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- 🍏 Supermarket Wars: Asda Struggles While Others Expand
🍏 Supermarket Wars: Asda Struggles While Others Expand
Asda is in decline, while Tesco, Sainsbury's and Aldi expand and assert their dominance across the UK.
Hey there hustler!
Did you hear about the two astronauts who got ‘stuck in space’ this week? Suni Williams and Butch Wilmore were supposed to visit the International Space Station (ISS) for 8 days, but after some thruster failures and helium leaks, they'll be floating up there until at least February.
Do they have enough food, water, and oxygen? Surprisingly, they do! The ISS has an oxygen generation system, which recycles 50% of the oxygen from carbon dioxide. As for food, they have plenty of dehydrated packets that just need water added.
And where does the water come from? The ISS has a urine-to-water recycling system that also captures moisture from their breath and sweat—pretty cool, right?
Now, let’s dive into the top UK business news you need to know this week.
(P.S. Check out 8 of my favourite tools from the internet down below!)
In Today's Issue
📰 Industry News
Pret-a-Manger will introduce body-worn cameras to all staff after the company reported increasing cases of shoplifting and aggressive behaviour towards staff. (Sky News)
Communications giant TalkTalk has secured a £400 million lifeline, after crisis talks with shareholders as warnings that it is on the brink of collapse circulate. (BusinessLive)
John Lewis is set to cut more than 150 jobs as it unveiled a major restructuring plan to its partners. The retail giant hopes to achieve this through natural attrition and voluntary redundancies. (City A.M.)
Aldi is axing its click-and-collect service, with 18 August being the final day groceries can be ordered online from the supermarket chain. (The Grocer)
Social media platform Bluesky has seen a surge in signups in the UK, amid Elon Musk's controversial comments on the nationwide riots were prompting people to look for alternatives to X. (Reuters)
Shein is planning to open its first British warehouse ahead of its anticipated £50bn listing on the London Stock Exchange. (Retail Gazette)
⚠️ John Lewis Flooring Company Enters Administration
The Floor Room, a flooring company known for trading within John Lewis department stores, has entered administration.
The company was heavily reliant on the now-defunct carpet retailer Carpetright, and its 34 sites in John Lewis locations along with one flagship store on London’s Tottenham Court Road have now closed immediately. Nearly 200 staff have been made redundant.
🍏 Supermarket Wars: Asda Struggles While Others Expand
The UK supermarket industry, worth an estimated £192 billion in 2024, is witnessing fierce competition. Tesco, Sainsbury’s, and Aldi are all pushing forward with ambitious growth plans, but not every player is thriving. Asda, once a strong contender, is now facing serious challenges.
Tesco, the UK’s largest supermarket, plans to open 87 new stores and refurbish 389 existing locations over the next year, solidifying its dominant position with over 27% market share.
Sainsbury's is also making significant strides, planning to open three new supermarkets and 25 convenience stores. This growth is aligned with its increasing market share, which rose from 14.8% to 15.3% in the latest period.
Aldi continues to disrupt the market with a £550 million investment aimed at opening 35 new stores in 2024, expanding its footprint in the UK and offering consumers more affordable shopping options.
Asda's Astonishing Decline
In stark contrast to its competitors, Asda is grappling with a significant decline in market share - from 13.7% last year to 12.6% as of August 2024. This decline signals deeper, ongoing struggles for the retailer.
So why is Asda in decline?
Root Causes of the Decline: Asda’s troubles began when Walmart sold a majority stake in 2020 to private equity firm TDR Capital and the Issa brothers. The deal, heavily reliant on debt, has since burdened Asda, impacting its ability to compete effectively.
Operational and Leadership Turmoil: The departure of CEO Roger Burnley in 2021 signalled internal turmoil. Since then, Asda has struggled to find stable leadership, with ongoing issues in management and strategy.
A Brand in Crisis: Perhaps the most concerning is the identity crisis Asda is facing. Once known as a retailer for working-class families, the brand has struggled to maintain this image under its new ownership. The Competition and Markets Authority (CMA) criticised the company last year for losing its edge in pricing competitiveness, particularly in fuel - an area where Asda had once been a leader.
While Tesco, Sainsbury’s, Aldi and others are pushing forward with ambitious growth plans, Asda’s fall from grace serves as a reminder of how quickly fortunes can change in the competitive supermarket industry. Asda faces a tough road ahead as it tries to regain its footing and restore consumer confidence in an increasingly competitive market.
☕ Starbucks Sales Slump, Surprise Shake Up
Starbucks has acted quickly to change its chief executive after seeing a larger drop in sales than expected.
Last month, the company said that global sales fell by 3% in the third quarter, which was worse than analysts predicted. Sales in China were especially bad, falling by 14%.
On Tuesday, the coffee chain's board announced that Laxman Narasimhan left the company right away, and Brian Niccol, the head of Chipotle, will take over soon.
💷 King Charles Banknotes Fetch 11 Times Their Value
In a remarkable series of auctions, banknotes featuring King Charles III have fetched over 11 times their face value, raising significant funds for charity. The newly issued £5, £10, £20, and £50 notes, which entered circulation in June, have become a hot commodity among collectors, particularly those with low serial numbers.
What’s Been Happening?
Record-Breaking Auctions: A series of auctions in London saw banknotes with a total face value of £78,430 raise £914,127 for charity—more than 11 times their original worth.
High-Value Notes: The standout sale included a £10 note with the serial number HB01 000002, which sold for an astounding £17,000. A sheet of 40 connected £50 notes also set a record, selling for £26,000.
Collector’s Dream: Collectors flocked to obtain notes with low serial numbers, with many aiming to get as close as possible to the coveted 000001 mark.
What Makes a Banknote Valuable?
If you're sifting through your banknotes hoping to find one of value, here’s what to look for:
Low Serial Numbers: Notes with serial numbers that start with "AA" and end in a sequence like "000001" are particularly sought after.
Condition: Crisp, uncirculated notes with no marks or folds are more valuable.
Special Features: Any errors or unique features, such as misprints, can also increase a note's value.
With new King Charles III banknotes now in circulation, it’s worth keeping an eye on your wallet - you might just be holding onto a small fortune!
This comes after the Bank of England said that £7.2 billion of the old paper banknotes that are still in circulation, even though the paper £20 and £50 stopped being legal tender in October 2022. At the same time, there are also 76 million old £1 coins that have not been returned, according to the Royal Mint.
☝️ TikTok Shop is Increasing UK Seller Fees
As of September 2nd, TikTok Shop sellers based in the United Kingdom will need to pay higher commission fees.
The fees are being raised from 5% to 9%. However, if sellers reach a target number of TikTok Live and shoppable videos, they can reduce these fees.
🧠 8 Cool Tools From The Internet You Never Knew You Needed
Sometimes the internet offers up gems that make you wonder how you ever managed without them. Whether you’re looking to boost productivity, streamline your workflow, or just add some fun to your day, these are 8 cool tools which I think fit the bill.
From sending self-destructing messages to creating the perfect background noise, here are some of the best free tools you never knew you needed.
Want to send a message that self-destructs after it’s read? Privnote lets you do just that. It’s a secure way to send sensitive information without leaving a digital trail.
Need to focus or relax? Noisli lets you create custom background noise mixes with sounds like rain, wind, and coffee shop chatter. It’s perfect for creating a productive or calming environment.
Need to explain something visually? Loom lets you record your screen, webcam, and voice simultaneously. It's perfect for tutorials, walkthroughs, or quick updates, and it saves so much time compared to writing everything out.
Ever needed to remove a background from an image? This tool does it in seconds. Just upload your photo, and voilà—a clean, transparent background, perfect for presentations, social media, or product images.
Need to transcribe a meeting or interview? Otter.ai automatically converts spoken words into text. It’s a huge time-saver for anyone who needs to take notes or create transcripts from audio.
Want to know where your time goes? RescueTime tracks how you spend your time on your computer, giving you insights into your productivity. It’s perfect for identifying distractions and staying focused.
For brainstorming and organising ideas, MindMup is a simple and free mind mapping tool. It’s perfect for planning projects, creating visual outlines, and capturing thoughts quickly.
If you need to find someone's email address for outreach, Hunter.io helps you locate professional email addresses associated with any domain. It’s a must-have for networking and cold emailing.
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Catch you next week,
Kristian
