Today’s news in brief-23/1/24
Boohoo has changed its leadership as Shaun McCabe has stepped down as CFO, and Stephen Morana has been appointed as the new CFO. Morana, known for his ecommerce expertise, will assume the role on 19 February 2024. Boohoo highlighted Morana’s experience, including leading businesses through IPOs and creating significant shareholder value. The company affirmed that trading remains in line with market expectations and will report final results for the year ending 28 February 2024, in May. The board expressed gratitude to McCabe for his contributions to the group during his tenure.
The UK retail faced significant challenges in the wake of Storm Isha, as footfall across the country plummeted. Data from MRI Springboard revealed a -4.6% drop in footfall compared to the previous week and a -5.1% decrease compared to the same period in 2023. The impact was particularly severe in Scotland, with a staggering -18.2% decline in footfall. Central London experienced a notable -20.8% drop against 2023 levels. However, there was a rebound in Central London’s footfall from a midday low of -6.2% to a full-day increase of +1.2%, suggesting that travel disruptions in Southern England were temporary.
Primark reported a robust performance, with a 7.9% increase in sales amounting to £3.3bn for the 16 weeks ending January 6, 2024. The growth was attributed to a slow start due to unseasonably warm weather but was offset by strong Christmas trading. Like-for-like sales rose by 2.1%, driven by higher average selling prices. Sales in the UK saw a 4.5% increase, with like-for-like sales up by 3.8%. In Europe (excluding the UK), total sales rose by 8.1%, and in the US, sales surged by 45% due to new store openings.
Morrisons is reportedly nearing a £2.5bn deal to sell its forecourts business to Motor Fuel Group (MFG). Both Morrisons and MFG are majority-owned by American private equity firm Clayton Dubilier and Rice (CD&R). The forecourt business comprises around 340 sites, with an additional 150 potentially added as MFG focuses on expanding its ultra-fast electric vehicle charging network. The proceeds from the deal are expected to help Morrisons reduce its debts, currently standing at approximately £5.7bn.
Lidl GB announced a £37m investment in employee pay, making its entry-level rates the highest in the sector. Starting from March 1, hourly-paid staff will see increased rates, ranging from £12.00 to £13.85, up to 17% higher than the National Minimum Wage. The supermarket is also introducing a bank holiday premium and enhancing its night shift premium. Lidl’s total investment in pay over the past year amounts to almost £60m, reflecting its commitment to rewarding employees.
