The owner of John Lewis and Waitrose is expected to announce that it has bounced back into the black when it unveils annual results on Thursday – but workers are unlikely to see a payout (The Guardian). Figures due on Thursday are expected to show that three consecutive years of losses at the retailer giant have been reversed (The Daily Mail).
John Lewis chairman Sharon White hinted job cuts loom despite hopes for a return to profit this week. (The Daily Mail)
John Lewis goes back to basics in bid to catch Marks & Spencer. Rather than racing to diversify into new areas such as housing and financial services – core to Dame Sharon’s goal of generating 40% of profits from outside retail by 2030 – John Lewis will instead refocus on what it does best: selling things. (The Telegraph £)
Oliver Shah in The Times writes: “The big question is: who will replace White? She is due to go by February next year, leaving behind a top-heavy management set-up. Nish Kankiwala, the chief executive, is on a two-year contract so is technically supposed to finish after that. One name doing the rounds is Jason Tarry, the former boss of Tesco UK. That would certainly represent a return to the basics of retailing.” (The Times £)
The boss of Sainsbury’s has warned that new government policies designed to make farming more sustainable could harm Britain’s food production and lead to more imported food. (The Times £)
Writing in The Times Simon Roberts says: “Concerns about the direction of policy combined with the system of farm payments post-Brexit have discouraged producers from investing, and there is real concern in farming communities about the unintended consequences for the future of UK food production.” (The Times £)
New Morrisons boss Rami Baitiéh is determined to shake the business out of its malaise. However, according to The Times, “his allegedly passive-aggressive behaviour and uncompromising methods are understood to be alienating members of his senior team, and contributing to a raft of departures”. (The Times £)
The UK competition regulator has warned that a sugar deal between the makers of Tate & Lyle and Whitworths could push up the price of the staple for British shoppers, and has given the companies until next week to address its concerns (The Financial Times £). A merger between two sugar companies could be blocked by the competition watchdog over fears that it may lead to higher prices for consumers (The Times £). Tea and coffee drinkers risk paying higher prices for sugar due to the merger of two of the country’s biggest producers, regulators have warned (The Daily Mail).
The Canadian businessman who rescued HMV is exploring a bid to buy The Body Shop out of administration. (The Telegraph £)
The Body Shop has filed for bankruptcy in the US and Canada and is struggling to pay suppliers in Australia as the group’s most profitable overseas businesses struggle with cash shortages after its UK parent’s collapse last month. (The Guardian)
UK not ready for new post-Brexit border controls, warn importers. Vital information is said to be missing just weeks before key inspection site opens in Harwich. (The Financial Times £)
How latest post-Brexit checks have hit UK delis. UK delis are struggling to stock some of their staple goods as their European suppliers wrestle with new the post-Brexit import rules. (The Guardian)
Marks & Spencer chairman Archie Norman has dismissed the Bank of England’s aggressive interest rate hikes as ‘totally ineffective’. (The Daily Mail)
One of Britain’s biggest pork producers is set to fuel the debate about executive pay in the UK after it told big shareholders it wanted to introduce a one-off award that could result in a bumper payout for bosses. (The Times £)
European coffee group JDE Peet’s is replacing its two top executives as controlling shareholder JAB Holding seeks to shake-up the owner of L’Or, Kenco and Douwe Egberts following a long period of underperformance is turning to former Marks and Spencer chief executive Luc Vandevelde to be chair and interim chief executive. (The Financial Times £)
Shares in the food delivery company HelloFresh have plunged by more than 40% after it warned its earnings would fall below expectations (The BBC). HelloFresh warns of earnings slump as food box service goes stale. Investors wave goodbye as salad days of expansion at the meal kit company seem a long time ago (The Times £).
The prospect of a multibillion-pound tie-up of two FTSE 100 paper and packaging rivals was given a seal of approval in the City as the board of DS Smith signed off a £5bn merger deal with Mondi (The Times £). Mondi has confirmed plans to acquire rival DS Smith in a £5.1billion deal that would create a European packaging heavyweight (The Daily Mail).
The Times’ shares column suggests investors could clean up with McBride. “The supplier of unbranded detergents, dishwater tablets and sprays is big in supermarkets – but its soaring share price still has a way to go.” (The Times £)
Shares in PZ Cussons have fallen by more than a third since the start of the year and they ended this week by continuing their decline. The cue this time was Barclays’ warning that the FTSE 250 company had too much exposure to the naira, Nigeria’s currency, which has been deteriorating in value since last year. (The Times £)
UK restaurant sector hit by cost of living and Covid legacy. Food and energy prices are easing but restaurant owners struggling to stay afloat. (The Financial Times £)
Greggs has expanded rapidly over the past two years, achieving record market share as value-conscious consumers trade down to a brand whose heavily publicised move into vegan fare has challenged negative perceptions of the quality and healthiness of its food. (The Financial Times £)
When’s a flapjack not a flapjack, asks The FT? “It’s a maddeningly difficult question… it’s clear that cakes and flapjacks currently occupy a deeply weird place in UK tax law — how much that matters is an open question, but we’re unconvinced that such a limited conception of cake can hold forever.” (The Financial Times £)
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