Morrisons first quarter results and the successful float at Hotel Chocolat are the two main focus on the retail beat this morning, as well as the ever-ubiquitous BHS.
Morrisons recorded its second quarter of sales growth sending its shares up 2%. The Guardian writes that home deliveries and strong sales of takeaway sandwiches helped the retailer achieve that feat. Online sales boosted that figure by 1% with sales in stores continuing to fall after Morrisons slashed prices by an average 2.6%. The Independent says the results show that changes made by chief executive David Potts had stabilised the business after a four-year slump. The Telegraph notes that Potts has been spearheading a back-to-basics approach to the supermarket’s recovery and has slashed prices while refocusing on playing up to its strengths of making more than half of the products it sells. The Times goes with the more light-hearted headline: “Easter and oysters boost ‘Mozzas’ revival.” Morrisons said it sold 60,000 oysters at 25p from a standing start for Valentine’s day and three million more eggs during Easter.
The Telegraph writes that Hotel Chocolat sweetened sour markets with its £167m float. Founder Angus Thirlwell claimed the successful flotation signaled a “renaissance of British chocolate companies” after the sale of Thorntons and Cadbury had “left a bad taste” in many investor mouths. Thirwell and co-founder Peter Harris will share a £43.5m payday after selling a 33% stake in the free float. The Times writes: “It will be a remarkable payday for Mr Thirlwell who has followed in the footsteps of his father, Edwin, who made his fortune from selling the Mr Whippy ice-cream brand decades ago.” The Financial Times says Hotel Chocolat had previously raised the bulk of its finance through chocolate bonds with the returns paid in chocolate.
Sir Philip Green has fought back on his BHS ‘trial by media’ writing to the politicians who have led the attacks on him over the collapse of the high street retailer. The Telegraph describes the letter to Frank Field MP and Iain Wright MP, chairman of the House of Commons Work and Pensions and Business committees respectively, as a “withering attack”. It tells them that they appear to be “leaping to conclusions” over his conduct during the period he and his family owned BHS. The Guardian notes that Green accused Field of being “prejudiced” against the entrepreneur. The FT says Green “reacted furiously” to suggestions that his knighthood could be at risk and has called for the resignation of the head of a Parliamentary inquiry into the collapse of BHS. The paper also prints the letter in full.
The Times reports that Reckitt Benckiser has become the latest company to suffer a shareholder rebellion over pay, with nearly a fifth of votes at its annual meeting cast against the chief executive’s £23m package. The FT also notes that CEO Rakesh Kapoor apologised on Thursday for the sale of deadly disinfectants that have been linked to fatal lung injuries in South Korea. In his first public remarks since the outbreak of protests in South Korea this week and calls for a boycott against the British household goods company, Kapoor said he “profoundly regretted” and was “personally very sorry” for the harm caused.
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