Week in Review

December 10, 2022

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Week in Review | Dec. 10, 2022

Retailers are reporting that consumers are holding back on spending as inflation and concerns over employment put a damper on the holiday season.

FINANCE

Quiz (UK) reported an £1.8 million ($2.2 million) profit in the six months to September 30, up from £1.3 million in losses it reported in the same period last year.

The retailer said this reflected growing demand for partywear as big events returned. Strong sales in recent weeks, including the Black Friday sales period, offset weaker than expected revenues in October.

Express (USA) reported a Q3 net loss of $34.4 million, compared with net income of $13.1 million last year. Net sales fell 8% to $434.1 million.

Frasers Group (UK) which includes Jack Wills and Evans Cycles, said pre-tax profits rose 53% to £284.6 million ($348 million) in the six months to October 23. Sales were up almost 13% to £2.6 billion ($3.2 billion), driven by acquisitions and the expansion of the Flannels chain.

WHP Global (USA), a brand licensing company, will invest $235 million for a 60% stake in an intellectual property joint venture with 40% owned by Express. The deal will allow the retailer to accelerate its growth scale through licensing in non-core categories and international expansion.

Express and WHP also plan to launch an omnichannel platform to acquire, operate and grow multiple fashion brands.

Dollar General (USA) reported Q3 revenue rose to 11.1% to $9.46 billion. Net income was up 8% to $526.17 million.

Wolverine Worldwide (USA) reported Q3 revenue rose 8.6% to $691.4 million. Net earnings rose 0.8% to $38.8 million.

Inventory at the end of the quarter was $880.9 million, up 113.8% compared to unusually low levels last year.
The company expects revenue growth of 2% to 6% in the fourth quarter.

PODCAST

Why Winning Companies Tell Their Brand Story to Their Own Teams

In an era where businesses are facing daunting challenges on the home front – from recruiting top talent to retaining the people they have – as well as managing to boost diversity and teamwork – communicating mission and values is foundational.

The question is, how can we do this effectively, while also running a profitable, competitive business?

In this podcast Martha Marchesi, CEO of JK Design, a full-service creative agency that helps companies create and communicate powerful brand stories to their customers, partners and employees, talks about how companies can build an ‘employer brand’.

You’ll Learn:

The importance of developing an ‘employer brand’.
How leaders can create those traditional bonds amongst colleagues who are working off-site.
How management can more effectively retain and motivate talent in an of ‘Quiet Quitting’.
How to overcome some of the biggest challenges in implementing DEI (diversity, equity and inclusivity) initiatives in your company.

🎧 Listen to the podcast

RETAIL

Primark (UK) is opening 10 shops before Christmas in a major boost for the ailing High Street. The retailer said that sales have been ‘encouraging’ and it is sticking to its annual guidance.

Flannels (UK) plans to open six new stores in 2023. Parent company Frasers Group (UK) said it would buy more retailers in the UK and elsewhere in Europe in the coming months.

Dollar General (USA) plans to open 1,050 new stores in the US next year. It also plans to expand in Mexico, with a goal of operating up to 35 stores in Mexico by the end of fiscal 2023.

MARKETS

Britain’s retail sales rose by 4.2% in November fuelled by Black Friday discounts and colder weather, per the British Retail Consortium (BRC). As the weather began to turn cold, retailers reported growth in sales of winter clothes.

The world’s major central banks will begin to slow the pace of aggressive rate rises next week at the end of a year, according to money market forecasts.