Including Asda bosses hailing ‘early signs of improvement’ as sales decline slows.
The Source rounds up some of the key retail stories of the week.
Asda bosses have hailed ‘early signs of improvement’ as its rate of sales decline slowed for its latest quarter. The grocer reported a sales drop of 2.9% in the fourth quarter ending January 27 – this is compared to a 5.8% drop in the comparable period a year ago. Shopper numbers dipped 1.8% during the period, while the average basket size was down 1.1%. New boss Sean Clarke said that he was “encouraged by the early signs of our customers responding positively to the hard work that’s been happening in our stores throughout 2016, which saw us welcome over 140,000 customers back to Asda this last quarter”.
The Entertainer has opened two new stores – in Truro and Northampton – bringing its total store count in the UK to 133, as well as nine located overseas.
Former BHS units are being snapped up by a host of retailers including Aldi, Next and The Range. According to Retail Week, Aldi has signed a lease on the BHS unit in Cameron Toll Shopping Centre in Edinburgh, the first of the chain’s former stores to be re-let in Scotland. Poundland is also looking to move into the Wood Green High Street store in London, while the store in Bristol’s Broadmead will be split between TK Maxx and Metro Bank. It is also thought that Primark is looking at the former BHS outlet in St Ann’s Shopping Centre in Harrow.
11 trade bodies, including the British Retail Consortium, are urging the Government to reform the business rates revaluation. They have written a letter to members of parliament raising ‘fundamental issues’ with the planned changes to rates, which come into force on April 1. The trade bodies state that the burden of business rates is too high and that the system ‘penalises businesses that invest and improve their properties’.
Amazon is to hire 5,000 people in the UK, taking its total number of employees in the country to almost 25,000.
John Lewis has reported a 0.2% dip year on year to £74.9 million in the week to February 18. The drop was mostly attributed to the home category – which was down 1.5% – although sales in home accessories and gifts grew 8.5% thanks to Valentine’s Day shoppers. Fashion sales were up 1.4%, while beauty, wellbeing and leisure products jumped 11.2%.
Meanwhile, John Lewis is to cut nearly 400 jobs from its home estimation and fitting services and catering teams. 773 staff have entered a period of consultation over their roles, however 386 new jobs will be created under plans for the retailer to create ‘a more efficient way of operating’.
The Range is looking to shopping centre and high street locations as it aims to diversify its store portfolio. The retailer is due to open on Redditch high street at Easter, while it also opened a city centre store in Tunbridge Wells last year and a new outlet in Runcorn. It has also taken on a former BHS unit in Surrey Quays.
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