THE HUB RETAIL RECRUITMENT’S MONTHLY NEWSROUND
- Date: 27 April 2016
- Posted By: admin
Here is The Hub Retail Recruitment’s monthly Newsround where we pick out the stories that we want to bring to your attention in addition to those we’ve reported on weekly. Our roundup headlines this month are: Dark days on the High Street; Is Apple going sour?; Tesco turnaround; Our groceries – less for more?; The end for Non-compete Clauses?; Employers’ Jitters; Gender Gap – Employers get ready to publish.
Dark days on the High Street: It is with a very heavy heart that we include in our Newround the demise of BHS and Austin Reed. Both heritage and iconic brands which we have all grown up with. Indeed, Austin Reed has been going for 116 years and counts amongst its past customers Winston Churchill and Elizabeth Taylor.
BHS has always been there, sitting on our High Street, offering a wide range of merchandise from wedding apparel to lighting; from bedding to mens’ clothes. But now it is following C & A and Woolworths. The media has been asking people on the street how they feel about BHS going into administration, and overwhelming we all say we feel sad. But equally, many of us can’t remember the last time we went inside a BHS store. So does that mean we were part of its demise? We think not, because it is up to anyone selling anything to be offering us what we need, and what we might want. Commentators have noted that BHS hasn’t kept abreast of the consumer trends – for instance, it doesn’t provide any technology. Nevertheless, there is consternation about its demise as Parliament becomes concerned at how a business that employees 11000 people could be left so exposed a year after it was sold by Philip Green to Retail Acquisitions for £1, with Retail Acquisitions saying at the time that it would invest £160m to turn BHS around. The Pensions Regulator has also been getting involved, as we reported a few weeks ago, because the pension hole runs into £millions – the calls continue for Philip Green to fill part of that hole. There is also concern about whether BHS has had its assets stripped and left to go into administration – another concern that Parliamentary Committees are probing. But for us, we wonder why Retail Acquisitions would want to buy a company that’s on the market for £1 – surely that price tag tells the story?
Whilst all the investigations and accusations swirl around us, what of the staff? We understand that many feel angry at finding out in the media that the company was going into administration. Turning up for work on Monday was a strange experience – at its head office for instance, staff didn’t know what they were supposed to do once they got there. Being told to carry on as normal hasn’t quite worked because it’s not normal, especially when they’re told that they will probably have a job for the next eight weeks. And then we hear that the stores are open and trading as usual. So confusion is everywhere. We hope that a new buyer can be found – both for BHS and for Austin Reed – people with the vision, drive, and finance to turn them around, to make them more relevant to today’s consumer. In the meantime, we continue to offer our support to staff from both businesses as we try to find jobs for as many of them as we can.
But. Is it just these 2 retailers that are in trouble? Or is more on the way? We’ve been reporting on a consistent theme from other major retailers – that trading continues to be ‘challenging’, and that consumers are spending more money on travel and entertainment than on goods. Trading for many is dipping or at best flat-lining. In one of the articles below, a retail chief analyst notes that in the last 12 months we’ve seen the highest reported number of profit warnings since the economic crisis. Add to this the latest figures from the ONS on unemployment and wage increases – see our story below – and the picture is looking really quite dark.
There are of course many many articles about BHS and Austin Reed. Here’s just 3:
http://www.bbc.co.uk/news/business-36123444
http://www.bbc.co.uk/news/business-36137574
Is Apple going sour? Apple has long seemed indestructible – always at the cutting edge of technology, and, strangely, of fashion – having the latest iPhone has for many been a fashion statement. But an eyebrow was raised a few months ago when for the first time sales of the iPhone dipped. Odd. But nothing to worry about surely as iPads and Macs surged ahead. But Apple has just reported its first fall in profits for 13 years – and it’s a big fall. 13%. Why? Well, like many similar companies, Apple relies heavily on China. And sales there for Apple have dropped by 26%. Apple’s CEO says that its performance is good “in the face of strong macroeconomic headwinds”. We think he means the global economy – which, let’s face it, is looking more and more bleak. Here’s a good article explaining Apple’s trading conditions:
http://www.bbc.co.uk/news/business-36146336
Tesco Turnaround? At least things are looking up for Tesco. Last week it reported improved quarterly sales figures – the first in 3 years. It seems miraculous and is based on streamlining: its products; its stores; and, music to our ears, its contracts with its suppliers. The latter is really important, as much was reported about the appalling way it treated its suppliers – many waiting months to be paid which put their own businesses at risk. We hope that Tesco’s fortunes continue to improve. We like that Tesco was the forerunner for embracing older people into its workforce some 30 years ago – it was new at the time but these days we don’t even notice. Tesco realised that older people are conscientious and a good influence on its younger staff. We also like that Tesco are inclusive of people with special needs – one of the outstanding staff at our local branch has Downs syndrome, and as a supervisor is our go-to-person for any of our queries. Tesco too led the way with loyalty cards, understanding that information is king – or queen – and that knowing our shopping habits meant it could more accurately offer us what we wanted and predict our changing habits. But we also like that it was Tesco that spearheaded the ‘back to the floor’ concept – managers back on the shop floor talking to staff about what it needed to do differently, because it understand that that was where the real intelligence about how it needed to change to be better, lay. Perhaps it’ll go back to that basic premise – which would do much to build bridges with its staff who have had such a hard time over the last year or so. We wish Tesco well, and here’s an article that summarises the current action its taking.
Our groceries – less for more? On the subject of supermarkets, here’s an article about a Which? report that confirms what many of us had long suspected – that many products are getting smaller, but we’re still paying the same – or in some cases, more. For instance, a roll of Andrex is now 19 sheets shorter; a packet of McVities chocolate biscuits is 300g when previously it was 332; and some Tropicana products have gone from 1 litre down to 850ml. But does this mean that the producers are selling these groceries for less, but the supermarkets continue to sell them at the higher prices? No-one is saying. So another story to watch unfold. At least we now know we weren’t getting through more loo rolls for some unfathomable reason!
http://www.telegraph.co.uk/news/2016/04/19/shoppers-short-changed-on-toilet-paper-in-supermarket-rip-off/
The end of Non-compete Clauses? This is where employers put in their employee’s contracts of employment, clauses that prevent them working for, or becoming a competitor in the same field. So for instance, a recruitment consultant leaves a business. Under their contract they might not be able to work for another recruitment agency for 6 months, or to set up their own employment business, for 6 months. The government thinks such clauses might be deterring entrepreneurship by stopping people striking out on their own, and are launching a consultation on stopping or restricting such clauses. Both employers and staff with such clauses should read this article.
Employers’ jitters: The latest figures from the Office for National Statistics – the ONS – shows that unemployment is up and wage rises are down. Both of these are being interpreted as a sign that employers are jittery about the effect of new costs being introduced by the government – the National Living Wage, further pensions auto-enrolment, and the apprenticeship levy. Unemployment was up by 21,000; and wages by 1.8%.
Some commentators feel that these stats are also a consequence of a slowing global economy. This is a helpful article to explain the figures.
http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2016/04/21/national-living-wage-and-global-uncertainty-blamed-for-rise-in-uk-unemployment.aspx
Gender gap – employers get ready to publish: On a brighter note, it would seem from this report that employers are preparing well for publishing their gender gap information in October – with about 2/3 of those surveyed saying they were ready to go.
So much to report and comment on this month at The Hub Retail Recruitment. We hope you found these headlines not only interesting but also informative. Do always let us know either way. And please look out for our Weekly News Snippets next Wednesday, 4th May.