Including Sports Direct seeing a drop in interim profits, but Joules enjoying sales uplift.
The Source rounds up some of the key retail stories of the week.
Sports Direct has posted a drop in interim profits, attributing the UK sales fall to a slowdown in online promotional activity and store closure associated with the ‘continued elevation’ of its store portfolio. The retailer saw pre-tax profits drop 67.3% year on year to £45.8 million in the 26 weeks to October 29, with UK retail sales dipping 1% to £1.1 billion. However, group revenue was up 4.7% overall to £1.7 billion – this was driven by a 4% and 65% rise in its international sports retail and premium lifestyle divisions respectively.
Lifestyle retailer Joules saw an 18.2% sales increase to £96.2 million in the 26 weeks to November 26. Retail sales were up 16.2% to £65.9 million. The retailer – which opened ten new stores during the period – saw good growth across both stores and online.
Toys R Us‘ plans to restructure its UK business could be opposed by the Pension Protection Fund. Sky News reported that pension trustees of the retailer have apparently appointed PricewaterhouseCoopers to advise on the proposed Company Voluntary Arrangement, and that the appointment was made with ‘the explicit encouragement’ of the PPF.
The cold snap and heavy snow in some areas affected footfall across last weekend, according to Springboard figures. Footfall was down 22% compared to the same day in 2016 on the Sunday (December 10), while footfall across the weekend declined 9.1%.
New figures from the Office for National Statistics (ONS) show that overall retail sales by value grew 4.7% year on year in November. Black Friday events contributed to a monthly increase in household goods sales volumes – up by 2.9% – with electrical appliances making the largest contribution to growth.
Steinhoff – the South African retail conglomerate which owns Poundland – has said that its 2016 financial results need to be restated, with Retail Week reporting that the original release can ‘no longer be relied upon’. Last week the group postponed its 2017 financial results due to ‘accounting irregularities’.
Want to read more news like this? Simply sign up to our daily digest by clicking here. You can also follow @LicensingSource on Twitter.
