Displaying items by tag: retail

The Body Shop, acquired by the German restructuring firm Aurelius, faces uncertainty as employees fear job losses and store closures. Aurelius, known for breaking up companies like Lloyds Pharmacy, also has a history of retaining some businesses, such as Footasylum. While Aurelius's intentions remain unclear, its track record suggests possible restructuring rather than total dissolution. The Body Shop's situation is precarious, with the closure of its home-selling arm and refusal to pay long-term bonuses to employees. The company's loss-making European business was recently separated and sold to Alma24, linked to Aurelius. This move, along with the UK arm's administration, is seen as a cost-cutting strategy, potentially leading to the closure of up to half of its 200 UK stores. Administration allows handling redundancy payments and lease obligations without burdening Aurelius. Despite the potential downsizing, the UK business is considered crucial for supporting the Body Shop's international network, indicating a likely survival in a restructured form.

Shoplifting in England and Wales has reached its highest level in two decades, with over 400,000 incidents reported for the first time since 2002. The Office for National Statistics (ONS) revealed a sharp increase from 304,459 cases in the previous year to 402,000 in the year up to September 2023. The rise coincides with the ongoing cost-of-living crisis, exacerbated by escalating prices and post-Christmas financial strain. A survey indicated that 84% of people expected January to be financially challenging due to increased costs and holiday spending. There was a 4.3% inflation rate in December 2023, despite a slight decrease in food inflation from 7.7% in November. Rising food prices continue to affect millions. Major retailers, including Co-op, reported substantial losses due to shoplifting. In response, the Government has launched an action plan to address the issue, with ongoing efforts to combat the crime.

Asda is limiting customers to two boxes of eggs and Lidl is allowing three, due to rising costs and bird flu. Waitrose is monitoring customer demand. The UK is facing its largest-ever bout of this highly pathogenic disease. When there is a confirmed outbreak on a poultry or egg farm, all birds in the area are destroyed. The outbreak is compounding existing shortages as producers cut back on output or leave the industry due to increased costs. Russia's invasion of Ukraine raised farmers' energy bills and the costs of chicken feed, hens and packaging. There are 36.7 million egg-laying birds nationally, but there is capacity for over 44 million. Also, retailers are not paying farmers a fair price. The price of twelve supermarket eggs has risen by 50p, but farmers only saw a price rise of 5p to 10p.