Suddenly retailers are feeling a bit of angst heading into the final days before Christmas as a new wave of Omicron threatens to put a damper on those final, but often crucial, shopping days.
FINANCE
H&M (Sweden) reported Q4 net sales (in local currencies) increased 11% year-on-year.
- For the full year ended November 30, 2021, net sales increased 12% in local currencies.
- Despite ongoing store closures, group sales in local currencies were back at the same level as in the fourth quarter of 2019.
Leading retailers in the UK, including Amazon, Levi’s, Superdry and others, have ramped up a battle against Visa and Mastercard with more than a dozen major brands logging fresh legal claims over card payment fees.
- Sainsbury’s, Asda and Morrisons have previously taken the credit card giants to court.
- Visa and Mastercard have faced similar challenges from retailers in the U.S.
Missguided (UK) is poised to secure a rescue deal from turnaround firm Alteri after the supply chain crisis plunged it into financial difficulty.
Boohoo (UK) has slashed full-year profits and sales expectations to just 12-14%, down from previous guidance of 20-25% sales growth for the year ending February 28.
- The company said more merchandise returns, delivery disruptions and surging costs are to blame.
Nike Inc (USA) said it bought virtual sneaker company RTFKT for an undisclosed sum, as the sportswear giant looks to quickly expand its footprint in the fast-growing “metaverse”.
WHAT WE’RE WATCHING …
Gift cards are an increasingly popular alternative for consumers who find that the product they wanted is out of stock.
For retailers that can be a huge pay day, considering that in the U.S. alone 51% (about $1.5 billion) of gift card balances are not redeemed, according to Bankrate. In the UK, one in ten (about £250 million) cards are never redeemed.
PODCAST
What It’s Really Like Working in the Film Industry
Many people have at one time or another dreamed of trading in their day jobs for a career in film.
In this episode of A Seat at The Table, legendary actor and producer Michael Chua takes us behind the scenes:
- The difference between working in front of and behind the camera.
- The dark side of working as an actor (even if you’re a very popular one).
- What you need to think about before you change careers or jobs.
MARKETS
U.S. November retail sales rose 0.3%, less than expected and well below the 1.8% month-on-month gains in October.
- Analysts attributed this to Americans starting their holiday shopping early to avoid empty shelves.
- Sales have now risen for four straight months and increased by 18.2% year-on-year in November.
UK November retail sales rose 1.4% with clothing sales up 2.9%, according to data from the Office for National Statistics.
UK visits to high streets and shopping centers fell 2.6% (nationwide) to 20% (central London) this week, ahead of what is traditionally the biggest shopping weekend of the calendar, according to Springboard.
- Retailers have brought forward Boxing Day (the day after Christmas) sales in an effort to boost sales.
- Analysts see the December slowdown as a result of earlier (October- early November) holiday shopping this year.
China’s November retail sales of consumer goods rose 3.9% year-on-year to $644.16 billion, according to data from the National Bureau of Statistics (NBS). Sales were up 9% from November 2019.
- January to November retail sales rose 13.7% year-on-year to $6.27 trillion.
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