Mothercare and Debenhams both hit the headlines this week.
The Source rounds up some of the key retail stories of the week.
Shares in Mothercare rose after it reported an increase in UK sales, BBC News reported. Like for like sales at the retailer were up 6.5% in the 13 weeks to October, with online sales up 20.4%. However, internationally, sales were hit by ‘currency headwinds’, meaning global sales fell 2.8% in the period. Mothercare’s refurbishment programme will see 20% of UK stores modernised before Christmas.
The chief executive of Debenhams – Michael Sharp – is to step down in 2016. The retailer also reported full year profit before tax rose 7.3% to £113.5 million. Like for like sales were up 2.1%, while it sold more own brand clothes at full price. Analysts were quoted in the press as saying the store was ‘well positioned’ to enjoy a bumper Christmas period.
Ikea has partnered with DreamWorks to create a series of animated short films to accompany the launch of its toy collection.
According to research compiled for Retail Week, supermarkets are losing £300 million a year by running their online businesses unprofitably.
Asda has shelved its planned expansion in London and its roll out of click and collect sites. The move is apparently part of an attempt to simplify the retailer and focus on improving its core business.
Online clothing retailer Asos reported a 1% rise in pre-tax profit to £47.5 million for the year to the end of August. UK retail sales were 27% higher in the year, reaching £474 million. The company is investing £50 million in its warehouse capability and technology during the year, plus a further £80 million this year.
