THE HUB RETAIL RECRUITMENT’S MONTHLY NEWSROUND
- Date: 30 March 2016
- Posted By: admin
As reported by The Hub Retail Recruitment throughout March, it’s been a very newsworthy month – particularly the twists and turns with major high street retailers, the Budget, and in the world of work. Do look back on our weekly News Snippets for all the stories – but here are the ones that we’re rounding up for our monthly summary: HRG/ARGOS; BHS; NEXT; 2016 BUDGET; and EMPLOYMENT including a really interesting comparison of how many minutes someone has to work in different parts of the world before they can buy a Big Mac!
HRG/ARGOS: We’ve reported several times on the sale of Argos – it was a two horse race, with Sainsbury’s pitted against Steinhof. Steinhof was in the lead by a head, Sainsbury’s then drew level and were tipped to pull ahead with an increased bid. But in fact, Steinhof retired from the race. So the question is has Sainsbury’s won? The obvious answer has to be ‘yes’, but there’s no word yet. HRG had already sold its other major business, Homebase, to Wesfarmers in a move designed to open the door for Sainsbury’s to bid for Argos, which includes Habitat. Although not yet reported, Habitat has been given notice to quit all the Homebase stores. There’s more to come on the HRG/Sainsbury’s story, so April will be an interesting month for both companies. Here’s an article which tracks the race nicely:
http://www.theweek.co.uk/sainsburys/65514/sainsburys-pursuit-of-argos-becomes-a-game-of-chicken
BHS: We’re delighted that BHS has had a reprieve. We’ve all grown up with it on our High Streets, and indeed, there’s a witty cartoon from Kipper Williams below that suggests its problem is being stuck in the 1970s! The question is: reprieve, or genuine turnaround? Selling its flagship premises on Oxford Street has raised £30m of the £100m it says its needs to fund its turnaround. Also, it has agreed significant rent reductions – of between 25% and 50% of 87 of its least viable stores whilst paying full rent on the other 77 but monthly instead of quarterly. Here’s an article that explains in more detail:
NEXT: It’s the first time we’ve commented on Next. But this is an interesting development: Next’s boss, Lord Wolfson, is forewarning of a retail downturn to equal that of 2008. He’s based his view on two issues: new figures that show a shift in consumer spending away from clothes to leisure – restaurants, travel, and recreation; and the slowdown in UK productivity. Whilst Next is still reporting an increase, its trajectory is slowing, not helped by his comments which have hit the share price by -15%. Lord Wolfson has also commented on the Brexit issue – and is in direct opposition to BHS’s former boss Lord Green, believing that we are better out than in. Here’s a couple of articles on his views – first about Next’s performance, and then about Brexit.
THE BUDGET: Where to start? And how to keep it brief? For retailers, and for employers and employees, there were a number of changes and proposals that in one way or another affect us all. And of course, there was such significant Political fallout which we won’t go into as it’s been thoroughly covered by other better informed commentators. For business, there were a number of changes aimed at benefitting small businesses, such as reductions in rent and corporation tax; the closing of an on-line VAT loophole detrimental to British retailers. For employers and employees, there was a plethora of changes and proposed changes – from pensions to increases in tax thresholds, a consultation on extending parental leave to grandparents, increasing the National Living Wage (NLW) and the National Minimum Wage (NMW), changing the tax on termination payments, and limiting salary sacrifice opportunities. Here’s a couple of relevant articles, including how the budget effects employee benefits:
EMPLOYMENT: The national minimum wage issue is gaining pace – not just as a UK issue, but an international one. Other countries are starting to realise that a national minimum wage not only improves wage growth, but also addresses inequality. There’s a very interesting Financial Times article, below, which shows how many minutes someone has to work on the NMW in various countries to buy a Big Mac. The UK comes out pretty well, but will improve further with the increases proposed. The UK increases to the NMW are expected to outstrip average wage increases across our economy.
http://www.ft.com/cms/s/2/2ae61f24-f2a9-11e5-aff5-19b4e253664a.html#axzz44HxlE1Sw
Also, many retailers are committing themselves to the NMW or the more favourable Living wage – read this interview with the founder of Oliver Bonus, Oliver Tress.
Retirement has long been a growing issue as pension investments are proving inadequate now, with future projections even more depressing. Typically, younger workers haven’t given much thought to pensions in years gone by, but that’s all changed and it’s a growing issue for benefits packages as younger prospective employees check out the pension benefits on offer. We all know we’re living much longer than previous generations, but we’re all wondering how long we’ll have to work before we can enjoy the fruits of our labour. The Government is increasing the age at which we can expect to receive the State pension – for those who are teenagers and in their 20s, this will be at least 70. Indeed, 20% of us already think we won’t be able to retire before we’re 70 – and this percentage is likely to grow. Here’s a couple of relevant and interesting articles:
WHAT IF SOMEONE DOESN’T TURN UP FOR WORK? And finally, on employment stories, here’s one about an emerging issue called ‘ghosting’. Ghosting is when an employee doesn’t turn up because they no longer want to work for their employer, but don’t intend to work their notice. It’s an interesting development, and one we should be aware of.
Well, that’s it for March! At The Hub Retail Recruitment, we hope you’ve found something of interest in this Monthly Newsround. There’s certainly plenty going on, and stories that affect most, if not all of us in some way. Do let us know if you have any comments or want to add your own thoughts and stories.
Our Weekly Snippets will be back next week – so look out for that on April 6th.