THE HUB RETAIL RECRUITMENT’S WEEKLY NEWS SNIPPETS

A few days into September, and the headlines are already hotting up. This week we bring you: Sports Direct try to repair the damage; M & S – double whammy; Sainsbury Argos – who?; and Brokering Brexit.

Sports Direct try to repair the damage: Let’s face it, it’s a long way back for Mike Ashley and Sports Direct to repair the reputational damage caused by its employment practices. Or rather the employment practices branded as ‘Victorian’ by Parliament. Ahead of today’s shareholders’ meeting, Mr Ashley issued a report he had commissioned into the issues and solutions to them. So, with much trumpeting, Mr Ashley is replacing the zero hours contracts to ones guaranteeing directly employed casual staff a minimum of 12 hours work per week. But the workers in its four warehouses who are engaged via an agency are exempt. And that effects about 2 thirds of the warehousing staff. Mr Ashley seems particularly pleased with the recommendation that Sports Direct have a staff representative on its board – although there are no details about how that will happen or the role that person would play. Undoubtedly steps in the right direction – but enough to repair the damage? It has been suggested that Mr Ashley published the report ahead of today’s shareholders’ AGM in order to garner favour. If that’s the case,  it didn’t work. Shares tumbled ahead of the AGM, and the shareholders vetoed the chairman’s (Keith Halliwell) re-appointment. Mike Ashley himself is appealing for more time to turn the company around – but that wasn’t helped when he had to turn his pockets out at security only to expose that he was carrying a wedge of £50 notes. The whole thing seems to have descended into farce. Similar to Mr Ashley’s appearance at the Parliamentary Select Committee. No doubt there will be more about these twists and turns over the coming weeks.

http://www.bbc.co.uk/news/business-37284114

M & S double whammy: It hasn’t been a great week for M & S. First, there was a demonstration in London, plus a petition headed up by MP Siobhan McDonagh, against the company’s proposed reduction to its employment terms and conditions, including pension benefits. Ms McDonagh said these changes would amounted to a reduction of £1000 per year for some and £2700 for others. But M & S bounced back by offering a deal whereby existing staff who would receive a detriment on these new terms would be fully topped up for 2 years, reducing to 50% of the difference after that until total pay catches up with 2015/16 levels. What’s behind it? Well, it’s what we’ve been reporting for the last few months: retailers are having to find about 15% more to pay the new minimum wage levels, and these measures are how some of them are looking to make up the deficit. Hot on its heels was the news that the retailer was chopping more than 500 jobs at its head offices in London. Half of those are permanent jobs, and half interim/contractor jobs. These job cuts are the new CEO Steve Rowe’s early approach to making the company more efficient as soon as possible. So it’s going to be tough love at M & S, with no doubt more tough love on the way.

https://www.theguardian.com/business/2016/sep/05/marks-spencer-to-cut-hundreds-of-jobs-at-london-hq

https://www.theguardian.com/business/2016/sep/02/ms-improves-pay-deal-but-critics-say-offer-still-falls-short

Sainsbury’s Argos – who?: It’s Sainsbury’s new non-food business, which is a result of its acquisition of Home Retail Group (HRG) –  Argos and Habitat. The takeover has been completed earlier than expected, with the ink drying last Friday. Over the last few months, Sainsbury’s has been trying out Argos as a concession in 10 of its stores, and plans to expand that to a further 20 stores this side of Christmas so as to make the most of the consumer spending peak. Which will mean that whilst getting your groceries, you’ll be able to do click and collect and/or place orders in the Argos concessions. We wish everyone at Sainsbury’s, Argos, and Habitat well, and hope its future will be a lucrative one.

http://www.telegraph.co.uk/business/2016/09/05/sainsburys-speeds-up-argos-roll-out-after-completing-14bn-home-r/

Brokering Brexit: This week has seen Theresa May attending her first G20 summit. We can imagine it must be pretty daunting, but she seems to have held her own, and used the opportunity to discuss future trade opportunities with some of the other countries. This article from Reuters is interesting in that it explains how these countries might not be as keen as they are saying – apparently, it is the EU that is seen as the first choice, and so the terms on which we end our membership with the EU will be critical in how attractive we’ll be to these other countries. And of course, as the article points out – we can’t actually enter into any meaningful trade negotiations until we have our exit agreed with the EU. It feels a bit like chicken and egg. But cracked it has to be! We really hope this doesn’t drag on for the years some commentators are predicting. Of course, if it’s rushed mistakes will be made, but momentum mustn’t be lost either. Rather Ms May than us!

http://www.reuters.com/article/us-britain-eu-trade-analysis-idUSKCN11D1CH

So, that’s our top stories for another week. If you think we’ve missed a great story, do let us know. Otherwise, check back next Wednesday, 14th September, for more great headlines.