John Lewis needs a Christmas miracle to pay staff annual bonus after the department store racks up near £100m half-year loss as shoppers spend less (The Daily Mail). John Lewis warned its staff they may not receive a bonus again this year, citing a “uniquely uncertain” economic outlook (The Financial Times £). The John Lewis Partnership has warned its annual staff bonus is at risk this year after it slumped to a first half loss of £99m and said the outlook in the run-up to Christmas was “uniquely uncertain” (Guardian).
The John Lewis Partnership says it is “forgoing profit” to help customers, partners and suppliers navigate the challenges of the cost of living crisis. (Sky News)
The Guardian’s Nils Pratley writes: “It is hard to spot reasons why Christmas would be substantially better than normal. In the circumstances, an immediate one-off cost-of-living payment of £500 for staff is the right approach for a worker-owned business.” (Guardian)
The government’s plans to freeze consumer energy bills for two years is a potential “game changer” for consumer sentiment, the chairwoman of the John Lewis Partnership has said. (Times £)
The Telegraph suggests Waitrose’s claim to have held down prices doesn’t add up, with prices for everyday staples have gone up by more than 30% in some cases. (Telegraph)
Operating losses at THG rose fivefold in the first half of this year while it warned that its full-year results would be worse than previously guided because of cost-of-living pressures on customers and rising raw material costs (Times £). THG has cut its full-year sales and profit expectations as rising interest rates and energy costs put pressure on consumer spending (Financial Times £). Shares in The Hut Group crashed to record lows as it sounded the alarm over sales and saw the shock walkout of two top directors (Daily Mail).
The FT’s Lex column writes: “Good looks are in the eye of the beholder. Precious few investors share beauty business THG’s good opinion of itself… THG blamed Thursday’s cut to full-year sales and profit expectations on consumer spending pressures. But confidence had already been sapped by worries over corporate governance and its business model.” (Financial Times £)
Hilton Food Group issued a profit warning on the back of cost pressures on consumers and rising interest rates, sending its shares sharply lower (Times £). Hilton Food Group suffered its darkest day on the stock market yesterday after warning that its full-year profit would be lower than expected (Daily Mail).
Goldman Sachs has warned investors to expect five years of zero growth in the global market for infant milk formula, as China approaches a critical demographic inflection point and the world’s most important market runs short of new babies. (Financial Times £)
UK brewers are facing tenfold price rises for the carbon dioxide they use to carbonate and package beers, along with warnings of supply disruption that may threaten brewing ahead of the crucial Christmas season. (Financial Times £)
Petrol stations at the UK’s major supermarkets will be closed for most of the day of the Queen’s funeral, before some reopen in the evening. (BBC)
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