Up-to-date coverage of the latest events in UK retail.
7:55am Moss Bros like-for-likes slip as it swings to red
Moss Bros’ like-for-likes fell during its full year as it slipped into the red with the business blaming deep discounting, falling footfall and stock shortages for its woes.
The business recorded a pre-tax loss of £4.2m, having reported £6.7m profit the previous year. It is the first time it has recorded a pre-tax loss on an adjusted level since 2010/11.
Like-for-likes dropped 4.3% in the year to January 26, 2019. Like-for-like hire sales were down 9.3% against weak comparables of -6.2% the previous year.
7:33am Ocado pens international deal with Coles
Ocado has signed a deal to provide Australian grocery chain Coles with its Smart Platform.
The partnership will go live in four years’ time when two Ocado fulfilment centres go live in Sydney and Melbourne. The agreement is exclusive in Australia.
Ocado expects the deal to create “significant long-term value” although it will make a negative short-term impact in the current financial year as no fees will be recognised until the CFCs are complete. Investment will mainly be focused in the 18 months prior to the opening of the centres.
7:12am Boohoo buys fast fashion etailer MissPap
Boohoo has acquired the IP of fellow fast fashion etailer MissPap after the etailer fell into liquidation.
MissPap was founded in 2014 by Ashley Ali.
Boohoo group chief executive John Lyttle said: “MissPap is a brand with great potential, which can leverage the group’s expertise. This acquisition further strengthens our multi-brand platform, representing an exciting opportunity to accelerate our offering to our ever-growing range of customers globally.”
7:08am MySale records a loss as sales plunge
MySale has made a loss after sales plummeted in its first half due to a combination of high discounting and low margin product.
Pre-tax losses were A$10.2m, up significantly from A$0.1m in the first half of its previous year.
Revenue declined 16.9% to A$126.2m in the six months to December 31, 2018. Gross profit dropped 35% to A$29.5m.
MySale blamed its poor performance on changes to the legislation for low value ecommerce import transactions and established an action plan in December to address the challenges raised by the changes by changing its product mix and reducing operating costs.
7:03am Sports Direct mulls cash bid for Debenhams
Sports Direct is considering making a cash offer for Debenhams in its latest attempt to gain control of the ailing business.
The Mike Ashley-run business said that it believed an offer would be “compelling” for Debenhams shareholders as it would “seek to run the Debenhams business for the benefit of all of Debenhams’ stakeholders rather than for the benefit of Debenhams’ existing lenders”.
The business said that while its offer was likely to be in cash, it reserved the right to vary the mix of any offer made.
Debenhams acknowledged Sports Direct’s offer but noted that “there is no certainty that any offer will ultimately be forthcoming”.
It said: “Any firm proposal from Sports Direct regarding an offer for the company will be given due consideration by the board. Given the timetable associated with any public offer, an offer for the company would not, in itself, address Debenhams’ immediate funding requirement. Therefore, the company will continue with its plan to obtain the funding required.”