Including Macy’s profit warning and Tesco partnering with El Corte Inglés.
The Source rounds up some of the key retail stories of the week.
US retail giant Macy’s has issued a profit warning after its sales dipped in the first quarter by 7.4%, marking the fifth consecutive quarter of decline. Net profit dropped 40% to $116 million. Macy’s attributed the fall to slowing tourist numbers and discounter competition. The news follows store closures and redundancies made in January.
John Lewis posted growth in total sales of 11.6% for the week ending May 7. Fashion sales were a highlight, growing 13.4% year on year, boosted by the spell of warm weather.
Tesco is partnering with Spanish retailer El Corte Inglés, striking a wholesale deal which will see its products sold in the country. The Guardian reported that Tesco would sell lines including tea, biscuits and cereals through El Corte Inglés. In addition, it will stock 48 products lines from the Spanish retailer in selected UK stores.
BHS has kicked off a #SaveBHS guerrilla marketing campaign, projecting a 100 foot tall Union Jack flag onto its HQ on Marylebone Road, as well as on Marble Arch, Wellington Arch and Blackfriars Bridge. The retailer is hoping that the public will get behind the campaign, using the hashtag, to prevent the famous British brand from disappearing from the high street.
The Irish arm of Debenhams has applied for High Court protection, reports Retail Week, as it negotiates with creditors to secure the long-term future of the business. The department store chain has 11 outlets in Ireland and employs 1,415 people. It has experienced several years of losses. The wider business, including the UK, is not affected.
Staying in Ireland, and entertainment retailer HMV reported a pre-tax loss of €144,000 in the territory last year. However, revenues reached €19.6 million for the 52 weeks to the end of January 2015 and sales more than doubled.
Online musical equipment retailer, Gear4music has reported a 46% increase in sales to £35.4 million for the year ending February 29. Pre-tax profit was £6,000, up from a loss of £797,000 the previous year. The etailer also reported a 24% uplift in website traffic, with over ten million unique visitors.
The BRC-KPMG Retail Sales Monitor has shown that UK retail sales were flat in April, while like for likes dipped 0.9% mostly due to poor clothing sales. For the second consecutive month, clothing recorded its worst sales decline since September 2014, with childrenswear the worst performing segment. Bright spots came from home accessories and home textiles, furniture and health and beauty. Toys and baby equipment saw a decline, mainly attributed to a lack of demand for outdoor toys and accessories. Meanwhile, stationery was the third strongest category in April’s growth table ranking, and physical books also performed well.
