Supermarket Giant To Build 1,500-Home Urban Village In The UK

📰 Industry News

• Marks & Spencer sees annual profits jump 58%, but is still determined to cut costs in the face of a soaring wage bill, with a cost cutting target of £500 million by 2027-28. (Yahoo Finance)

• The Bank of England has given its strongest hint yet that interest rates could be cut, with deputy governor Ben Broadbent saying a rate cut over the summer was ‘possible‘. (BBC)

• London-based video game services company Keywords Studios has said it would accept a £2bn buyout offer, in the latest foreign takeover of a London-listed business. (The Guardian)

• Superdrug is investing in brick-and-mortar stores as it plans to open 25 new sites on UK high streets, as it celebrates its 60th birthday. The retailer will also be extending seven stores and refitting 60 this year. (The Retail Bulletin)

• Irish airline Ryanair announces annual profits of £1.6 billion, as former Conservative minister Amber Rudd joins the board. (Business Matters)

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📦 Is Online Shopping Killing The High Street?

Online shopping has significantly transformed how we shop, and its impact on the traditional high street is undeniable. The lockdown has further accelerated this shift, with online sales seeing a massive surge in the UK and beyond, prompting questions about the future of physical retail stores. But is it really killing the high street? As investigated by The Retail Bulletin, perhaps there is more to the decline than meets the eye.

Key details:

• Shift to Online Shopping: In the past year, 89% of UK residents have favoured online shopping, particularly for clothing. This trend is especially pronounced among 25 to 34-year-olds, with 91% shopping online.

• E-commerce's Growth: The UK leads Europe in e-commerce profitability. In 2022, online sales made up 26.5% of all retail sales, a figure set to rise as online shopping becomes more embedded in daily life.

• Effects on High Street: The rise in online shopping has severely affected high street retailers, leading to numerous job losses and store closures for well-known brands like Ted Baker and New Look.

• Retailers' Adaptation: High street stores are adopting multichannel strategies, enhancing customer experiences both online and offline, and investing in revitalising urban retail areas.

• Online Shopping Challenges: Despite its benefits, online shopping presents issues such as environmental impacts, customer service difficulties, and cybersecurity risks. The inability to physically interact with products remains a significant drawback.

The Bottom Line:

While the growth of online shopping is a major factor in the decline of high street stores, it’s not the only one. Economic factors and changing consumer habits also play crucial roles. Retailers must adapt by integrating digital innovations and enhancing both online and offline customer experiences.

Embracing this dual approach can help retailers thrive in the evolving market. The future of retail lies in blending online and physical shopping, meeting diverse consumer needs, and creating a resilient retail landscape.

Read more on this story at The Retail Bulletin.

📢 Pretty Little Thing Warned Over 'Misleading' Ads

Fashion giant Pretty Little Thing has faced reprimands from the Advertising Standards Authority (ASA) for the eighth time in four years, this time for running "misleading" ads during their Black Friday social media campaign from November 23-28.

• Misleading Promotions: ASA found that some ads implied the discounts applied to all products, while certain items were excluded.

• Lack of Clear Deadlines: The ads often lacked closing dates or had inconsistent promotional periods, breaching ASA's code of conduct.

• Deceptive Discount Timelines: Ads suggested that no further discounts would be available after the promotion, yet subsequent discounts were offered online.

What’s Next for Pretty Little Thing?

The ASA has mandated that Pretty Little Thing must ensure future advertisements clearly state the terms and conditions of promotions and avoid misleading customers about the availability and duration of discounts. Pretty Little Thing maintains that their marketing reflects customer expectations and promises to improve transparency in future campaigns.

🏘️ Asda Plans To Grow By Building Urban Village

Asda, the affordable supermarket giant is now stepping into the property industry with plans to build a 1,500-home urban village in northwest London. This venture is part of Asda’s strategy to become the UK’s second-largest supermarket chain. An interesting pivot, yes. But one which will certainly increase their status in the industry.

What We Know:

• Transforming Park Royal: Asda aims to convert its existing superstore in Park Royal into a new ‘town centre’ with a new, larger Asda Superstore, up to 400 customer parking spaces, and premises for additional shops. The development will also feature up to 1,500 new homes, a third of which will be designated as ‘affordable’ housing.

• Strategic Partnerships: Collaborating with developers like Barratt London, Asda plans to maximise its property portfolio. This partnership aims to serve local communities better while creating valuable housing opportunities.

• Funding Future Growth: The revenue generated from this project will be reinvested into Asda’s stores to enhance competitiveness against Tesco and Sainsbury’s. This initiative is part of a broader plan that includes opening 110 new stores across the UK by February 2025.

Asda’s surprising leap into property development marks a significant shift in its business strategy. By reinvesting in its core retail business, Asda aims to climb the ranks in the supermarket industry, benefiting consumers with more options and better services. This project could signal the beginning of more integrated community developments spearheaded by major retailers - watch this space…

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