Today’s news in brief-1/2/24

Lloyds Pharmacy, now known as Diamond DCO Two Limited, entered voluntary liquidation, owing £293m to 514 creditors. The liquidation process will be handled by Martin Armstrong and Andrew Bailey of Turpin Barker Armstrong Accountants. The majority of the debt is owed to current and former owners, including Diamond DCO One, Aurelius Crocodile, and Hallo Healthcare. Lloyds Pharmacy began divesting its store estate in the previous year, closing all 237 stores inside Sainsbury’s and completing a disposal program by November 26. CEO Ken Birch resigned from his position after only eight months.

Ikea UK experienced significant growth in 2023 with turnover reaching £2.46bn and operating profits nearly doubling from £49.6m to £111.2m. The boost in trade was attributed to a 48% increase in click and collect purchases, while online sales rose by 19%, constituting 38.5% of total sales. The company reported one million new visits to its stores, a 2.2% increase from the previous fiscal year. Key factors contributing to this success included the introduction of new offerings like Plan and Order Points, smaller stores dedicated to planning kitchens, bedrooms, and living rooms, and a mobile collection service in partnership with Tesco.

Boohoo faced challenges in its attempt to extend the repayment deadline on a £325m debt. While it successfully extended the deadline on £250m with the support of six major banks, lenders for a £75m share of the revolving credit facility rejected the extension bid. This decision comes amid declining sales, with Boohoo citing difficulties in its supply chain and the impact of the cost of living crisis and inflation. Boohoo’s half-year losses widened to £21.2m in October, compared to £11.8m the previous year.

Co-op launched the UK’s first retail media network in the convenience sector, aiming to facilitate brands in reaching wider audiences and improve advertising relevancy for shoppers. The network brings together Co-op’s in-house team and retail media agency partner Threefold under a unified brand identity. This move is expected to capitalise on the unique strengths of Co-op’s convenience shopping experience compared to traditional retailers.

Morrisons reported positive financial results for the year ending October 2023, with EBITDA increasing by 6.5% to £970m. Full-year total revenue excluding fuel reached £14.9bn, up 2.7% from the previous year. Like-for-like sales excluding fuel saw a 3.3% increase in Q4, marking the sixth consecutive quarter of improvement. The conversion of 190 McColl’s stores in Q4, along with an additional 131 in Q1, brought the total number trading as Morrisons Daily to over 800. CEO Rami Baitiéh expressed confidence in Morrisons’ potential for further growth and emphasised plans to reinvigorate and strengthen the brand.

UK footfall experienced a decline of 20.1% in January, following the post-Christmas dip, but this was a slight improvement compared to historical averages. Year-on-year footfall decreased marginally by 0.8%, with shopping centres, high streets, and retail parks experiencing declines of 23.3%, 20.4%, and 16.2%, respectively. Despite economic challenges, the modest drop suggests that consumers are navigating pressures well, with retail parks benefiting from a 2% week-on-week increase likely due to delayed returns to offices and schools.