- Date: 5 April 2017
- Posted By: admin
With the weather very mixed, we’re bringing you some stories to keep you warm! This week read about: Food prices climbing; Asos sales soaring; John Lewis looking to the past for inspiration; and Karen Millen’s misfortunes.
Food prices climb: Apparently, in the last 3 months food prices rose by 2.3% – which meant that we spent £21.31 more on food over that period. Why? Mainly because, with the fall in the pound, imported food is more expensive – and of course with inflation rising, that has an effect too. This is the highest rise in 3 years, and experts are predicting it will continue upwards, despite the continued price war going on between the supermarkets.
Asos sales soar: But the weak pound has worked well for Asos, whose international sales are up by 54% over the last 6 months. That equates to a pre-tax profit increase of 14%. It’s because anything exported from this country is now cheaper due to the 20% slide in the value of Sterling. But sales in the UK are going great guns too – up by 18% for the same period. So well done to Asos, which is obviously providing what its customers want.
John Lewis looking to the past for inspiration: 3 months into the new job as JLP’s first female MD, Paula Nickolds is looking at how she can make the department store relevant to today’s customer. Some commentators say that the department store model is dead in the water, but not so Ms Nickolds. She acknowledges that times are tough, but reflects on how the retailer has weathered storms in past decades and found innovative ways of reaching out to its customer during those difficulties. She’s going to use that history of finding out what we want, and using exciting ways of giving it to us. So watch this space.
Karen Millen’s misfortunes: It was sad to hear that Ms Millen has been declared bankrupt by the High Court. Apparently, she owes the taxman £6m because of a tax evasion scheme. She sold her share in the High Street business for £35m back in 2004, so the chain isn’t effected. But Ms Millen says she’s fallen victim to fraud, and being prevented from launching a new business. Have a read of this and see what you think.
Well, that’s it for another week. We’ll be back here next Wednesday, where we’ll be getting all our Easter eggs ready for the Easter break. Have a good week until then.