Today’s news in brief-21/10/24

Frasers Group has agreed to sell its 20.3% stake in N Brown for £191m to Falcon 24 Topco Limited, owned by Joshua Alliance. Despite divesting from N Brown, Frasers looks forward to a strategic relationship with Alliance. Concurrently, Frasers is pursuing the acquisition of luxury brand Mulberry, raising its offer to £111m after an initial £83m bid was rejected. However, Mulberry's majority shareholder, Challice, has expressed no interest in selling its shares, leaving Frasers seeking further engagement with Challice. The UK retail sector is bracing for an estimated £6.6bn in online returns in 2024, driven by ‘serial returners,’ a growing cohort of online shoppers who habitually return a large portion of their purchases. These returners account for 24% of non-food returns, with younger shoppers disproportionately engaging in practices like ‘bracketing’ and ‘wardrobing,’ where items are bought with the intent to return them after short-term use. Fast fashion brands have responded by introducing return fees, hoping to curb excessive returns and the strain they place on profitability. Serial returners alone are expected to return £1,400 worth of non-food items per person this year. WHSmith is reintroducing vinyl records to 80 of its stores for the first time in 30 years, capitalising on the growing demand for physical music formats. Vinyl sales have risen for 16 consecutive years, reaching nearly six million units in 2023. WHSmith aims to cater to both seasoned vinyl enthusiasts and new listeners, offering chart hits and classic albums from artists like Taylor Swift and Queen. Brunello Cucinelli has reported revenues of €920.2m (£767m) for the first nine months of 2024, marking a 12.4% year-on-year increase. The company saw significant growth in the Americas (17.6%), Europe (8%), and Asia (12.2%). Retail sales rose by 13.3%, while wholesale sales increased by 11%. Cucinelli expects revenue growth of around 10% annually over the next three years, driven by the brand's strong connection with its clients and continued demand for its high-quality, handcrafted products. Hotter Shoes, under new ownership by WoolOvers, plans to increase domestic production, aiming to manufacture 75% of its shoes in the UK, up from the current 25%. WoolOvers, which acquired Hotter Shoes for £6.7m after it went into administration, believes that producing more shoes domestically will allow them to offer better-fitting, higher-quality products, particularly appealing to an older customer base. The Retail Trust is launching free training for shop workers to help them handle rising customer abuse, particularly ahead of the busy Christmas season. New research by the charity revealed that one in three retail workers faces weekly abuse, with many feeling unsafe or considering quitting the industry. Nearly half of the workers surveyed reported insufficient support from their employers, leading to increased stress and anxiety.