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…
Stark group launches new Branch concept in the UK.
STARK Group’s British brand, Jewson, announces the grand opening of its newly refurbished branch in Bridgwater. This marks the launch of Jewson’s ‘Branch of the Future’ concept, which brings innovative features inspired by the Group’s successful branch concepts in the Nordic countries and Germany. The concept aims to transform the customer experience for the UK’s tradespeople.
The investment in the branch opening includes expanding the number of stock-keeping units (SKUs) and a branch layout that makes it easier and more efficient for tradespeople to find the range and availability they need.
The opening of the refurbished branch in Bridgwater represents a milestone in the Group’s ongoing transformation journey for its subsidiary, STARK Building Materials UK. Optimising Jewson’s branch network nationwide and developing distribution facilities are part of the comprehensive investment programme.
John Carter, CEO of STARK UK, emphasised the strategic importance of the new branch:
“Bridgwater is the first step in Jewson’s exciting journey to become the most trusted builders’ merchant for UK tradespeople. With the backing of STARK Group, we are introducing a unique and valuable customer-focused concept that sets us apart in the market.”
Howdens profits edge up as it targets 30 new UK stores this year.
Howdens half-year edged up despite the “challenging marketplace” as the kitchens specialist aims to open 30 new UK locations and five international depots this year.
Pre-tax profits for the trade kitchen supplier remained flattish at £112.3m in the 24 weeks to 15 June, compared to the £111.9m.
Sales increased to £966.3m, driven by a 4.3% UK rise, as the business flagged “significant growth opportunities” in its home market.
Howdens attributed its resilient performance to a £16m investment into strategic initiatives which included an upgraded click-and-collect service to show live depot stock, 26 depot revamps and relocations, as well as new kitchen ranges.
Chief executive Andrew Livingston said: “Howdens performance in the first half was encouraging and we gained market share in a challenging marketplace. We continued to invest in our strategic initiatives which is strengthening our differentiated business model and delivering positive results.
“We are focused on the significant growth opportunities in our core UK kitchen and joinery markets. To access these, we are progressing our new depot and reformat programme and making range and product innovations.
“We are also manufacturing more of what we sell, and, alongside the provision of unequalled stock availability, we are adding further digital capabilities to support our trade customers and depot teams.
“We continue to see opportunities to develop our business model internationally and we’re making good progress in establishing Howdens’ presence, laying the foundations for future success.”
Stake in Bicester Village sold for £1.5bn.
Shopping centre giant Hammerson has sold off its stake in the owner of Bicester Village in a deal worth £1.5bn.
Hammerson shares lifted on Monday after it announced the sale of its Value Retail business to private equity firm L Catterton, backed by LVMH (Louis Vuitton Moet Hennessy).
Hammerson said the sale of the Oxfordshire designer retail outlet operator Value Retail would generate about £600 million in cash proceeds.
It told investors it would be able to reduce its debts, invest in other assets and hand up to £140m to shareholders through a buyback.
The firm, which also owns Birmingham's Bullring, said the deal would also help support its strategy to focus on urban retail real estate.
Michael Chu, global co-chief executive of L Catterton, said: "With its high-quality portfolio, reputation for luxury, and commitment to delivering a distinctive experience to customers, Value Retail is well positioned for growth and continued success.
"We have deep experience investing in luxury retail, and we are eager to leverage our operational expertise and global network of established relationships to partner with Value Retail and propel the business forward."
Hammerson owned almost 40% of the business, which owns nine luxury shopping destinations, including sites near Barcelona, Paris and Milan.
Rita-Rose Gagne, chief executive officer of Hammerson, said: "This is a transformational deal for Hammerson, generating cash proceeds of around £600m whilst removing an overweight, low-yielding and minority stake, and positioning us for accelerated growth and value creation."
Boohoo launches marketplace with over 150 brands.
Boohoo has launched an online marketplace as it looks to become a “one-stop destination for all fashion, beauty and lifestyle needs”.
Recommended by LinkedIn
Customers will be able to shop from 150 brands including Revolution Beauty, L’Oréal Paris, Ray-Ban, Marc Jacobs, and Michael Kors.
The retailer said Boohoo Brands allows it to leverage its vast network to quickly onboard new brands and maintain robust relationships with existing partners.
The new platform follows the launch of Debenhams marketplace, which is also powered by Mirakl Marketplace Platform.
Boohoo chief product officer James Blacklock said: “We are incredibly excited to introduce boohoo brands, our new marketplace offering that brings together a great selection of fashion, beauty, and lifestyle products.
“This initiative reflects our commitment to providing our customers with diverse and high-quality options, all in one convenient place.
“By partnering with some of the most complimentary brands, we’re enhancing the shopping experience and ensuring that boohoo.com remains a leading destination for UK consumers.”
It is the latest initiative from the fast fashion retailer as it looks to win back customers after its losses swelled to almost £160m as it encountered “difficult market conditions” caused by high levels of inflation and a 17% drop in sales to £1.46bn in the year to February 29.
Earlier this month, the retailer revealed it was allowing thousands of social media influencers to launch personal pages on its website to help bolster its social commerce channel.
Ted Baker to close all UK stores in next 3 weeks.
Ted Baker administrators plan to shut all of its UK stores within the next three weeks.
Since the business behind the fashion retailer’s UK arm, No Ordinary Designer Label, collapsed in March, 15 shops have closed, however all remaining store staff have been told they will lose their jobs, according to The Sun.
It is understood that despite the message to employees, the plans have not been finalised.
Ted Baker had 46 UK stores and employed about 975 people before its collapse.
Authentic Brands, the US group behind brands including David Beckham, Reebok, and Hunter, owns Ted Baker’s intellectual property and has been hunting for a new partner to run the brand’s retail and online business in the UK and Europe.
Next and Frasers had been in the running but The Sun reports that Frasers has pulled out of talks.
John Lewis and Timpson Group trial new repair service.
Five locations in England are now offering mending, restoring, dry cleaning and more.
Customers are now invited to bring clothing, homeware and accessories to John Lewis stores in Oxford, Liverpool, Cheadle, Milton Keynes and Welwyn Garden City.
Launched yesterday, Monday 22nd July, the trial will see experts from Timpson Group facilitate a variety of repair jobs, in addition to alterations.
The move not only boosts access to ‘repair café’ operations but could increase visibility of the circular economy in general well beyond the chosen locations, raising awareness about the need to recycle and reuse domestic items rather than discarding and buying brand new. John Lewis, the UK’s sixth largest retailer on sales, will run the trial for the next 16 weeks in what it describes as a ‘test and learn approach’.
‘Our customers come to us for fashion and homeware that’s well made and will last – and this just takes that mentality and service one step further,’ said Kathleen Mitchell, John Lewis Commercial Director.
‘We want to help them extend the wear of their fashion items and have the option to bring those much-loved items back to life – whether they are hanging by a thread or just need a simple stitch or two,’ she continued. ‘Teaming a new, crisp white linen shirt with a pair of much-loved denim shorts gives our customers the opportunity to extend the lifetime of their favourite wardrobe staples, for years to come.’
Demand for repair services is on the rise across the UK, too. According to research by Aviva, more than one-third of British household’s plan to increase reuse and repair as an alternative to buying new. This backs up John Lewis’ own customer surveys that showed lifetime guarantee offering repair or replacement is the most appealing added service sold with products.
‘We are really excited about working with John Lewis,’ said Will Lankston, Managing Director of Timpson Direct. ‘Alterations have always been one of the core parts of our business and we have been seeing this increase over the past few years as more customers are conscious about the environment and are wanting to repair and bring back to life some of their well-loved garments and accessories.’