News roundup–Christmas trading statements, Aurora outsources IT and distribution, more


Aurora Fashions, the parent company of apparel
retailers Coast, Karen Millen,
Oasis, and Warehouse, is
outsourcing its distribution services and IT functions as part of
an organisational restructuring programme. It expects to transfer
300 employees to supply chain services provider WT, and a further
48 employees will move to IT managed services company Retail
Assist.

Belfast-based online retailer UrbanPup expects
sales in Germany to grow significantly after securing a deal with
Amazon.de to list its products on the online
giant’s marketplace, writes the Belfast Telegraph.

Legislation to privatise Royal Mail has been passed by the House
of Commons. The Postal Services Bill will now be considered by
the House of Lords. For more on the Bill see:
Government reveals Royal Mail privatisation plans
.

Recognising the impact social and online gaming is having on its
target market, retailer Game has revealed it
plans to conduct a strategic review of the business to make it
“a seamless, customer-centred multichannel service for
gamers in the future”. It will update investors on its
exact plans next month. In the 5 weeks to 8th January, Game saw
UK and Ireland store sales decline 4.1 percent, online sales also
fell by 2.4 percent in the period.

It was a day for Christmas trading
statements:

  • Tesco reports that online sales performed
    strongly in the six weeks to 8th January. Tesco Direct had
    sales growth of 18 percent, with a strong performance in toys,
    gaming and small domestic appliances. Group sales during the
    festive period increased by 7.6 percent.

  • In the 14 weeks to 8th January, total sales at confectioner
    Thorntons grew 3.9 percent to £83.7
    million. Thorntons Direct sales increased 7.6 percent to
    £5.1 million with growth in both consumer and corporate
    sales. However, like-for-like stores sales declined 5.9 percent
    due to the adverse weather conditions over Christmas.

  • Apparel retailer New Look estimates to have
    lost £15 million in sales due to the snowy weather in the
    run-up to Christmas. In the 15 weeks to 8th January, New Look
    experienced a UK like-for-like sales slump of 9.1 percent and a
    decline in total group sales of 3.4 percent.

  • UK and Ireland sales at Dixons Retail, the
    parent company of PC World and
    Currys, fell 5 percent in the 12 weeks to 8th
    January as the adverse weather conditions reduced store footfall
    in the days leading up to Christmas. However, the retailer was
    encouraged by a strong response to its post-Christmas sale, which
    saw customers taking advantage of deals on consumer electronics
    and white goods ahead of the VAT rise.

  • Although Argos recorded a 4.9 drop in
    like-for-like sales in the 18 weeks to 1st January and a 3.6
    percent sales decline in the year to date, parent company Home
    Retail Group says performance is in line with expectations. At
    sister company Homebase, the news was a little
    cheerier-it saw a 1.2 percent rise in sales, to £487
    million, in the pre-Christmas period.

  • Total retail sales at auto accessories retailer
    Halfords were down 6.3 percent in the 13 weeks
    to 31st December 2010.

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