Burberry hands back £300m BoE load & £6m in business rates relief
Burberry has reportedly volunteered to repay more than £300 million in Covid financial aid to the Bank of England and HMRC – making it the first non-essential retailer to do so. According to The Sunday Times, luxury fashion brand and retailer handed back a £300 million loan to the Bank of England, which it received as part of the bank’s Covid Corporate Financing Facility (CCFF) scheme. Meanwhile, real estate advisory firm Altus Group said Burberry has also agreed to pay the HMRC around £6 million in support it automatically received through the one-year business rates holiday designed to help retailers negate the economic impact of the pandemic. It comes after Burberry enjoyed strong trading over the crucial Christmas quarter, with a 50 per cent surge in full-price online sales while demand more than doubled in China – one of its core markets outside the UK. The financial performance over the golden quarter helped to offset a nine per cent year-on-year decline in Burberry’s physical store estate, which have been impacted by lockdowns and other restrictions around the world. Burberry borrowed from the CCFF during the first lockdown last spring, when credit markets seized up amid the global Covid-19 crisis. The CCFF was created by the Bank of England and the Treasury as a cash lifeline for strategically important British businesses that had investment-grade credit ratings before the pandemic. Meanwhile, Altus Group estimates that Burberry received a business rates holiday worth £5.85 million for the 2020/21 financial year for its six standalone stores and three outlets in England and Scotland. Of that total estimate, £2.72 million worth of relief was given to Burberry’s 3330sq m flagship store on New Bond Street, London. “We believe this is the right thing to do in the context of our improved third quarter trading performance and financial stability, secured through rigorous cash management and the introduction of long-term funding via our sustainability bond,” Burberry said. Burberry is thought to be the first non-essential retailer and 14th overall to agree to return the business rates holiday relief to the government. The other 13 other retailers that have pledged to do the same are all classified as essential, such as the Big 4 grocers, and have been allowed to keep their bricks-and-mortar shops open during the lockdown. There has been constant calls by retailers, trade bodies and opposition politicians over recent weeks for Chancellor Rishi Sunak to give businesses in England certainty by confirming an extension to the business rates holiday, which ends on March 31. “The Chancellor has to avoid a cliff-edge through withdrawing reliefs too early but he also cannot risk repeating the mistakes of the past where support was arbitrary rather than targeted to those most in need,” Altus Group head of property tax Robert Hayton said.
Planning applications for stores drop 22% as retailers focus on digital
Planning applications for new stores have declined by 22 per cent across England as bricks-and-mortar continues to suffer amid Covid-19. Applications have fallen from 3908 to 3037 as retailers continue to prioritise their online channels during lockdown. The City of London saw planning applications for new shops and shopping centres fall by 59 per cent from 37 to 15, while York was the city with the largest decline of 91 per cent from 11 to 1, according to research by law firm Boodle Hatfield. Dartmouth and Totnes in Devon saw the largest decrease in applications across all 328 areas in England covered by the study, with a 94 per cent fall. Developers are reducing their pipeline of retail developments as the lockdown has resulted in the closure of non-essential businesses. Footfall on UK high streets fell 49.5 per cent in 2020 due to the forced closure of non-essential retailers, as well as the lack of office workers. The firm said there are concerns that demand for some retail spaces may be slow to bounce back once lockdown ends. The vacancy rate for retail units across the UK had reached 13.2 per cent in the third quarter of 2020 from 12.4 per cent the previous quarter. The latest vacancy monitor from the BRC and Local Data Company revealed that 13.7 per cent of all shops were empty during the quarter to the end of December. Vacancy levels jumped from 13.2 per cent in the previous three-month period, as the monitor reported the 10th consecutive quarter of rising vacancies.
Family behind Selfridges poised to fortify department store
The billionaire Weston family could be forced to shore up its department stores businesses, which include Selfridges, as Covid-19 restrictions continue to wreak havoc on the retail industry. The coronavirus lockdowns and the removal of tax-free shopping for overseas tourists risk a write-down on up to 80 per cent of the company’s goodwill, equivalent to £680 million. In the latest accounts filed for the year to February 1 2020, Selfridges Holdings Europe Limited (SHEL Holdings) warned that there was a “severe but plausible” scenario which could see its local banking covenants breached in the UK. SHEL is the holding company for the Westons’ department store and online retailing businesses including Brown Thomas and Arnotts in Ireland, de Bijenkorf in Holland, and Selfridges in the UK. The company said it remains confident on renegotiating with its covenants, but said parent company – the Weston family’s Wittington Investments – has committed to providing the business with financial support in the “unlikely event” it is unable to secure looser terms. It said it has also been granted access to a £300 million commercial paper facility, which is available until March 2021, for 12 months. SHEL said it had been forced to take into consideration the impact of the pandemic as well as the removal of the VAT Retail Export Scheme in its budgets and five-year plans. Last month, Selfridges managing director Anne Pitcher said that the department store had endured its “most difficult year” in its 113-year history as the pandemic forced the closure of non-essential retail in the UK. In the year to February 2020, the luxury department store posted a 10 per cent drop in operating profits year on year to £88 million, while sales increased by seven per cent to £1.97 billion. City centres, particularly London’s West End, have been affected by a lack of footfall in the last year with international and domestic tourists, as well as office workers, avoiding such areas in the wake of Covid-19.
Ocado voted one of the UK's worst digital experiences
Ocado has the second worst online experience of all UK supermarkets according to a damning new survey.
Ocado, the pureplay online grocer, came behind every other major UK grocer except Budgens in terms of its overall digital experience, The Grocer reported.
The survey, commissioned by MullenLowe Profero, looked at supermarkets’ websites, apps, social media and email communication.
Just 45 per cent of customers said they thought Ocado’s overall experience was “good” or “exceptional”, nearly half the table leader Tesco’s 85 per cent.
In contrast Marks & Spencer, which entered into a joint partnership with Ocado to launch Ocado Retail last year, was ranked fourth behind Tesco, Sainsbury’s and Asda.
Amazon Fresh, the only other UK grocer without a significant physical presence, saw 54 per cent of respondents deem its digital experience good or exceptional.
“We’re seeing significant differences in consumer satisfaction within the category. Tesco and Sainsbury’s are clearly delivering a fantastic digital experience in challenging times,” MullenLowe Profero’s head of strategy Howard Pull told The Grocer.
“We’d love to see those towards the bottom of the table taking the lead from those at the top and upping their digital offers. What is clear is that some have a long way to go with issues such as availability, particularly when the expectations are so high with their customer base.”
Frozen food sales increase by more than £870m
The UK has become a nation of frozen food fans as the Covid-19 pandemic changed the way Brits shop for their grocery, according to a new report. The Frozen Food Report, released last week by the British Frozen Food Federation (BFFF), suggests that consumers are shopping more online, spending more per shop and have bought more frozen food than ever before. It said that in 2020, shoppers spent an extra £872 million on everything from frozen avocado to ice cream – making frozen food the fastest growing grocery category, second only to alcohol. According to the report, Generation Z – those born between 1997 and 2012 – are 23 per cent more likely to eat frozen food due to the convenience and growing range of vegetarian and vegan products on offer. The report also reveals the value of frozen food sold in the UK stores is now worth £7.21 billion, representing a year-on-year growth of 13.8 per cent. This compares to total grocery sales, which grew at 11.3 per cent last year, and the fresh and chilled category growing 9.3 per cent. “Despite the challenges of 2020, and in some cases because of them, the UK’s frozen food industry continues to be a real success story,” BFFF chief executive Richard Harrow said. “At the onset of the pandemic we saw a huge increase in the demand for online grocery shopping, triggering shopping habits we think will remain long after lockdown lifts. “March 2020 was a record month for online penetration, which increased by 140,000 households, and further research in October found only 26 per cent of shoppers stated they intend to revert to pre-pandemic shopping habits, with 55 per cent saying they will never shop in the same way again. “This means, potentially, 74 per cent of shoppers will maintain their online shopping habits long-term. “Another change in consumer behaviour is the frequency of shopping trips has declined overall, but increased for frozen, and basket spend is higher. “Consumers are also looking for convenient products that will not spoil between shopping trips. “This plays to the strengths of the frozen category and means we’re optimistic frozen will continue to grow its share of online purchases.”
New click & collect cash pilot to be launched next month for vulnerable shoppers
A new “click & collect cash” service is set to be trialled next month in the latest effort to ensure vulnerable communities still have access to physical money.
The “Cash in Shop” pilot is set to launch in Burslem, Stoke-on-Trent next month as part of the wider Community Cash Access Pilot scheme.
This experimental new service will allow customers to see which local shops have cash available and then pre-order it for pickup via an app.
They will then be able to collect the cash free of charge without any obligation to make a purchase.
The service, run in partnership with cash management giant Loomis and Swiss fintech firm Sonect, will even allow shoppers to order cash to be delivered to their doorstep alongside groceries with the Sonect app.
According to data from the Access to Cash Review, 8 million people in the UK are at risk from the rapid demise of the “fragile cash system”.
The British Retail Consortium (BRC) recently revealed that nearly 10,000 free-to-use cash machines have been lost over the past two years, while only an estimated 10,000 remain.
While the majority of the country is comfortable with the shift to digital payments, these pilot schemes seek to protect those who still rely heavily on cash.
This group is largely made up of elderly and low income citizens who may not have access to bank accounts.
“A huge portion of society relies on cash, so we need to keep innovating to ensure we have the infrastructure to support demand,” Loomis UK’s commercial director Simon Wood said.
“Cash in Shop is a fantastic initiative which matches the needs of consumers and retailers, and will improve the availability of cash in the areas that need it most.”
UK inflation rises 0.7% in January with food price hike
New research has found that UK inflation increased last month on the back of higher food prices and more expensive household goods. The Consumer Prices Index (CPI) increased to 0.7 per cent in January from 0.6 per cent in December, according to the ONS. The figures were ahead of the analyst forecasts of 0.5 per cent. “Inflation rose slightly in January, with food prices increasing,” ONS deputy national statistician for economic statistics Jonathan Athow said. “Household goods also pushed up prices with less discounting this year on items such as bedding and settees. “However, there were widespread January sales, with particular price cuts for clothing and footwear.”
Arcadia Group staff facing redundancy seek charity aid
Former Arcadia Group employees are reportedly requesting for help from Fashion and Textile Children’s Trust (FTCT) after being made redundant since the fashion empire collapsed last year. The charity – which offers grant funding to families and companies – found that between February 12 and February 15, at least 60 per cent of grant enquiries received have come from Arcadia staff, Drapers reported. The charity said it was already providing grant support to Arcadia staff, “but numbers have significantly increased following closure and buy-out announcements”. Most of staff are applying for grants through social media referrals from Arcadia colleagues. Up to 12,000 people are set to lose their jobs at the group after Topshop, Topman, Miss Selfridge, Wallis, Burton and Dorothy Perkins, were sold off to online specialists Asos and Boohoo – but stores were not part of the deal. Sir Philip Green’s Arcadia Group fell into administration in November 2020, putting 13,000 jobs and over 400 shops at risk. Asos scooped up prized Arcadia fascias Topshop, Topman, Miss Selfridge and athleisure brand HIIT for £330 million earlier this month, while Boohoo bought Dorothy Perkins, Wallis and Burton for £25.2 million. Last week, hundreds of former Arcadia staff signed up to law firms to claim compensation after being made redundant. Aticus Law has at least 150 potential claimants lined up, while Simpson Millar already has 10 claimants lined up from across Arcadia.
Adidas confirms plans to sell Reebok
Adidas has confirmed plans to sell Reebok after acquiring the brand 15 years ago, as it embarks on a new five-year strategy. The German sportswear giant said it aims to focus on its eponymous products. Adidas bought Reebok in 2006 for $3.8 billion (£2.7 billion) and is now weighing options for the brand, which is thought to be worth about $1.2 billion (£864 million). Adidas will unveil a new strategy on March 10 but has already said it wanted to focus its efforts on further strengthening the leading position of the Adidas brand. “Reebok and Adidas will be able to significantly better realise their growth potential independently of each other,” Adidas chief executive Kasper Rorsted said. “We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.” Possible buyers include Timberland and North Face owner VF Corp, as well as China’s Anta International. Since joining the company, Rorsted has dismissed speculations that he wanted to sell Reebok. He has closed under-performing Reebok stores and allowed some licensing deals to expire, dampening sales at the struggling sporting label. After Reebok returned to profitability in 2019, Rorsted sought to help it generate sales growth with new footwear lines such as the CrossFit Nano and the FloatRide Run.
Aldi scraps 2m pieces of plastic from Easter range
Aldi has announced plans to remove two million pieces of throwaway plastic from its seasonal confectionery range for Easter this year. As part of this, the German discount grocery chain is giving some of its Easter eggs a square-shaped bottom so they no longer need to be supported with inner plastic packaging, eliminating the need for plastic entirely. These products are among the six Easter lines that Aldi is altering to make 100 per cent plastic-free. Other plastic-saving changes include replacing plastic windows from the outer packaging of several products with compostable cellulose film made from wood fibres. Aldi said it would also launch a fully-sustainable chocolate box, with an insert made from recycled potato skins. The retailer said the combined changes would remove 29 tonnes – equivalent to two million pieces – of plastic from its Easter range. “We’re committed to eliminating plastic wherever possible, and the changes to our Easter range are a great example of removing unnecessary plastic that we can all do without,” Aldi UK plastic packaging director Richard Gorman said. “We know our customers want to protect the environment, and it is changes like this that make all the difference.” The reduction of plastic in Aldi’s Easter range follows on from the supermarket’s removal of more than 5.5 million pieces of plastic last year, including successful changes to its Christmas range. The supermarket said it was on track to have all product packaging reusable, recyclable or compostable by the end of 2025.
Morrisons unveils Market Kitchen concept in new Camden store
Morrisons has opened a new temporary store near its site in Camden, north London, which features a new fresh-food takeaway concept called Market Kitchen. The entrance to the Market Kitchen concept is directly on Chalk Farm Road and is just around the corner from the existing store in the area that remains closed as it undergoes a rebuilding scheme. Morrisons said the Market Kitchen offers a range of meals for breakfast, lunch and dinner that are made to order by a team of chefs on site. The Market Kitchen also offers a smaller selection of groceries than the closed Morrisons Camden site nearby, while Morrisons Pharmacy has opened in a dedicated space at 66 Chalk Farm Road. However, customers wanting to do their usual big shop are encouraged to visit Morrisons’ store in nearby Halloway instead. At the Market Kitchen in Camden, customers can buy the meals when shopping for groceries or choose to have the food delivered to their doorstep via Deliveroo. Customers can also order take-away coffees and waffle pops directly from a counter on Chalk Farm Road without having to enter the store. “We are pleased to open our temporary store while our existing store is being rebuilt,” Morrisons Camden store manager Michael Burrnett said. “We know it involves some changes for our customers but are excited to be able to offer our Market Street meals to our customers. “The chefs use our fresh Market Street ingredients to create these delicious seasonal meals that are made to order for our customers.”
27,000 retail jobs lost in 2021 so far
Retail experts have warned that recent job losses will be the “tip of the iceberg” without further support from the Treasury, as new figures reveal about 850 jobs have been lost from the sector each working day since the start of the year. New analysis from the Centre for Retail Research (CRR) shows 27,096 jobs have been shed and 1023 stores have been earmarked for closure so far in 2021. The research, which covers insolvencies by retailers with 10 or more stores, highlights the turmoil on the high street, which has seen the recent collapses of Debenhams and Sir Philip Green’s Arcadia Group retail empire. Professor Joshua Bamfield of the CRR warned “these losses will be the tip of the iceberg” without an extension of the current business rates holiday and moratorium on evictions by landlords. At the onset of the pandemic, the UK Government launched a break on business rates for retail, hospitality and leisure firms until the end of the current financial year, March 31. Retail bosses have called on Chancellor Rishi Sunak to extend the relief in the Budget, to be revealed on March 3, as we as complete a major overhaul of the current business rates system. The Ministry of Housing, Communities and Local Government issued its latest statistical guidance on Wednesday, forecasting that councils in England will collect £24.8 billion for the next year – with no provision for an extension of the rates holiday in its forecast. It has been reported that the government is still considering an extension to the rent holiday, but Bamfield warned “this will simply kick the can down the road” as he called for greater support. “Government loans enabling retailers to turn unpaid rents accumulated during the crisis into fixed-term repayable loans could be the answer as part of a wider basket of support,” he said. Yesterday, the Scottish Government extended its business rates holiday for the next financial year, increasing pressure on the Chancellor further. Robert Hayton, UK president of property tax at real estate adviser Altus Group, said: “Lockdown restrictions and changing consumer habits mean our high streets are far from capable of bearing the burden right now, but the extension must be discerning and targeted to avoid repeating the mistakes of the past.”
Sainsbury's to trial new in-store recycling system for flexible plastic
Sainsbury’s has announced plans to introduce a new in-store recycling system which allows customers to recycle polypropylene (PP) film found in several household plastic products. The Big 4 grocer said the launch of this new recycling system comes as part of its pledge to increase recycling in its own operations and to make recycling easier for its customers, by offering more facilities do so in its stores. Last year, Sainsbury’s also pledged to halve its use of plastic packaging by 2025 and become net zero in its operations by 2040. Some of the more common items that are packaged with PP film include salad bags and frozen food bags. With 63 of its stores across North East England adopting the trial, Sainsbury’s said this initiative was the largest PP film trial in the UK supermarket industry. Sainsbury’s currently provides front-of-store collection points for polyethylene (PE) film and carrier bags in over 600 supermarkets across the UK. A report from last year published by Valpak and commissioned by Wrap highlights that 266,000 tonnes of plastic packaging waste in 2019 came from PP plastics. Of that, 80,000 tonnes came from PP film. Until a sustainable alternative is developed to replace PP film, it continues to be the most appropriate material used to package food, and to keep products fresh. However, PP film currently isn’t accepted by most councils in the UK, which means customers are currently unable to recycle it at home. Sainsbury’s said it wanted to make it easier to recycle flexible plastic packaging, so customers will be able to put their PP plastics into the same recycling bins currently provided in its stores that collect PE plastics. Should the trial be successful, the grocery giant said it would roll out the PP film collection system to all its supermarkets by the end of 2021, in line with the ambition of the UK Plastics Pact to improve the recycling rates for film. “Sainsbury’s is dedicated to trialling and testing new initiatives as part of our ongoing commitment to make it easier for customers to recycle,” Sainsbury’s product and innovation director Claire Hughes said. “We hope that by trialling flexible film recycling points in our stores and accepting more of the packaging that our customers may be unable to recycle at home, we are helping our customers reduce plastic waste. “We’ll listen to feedback from our colleagues and customers before we roll out the flexible plastic packaging recycling scheme wider. “As we work to reduce, reuse, replace and recycle plastic packaging, we’ll continue to find collaborations, working with our suppliers, academics and organisations such as Wrap to explore innovative ways to reduce and recycle more of our packaging.”
Halfords launches petition to allow e-scooters on roads amid rising demand
Halfords has launched a a petition to call for a change in the law to allow e-scooters to be ridden on public roads amid rising demand for the mode of transport. The retail giant said e-scooters were becoming increasingly popular as an alternative to public transport, with around one in seven adults now owning one. A survey of 2000 adults showed around two in five were in favour of e-scooters, with the advantages of using them to commute including avoiding congestion, saving time on parking, and saving money. Halfords said its poll suggested that if e-scooters were legal to ride on public roads, one in three adults would consider using them for shorter journeys, while almost as many might swap their car for one. “Our petition calls for the Government to legalise the use of all e-scooters on public roads and for the UK laws to catch up with the rest of the world,” Halfords cycling director Paul Tomlinson said. “They are legal and allowed on the streets of many countries across Europe and the rest of the world. “Any new regulations should deliver safer roads, and ensure that e-scooter road users behave responsibly and with due care and attention, but the current blanket ban on e-scooters does not offer this. “Their safe use has the potential to change the way we travel and can help address pollution and congestion problems. “The government has already recognised the potential for this with the introduction of rental trials.”
Uniqlo owner Fast Retailing now the world's most valuable fashion retailer
Uniqlo parent company Fast Retailing has been labelled as the world’s most valuable fashion firm, beating Inditex for the first time. The company’s value was defined after its share price reached ¥10.87 trillion (£74 billion) this week, more than any other company operating in the global clothing sector. That puts it ahead of previous number one Inditex, which was on €80 billion (£69 billion) on Thursday morning. However, Fast Retailing still remains behind both Inditex and H&M in terms of revenue. Earlier this year, Fast Retailing said that Uniqlo’s strong performance was due to stay-at-home behaviours, selling more loungewear alongside activewear. Uniqlo recorded a 0.6 per cent decline in the group’s revenue for the quarter ended November 30, 2020. The group achieved revenue of ¥619.7 billion (£4.31 billion), while net profit down by 0.7 per cent to ¥70.38 billion (£49 million) year-on-year. However, a sharp rise in operating profit was seen higher than expected, with a 23.3 per cent growth to ¥113 billion (£79 billion) thanks to strong sales from Uniqlo’s operations in Japan and Greater China. The company has almost 2300 Uniqlo stores globally and Asia accounts for 60 per cent of them, even with Japan excluded. There are 815 Japanese Uniqlo stores and almost as many (791) in China. Meanwhile, Inditex’s flagship brand Zara has a much bigger focus on Europe and the US with 70 per cent of its stores in those markets.
Moonpig posts strongest ever trading week
Moonpig has witnessed an increase in its trading performance during the first half of the year. Last week was “the strongest ever trading week” in the group’s history ahead of Valentine’s Day. The gifting and cards retailer has seen a “temporary increase in average order values” as more customers attach gifts to their orders. “In line with our strategy in the first half of the year we have further increased marketing activity to accelerate customer acquisition,” Moonpig said. It now expects revenue for the financial year ending April 30, 2021 to be approximately double the £173 million revenue for the previous year. On top of higher marketing spend, Moonpig has incurred incremental costs and capital expenditure due to higher temporary staffing levels throughout its supply chain, and also by the partial shifting of its production mix to the UK following the Guernsey lockdown. The higher levels of customer purchase frequency and elevated gift attach rates are both expected to moderate as lockdown restrictions ease. Earlier this month, Moonpig debuted on the London Stock Exchange with a market capitalisation of £1.2 billion. It said the offer price of its IPO will be 350p per share. The flotation comprises 5.7 million new shares to raise gross proceeds of £20 million and 134.6 million existing shares being sold by certain existing shareholders – equating to a total offer size of £491.2 million.
Sainsbury's criticised for raising prices to match Aldi's
Sainsbury’s has reportedly increased the prices on some of its products to match Aldi’s prices as part of its new campaign. The grocer’s ‘Aldi Price Match’ campaign, which launched earlier this month in a bid to fight for market share, offers customers 250 Sainsbury’s quality products that match the prices found at Aldi. However, eight of the 250 Sainsbury’s products went up in price as it launched the campaign, The Grocer reported. They consisted of seven own label products plus a bottle of Newcastle Brown Ale. All went up between February 3 and 17 this year, having been consistently cheaper since at least November 2020. The price match was launched to cover Sainsbury’s and branded products, focusing on customer favourites such as meat, chicken, fresh fruit and vegetables and dairy. The campaign is the first new initiative of chief executive Simon Roberts’ plan, announced back in November, to “put food back at the heart of the business”. The biggest increase was on Sainsbury’s own label budget courgettes, which rose by 40p, or 21 per cent, from £1.90 to £2.30. Meanwhile, Sainsbury’s own label budget ice cream went from £1 to £1.19. Own brand tinned chicken curry went from 90p to £1.05 – but had already risen in price from 59p since January this year. Aldi noticed the increases in price and said that Sainsbury’s raised the price of some low-tier own label products to ‘match’ its higher-tier ones. Sainsbury’s responded by saying that the vast majority of prices have been reduced thanks to the campaign. ”Product prices change all the time for a variety of reasons but we are committed to delivering consistent value for customers,” Sainsbury’s said.
Next Lord Wolfson call for reduction of business rates
Next chief executive Lord Wolfson has demanded that business rates on high street stores should be reduced by a third to offset any losses from store closures. Wolfson said the level of tax currently being paid by shops is “unfair” and called for a 50 per cent hike in the business rates bills of warehouses to “fairly reflect the value” of commercial properties. The proposal comes just as Chancellor Rishi Sunak announced he was set to delay the findings of his “fundamental review” into the tax. Sunak is due to argue later today that postponing the report until the autumn will allow him to make decisions once the economic uncertainty has eased, according to Financial Times. The Treasury had promised its “fundamental review” of rates last March. Meanwhile, Wolfson has dismissed the introduction of an online sales tax, which the government is considering. He said that this would “put a hole in consumers’ pockets” rather than “get people back” to the high street. Retailers have been offered business rates relief during the pandemic, which is due to expire on March 31. Sunak is expected to announce an extension of the rates holiday as part of his budget on March 3.
Arcadia collapse leaves it with £510, pension deficit
Sir Philip Green’s Arcadia Group reportedly had a pension deficit of £510 million at the time of its collapse in November – which is about £150 million more than expected. In total, the former parent company of Topshop, Dorothy Perkins, Burton and Miss Selfridge, owed creditors £800 million when it called in administrators from Deloitte. Arcadia Group fell into administration last year, putting up to 12,000 jobs at risk at the time. Asos snapped up Arcadia fascias Topshop, Topman, Miss Selfridge and athleisure brand HIIT for £330 million earlier this month, while Boohoo bought Dorothy Perkins, Wallis and Burton for £25.2 million. Trade creditors, including fashion and shop fitting suppliers, were owed £163 million and landlords £36.5 million, while tax authorities lost out on £44.2 million, The Guardian reported. Creditors are likely to receive only a small portion of the money owed. The Green family’s Aldsworth Equity is set to receive a £50 million payout. The money is owed on an interest-free loan Aldsworth made to the group in 2019 at the time of an emergency restructure. Trustees of the pension scheme said that they had since received £180 million of funds from the sale of Arcadia assets – up from slightly on last week – as part of £210 million in secured funds agreed under a 2019 deal between the pensions regulator and the Green family. Earlier this week, it was reported that Topshop and Topman creditors are facing losses of £176 million as Arcadia Group is wound up. Suppliers based in countries such as China and Turkey and property owners are hit the hardest by the demise of the fashion empire. Creditors are owed £219 million in total but there are only £42.4 million of assets available to pay them – which means they are likely to miss out on £176 million. Gift card holders have also been left £4.5 million out of pocket. Administrators had previously estimated in November that £82.2 million was owed to creditors when Arcadia collapsed.
Waitrose launches Easter egg range with 44% less plastic
Waitrose has announced it will halve the single-use plastic on all of its own brand Easter eggs and confectionery. From today, thousands of own brand Easter eggs will contain 44 per cent less plastic and 18 per cent less card – which represents a quarter less packaging overall for the range. The majority of the Easter egg packaging will be made from recycled materials, including the Waitrose Squiggle Eggs and Milk Chocolate Hen with Speckled Eggs which are made from 80 per cent recycled content. Waitrose said a total of 99.7 per cent of the Easter range packaging is now widely recycled. The upmarket grocer also said it has once again topped Greenpeace’s annual league table of UK supermarkets last month for efforts to reduce single-use plastics across its shops and products. “For many years, Easter eggs have been wrapped in foil, protected in plastic and covered in cardboard,” Waitrose packaging development manager Christina Capellaro said. “To many, this seems excessive and is an area where we know we can make a real difference. So this Easter, our customers can enjoy the same great taste with less packaging.” Waitrose has pledged to make all packaging either widely recycled, reusable or home compostable by 2023. It is also cutting out single use plastic from its seasonal range of mugs, plates, cups and decorations which can all be reused.