Including Aldi reporting another sales increase, but profits fall for third year in a row.
The Source rounds up some of the key retail stories of the week.
Aldi has seen its sales and market share double in just four years, however its latest round of results showed profits falling for the third year in a row. Operating profit dipped 17% to £211.3 million and gross profit was down 7% to £324.5 million in the year to December 31, 2016. Sales rose 13.5% to £8,744 billion. The value retailer said that profits had been hit by investment – Aldi put over £450 million into prices and infrastructure during the year, opening new stores and improving its UK and Ireland distribution centres.
John Lewis saw its sales rise 6.5% to £87.31 million in the eighth week of its second half. Fashion sales increased 8.6%, with a big boost coming from womenswear (up 18.2%) and menswear (up 13.4%). Electrical and home technology sales increased by 11.1% – thanks to Apple launching iPhone X and iPhone 8.
Continuing its long run of sales growth, Card Factory has reported interim results which showed its sales were up 6% (to £179.6 million) for the six months to end of July and like-for-like up 3.1% on the same period last year. However, underlying pre-tax profit before tax was down by 4.8% to £26.3m (compared to £27.6m in the same period last year).
Sainsbury’s is trialing checkout-free payments, allowing customers to pay via an app instead of queuing at the tills. The app – which is still in development – allows consumers to scan and pay for their items using their smartphones. It is being piloted at the retailer’s Euston station store in London.
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