&S Head of Buying votes for accessible fashion

Adam Colton spoke at the 25th IAF World Apparel Convention 2009  where it was evident that India is emerging as a promising market for global brands and the retailers alike, significantly for its contribution to global textile and apparel trade. 

ASOS beat UK High street with overseas sales

Pre-tax profits jumped 9%, with the softening UK market and strong overseas sales from its presence in Germany, France, Denmark and the US. CITY AM.

http://tinyurl.com/yd9lxlb

Canon bidding for Oce

CANON plans to buy Dutch copier and printer maker Oce for €730m (£650m), in a challenge to rivals Ricoh and Xerox in the hunt for growth.  CITY AM. 

http://tinyurl.com/y8fdm2f

M&S names Mark Bolland as new Chief Exec after Stewart Rose

Rose said: “Marc brings a wealth of consumer marketing experience and has made a great success of his time at Morrisons.”  BBC NEWS. 

http://tinyurl.com/yzb5cch

Mothercare uses the downturn for a property reshuffle

Another 31 landmark parenting shops will be opened over three years, including 10 in the current year, and the intention is to have 120 altogether. RETAIL WEEK.

http://tinyurl.com/ykk3q7v

MBL UK ties with Best Buy

MBL shares rocketed yesterday after it had signed a contract with US retail giant Best Buy for the exclusive supply of its DVDs, BluRay disks and CDs. CITY AM.

http://tinyurl.com/yf6vesd

Hersheys and Ferreo going after Kraft for Cadbury

Italy’s Ferrero said it was in the “preliminary stages” of looking at its options, while US firm Hershey said making a bid was a possibility. BBC NEWS.

http://tinyurl.com/y9fborl

Cloud Computing – Join the debate…

Can it be trusted, what are the impacts and uses? Read the views and join the debate with a current 43% trusting clouds and 57% saying no. ECONOMIST.

http://tinyurl.com/yjod8mt

Freight Trains Vs Supply Chains

Our competitors are using freight trains to move stock. Would it benefit my supply chain? A retail system question answered! RETAIL WEEK.

http://tinyurl.com/ydrpqc4

Parsvnath and Carrefore announce a likely joint foray in the India Market

Local real estate giant Parsvnath Developers has said it is likely to form a venture with Carrefour soon, regarding retail operations in India. INDIA RETAILING.

http://tinyurl.com/yzl39g8

Reliance Retail expands into new cities

“This expansion would encompass new cities, new markets and new strategic alliances,” Reliance Industries Chairman and Managing Director, Mukesh Ambani, told shareholders at the company’s 35th Annual General Meeting. INDIA RETAILING.

http://tinyurl.com/ygoyh4d

Latest Industry News

McCormick Gets A Little Spice Out Of Lawry’s

The spice merchant posts a nice boost in earnings thanks to its gobbling up of an erstwhile competitor.

JD Sports pre-tax profits jump 14.5%

Sports fashion retailer JD Sports Fashion revealed a 14.5% increase in group pre-tax profits before exceptional items to £14.2m in the 26 weeks to August 1.

B&Q launches £20m price offensive

DIY giant B&Q has announced what it described as its biggest-ever Autumn price investment.

Face of Tesco ‘in UK illegally’

A Tesco checkout worker who won a competition to become the face of the supermarket is an illegal immigrant, it has emerged.

Tesco muscles in on digital market

Tesco is gearing up to relaunch its entertainment website Tesco Digital, as it seeks to give its brand credibility in the highly competitive digital market.

Sainsbury’s coupon scheme to hit back at Clubcard

Sainsbury’s is taking on Tesco’s double Clubcard points scheme with a new investment in coupons handed out at the till.

Tesco promotes fresh food chief Colin Holmes

Tesco has promoted its fresh foods chief to the executive committee.

It’s a birthday, so raise your glasses please

Guinness has come a long way since Arthur Guinness signed a 9,000-year lease on a disused brewery at St James’s Gate in Dublin on this day in 1759.

New Look’s Tom Singh

The quiet man from the West Country who began New Look with a £5,000 loan from his parents is likely to see his investment valued at nearly £400 million next year.

Primark named UK’s ‘most feared’ retailer

Cut-price fashion leader Primark is replacing Tesco as Britain’s “sharpest and most feared” retailer, says retail analyst Verdict Research.

National Express bidder set to win new deadline

The deadline for Spain’s Cosmen family to make a formal offer for National Express, the coach operator, is expected to be extended as a potential £765 million deal draws closer.

Charity begins on the high street as thrifty shoppers seek out bargains

Castaway clothes, second-hand books, moth-eaten records: despite monetary donations to charity falling, the era of recession-inspired thrift is helping charity shops to thrive.

Borders UK to close struggling Books Etc stores

Borders UK has confirmed it plans to remove the Books Etc and Borders Express brands from the high street.

http://tinyurl.com/ycreh4l

Online grocery shopping yet to catch on

Many British adults have still to “click” with online grocery shopping in spite of its convenient image, according to new research.

http://tinyurl.com/yd2g8xo

Christmas shoppers hit by Vodafone iPhone ban

Hopes of a fierce Christmas price war for the iPhone were dealt a blow today when Vodafone won the rights to sell the revolutionary gadget — but not during the key festive period.

http://tinyurl.com/yle7l8o

Unilever pays £1.1bn for US rival’s body care brands

Unilever will smarten up its range of grooming products by adding brands including Brylcreem and Radox after agreeing to buy Sara Lee’s personal care business for €1.2bn (£1.1bn).

http://tinyurl.com/ybnlhk3

Zara goes online as Inditex profits decline

Fashion giant Inditex has suffered a profit drop of 8% to €375m (£330.6m) in the first half of the year as it revealed plans to launch its Zara brand online.

http://tinyurl.com/ya2dubt

H&M to go online in the UK

H&M is to start selling online in the UK from next autumn, following the decision made by its fast fashion arch-rival Zara to do the same last week.

http://tinyurl.com/y9z3lwc

Shoemakers seek protection as retailers call for change in Brussels

A trade dispute over tariffs on cheap Chinese shoes is brewing at the European Commission as Italian and Spanish footwear manufacturers prepare to fight for continued European protection against Far Eastern imports.

http://tinyurl.com/ybpmkzv

McCormick Gets A Little Spice Out Of Lawry’s

The spice merchant posts a nice boost in earnings thanks to its gobbling up of an erstwhile competitor.

JD Sports pre-tax profits jump 14.5%

Sports fashion retailer JD Sports Fashion revealed a 14.5% increase in group pre-tax profits before exceptional items to £14.2m in the 26 weeks to August 1.

B&Q launches £20m price offensive

DIY giant B&Q has announced what it described as its biggest-ever Autumn price investment.

Face of Tesco ‘in UK illegally’

A Tesco checkout worker who won a competition to become the face of the supermarket is an illegal immigrant, it has emerged.

Tesco muscles in on digital market

Tesco is gearing up to relaunch its entertainment website Tesco Digital, as it seeks to give its brand credibility in the highly competitive digital market.

Sainsbury’s coupon scheme to hit back at Clubcard

Sainsbury’s is taking on Tesco’s double Clubcard points scheme with a new investment in coupons handed out at the till.

Tesco promotes fresh food chief Colin Holmes

Tesco has promoted its fresh foods chief to the executive committee.

It’s a birthday, so raise your glasses please

Guinness has come a long way since Arthur Guinness signed a 9,000-year lease on a disused brewery at St James’s Gate in Dublin on this day in 1759.

New Look’s Tom Singh

The quiet man from the West Country who began New Look with a £5,000 loan from his parents is likely to see his investment valued at nearly £400 million next year.

Primark named UK’s ‘most feared’ retailer

Cut-price fashion leader Primark is replacing Tesco as Britain’s “sharpest and most feared” retailer, says retail analyst Verdict Research.

National Express bidder set to win new deadline

The deadline for Spain’s Cosmen family to make a formal offer for National Express, the coach operator, is expected to be extended as a potential £765 million deal draws closer.

Charity begins on the high street as thrifty shoppers seek out bargains

Castaway clothes, second-hand books, moth-eaten records: despite monetary donations to charity falling, the era of recession-inspired thrift is helping charity shops to thrive.

Borders UK to close struggling Books Etc stores

Borders UK has confirmed it plans to remove the Books Etc and Borders Express brands from the high street.

Online grocery shopping yet to catch on

Many British adults have still to “click” with online grocery shopping in spite of its convenient image, according to new research.

Christmas shoppers hit by Vodafone iPhone ban

Hopes of a fierce Christmas price war for the iPhone were dealt a blow today when Vodafone won the rights to sell the revolutionary gadget — but not during the key festive period.

Unilever pays £1.1bn for US rival’s body care brands

Unilever will smarten up its range of grooming products by adding brands including Brylcreem and Radox after agreeing to buy Sara Lee’s personal care business for €1.2bn (£1.1bn).

Zara goes online as Inditex profits decline

Fashion giant Inditex has suffered a profit drop of 8% to €375m (£330.6m) in the first half of the year as it revealed plans to launch its Zara brand online.

H&M to go online in the UK

H&M is to start selling online in the UK from next autumn, following the decision made by its fast fashion arch-rival Zara to do the same last week.

Shoemakers seek protection as retailers call for change in Brussels

A trade dispute over tariffs on cheap Chinese shoes is brewing at the European Commission as Italian and Spanish footwear manufacturers prepare to fight for continued European protection against Far Eastern imports.

Figleaves broadens its offer with site revamp

Etailer Figleaves has taken a further step towards widening its offer as it unveils its new-look website.

Asos tempts UK customers with free returns

Asos has introduced free returns for all UK customers as part of an overhaul of its delivery options.

Kingfisher’s email hiccup forces it to post results early

The owner of B&Q was yesterday embarrassed into bringing forward publication of its first-half results, after accidentally publishing some of the data ahead of schedule in an “administrative error”.

Tesco and Fortis finalise insurance partnership

1500 jobs to be created.

Tesco enjoys a Korea break with Homeplus

On the fifth floor of the 24-hour Tesco, golfers are driving practice balls high into the roof. Yards away, diners are sipping wine and scoffing steak and risotto in a plush Italian restaurant overlooking the neon skyline.

Dunnhumby’s data looks good as profits rise 71pc

Dunnhumby, the data-crunching company behind Tesco’s Clubcard, saw profits rise 71pc last year as it expanded across the globe.

Partnerships to breathe life into healthcare

Over the past few years a real market has developed in health,” explains Sally Bryden, the head of strategic development at Oxleas NHS Foundation Trust, a mental health trust.

EU sanctions on Sri Lanka to hit ‘cheap’ clothing over human rights abuses

They were billed as “garments without guilt” — cheap, good-quality lingerie, casual clothes and sportswear made in Sri Lanka and sold in stores such as Next, Tesco and Marks & Spencer.

Asda launches Asian clothing line

Asda has launched a line of Asian clothing in what is thought to be the first such move by a high street retailer.

BT to open dedicated broadband demo stores

BT is preparing to open high street stores for potential new customers to be given demonstrations of its Total Broadband service.

Acquisitions fuel rapid growth for private fresh food suppliers

Fresh food companies dominate a new ranking of the 50 fastest-growing UK food and drink manufacturers, as the fragmented sector consolidates.

Sainsbury’s appoints David Tyler as chairman

David Tyler, an experienced retailer with strong finance credentials, has been chosen to become the next chairman of supermarket group J Sainsbury.

Diageo under attack for job losses

The Scottish Government hit out at drinks giant Diageo yesterday for turning down a proposal to save hundreds of jobs.

Fairtrade chief gets on her bike to tackle global trade problems

Harriet Lamb is prepared to go the distance to get the big brands on board in the fight against poverty.

Kerry in €60m curry fight

Norwegian private equity group Orkla and US spice producer McCormick are also believed to be in the running to buy the 26pc stake from one of India’s richest families and the New Vernon investment group.

Orange merger with T-Mobile to face tough competition hurdles

The planned merger of Orange and T-Mobile faces an uphill battle to convince competition authorities that the creation of Britain’s biggest mobile phone company should be allowed to proceed.

Surge in profits at Morrisons

Morrisons has reported a leap in half-year profits to £449 million from £309m as the resurgent supermarket put on further strong sales growth.

Customers insulted on DSGi staff Facebook site

People claiming to be staff at electricals group DSGi’s Currys and PC World chains have mounted ferocious attacks on customers via a Facebook group.

Primark founder hands over reins to successor

Primark’s founder Arthur Ryan is to step down as chief executive from tomorrow as Paul Marchant, the discount fashion retailer’s chief operating officer, is promoted to the role.

New chair for Robert Dyas as debt deal nears

Hardware retailer Robert Dyas has lined up former Kingfisher director Geoff Brady as chairman and is concluding a debt-for-equity swap as it refocuses on trading following financial restructuring.

Dixon leads M&S race after board promotion

Marks & Spencer reignited speculation about who will be its new chief executive by promoting John Dixon, its head of food, to the board yesterday.

National Express to open books to £765m buyers

National Express is set to open its books to a Spanish-led consortium to thrash out the details of a potential £765 million bid to take over the troubled transport company, despite pressure from shareholders to consider a break-up to create more value.

Diageo makes £2.7bn profit but defends job cuts

DIAGEO, the drinks group, will this week announce it has boosted profits for the year to June to £2.7 billion.

Brand owners back Diageo in Pimm’s copycat court case

Food and drink brand owners are hoping Diageo’s decision to sue Sainsbury’s for copyright infringement will open the floodgates for further lawsuits and stop supermarkets’ “increasingly audacious” infringements in their tracks.

Diageo makes Almond Baileys brand director

Diageo GB is on the hunt for a new marketing director after promoting Philip Almond to a global role.

Asos bolsters board

Asos has appointed the chief executive of internet service provider Tiscali to its board.

Tesco shelves Met Office for own weather forecasters

British holidaymakers are not the only people upset that Met Office predictions of a barbecue summer have proved woefully inaccurate.

Tesco wages war on WHSmith with back to school campaign

Tesco aims to conquer the ‘back to school’ market with a price comparison campaign against WHSmith.

Tesco to create 800 jobs at TPF call centre

Tesco is to create 800 jobs by opening a new call centre in Glasgow ahead of the retail giant launching a “full banking service”.

DSGi poaches John Lewis man to be web chief

Electricals group DSGi has poached a John Lewis online boss to become ecommerce director in charge of its UK websites.

New research reveals 87 per cent of online shoppers abandon their basket

New research exploring reasons behind shopping basket abandonment has revealed that, just like their real world counterparts, online customers love to window shop with 87% abandoning their basket before paying.

Unilever wants ice cream to ease global warming

Warm ice cream is the holy grail for scientists at Unilever, owner of the Magnum and Ben & Jerry’s brands, which is developing a “low-carbon” product to be sold at room temperature and frozen at home.

Sainsbury’s increases graduate places by 30%

Sainsbury’s has increased the number of places available on its graduate training programme by 30%, providing a rare glimpse of hope for students graduating in a recession.

Nectar says it won’t offer double points

Nectar, the loyalty scheme used by Sainsbury’s, has ruled out any retaliatory increase of its own following the launch of Tesco’s double-points Clubcard 2.

JD Sports front-runner to buy Kitbag from Findel

JD Sports Fashion looks to be continuing its spending spree and could snap up online sports offer Kitbag from home shopping group Findel.

Asda cites low prices and quality as key to success across markets

Asda has claimed its food, home and leisure and George clothing departments are all outperforming their respective markets.

B&Q appoints Liz Bell and Nick Folland to board

B&Q has appointed its HR director Liz Bell and parent Kingfisher’s company secretary Nick Folland to its board.

Tesco doubles loyalty card rewards from Monday

Supermarket giant will give customers double points in an attempt to stop customers moving to other retailers

Diageo sues Sainsbury’s over Pimm’s ‘copy’

Diageo, the world’s biggest drinks company, has launched legal action against J Sainsbury, the supermarket chain, over copyright infringement of its Pimm’s brand.

Online merchandising: A picture is worth 1,000 words

Flashy images, picture tools and product videos might look impressive, but do they hold any sway over customers? Joanna Perry finds out

Own-label sales rise as shoppers rein in their spending

Figures by Datamonitor show that 41 per cent of all grocery sales at the end of July were own-label items

Asda grows market share

Asda has said it is continuing to grow market share, driven by attracting more customers with its low prices and improving product quality.

‘In Wine We Trust,’ Ads Suggest

To underscore the promise, the campaign, appearing in national magazines, includes a money-back guarantee from the Blackstone Winery, part of the Constellation Wines United States division of Constellation Brands.

Paperchase profits plunge by 20%

Stationery retailer Paperchase saw pre-tax profits plunge by 20% from £8.1 million to £6.5 million for the 12 months to 31 January.

Brands fighting for shelf space now that Wal-Mart believes less is more

Big names are cleaning up as the retailer cuts product lines.

Most people don’t trust ads that compare prices

Trust has become the latest victim of the supermarket price war, as exclusive research reveals 82% of shoppers don’t trust price comparison adverts.