Sales figures were surprisingly robust, given that it was the wettest June on record. Like-for-like sales growth was 3 per cent and total sales increased 5.1 per cent

IN THE NEWS
A number of major retailers announced that interest rate rises were severely affecting consumer spending. The most prominent to admit a disappointing sales statement was Tesco.

Tesco operations development director John Browett was named the new chief executive of electricals giant DSGi, replacing John Clare, who was to retire after 20 years.

Asda announced its programme to cut food packaging would save the company£13 million, which would then be reinvested in price cuts.

Flooding resulted in many retailers announcing losses, because of damaged stores and loss of trade. The Meadowhall shopping centre in Sheffield closed and its Primark store turned into an overnight shelter for 100 trapped shoppers.

Tesco made a£155.6 million pounce on AIM-listed, 21-store garden centre business Dobbies. Meanwhile, Sir Tom Hunter raised his stake in the business to more than 20 per cent, fuelling speculation of a bidding war.

SRG was put up for sale 18 months after the menswear business was bought by Gresham Private Equity.

Gap planned a restructure of its European business, as part of a cost-cutting drive by its US parent. Recent figures had revealed a loss in international sales.

Concern mounted over Kwik Save. Options to aid its survival included calling upon Kwik Save’s lead investor, Brendan Murtagh, to provide additional funds, or selling assets in order to pay off creditors.

Chief executives’ remuneration made the headlines. Tesco’s Sir Terry Leahy earned£4.6 million in the previous financial year; Sainsbury’s increased Justin King’s take-home pay by 17 per cent and Stuart Rose received£3.6 million – a 68 per cent rise.

Sir Philip Green quashed speculation that Bhs was up for sale, by plotting an international roll-out of Tammy and Bhs stores.

Arcadia was rumoured to be in negotiations to take its first store for its Topshop and Topman brands in the City, at Land Securities’ One New Change development.

Spar decided to develop a next-generation version of its SparPoS EPoS application, saying that no packaged alternatives were suitable. The system will be ready for Spar-branded store owners to deploy from 2009.

STORE OF THE MONTH

Next, Bluewater
This store opened at the end of May, but it wasn’t really up and running until the beginning of June. Next had come in for some heavy criticism for its tired store interiors, so a lot was riding on how this new-look interior would appeal to shoppers.

In the event, the monochrome graphics, sculptural lighting and dark, tiled floors imparted the sense that, although you were in Next, you had, in fact, walked into an entirely new shop. It is significant that in the months since the fit-out was unveiled chief executive Simon Wolfson has clearly given it the thumbs up, because it continues to appear, in a slightly modified form, in other locations. The Bluewater store is one of the reasons that Next has received increasingly enthusiastic plaudits as the year has progressed.

ON THE MOVE

Niall O’Keefe joined PC World, assuming the new role of marketing director.

DSGi poached Tom Barry from Comet to head its Tech Guys and service division.

WHSmith promoted Richard Cristofoli from brand director of its high street business to the new role of marketing director, in which he would also be responsible for the retailer’s travel division.

John Lewis department stores appointed Gill Barr to the new position of marketing director.

Boots deal breaks records

In these days of the credit crunch and economic turbulence, it seems extraordinary that only six months ago, Alliance Boots left the stock exchange in the UK’s biggest private equity deal to date.

The£11 billion sale of the health and beauty giant to a partnership of KKR and vice chairman Stefano Pessina came to represent the high watermark of the private equity boom. But the story began back in 2006, when Pessina’s Alliance Unichem business merged with Boots to form a giant in the health and beauty world.

It wasn’t long before the Italian became frustrated with life on the stock exchange, complaining that the City didn’t value the merged business fairly. Certainly, many struggled to understand the complex part-retailer, part-distributor model that was created when Alliance Boots came into being.

So Pessina began hatching plans to buy the company back – and not without controversy. As deputy chairman, he inevitably knew more about the business than any other bidder and chairman Sir Nigel Rudd faced an awkward period, saving face only when a rival bid from Terra Firma and the Wellcome Trust emerged, forcing KKR and Pessina to up their offer.

However, Pessina’s bid ultimately represented a generous premium for shareholders and the deal went through with ease, although it was only a matter of days before highly regarded chief executive Richard Baker and retail director Scott Wheway were on their way out.

At the time of the bid going through, there was concern among unions and pensioners of the takeover’s impact. And, while there was an expectation that the focus would be on international expansion and the wholesale side of the business, to the surprise of many there has been a renewed focus on the core retail business under new stores chief Alex Gourlay.

Money is being invested into stores, the stable of own-brands is performing particularly well and a bold Christmas ad campaign is getting people’s attention. At the same time, links with the NHS and local GP surgeries are being strengthened.

The pressures from supermarkets remain, but, despite the fears, Boots remains a force to be reckoned with.