Retail news round-up on April 27, 2015: BHS strikes new supplier deals to reassure credit insurers, Abercrombie & Fitch ends ‘sexualised marketing’, Tesco’s Ireland business overstates profits by £63m and more.
BHS strikes two new supplier deals
BHS has signed new contracts with two suppliers - canteen operator Compass and cash and carry giant Booker – in a move to reassure credit insurers about its future under new owners. Booker will now be its exclusive food supplier under plans to roll out convenience food to a further 20 stores by the end of the summer, reports The Telegraph. BHS is still pursuing a multi-million pound project to upgrade BHS’s cafes and restaurants, the running of which will be taken over by Compass.
Meanwhile, the retailer has been dealt a blow in their battle to revive business after suppliers had vital credit insurance withheld or slashed. Some of the largest suppliers have had their cover either dramatically reduced or halted since the group was taken under new ownership, reports The Telegraph.
Abercrombie & Fitch to end ‘sexualised marketing’
Clothing chain Abercrombie & Fitch is to scrap its ‘sexualised marketing’ by July, after years of blanketing its websites, store windows and shopping bags with photos of half-naked men, according to the Washington Post. The retailer will ditch its shirtless models or lifeguards at events and store openings for both the Abercrombie & Fitch and the Hollister brands.
The teen-focused business will refer to its employees as ‘brand representatives’, instead of calling the staff ‘models’. It will also no longer hire workers based on ‘body type or physical attractiveness’.
Tesco’s Irish arm overstates profits by €88m
Tesco Ireland has overstated its profits by almost €90m, according to the Irish Independent. The Irish arm of the grocer has been forced to ‘adjust’ the profits by €88m (£63m) due to its previous treatment of supplier payments.
The supermarket giant confirmed that all of this increased profit adjustment occurred in this country, saying: “The additional amount related to income in the Irish business”.
BrightHouse boss says no vote to Labour on May 7
Rent-to-own retailer BrightHouse’s chief executive Leo McKee has said that Labour will not be getting his vote in next month’s general election, reports The Financial Times. McKee added he is in favour of Europe so the UK Independence party has no appeal.
John Lewis chairman receives 3% hike in basic pay
John Lewis Partnership’s chairman Charlie Mayfield has been handed a 3% increase in basic pay last year, boosting his total pay to £1.53m despite a drop in his annual bonus. Mayfield’s basic wage rose to £941,000, 66 times the average pay received by non-managers within the partnership. His pension supplement rose to £470,000, from £466,000 a year before, reports The Guardian.