Retail news round-up on May 29, 2014: Tesco finalises deal to create largest food retailer in China, Asos supports skills rebuilding in UK clothing manufacturing industry, Owners of German fashion etailer Mytheresa eye sale
Tesco finalises deal to create largest food retailer in China
UK grocer Tesco has sealed a retail deal with the state-run China Resources Enterprise (CRE) to create the largest food retailer in China. The joint venture will combine Tesco’s 131 stores in the country with CRE’s almost 3,000 outlets that operate under the Vanguard banner. CRE will have an 80% stake in the new chain and Tesco will own 20%. Meanwhile the UK’s largest retailer is poised to post its worst quarterly trading in 10 years next week. The retailer’s joint brokers, Barclays Capital and Deutsche Bank, are both forecasting a 4% fall in UK like-for-like sales in the three months to May 24.
Asos supports skills rebuilding in UK clothing manufacturing industry
Online retailer Asos is supporting the expansion of a training programme designed to rebuild skills in the UK clothing manufacturing sector amid hopes that retailers are ‘reshoring’ more orders, the Guardian reported. Manufacturer Fashion Enter produces up to 7,500 garments a week for companies including Asos and Marks & Spencer. But from 2015, with the help of funding from Haringey council and the promise of more orders from Asos, it is aiming to expand in order to train more than 1,000 people a year in a range of qualifications from stitching to the more technical aspects of clothing production including quality control, pattern cutting and fabric inspection.
Owners of German fashion etailer Mytheresa eye sale
German online retailer Mytheresa’s owners have hired Goldman Sachs to look for a buyer, Reuters has reported. Mytheresa sells ladies’ fashion from 180 designers including Valentino, Balenciaga, Dolce&Gabbana and Yves Saint Laurent, targeting customers in countries like Germany, UK, France and Italy.