Today’s news in brief-28/4/25

Mohsin Issa, co-founder of EG Group, has stepped down as CEO but will retain a significant minority stake and remain on the board as a non-executive director. Russell Colaco, the current CFO, will take over as CEO, bringing extensive international retail and investment banking experience. The move reflects EG Group’s strategic pivot toward the US, now its largest market. Issa cited the company’s transformation following the sale of its UK business to Asda as a natural point to transition. EG Group reported a 9% rise in underlying EBITDA for 2024 and progress in reducing debt, prompting Moody’s to upgrade its outlook to stable.

Poundland’s parent company, Pepco Group, is considering multiple takeover offers as it seeks to offload the struggling discount chain. Hilco Capital, Endless, Alteri Investors, and Modella Capital have reportedly submitted bids ahead of Pepco’s deadline. Poundland’s declining sales and integration challenges with Pepco’s other brands have prompted the sale exploration. The retailer faces a tough UK market, with additional cost pressures from recent tax changes. Pepco plans to focus solely on its namesake brand, acknowledging that the Poundland merger failed to deliver expected synergies.

Deliveroo founder and CEO Will Shu stands to gain £172m if the board accepts DoorDash’s £2.7bn acquisition offer. The US delivery giant proposed buying Deliveroo at 180p per share, with a decision deadline set for 23 May. Deliveroo has paused its £100m share buyback program pending the outcome. Amazon, which holds a 13% stake, is the largest shareholder. Advisers suggest the board is inclined to recommend the deal, though no final agreement has been reached.

Skechers has retracted its 2025 sales forecast due to global trade policy volatility, despite posting a 7.1% revenue increase to $2.41bn in Q1. International sales grew 7.2%, while domestic sales rose 6.9%. Wholesale and direct-to-consumer segments saw mixed results, with declines in Asia-Pacific offset by gains in Europe and the Americas. The footwear giant closed 62 franchised stores but expanded its total footprint to 5,318 locations. COO David Weinberg emphasised Skechers’ resilience but acknowledged macroeconomic headwinds, particularly in China.

Shein has raised US prices by as much as 377% on select items ahead of new tariffs on Chinese imports. A pack of dishcloths surged from $1.28 to $6.10, while average increases ranged from 8% in womenswear to 51% in beauty products. The move follows Trump’s reinstatement of 145% tariffs on Chinese goods and the elimination of the $800 duty-free import allowance. Shein has reportedly urged suppliers to shift production to Vietnam to mitigate costs, offering incentives like higher procurement prices. UK prices remain unaffected.

Lidl plans to open over 40 new UK stores in 2025, backed by a £500m investment. The discounter has identified hundreds of potential sites, including high streets and retail parks, as it aims to expand its footprint nationwide. Construction will soon begin on a Leeds distribution centre, while its Belvedere facility undergoes a major expansion. Richard Taylor, Lidl GB’s chief real estate officer, highlighted the retailer’s growth ambitions and called for streamlined planning reforms to support development. The expansion is expected to create jobs and boost local supplier partnerships.