Up-to-date coverage of the latest events in UK retail.
Asos signs new DPD contract to ‘transform’ the delivery landscape
Asos has signed a new five-year contract with delivery provider DPD in a multi-million-pound deal.
The two companies have worked together over the last ten years on an annual contract, but this is the first long-term deal the pair have signed.
The new contract will include a provision for at least 50% of deliveries in London’s Ultra-Low Emission Zone (ULEZ) to be completed by electric vehicles only.
Many of DPD’s services including Follow My Parcel, Precise and real-time delivery was trialled first with Asos.
DPD chief executive Dwain McDonald said:“The next five years will see the delivery landscape transformed again with greener, more sustainable deliveries, more geo-location innovation and of course Brexit.
“Being able to provide customers like ASOS with smarter, cleaner and more sustainable parcel deliveries is a top priority for us.”
Co-op becomes first British retailer to support UN climate change campaign
Co-op is the first British retailer to become a signatory of the UN’s ‘Our Only Future’ campaign, which calls on global businesses to contribute to the goal of capping global temperature increases to 1.5°C above pre-industrial levels.
The initiative was launched this week’s Climate Action Summit in New York.
The Co-op, which already uses 100% renewable energy across all its stores, offices and funeral homes, has pledged to the use of natural refrigerants and more responsible sourcing to minimise the environmental impact of its business operations.
The grocer also committed to reduce its Green House Gas emissions by 50% by 2025, having reduced its emissions by 20% last year alone and by half between 2006 and now.
Chief Commercial Officer Michael Fletcher said: “Today is an important day in the global fight to combat climate catastrophe and we commend the UN in initiating such a large-scale call-to-action. It’s pleasing to see our Co-op take its place alongside other prominent businesses who share our desire to take immediate and decisive action.
“Accelerating efforts, by working collaboratively with independently agreed, accountable science-based targets in place, is the only way to proceed. As a co-operative retail business it’s imperative that we lead the way in doing what’s right – and that is to ensure we have a healthy, sustainable natural environment to pass on to future generations.”
Moss Bros half year profits flat as sales edge up
Moss Bros has posted broadly flat underlying profits at the half-year mark as the retailer posted a small uplift in overall revenue despite a slump in hire sales.
The menswear specialist posted flat adjusted profit before adoption of IFRS 16 and before tax in the period covering January 27 to July 27, down £0.2m in comparison with a profit of £0.2m in the same period the previous year.
Pre-tax losses widened to £2.7m in the period compared with £1.7m the previous year, which the retailer primarily attributed to an IFRS 16 impact of £1.1m.
Moss Bros revenue 1.4% year-on-year to £65.4m, as store like-for-like sales increased 0.6% and overall like-for-likes rose 2.9%.
Online sales climbed 20% year-on-year and now represent 15% of overall sales.
Hotel Chocolat full-year profits beat expectations as sales climb
Hotel Chocolat has reported as sales rise spurred by product innovation in what boss Angus Thirlwell described as a “year of significant progress.”
The confectionary specialist posted an 11% rise in pre-tax profit to £14.1m in the in the 52 weeks to June 30, driven by a 14% rise in revenue to £132.5m.
The retailer opened 14 new stores across the UK and ROI during the year as well as two new US stores and the launch of its joint venture in Japan.
Card Factory half year profits slip as Brexit stockpiling hits margins
Card Factory has posted a decline in half-year profits despite increased sales as the retailer unveils plans to roll out its Aldi supply partnership.
The greeting cards specialist posted a 7.9% decline in underlying pre-tax profit to £22m in the six months to July 31, as revenue rose 5.5% to £195.6m.
The retailer, which posted a 14.4% fall in pre-tax profit overall to £24.3m, registered a 1.5% uplift in like-for-like sales during the period.
Card Factory’s underlying EBITDA margin slipped to 14.7% in the six months compared to 16.1% the previous year, which the business attributed to increasing stock levels “for Brexit contingency planning, investment in new lines and the acceleration of seasonal buying”, as well as National Living Wage costs and card fees associated with debit and credit card payments.