Including BHS entering administration and Amazon profit boost in Q1.
The Source rounds up some of the key retail stories of the week.
Department store chain BHS has entered administration, with analysts now expecting it to be broken up and the name to disappear from the high street. However, administrator Duff & Phelps said that it is continuing to ‘seek a sale as a going concern’. According to Retail Week, various names have come forward to express an interest in the BHS store estate. These include B&M Bargains, former owner Retail Acquisitions and property millionaire Yousuf Bhailok.
Amazon has seen its profits rise to £351 million for the three months to March 31. Sales also rose 20% to £20 billion. Purchases from its own-brand product range, as well as increased Prime membership, helped to drive sales. The etailer appointed Doug Gurr as its new UK boss this week.
Home Retail Group has seen its full year profits decline by 28%. The owner of Argos – which is currently in the middle of a takeover by Sainsbury’s – saw its profits impacted by a £852 million exceptional goodwill impairment charge. For the year to February 27, pre-tax profit stood at £94.7 million. Sales for the year fell to £5.7 billion, while sales at Argos were flat.
John Lewis saw its overall sales for the week ending April 23 edge up 0.8% to £73.7 million. Fashion sales dipped by 10% during the week, although sales in the retailer’s home department grew 6.3% compared to the same week last year. Electricals and home technology also grew by 9%.
We Are Pop Up has been acquired by Real Estate Partners. Working with Brandspots, the short-term online retail property platform will now be developed and expand into new markets.
Tesco is dropping its Clubcard Boost scheme, which doubles the value of store points on certain dates. Instead, the grocer will focus on better value all year round and narrowing price differentials to Aldi and Lidl.
Value fashion chain Pep & Co – which is owned by former Asda boss Andy Bond – is looking to open a second wave of stores. The retailer is apparently planning to open between 10 and 15 new outlets by October.
