Aldi and Lidl face threat from weak pound, writes The Financial Times. The FT says the prospect of post-Brexit price inflation at discounters offers opportunity for bigger rivals. “The German discounters source more of their products from the continent than their larger UK-based rivals and so will be most affected by sterling’s slump since the EU referendum” (The Financial Times £)
The Guardian looks at the corporate winners and losers from Brexit so far. Winners include Associated British Foods, due to fatter margins in its sugar business, and Ocado, as the weaker pound could make international deals more attracted. Losers include M&S, Sports Direct and cider and beer producer C&C Group. (The Guardian)
The Government’s mooted sugar tax will not only fail in its public health aims but it will also result in fewer jobs and damage to the UK economy, according to the TaxPayers’ Alliance. The group said the measure could cost more than 5,600 jobs meaning the Treasury will received £17m less in job-related taxes including national insurance contributions. (The Telegraph)
Consumer spending grew at its slowest rate since the depths of the 2008-09 recession in the three months leading to the EU referendum, but retailers have blamed bad weather for the tough trading conditions (The Guardian). Though The Telegraph says consumers took a “business as usual” approach to the EU referendum, it appears, after spending and retail sales rose during the second quarter.
Household spending grew at its lowest rate in over two years last month with flight bookings and car sales seeing the biggest falls, new findings suggest. Spending grew by 0.9 per cent in June, compared to May’s 27-month low of 0.8 per cent, Visa’s UK Consumer Spending Index said. (The Daily Mail)
In The Times (£) Paul Johnson warns of the effect of the falling pound. “Some seem to be claiming that the recent drop in value of the pound, to a 30-year low against the dollar, is somehow a good thing, that it will somehow make us better off. It’s really not and it really won’t.”
Amazon’s biggest annual sale event — its Prime Day this Tuesday — will be more of an own-brand special this year. It may go unnoticed by many shoppers, but many more items will be sold under the online retailer’s own labels, with its brands bearing names such as Society New York (for women’s clothing), Happy Belly (for coffee), or Franklin & Freeman (for men’s shoes). (The Financial Times £)
Juice start-up Simplee Aloe has sealed distribution deals with The Co-Op and Nisa worth nearly £400,000 a year, as supermarkets rush to find the next “clean drinking” craze after coconut water. (The Telegraph)
No comments yet