Findel’s recovery is progressing well with sales
in the first-half of the year 7.9 per cent ahead of the previous,
leading to a first half operating profit. Express
Gifts is storming ahead with sales up 18 per cent on last
year. However, a focus on keener pricing and promotions resulted
in reduced gross margin, but an increase in cash gross profit.
Kitbag also performed well, with sales up 11.1
per cent on last year. At Kleeneze, the
continuing wet conditions contributed to poorer than anticipated
performance. It was also hampered by a decline in new distributor
recruits and a sales decline of 7.1 per cent in the first half.
Findel says work is underway to address these performance issues.
Findel’s education supplies and healthcare business also
delivered positive growth.
Shop Direct Group has built three fashion
studios at its Liverpool head office, completing a £1
million programme of investment to develop 52,500 sqft of
in-house photographic facilities. The three new studios will be
used to shoot own and branded modelled fashion across Shop
Direct’s retail portfolio, which includes
Very.co.uk, isme and
Littlewoods. Shop Direct will also create a
12,000 sqft clothing and footwear still life facility at its
stock storage centre.
Tesco unveiled its first profits decline in 18
years today and confirmed that underlying pretax profit was down
8.5 per cent to £1.8 billion in the 26 weeks ended 25th
August. Sales at the supermarket giant grew a modest 1.4 per cent
to £36 billion. Although Tesco’s £1 billion investment
programme to improve the customer experience is blamed for some
of the profit decline, Tesco says it is necessary “to
continue to strengthen our competitiveness by delivering further
improvements in the shopping trip for customers”, said
chief executive Philip Clarke. Online, Tesco’s grocery business
grew UK sales by 11 per cent compared to last year. It now
operates an eCommerce business in Poland and Slovakia, with
Thailand and Malaysia launching soon.
At rival Sainsbury’s, total sales for the first
half were up 4.1 per cent excluding fuel. Sainsbury’s did not
disclose profits for the first half.
Electricals retailer Dixons has appointed Jaan
Ivar Semlitsh as managing director, of its Northern Europe
division. Semlitsh is currently chief executive of REMA
Industrier, part of Scandinavia’s largest supermarket
chains. He joins on 3rd January 2013.
In more appointment news, Sven Gaede, the former chief executive
at Radley and Net-a-Porter, has
joined discount outlet specialist McArthurGlen
as retail development director.
The internet is abuzz with the revelation that
Ikea has digitally removed pictures of women out
of its Saudi Arabian catalogue, just see this from the Guardian. Ikea has since apologised, issuing
a statement from Inter IKEA Systems BV, the worldwide IKEA
franchisor. According to the statement Ikea “regrets what
has happened and understands that people are upset”.
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