Today’s news in brief-10/10/23
Grocery price inflation has fallen for the seventh consecutive month, reaching 11% for the four weeks ending on October 1, 2023. This is the lowest rate since July 2022, based on data from Kantar. During this period, take-home grocery sales increased by 9.1% compared to the previous year, likely influenced by the unusually warm September weather. Notably, sales of items like ice cream, burgers, and dips saw significant increases. Lidl emerged as the fastest-growing retailer, with sales up by 15.2%. Aldi’s sales also increased by 14.9%. Tesco, Sainsbury’s, Asda, Morrisons, Waitrose, Co-op, Iceland, and Ocado all reported varying sales growth and market shares.
Mamas and Papas has entered into new partnerships with major retailers in South East Asia. The brand has signed multi-store supply agreements with MAP Active and Central Department Store Group, both prominent lifestyle retailers in Southeast Asia. These agreements will see the launch of Mamas and Papas’ Spring/Summer 2024 range. The company is also continuing its global expansion of the Shop in Shop concept, dedicating branded spaces to showcase its nursery offerings. In addition to South East Asia, Mamas and Papas has expanded in Spain and has plans for further growth in Armenia and the Philippines.
Total retail sales growth in the UK slowed to 2.7% in September 2023, compared to 2.2% in the same month the previous year, according to the British Retail Consortium. Food sales increased by 7.4% over the three-month period, but this is below the 12-month average growth of 8.4%. Non-food sales decreased by 1.2%, falling below the 12-month average growth of 0.6%. In-store non-food sales and online non-food sales also saw changes. The high cost of living is impacting consumer spending, particularly on big-ticket items like furniture and electronics.
River Island saw its operating profits drop 90% to £7.4m for FY22. Despite a rise in turnover to £825.8m (an increase of 11.6%), the gross profit fell by 69% to £75.8m. The decline in profit is attributed to factors like the need to clear excess stock and rising costs of goods. Challenging market conditions affected margins, contributing to the drop in profits. The retailer closed the year with £110.9m in cash, down from £159.6m the previous year.
Fast fashion brand Shein has named investor Marcelo Claure as its new group vice chairman. Claure, formerly the CEO of SoftBank Group International, took on the role of chairman of Shein Latin America in January 2023. During his tenure, he oversaw the launch of Shein Marketplace in Brazil and committed $150m to localise Shein’s manufacturing operations in the country. Claure will continue in his role as chairman of Shein Latin America in addition to his new position. His extensive experience includes founding wireless distribution company Brightstar and leading the merger between Sprint and T-Mobile in 2020. Shein aims to leverage Claure’s expertise to further expand its global presence and localisation efforts.