Up-to-date coverage of the latest events in UK retail.
Carphone Warehouse sues Telefonica for £21m
Carphone Warehouse is suing Telefonica, the Spanish owner of O2, after claiming the mobile network caused it to suffer a £21.7m shortfall in profits.
The retailer has issued a writ to the High Court accusing Telefonica of failing to make enough special offers available, The Sunday Times reported.
Carphone Warehouse also accused Telefonica of refusing to hand over customer data and offering “uncompetitive” standard tariffs.
According to the retailer, the moves prevented it from hitting sales targets it had agreed with O2. Carphone Warehouse claims it lost £9.6m of profits plus £4.5m it would have received from Telefonica for hitting its targets.
Schuh drafts in KPMG
Schuh has drafted in restructuring experts from KPMG following a turbulent period of trading as it bids to slash its rental bill.
The footwear retailer is seeking to reduce rents at some of its 132 stores. But according to The Times, its position has not weakened to the extent that it would be able to pursue a CVA, an insolvency process designed only to be used if the alternative is administration.
It comes at a time when Schuh’s rival Office is mulling a move to shut up to half of its 100 shops upon lease expiries.
Schuh’s profits dropped 9.6% in the year to February 3, 2018, after slashing prices in what it called an “overtly promotional retail environment”.
Angling Direct sales rise
Angling Direct has posted a rise in first-half sales after hailing “strong” performance across its stores and online operations.
The fishing specialist said revenues rose 21% to £26.5m during the six months to July 31. Gross margins were 32.1%.
Store sales surged 41% to £14m, aided by five new store openings and a 15% increase in like-for-like revenues. Online sales jumped 10% to £11.9m during the period.