Today’s news in brief-8/5/25
Next has increased its full-year profit guidance to £1.08bn, up £14m, following an 11.4% rise in Q1 full-price sales, outperforming its 6.5% forecast. The retailer attributed the £55m sales boost to warmer spring weather but cautioned that some demand may have been pulled forward from Q2. While retail sales surged, Next expects them to stabilise for the rest of the year. The group remains cautious about H2 due to tougher comparatives and the impact of National Insurance increases. Earlier this year, Next reported record pre-tax profits of £1bn, driven by acquisitions like Reiss and FatFace.
Co-Op is diverting grocery supplies to rural and island-based stores following a cyber attack that disrupted its supply chains. The retailer has asked suppliers to halt warehouse deliveries due to ongoing technical issues with its Electronic Data Interchange (EDI) system, which has caused stock shortages in urban stores. Remote communities, particularly in the Scottish isles, rely heavily on Co-Op, prompting the prioritisation effort. CEO Shirine Khoury-Haq confirmed the attack was more severe than initially thought, with customer data compromised. Systems remain partially shut down as the company works with authorities to investigate.
Amazon has introduced its ultra-low-cost Haul proposition in the UK, offering products under £20—many below £10 and some as cheap as £1. The platform, already successful in the US, spans fashion, home, and lifestyle categories and operates via the Amazon Shopping app with a dedicated checkout. Orders will arrive within two weeks. The move comes as Amazon faces rising competition from discount rivals like Shein and Temu. UK country manager John Boumphrey emphasised the service’s appeal to cost-conscious shoppers amid economic pressures.
Pandora has lowered its full-year EBIT margin guidance to around 24%, down from 24.5%, citing currency fluctuations and potential US tariff hikes. While Q1 sales in the US grew 11%, the jewellery retailer faces uncertainty over a paused 37% Thai import tariff, which could disrupt its supply chain. CEO Alexander Lacik warned further tariffs may force strategic changes, including shifting production logistics to bypass US warehouses by 2026. Pandora has already raised prices twice this year and may adjust further if tariffs escalate.
Mothercare reported an 18% decline in global retail sales to £231m in FY25, with adjusted EBITDA halving to £3.5m. The slump was driven by weak Middle Eastern demand and UK underperformance, though like-for-like sales excluding the UK were positive. The brand is ending its Boots partnership, seeking a new UK distributor, and has closed 47 stores worldwide. Chairman Clive Whiley acknowledged ongoing challenges from post-Covid inventory clearances but highlighted resilience and potential growth through new partnerships.