Retail news round-up on July 15, 2014: UK retail spending up 0.6% in June and Iceland Foods completes £950m debt refinancing deal.
UK total retail spending up 0.6% in June
Total retail spending in Britain last month surged 0.6% year-on-year, the lowest growth rate since May 2011, according to BRC/KPMG’s industry figures. UK retail sales growth decelerated sharply in June to one of its weakest rates in three years due to fears of higher interest rates, Reuters reported.
Sales growth during the second-quarter was robust overall, increasing by 2.6%. Like-for-like sales fell 0.8% year-on-year. Food sales for the three months declined 2% on the year, while non-food sales went up 3.6% on a like-for-like basis.
Iceland Foods completes £950m debt refinancing deal
Retailer Iceland Foods has closed a £950m debt refinancing deal, which will also back its expansion programme. The business has issued a £950m high yield bond and also agreed a £30m revolving credit facility with HSBC to support its liquidity needs.
The company will use the fresh capital to refinance existing debt relating to its management buy-out in 2012, releasing funding to support its expansion plans, which include 46 new high street stores this year.