Retail news round-up on July 23, 2014: Lidl paid ‘over £25m’ in tax, Made.com launches social network platform, Shareholders question Philip Clarke’s pay-off, and more.
Scottish retail sales down 1.1% in June
According to Scottish Retail Consortium (SRC) figures, retail sales value in Scotland fell 1.1% year on year last month. The value of food sales north of the border in June dropped 1.4% on last year, amid the on-going price war in the grocery sector. The Scottish high street continued to struggle as cost-conscious shoppers forced retailers to slash their prices.
Lidl UK paid ‘over £25m’ in tax on 2013 profits
German discount retailer Lidl has published the corporation tax amount paid in the UK for the first time, BBC News reported. The company paid ‘more than £25m’ in tax on the profits earned in 2013. Based on analysis by Kantar Retail, that is an effective corporation tax rate of about 20%.
Made.com launches Made Unboxed social network platform
Online furniture retailer Made.com has unveiled ‘Made Unboxed’ social networking platform to connect with existing Made customers in their neighbourhood, The Drum reported. Made Unboxed has been designed to allow users take a virtual house tour and meet face to face to see how Made customers have styled their products at home. The platform launches with almost 100 ‘brand advocates’ who have their own profile including professional photos of their home.
Pop-up retail economy in UK to grow 8.4% over next year
According to a study by EE and CEBR, pop-up retailing is poised to deliver £2.1bn to the British economy this year. Pop-up shops have been among the fastest growing business sector in the UK. The report estimates the pop-up retail economy is expected to rise 8.4% over the next year, more than double the 3.4% predicted for the high street. More than 9,400 outlets employing 23,400 now qualify for the pop-up designation.
Tesco faces shareholders’ question over Philip Clarke’s pay-off
Tesco is facing a potential row with shareholders over a pay-off of up to £10m for outgoing boss Philip Clarke, the Telegraph reported. Some leading investors are concerned that Clarke will be paid his full £1.15m salary for another six months and then receive 12 months’ salary and benefits worth £1.2m on his departure in January. This would mean he receives 18 months’ pay in total after his exit was announced, compared to the City standards of 12 months. Shareholders are understood to have questioned Tesco over the pay-off.