Including Matalan exploring options to expand its overseas franchise network.
The Source rounds up some of the key retail stories of the week.
Matalan is exploring adding Eastern Europe to its franchise network. The fashion retailer opened two new outlets in Malta last week and already has a 23 store network throughout the Middle East.
Next saw its retail sales drop last year – total sales dipped 2.9%, leaving total group sales flat at £4.1 billion for the year ending January 2017. Profit before tax was £790.2m, a drop of 5.5% from £836m the year prior. After tax, profit was down 4.7% to £635.3m. The fashion retailer also warned that profits will drop again in the year ahead, giving a guidance of between £680m (a 14% drop) and £780m (2%).
Sales at John Lewis inched up 0.4% to £75.34 million in the week to March 18. Fashion and beauty both had strong weeks, up 4.8% and 11% respectively. Home sales were down 1.6%, however, affected by the timing of Easter, while electricals slipped 2%.
Tesco is restructuring its international leadership team, following the news that international boss Trevor Masters – who has spent 38 years at the retailer – will leave at the end of May. Two new leadership roles have been created – current UK coo Tony Hoggett will become chief executive of Tesco’s Asian business, while Matt Simister was named chief executive of Central Europe.
The Office for National Statistics has reported that UK retail sales volumes grew 1.4% in February compared to January. The increase brought to an end a run of three consecutive months of decline. On a year on year basis, sales volumes increased 3.7% in February. However, over the wider three month period, they slipped 1.4% – marking the worse decline since March 2010.
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