The world has spent the day talking about Donald Trump and so have retailers mulling over the implications of his election as US president.
But The Donald hasn’t hogged all the headlines. Grocer Sainsbury’s posted first-half figures and for the UK retail industry its update was a must-read story too.
Sainsbury’s expects second-half underlying profit to be lower than that achieved in the first – a result of cutting prices and rising cost inflation – but was bullish about the opportunities the Argos deal brings.
JS may not carry quite as much influence as the White House but its tie-up with Argos, if successful, may also have global resonance if it proves a business model that can hold its own against the mighty Amazon.
We also reported today that Poundland is piloting Pep & Co clothing in stores following its acquisition by Steinhoff, the latest in the ‘bugging’ row between MPs and Sports Direct, and an update from Burberry.
The industry also continued to digest yesterday’s news from M&S on its space reconfiguration.
There’s so much going on in retail you might almost forget that Donald Trump is president-elect of the US. Perhaps that’s a relief.
Quote of the day
“While management insists that the international divisional strategy is a ’correction’ rather than a ’withdrawal’, history does show a remarkable affinity with the in, out, shake it all about of the hokey-cokey.”
Canaccord Genuity analyst David Jeary on M&S’s changes to its overseas business
Today in numbers
Reduction in supplier contributions at Sainsbury’s in the first half as it focused on lower base costs instead
Rise in interim comparable UK sales at Burberry as sterling’s fall prompted international customers to splash out
George MacDonald, executive editor