Landlords are no longer struggling to fill retail space
In Q4 2023, vacancies at US shopping centers fell to 5.3%, and average asking rents rose to $23.70 per square foot — roughly 17% above 2019 levels — according to Cushman & Wakefield data.
FINANCE
H&M Group (Sweden) reported Q4 sales rose 3% to SEK 62 billion ($5,972 million). Operating profit reached SEK 4.33 billion ($415 million), compared with SEK 821 million a year ago.
Sales for 2023 grew 6% to SEK 236 billion ($22,500 million). Operating profit in the full year ending Nov. 30, 2023, more than doubled, reaching $1.4 billion.
Canada Goose (Canada) reported Q3 2024 revenue rose 5.8% to CA$609.9 million ($453 million). Net income fell 3.2% to CA$130.6 million ($97 million). Revenue is forecast to grow 9.3% per year on average during the next 3 years, compared to a 7.0% growth forecast for the Luxury industry in North America.
Columbia Sportswear Company (USA) reported Q4 sales fell 9% to $1,060.0 million. Operating income fell 27% to $113.1 million. Full year net sales rose 1% to $3,487.2 million, but operating profit fell 21% to $310.3 million.
John Lewis (UK) is currently in the process of stripping £900m ($1,300 million) worth of costs out of the business as the retailer aims to return to profitability this year. As many as 11,000 jobs will be cut as part of a drastic turnaround plan.
Superdry (UK) could be taken private by founder Julian Dunkerton, who is said to be in talks with partners to raise capital. The brand, which has seen its sales slide and value fall more than 60% last year, is also alleged to have caught the attention of several private equity firms.
Amer Sports (Finland) IPO raised $1.37 billion, with shares selling at $13, below the $16-$18 the company had hoped for.
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Consumers are feeling a lot more bullish about 2024 than businesses.
Research from Ipsos said that optimism is heading back to the levels more typically seen over the past decade when it has fluctuated only very marginally between 75%-80%.
While 50% of consumers expect 2024 to be better than 2023, they still have some concerns.
Topping the list are the economy and worrying about losing jobs to AI. Another key issue is security. with consumers believing that they face more threats ranging from physical danger to online scams. Read more
PODCAST
A Mindset Shift that Totally Changes Your Sales Game
In a market that gets increasingly competitive, “get more sales” is a directive that’s coming from more than just the sales manager.
While persistence is still the foundation of success, to win in today’s market we also need to be a bit more strategic.
And that leaves the question of “How do we do this?”
In this podcast Karl Becker, the CEO of Improving Sales Performance and author of “Iceberg Selling”, talks about the important role that mindset plays in creating sales success.
You’ll Learn:
- How the ‘life-time value mindset’ changes the way sales people interact with customers.
- How to use ‘iceberg selling’ to overcome sales challenges.
- Why it’s important for salespeople to author their own stories.
- Helping salespeople go from good to great.
EXECUTIVE APPOINTMENTS
H&M Group (Sweden) has named Daniel Ervér as its CEO, after the recent resignation of Helena Helmersson. He previously was in charge of the H&M brand and has worked for the Swedish clothing retailer for 18 years.
Tony Spring has taken over as Macy’s new CEO after having served as CEO-elect last year. He was previously CEO of Bloomingdales.
RETAIL
Walmart (USA) plans to add 150 large format stores in the next five years, growing its fleet of 4,600 US-based outlets. There’s also plans to add 30 more Sam’s Club stores.
MARKETS
The Bank of England has maintained interest rates at 5.25%, with hopes of a rate cut being kicked further down the road.
Investors reined in interest rate cut expectations after US January payrolls came in at almost double economists’ forecasts, per The Financial Times. While still rising, the increases are slowing with employment costs up 0.9% quarter-on-quarter in 4Q versus 1.1% in 3Q23 and below the 1% consensus prediction. This is the weakest increase in employment costs since second quarter 2021, per the US Bureau of Labor Statistics.
Spanish GDP growth increased 0.6% quarter-on-quarter in the last quarter of 2023. Strong economic momentum is also fueling inflation, which rose again to 3.6% in January, per preliminary data from the National Institute of Statistics INE.
French GDP stagnated in the fourth quarter of 2023 (0% quarter-on-quarter), following stagnation in the third quarter. France therefore narrowly avoids a technical recession, but the details are weak. Over 2023, GDP growth was 0.9%, compared with 2.5% in 2022, per INSEE data.
Australia’s December headline sales figure fell 2.7% MoM, which was more than the 2.0% fall expected. This followed their 1.6% MoM increase in November, per the Australian Bureau of Statistics (ABS).
Russia’s GDP is forecast to grow 2.6% this year, per the International Monetary Fund. The IMF also upgraded its outlook for both the US and China, pointing to inflation’s faster-than-expected cooling.
UPS has announced it will cut 12,000 jobs after the company’s income declined by $1.87bn in 2023. Ebay is planning to cut 1,000 jobs, while REI is cutting 375 roles. Paypal is cutting 2,500 jobs or 9% of its global workforce.
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