This week's retail news 'you may have missed'.....
At mdj2, we’re passionate about retail and always looking to share our news, views, and insights. With so much information out there, we wanted to share just a small selection of retail news headlines from last week that we found interesting…
Poundland owner explores ‘every strategic option’ for discount chain.
Poundland owner Pepco Group said it will consider “every strategic option” for the struggling discount chain.
The group’s chief executive Stephen Borchert told Reuters the business was looking at its options “to bring [Poundland] back on track” after it booked a £675m impairment charge on its UK subsidiary due to a weaker performance against increasing competition and cost challenges.
When asked if Poundland would stay in the group, he said he would say more on the group’s strategy for the discount chain at Pepco’s Capital Markets Day on March 6.
Poundland’s profitability more than halved as underlying EBITDA dropped 62% to £23m (€28m) in the year to September as sales remained flat at £1.64bn (€2bn).
Borchert told the publication that Poundland “continued to face headwinds” in its new financial year, as sales continued to fall in clothing and general merchandise following the transition to Pepco-sourced product ranges.
“With the transition to the Pepco ranges I think the business lost a bit of its DNA, so we are working now as a team there to bring this back,” he said, referencing the reintroduction of more products priced at £1 in Poundland.
Earlier this year, Retail Gazette revealed the discount chain was restructuring its head office in Walsall and had put 60 jobs under consultation across its supply chain, finance, IT and property teams as it looked to cut costs across the business.
eBay UK Launches Trade In: Cash In On Your Old Tech.
In collaboration with Fonehouse, eBay Trade In offers customers a cost-effective way to exchange their old tech devices for an instant eBay coupon or cash.
Today, eBay UK launches Trade In, offering customers the chance to give their old tech new life and make extra cash within minutes.
Customers can trade in popular devices across 8 different categories, including phones, tablets, smartwatches and consoles, free of charge. eBay’s partner Fonehouse will inspect, repair and refurbish devices to give them a second life through their eBay store.
Trading in used devices is simple. Users enter the details of their device to instantly find out how much their item is worth. Once confirmed, they have 14 days to send their device free of charge. Fonehouse utilises ADISA-accredited solutions to securely erase all data from your device, and your item will be insured upon postage, up to the value of £150, for further peace of mind.
With flexible payment options, customers can choose how they receive their money: customers can either choose an instant eBay coupon to fund an upgrade or receive payment directly to their bank account.
What’s more, from 9 December 2024 - 3 January 2025, customers who trade-in selected items will receive an additional £50 on top of the assessed trade-in value. Please see T&Cs for eligible devices*
How Trade In works:
Sainsbury’s opens first store in an airport.
Sainsbury’s has opened its first store in an airport location at Edinburgh Airport.
Situated before security, the Sainsbury’s Local convenience shop will be open 24 hours a day to serve customers passing through from both arrivals and departures.
It will offer a range of meal deals, fruit, veg, meat and fish, as well as fresh bread and cakes baked daily in the store. It also features a bespoke Scottish section for locally sourced products.
Patrick Dunne, Sainsbury’s director of property, procurement & EV ventures, said: “We’re very excited to launch Sainsbury’s Local in a whole new setting for the first time today with the opening of our Edinburgh Airport store.
“We want to build on the resounding success of our other travel hub stores, for example in UK train stations, and we’ll be listening closely to feedback from customers in the coming weeks to learn more about what they want to see from this kind of Local.
“We then hope to bring Sainsbury’s unbeatable combination of outstanding value, quality food and great service to more airport locations in the UK.”
Customers can also take advantage of a new Click & Collect service where they can pick up items ordered online from the retailer’s Argos, Habitat and Tu Clothing brands.
Jordan Mudie, Sainsbury’s Edinburgh airport store manager, said: “We’re passionate about providing good food for all of us and we’re delighted to be able to bring Sainsbury’s tasty, great value products and helpful service to customers form this fantastic airport location.
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“I’m really grateful for all the support we’ve received along the way, and I hope everyone likes the new store as much as we do.”
B&Q Rotherham officially opens.
B&Q, the UK’s leading home and garden improvement retailer, has today (Friday 13 December) opened the doors to its brand-new 22,000sq ft store at Great Eastern Retail Park, Rotherham. Customers were welcomed in by Dinnington Colliery Band who provided a festive performance as the store opened to customers for the first time.
The new store is B&Q’s first retail park location since opening its Newark store in May 2023, and follows recent small format store openings for the DIY retailer in Brighton and Staines this year. The new store is stocked with over 11,000 essential home improvement products and customers can also access a huge range of 22,500 additional items through B&Q’s Click & Collect service.
Combining speed, convenience, and access to B&Q’s wide offer of services, the new store features a dedicated TradePoint area, a timber cutting service, B&Q’s popular Valspar paint mixing station, WEE recycling, Rug Doctor cleaning hire, a showroom area including the new bathroom range, and a garden centre stocked with outdoor plants and gardening essentials.
To celebrate the official opening, the Unit Manager, B&Q colleagues, and Rotherham locals enjoyed music from the local and renowned Dinnington Colliery Band, who kicked off the festivities with a lively performance. First team members of Rotherham United F.C. Women and Mayor Councillor Sheila Cowen also attended the event, officially welcoming the store as a valuable addition to the local community and retail landscape.
Nicola Pickering, unit manager at the new B&Q Rotherham store, said: “We’re thrilled to open the doors to our brand-new store and welcome the Rotherham community. Whether it’s a quick DIY fix, a home improvement project, or supplies for trade professionals, we’re here to meet our customers’ needs all under one roof.
To celebrate the launch of the new store, last month the team from B&Q Rotherham took part in a special community day at the local charity, Rotherham Hospice, where they assisted in setting up its new charity shop ahead of the Christmas season. The store also donated a Christmas tree and decorations for the festive season as the hospice continue to provide the vital compassionate, holistic care to individuals with terminal illnesses and their families.
The day was a part of B&Q’s Community Days Programme, which sees volunteers from local B&Q stores support the community by improving a local charity space, making a positive difference across the communities B&Q serves.
Frasers Group wins backing for ‘mega-campus’ on Warwickshire green belt.
Sports Direct owner Frasers Group has won official backing for the building of a large new headquarters on the green belt in Warwickshire.
The proposed ‘mega campus’ in Ansty has been recommended for approval by planners despite them concluding that it would “clearly cause substantial and permanent harm to the green belt by reducing its openness.”
Frasers Group’s plans for the site include the building of offices, five warehouses, an area to test out retail concepts and a multi-storey car park, as well as a 100-bedroom hotel, gym, sports facilities, and a helipad.
In a statement justifying their decision, planners told The Telegraph: “The totality of the economic, environmental and social benefits have been considered, and the totality of the benefits clearly outweigh the combined weight of the harm to the green belt and any other harm, including the retail and landscape harm [and] heritage harm.
“Consequently, the very special circumstances necessary to justify the development exist […] and the development should be approved.”
Aldi announces £650 million investment across Britain.
Aldi has announced that it is to invest around £650 million in accelerating its growth across Britain next year.
The funds will be used to develop new shops in places like Fulham Broadway in London, Billericay in Essex and Cheadle in Stoke-on-Trent.
The supermarket is currently aiming to launch around 30 new stores in the country in 2025 as part of work to reach a long-term UK target of 1,500. This follows a busy year of openings in 2024, including the launch of new locations such as Totton in Hampshire, Cribbs Causeway in Bristol and Pwllheli in Gwynedd in recent weeks.
Giles Hurley, chief executive at Aldi UK and Ireland, said: “At Aldi, our unwavering commitment has always been to provide Britain with the best value groceries.
“The demand for our unbeatable prices is now at an all-time high, which gives us the confidence to continue investing in Britain to provide greater access to our award-winning products at the lowest prices.
“We recognise that there are still areas without an Aldi store, so our expansion plans for 2025 are designed to address some of these gaps as we work towards our long-term goal of 1,500 UK stores.”