🗞 What’s been happening this week?
· March offered glimmers of hope for retailers (+2.8% YoY, Office for National Statistics), with warmer weather and longer evenings encouraging households to spend on DIY & Gardening and Clothing & Footwear. Electricals is rebounding, as consumers upgrade to AI devices. Delighted to have contributed thoughts on Friday to The Times, Global’s LBC, The Sun and others.
· Consumer confidence plummeted in April to the lowest level since 2023, as households braced a wave of bill increases and trade war uncertainty (GfK - An NIQ Company).
· Marks and Spencer boss Stuart Machin thanked customers and colleagues after experiencing a cyber incident, seeing contactless payments and online paused this week. Great to share thoughts with The Guardian’s Sarah Butler and The Telegraph’s Hannah Boland – link to post in comments below.
· The UK government is reviewing the Low Value Import scheme, which allows tariff-free entry of goods under £135. The move aims to counteract a surge in low-cost imports, especially from China, following global trade tensions. Major retailers support the review, warning of threats to UK high streets from the likes of SHEIN and Temu.
· DHL Express suspended deliveries to the US over $800 (£603) due to increased customs red tape from new US tariffs. This is impacting retailers such as Sabina Savage and Henry Poole & Co.. Trade body Walpole, covering luxury brands such as Burberry and McQueen, told The Times’ Isabella Fish and Emma Taggart that British luxury brands are being “doubly penalised as their most important clients in the US can’t get their goods sent to them”.
· Asda will open 25 new convenience stores in the second half of 2025, stepping up its local presence after launching just 12 last year. The expansion follows leadership changes and aims to counter falling market share, with 470 Co-op and EG Group sites acquired to support the growth strategy.
· The Entertainer extended its Tesco partnership to 2,010 Express stores, following its rollout in 861 Tesco supermarkets.
· Alteria Capital, owner of Bensons for Beds, is preparing a bid for Poundland & Dealz, which parent Pepco Group has put up for sale. Pepco, advised by Teneo, cited UK retail pressures and tax changes. Poundland saw a 7.3% sales drop in Q4 2024.
· Matalan raised £25m from key investors to fund store upgrades, new openings, supply chain improvements, and a new ecommerce app. The investment supports its digital and loyalty strategy.
This is just a selection of news this week. If you want to hear more, subscribe to our free weekly podcast below, covering all major retail news every Monday at 6am ⬇️
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