Retail round-up: Sports Direct staff miss bonus, Brexit currency shift 'a big issue' for John Lewis, Ikea appoints GroupM and Dentsu Aegis
Sports Direct staff miss out on bonus after profits fall
Nearly 2,000 Sports Direct employees will not be paid their bonus this year after annual profits fell 15%, according to The Independent.
The retailer's pre-tax profit for the year to April 24 was £361.8m. Sports Direct's bonus scheme would have been applied if profit had reached a target of £420m.
The bonus scheme was rolled out in 2015; the profit target was lowered for the latest year from £480m.
Brexit currency shift 'a big issue' for John Lewis
John Lewis said a fall in the value of the pound against the dollar may become a major issue following the Brexit vote, Reuters reported.
The vote to leave the EU has dismayed the markets, with the pound plunging to a 31-year low against the dollar.
Two-thirds of the products John Lewis sells are imported, and a third of them are purchased in US dollars.
"Genuinely it is a big issue for us to face into next year," said John Lewis managing director Andy Street.
IKEA appoints GroupM and Dentsu Aegis to media account
Ikea has appointed GroupM and Dentsu Aegis to operate its global media account – worth an estimated €400m, according to The Drum.
The deal will allow each of Ikea’s local markets to choose either GroupM or Dentsu Aegis to handle their media buying.
Ikea started to review the media account in April with strategic media consultancy ID Comms and its media audit partner MediaPath.
UK retailers plan to increase digital investment
Almost three-quarters (73%) of UK retailers are planning to increase digital investment in the next two years to drive in-store sales.
In research conducted by RetailMeNot, the operator of VoucherCodes.co.uk, 60% of UK multi-channel retailers said customer loyalty was their prime motivator for tech investment, while the main aim for 55% was to improve the in-store experience.
RetailMeNot said the research shows that shoppers want the same deals from the same company irrespective of channel.