Steinhoff-owned Poundland is changing its pricing range. The proportion of goods sold for £1 will fall 10% to about 75% in a 24-store trial in the Midlands. The company called the move an “evolution from single price retailer to a simple price retailer” (Financial Times £).
Poundland is breaking with its past with a range of prices stretching from 50p up to £5 (The Guardian). Goods will include Pampers baby wipes on sale at 75p and breakfast porridge pots for 50p (Evening Standard). The newspaper says It is trialling the lower prices in some Midlands stores, with a nationwide rollout expected in early 2020. The pilot will also include trials of £1.50, £3 and £4 price points.
Meanwhile, Steinhoff International, the owner of Poundland that is battling to overcome the legacy of South Africa’s biggest accounting scandal, has pledged to slim its business and sell assets in order to survive heavy debts and shareholder lawsuits. No decision has been made on whether Pepkor Europe, the unit that owns Poundland, is among the asset disposals. (The Financial Times £)
UK reliance on EU food imports is a major risk if the country crashes out of the union. About 30% of all food eaten in the UK is imported from the EU, but for some foods, such as spinach and olives, the EU is practically the UK’s sole supplier. (The Guardian).
The government has asked 19 leading trade organisations for practical ideas for how it can prepare companies for a no-deal Brexit. Industry groups have warned that companies are not prepared for no-deal (The Times £).
Work and pensions secretary Amber Rudd said there were “no guarantees” for jobs in the event of a no-deal Brexit (Sky News).
Henkel has cut its 2019 sales forecast and warned that organic revenue would grow 2% at most this year, compared with an already lowered 2-4% target. Adjusted earnings per share fell 9.5% year on year in the second quarter to €1.43 – below analysts’ expectations of €1.45 (Financial Times £).
Bunge, the world’s biggest soyabean processor and leading international grain trader, will move its head office from New York to the St Louis, Missouri, area by next June. The move will cost $35-45m in restructuring charges (Financial Times £).
Figures from the Office for National Statistics shows wages are rising at their fastest rate in more than a decade. The number of people in work is at its highest ever level. Average weekly earnings growth, excluding bonuses, went from 3.6% to 3.9% in the three months to June, compared with the same period last year, (The Times £).
US President Donald Trump urged the Chinese to increase purchases from US farmers in response to a decision to delay 10% tariffs on some Chinese products, which he said he was doing for the Christmas season (The Daily Mail). China has announced it is sticking to trade talks with the US scheduled for September (BBC).
Rumour has it that Starbucks is releasing its pumpkin spice latte earlier than ever, on 27 August. The Guardian says the yearly unveiling of the drink has become as emblematic of autumn as the changing leaves.
An Amazon customer has claimed a delivery driver hurled a box of lightbulbs through an upstairs window while she was out. She returned home to find a note saying the package had been “left in the safe place you told us about”. The light bulbs were undamaged. Amazon said it had “very high standards” for its delivery “partners” and expected every package to be handled with care (The Telegraph).
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