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Prada plots 80 new stores for 2013 Saturday, 18th May 2013
Photo credit: Prada
Prada Group is set to continue its steady rate of global expansion as it looks to open up to 80 new stores in 2013, focusing on Asia, the Gulf countries and North America.
The Italian fashion house’s Miu Miu brand will also launch a bevy of new stores in China, despite the fluctuating market conditions in the region.
Prada currently operates 196 stores in Asia and 185 in the Western hemisphere. Founded 100 years ago in Milan by brothers Mario and Martino Prada, the brand last year invested EUR 265 million in retail expansion.
Nordstrom receives lower than expected sales and profit 1Q Friday, 17th May 2013
Photo credit: Nordstrom
Nordstrom Inc reported that its sales and profit dropped more than expected in the first quarter due to weak business in early winter, while shares reduced to 3.9 per cent after trading.
The luxury retailer reported increase in comparable sales by 2.7 per cent which was lower than 4.9 per cent increase expected by analysts. Overall sales increased by 4.8 per cent to USD 2.66 billion.
Nordstrom Rack which the company also operates, a chain of low priced stores reported decline in income to USD 145 million in the first fiscal quarter.
The company expects a profit of USD 3.65 to USD 3.80 per share for the fiscal year that began on February. However, its same-store sales estimate declined by half a percentage point for the year to 3 to 5 per cent rise.
Dolce & Gabbana announce London store opening Friday, 17th May 2013
Photo credit: Dolce & Gabbana
Dolce & Gabbana are set to open its fourth London store on June 15th, coinciding with an event they are joint hosting with GQ magazine.
The store, located at 53-55 New Bond Street, will be part of the inaugural London Collections Men’s calendar, in which its Summer 2014 Tailoring Collection for men is expected to be showcased.
The Italian luxury fashion house is currently in the process of a unique development initiative, in which a series of special stores with the classic Dolce & Gabbana meet a new expression of identity and traditions based on the cities in which the stores are situated.
Dolce & Gabbana currently has three stores in London, two at 6 and 175 Sloane Street and one at 6/8 Bond Street.
Amazon to be quizzed about low corporate income tax Friday, 17th May 2013
Internet retailer, Amazon.com Inc., remains in hot water over its low corporate income tax after it emerged that the British parliament are calling for them to clarify their UK business activities.
Reuters, the online business and financial news website, claim they have uncovered evidence to suggest that Amazon have been running a multinational business with independent subsidiaries in different countries, as oppose to a single European based business in Luxembourg.
If the latter were to be true, this would mean that Amazon is only entitled to pay tax rates as they appear in Luxembourg.
However, Reuters claim they have uncovered evidence from the company's own statements, job advertisements, statements from three suppliers and five former employees, as well as the profiles of over 140 staff on networking website LinkedIn, which would appear to suggest their UK unit has made a considerable input into business decisions.
Amazon have paid around GBP 5.9 million in income tax on over GBP 15 billion of sales over the past six years.
Reuters say their three month investigation shows that Amazon’s business model replicates some of its bricks-and-mortar rivals, and not the virtual business it claims to be.
The retail insights director for consultants Kantar Retail, Bryan Roberts, said that even though purchases are sealed over the internet, Amazon’s UK unit Amazon.co.uk Ltd, operates essentially like a UK retailer.
“Amazon.co.uk is a British business in that 99 per cent of the people who are responsible for merchandising, buying, the online activity, fulfilment, are based in Slough.” Roberts said, who advises many Amazon suppliers.
International tax rules allow companies to conduct “preparatory and auxiliary” activities away from the native homeland of that company without establishing a taxable presence.
In the UK, Her Majesty’s Revenue and Customs (HMRC), the body acting as the UK’s tax authority, has never sought to define what internet companies can do in Britain before it is deemed to have a taxable presence. Academics and lawyers believe this has allowed for a wide grey area to emerge.
Amazon declined to comment on whether or not staff at Amazon.co.uk had management oversight or responsibilities regarding the profits of different retail product lines.
Dell reports net profit fall by 79% Friday, 17th May 2013
Photo credit: Dell
Dell reported that its net profit fell by 79 per cent to USD 130 million in three months to 3 May, while revenue dropped 2 per cent to USD 14 billion.
The fall came as consumers begin to switch from PCs to smartphones and tablets.
Dell is currently in the midst of a dispute with Carl Icahn and Southeastern Asset Management, its two biggest shareholders and its founder Michael Dell who proposed to take the company private. Some investors oppose to the plan of Michael Dell who, along with private equity group Silver Lake, have offered to buy back the company for USD 24.4 billion. They plan to shift the business from PCs to mobile devices.
Icahn and Southeastern Asset Management argue that the estimation of the company is 'too cheap' , describing the founder’s offer as a 'giveaway'. They propose to offer additional shares to shareholders and implement new management.
Dell's quarterly results show increase of 12 per cent to USD 5.5 billion in its revenue in technologies services and software in comparison to PC sales which fell to 9 per cent.
As the dispute is currently in progress, the company has not issued its report on profit for the second quarter. The company has formed a special committee of the board to examine the deal and alternative bids.
Mergers and Acquisitions down 7% Friday, 17th May 2013
Photo credit: My Retail Media
Worldwide value of mergers and acquisitions is down by 7 per cent from 2012 this year. Deals falling to USD 11.1 billion calling it as the slowest week for M&A, in comparison to a year ago, adding up to USD 750 billion.
US went from last year's 32 per cent to gaining 46 per cent of worldwide M&A this year, while China account for 7 per cent followed by UK and Japan with 4 per cent.
Telecommunications, media and entertainment including consumer staples sectors had the strongest year-on-year percentage gains, however compared to 2012 materials, financials and power and energy sectors hit a double-digit fall.
Rihanna sues Topshop for $5m Friday, 17th May 2013
The pop star is suing Topshop for USD 5 million after T-shirts bearing her image were sold without her prior consent.
International law firm Reed Smith has been appointed to file the suit in London.
The NY Post reported that the case is “in discovery”, and that Rihanna has already handed over details of her fashion deals with Armani and River Island.
Rooney Mara become new face of Calvin Klein fragrance Friday, 17th May 2013
Photo credit: Calvin Klein
Hollywood actress Rooney Mara has been unveiled as the new face of Calvin Klein’s newest fragrance, Downturn, and the company estimate that the fragrance could accumulate USD 120 million in retail sales globally.
The company have said that they hope the fragrance will rival its flagship women’s scent, Euphoria, which has proved particularly popular with customers.
The 28-year-old star of The Girl With The Dragon Tattoo and The Social Network, will once again team up with the director of those films, David Fincher, to produce the TV campaign for the fragrance.
Meanwhile, Jean-Baptiste Mondino has shot the print ads for the scent.
Coty Inc. bought Unilevers prestige fragrance business in 2005 for an estimated USD 800 million, which includes the Calvin Klein brand.
Its president, Jean Mortier, said: “Calvin Klein is our largest fragrance business and very important to us,
“Our aim is to strategically create another women’s fragrance as big — or bigger — than Euphoria.”
Catherine Walsh, senior vice president of American Fragrances for Coty Prestige, explained how Downturn is aimed at consumers aged between 25 and 35, adding: “This group of consumers lives by its own rules”.
“We’ve put together a superaspirational scent. Globally, consumers see downtown as a place they want to be. They identify it with youthfulness, edginess and cool.”
Meanwhile, in an interview with fashion news site WWD, Mara said: “I am very excited to be included in the group of amazing women that have been featured in the iconic advertising campaigns for Calvin Klein fragrances”.
“It’s an honour to be part of a brand with such a legacy of breakthrough advertising. The Downtown fragrance holds true to the chic, confident and simple feeling of the Calvin brand. The effortless and timeless appeal of the Calvin Klein Collection and the Downtown scent made this a natural partnership.”
Mara joins other A-list stars, Eva Mendes, Diane Kruger, Scarlett Johansson and Alexander Skarsgard, all of whom have made appearances in Calvin Klein campaigns.
Fashion sales back in vogue for John Lewis Friday, 17th May 2013
Photo credit: John Lewis plc
Despite tough comparisons across the business, John Lewis’ fashion sales rose 4.8 per cent in the week to 11 May, as the warm weather spurred on clothing lines.
A warm bank holiday weekend brought a sharp drop in footfall for John Lewis in the seven days to 11 May, with total sales falling to -0.2 per cent year-on-year. Even with the flat performance, the department store managed a 4.8 per cent growth in fashion sales, with children’s clothing, shoes, and own-brand women’s fashions all reporting strong trading.
Tough year-on-year comparisons didn’t stop the retailer’s electrical and home technology directorate, as it managed an impressive 4.7 per cent growth in sales for the week, despite coming up against high tablet sales and one of the peak digital switchover weeks the year before.
Meanwhile home sales dipped by 9.4 per cent week-on-week, although the warm weather led to outdoor furniture and barbeques being “predictable stand outs” for the retailer.
Speaking in light of the week’s performance, Simon Russell, director of retail operations development, said there had been some “encouraging signs” at the end of the week as the weather cooled down, helped by price matching and promotional activity across the group’s operations. Online, sales grew by 8.2 per cent, outpacing the majority of shop sales for the week.
Russell added that the current week had gotten off to a much stronger start, with the retailer “well placed” for the week ahead.
It seems the spate of warm weather certainly played in Waitrose’s favour, as sales at the partnership’s food operations rose 12.8 per cent excluding petrol for the week.
Retail director Rob Collins said strong sales were driven by the warmer bank holiday, helping to create a “summer spirit” for trading.
Waitrose’s online sales momentum continued to grow with the number of orders placed up by 41 per cent year-on-year, while the retailer opened its newly relocated Waitrose in Oakgrove, Milton Keynes, completed with a new Waitrose.com hub, customer café and home department.
Morrisons makes a deal with Ocado Friday, 17th May 2013
Photo credit: Morrisons
Morrisons seals a 25-year deal with Ocado for its online service to sell its groceries via online. As it has been hit by lack of online presence in recent years, the fourth largest supermarket in the UK has reported that its website will have a 'Morrisons’ look and feel' and will retain its branding as sets to use Ocado’s distribution centre to deliver groceries.
The company’s initial payment to Ocado will be £170 million in order to obtain Dordon, Ocado's distribution centre at central England, including associated equipment. The company agrees to pay Ocado 25 per cent of the earnings made via its website which will be reduced to 10 per cent after 15 years.
To accommodate Morrisons' range, the company said it will invest further £46 million for expansion of Dordon and also to combine with its systems and find a network of delivery spokes.
For the cost of development Morrisons will invest £25 million more in the year. The firm expects that the online business will have positive earnings by 2016-2017.
Chief executive, Dalton Philips said "I'm confident that Morrisons.com will grow over time to be an operation of real scale and significance whilst creating meaningful long-term value for Morrisons shareholders."