Including BHS given the greenlight for CVA and Next pre-tax profit growth.
The Source rounds up some of the key retail stories of the week.
BHS is to proceed with a CVA (company voluntary arrangement) after 95% of creditors voted in favour. BHS will now pay a reduced rent of 75% or 50% on 47 stores and 25% rent on 40 of its stores. However, landlords can terminate the leases if other tenants are found. Boss Darren Topp said that it was a “tough time” for retailers across the UK, but “we have a very credible plan to return BHS to growth and profitability”.
Fashion retailer Next has seen its underlying pre-tax profits rise 5% in the year to January 2016. However, chief executive Lord Wolfson has warned that 2016/17 could be “the toughest we have faced since 2008”, with “economic and cyclical factors” potentially working against the retailer. It is now looking to develop the Next brand by advancing buying and design capabilities, responding quicker to new fashion trends. The directory will be upgraded, while online growth businesses overseas will continue to see investment, as well as opening profitable new stores.
The Times has predicted that Sainsbury’s could close over 300 Argos stores and replace them with concessions if its takeover deal of Home Retail Group goes ahead. Analyst John Kershaw said that the grocer would add 270 new Argos shop-in-shops to its stores, plus 770 click and collect points.
Uniqlo has reopened its flagship store on London’s Oxford Street after an extensive refit. The retailer has added two new floors, nicknamed the Uniqlo Wearhouse, with a roof terrace also being created to stage events.
John Lewis has enjoyed a healthy sales week, with sales climbing 8.7% for the week to March 19 to £75.06m. Fashion grew 5.3%, while beauty, wellbeing and leisure was up 4.7%. Electricals and home technology sales were up 13.3%.
Waitrose benefitted from celebrations around St Patrick’s Day and England’s 6 Nations Grand Slam last week. The retailer saw Guinness sales jump 40% and overall beer sales grow 6% for the week to March 19. Overall sales increased 4.2% to £129.15m.
Value retailer Lidl has launched an online store in Belgium. The initial offer includes 350 non-food items such as home and garden, clothing and cookware.
Laura Ashley is to open its first fashion concessions in one of the UK’s biggest department store groups, according to Drapers. The fashion and lifestyle retailer will begin with two or three concessions, before rolling the format out to more stores if successful.
Tesco has launched a ‘guess what’s in the egg’ competition this Easter, to raise money for Help for Heroes. The supermarket chain created an exclusive Help for Heroes chocolate egg in 456 of its superstores and Extra stores across the UK – 100% of profits will go to the charity. A giant six-foot replica took over the foyer of the Sandhurst Extra store, with customers being encouraged to guess what they think is inside. The winner gets an annual family pass to Merlin attractions.
Sports Direct has clarified that full-year profits are expected to be at the bottom of its target range. The retailer saw its shares tumble earlier this week after boss Mike Ashley was quoted in The Times as saying the company was “in trouble”.
