Tesco should soon be able to draw a line under its disastrous venture into the United States. Ron Burkle, a turnaround expert who bought the loss-making Fresh & Easy grocery chain from Tesco two years ago, conceded defeat last week. The 97 stores are expected to close on Friday, with the loss of 3,000 jobs. The British group can expect the repayment of the $120m that it lent to Burkle to sweeten the sale. (The Times £)
The boss of Anheuser-Busch InBev is understood to have flown to South Africa last week as the world’s biggest brewer braces for a battle to gain approval for its mooted £68bn takeover of SABMiller. Carlos Brito, the chief executive of the Belgian-Brazilian giant behind Budweiser and Stella Artois, is on Thursday believed to have visited South Africa, where there is already opposition to the deal. (The Telegraph)
Sainsbury’s boss Mike Coupe has attacked plans to shake up the rules on Sunday trading. He argued plans to give local councils the power to allow longer Sunday opening could lead to abuse and sharp practices. Coupe said the retail industry was united in demanding more clarity on the way councils would decide which stores would be allowed to open (The Financial Times £). Coupe said the current laws are a “happy compromise” and that the planned changes would be open to abuse (The Guardian).
Aldi’s announcement today this it is raising staff wages to £8.40 an hour and £9.45 an hour in London made a number of the papers this morning. (The Times £, The Telegraph, The Guardian)
The new owner of Morrisons’ convenience stores has said they will turn a profit immediately because they have been freed from the “basic errors” of the supermarket’s previous management. Mike Greene, said: “These stores are profitable on day one. Everyone says it’s a failing business. However, they had three distribution depots and 140 people in head office supporting these stores. We can run on a tenth of their distribution cost by working with Nisa”. (The Sunday Times £)
British business groups are joining forces to issue an unprecedented warning to the Government to not use devolution plans as an excuse to abandon an overhaul of business rates. With just a month to go until George Osborne unveils an update to fiscal plans in the Autumn Statement, the British Retail Consortium, the CBI, Federation of Small Businesses and the Association of Convenience Retailers (ACS) have all cautioned that devolution would not tackle the business rates burden and, in some cases would actually frustrate the issue. (The Telegraph)
Marc Bolland is planning to remain as chief executive of Marks & Spencer for at least another two years, quashing sustained speculation that the Dutchman has tired of seeing the high street chain struggle to keep pace with faster growing rivals. (The Telegraph, The Daily Mail)
A major shortage of lorry drivers could pose a threat to the British economy and put Christmas deliveries at risk, the Road Haulage Association (RHA) has warned. The industry is 45,000 to 50,000 drivers short of the number that is needed, according to the organisation, which represents more than 8,000 haulage companies. (The Guardian)
Procter & Gamble’s sales fell 12% in its fiscal first quarter, announced on Friday, taking a sharp hit from the impact of the strong dollar and lower volumes, but investors were buoyed by improved margins thanks to its $10bn cost-cutting programme. (The Financial Times £)
The weekend papers covered Sainsbury’s launching a trial “micro” store with its opening of a 1,000 sq ft store shop in central London on Friday (The Financial Times £, The Times £)
The Telegraph interviews William Kendall, the farmer turned entrepreneur who turned the Covent Garden Soup Company and organic chocolate business Green & Blacks into superbrands. He says: “”I regret selling Green & Blacks to Cadbury. It was a mistake. A great shame. I can say that now that Cadbury has pretty much disappeared, bought out by Kraft and now Mondalez. I wish I’d kept hold of it.” (The Telegraph)
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