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THE HUB RETAIL RECRUITMENT’S WEEKLY NEWS SNIPPETS

Good morning! We hope you didn’t get caught out on April Fool’s Day, but here’s a few stories you can definitely rely on. This week at THE HUB RETAIL RECRUITMENT we look at the current position with SAINSBURY’S and ARGOS, plus some other news about SAINSBURY’S; the health benefits of DOGS IN THE WORKPLACE; and very interesting research on the poor uptake of SHARED PARENTAL LEAVE.

SAINSBURY’S TAKE OVER ARGOS: So it’s now official – HRG will be recommending to its shareholders the acceptance of the Sainsbury’s bid to buy Argos and Habitat. It is of course what we’ve all been expecting over recent weeks, especially when Steinhof bowed out of the race. The move by Sainsbury’s is so it can extend its retail reach beyond food to general merchandising as it intends to place Argos in its major stores – stores which just don’t have the same footfall since we changed our food shopping habit from a big weekly shop to smaller more frequent shops, hence the advent of the small express supermarkets. So this purchase is twofold for Sainsbury’s – it will absorb empty space, but moreover entice customers back into its larger shops. Here’s a good article that talks about it more fully:

http://www.theguardian.com/business/2016/apr/01/home-retail-backs-sainsburys-argos-takeover-bid

Sainsbury’s is also in the news for both a good and a bad story. Good story: it’s continued to increase its sales month on month, and so is back on the top of the Big Four league. And this is despite making a risky move to phase out its multi-buy offers – interestingly this seems to be paying off perhaps because it’s restoring consumer confidence after regulators criticised these sorts of deals as being misleading. Bad story: the Unite union says Sainsbury’s is planning to shed 850 jobs. Sainsbury’s response is that it hopes to deploy most if not all of the affected staff, including through the creation of training manager jobs. Here’s a couple of articles on both of these stories:

http://news.sky.com/story/1673070/sainsburys-places-850-jobs-at-risk-union

http://www.theweek.co.uk/sainsburys/65514/sainsburys-best-of-the-big-four-once-more-as-sales-growth-increases

DOGS IN THE WORKPLACE

A few weeks ago, we reported on the growing evidence that dog friendly workplaces are more productive. We think this will be a growing trend – indeed, Saatchi & Saatchi have had a ‘puppy day’ when a special company bought in some puppies for staff to have a cuddle and a play – a very progressive move. Here’s a report by Purina that says that of those respondents who owned a dog, 50% of them would take it to work if they were allowed to. And nearly half of respondents aged between 18-24 said that a dog friendly company would be an incentive to join. The report also cites benefits such as people taking a lunch break to walk their dog – so not only getting exercise, but also getting away from their work which alleviates stress. We say there’s no downsides to dogs at work – but then we would wouldn’t we?! We have our own office dog, Jack, as you can see here. Also, check him out on our website https://thehubrecruitment.co.uk/about-us/

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And a final note on our four legged friends – it’s now law that they must be micro-chipped before they’re eight weeks old – about time too.

http://www.employeebenefits.co.uk/34-believe-pets-in-workplace-boost-health/

http://www.bbc.co.uk/news/uk-35972480

PARENTAL LEAVE: It’s a year since Shared Parental Leave (SPL) came into being, and this article reports on research that suggests the take up is not only small, it’s minuscule – between 0.5-1% of men have used it. Of course SPL is in addition to the 2 weeks paid parental leave that has proved popular. The purpose of SPL was to give parents more flexibility during the first 12 months after birth about who stays at home to look after the baby. The report points to two factors: money as for many they would receive only the statutory £139.59; and promotion as many felt that taking SPL would be frowned upon by their employer. What further surprised us is that 55% of mothers said they didn’t want to share their leave! Anyway, have a read, it’s not only an important issue now, but as reported last week, the Government is consulting on extended parental leave to include grandparents.

http://www.theguardian.com/money/2016/apr/05/shared-parental-leave-slow-take-up-fathers-paternity

 

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THE HUB RETAIL RECRUITMENT’S MONTHLY NEWSROUND

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:

http://www.independent.co.uk/news/business/news/bhs-avoids-collapse-as-landlords-cut-rents-and-back-survival-plan-a6949391.html

http://www.theguardian.com/business/picture/2016/mar/24/kipper-williams-on-the-vote-to-resurrect-bhs-fortunes

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.

http://www.telegraph.co.uk/business/2016/03/24/next-facing-toughest-year-since-2008-financial-crisis-warns-boss/

http://www.retail-week.com/topics/policy-and-legal/next-boss-lord-wolfson-throws-weight-behind-brexit-and-radical-change/7005460.fullarticle

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:

http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2016/03/24/top-issues-for-employers-from-the-budget-2016.aspx

http://www.employeebenefits.co.uk/how-the-budget-2016-will-impact-employee-benefits/?cmpid=ebupdate_2141633

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.

http://www.drapersonline.com/people/the-drapers-interview/the-drapers-interview-oliver-bonas-founder-olly-tress/7005787.article?blocktitle=The-Drapers-Interview&contentID=15750

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:

http://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pension-age-look-up-when-you-will-retire/

http://www.employeebenefits.co.uk/a-fifth-do-not-expect-to-retire-until-after-age-70/?cmpid=ebnews_2162324

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.

http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2016/03/17/how-to-handle-an-employee-who-fails-to-turn-up-for-work.aspx

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.

 

 

 

 

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THE HUB RECRUITMENT’S WEEKLY NEWS SNIPPETS

The Hub Retail Recruitment’s weekly news snippet is here as usual, but we issue our blog with heavy hearts after yesterday’s atrocities in Brussels. Having lived through 7/7 in London, we really can say we know how terrible it is. Our thoughts are with all those affected.

Such an atrocity raises anxiety in us all with fears of what might happen next. At this time of year, as many of us are planning Easter breaks, or booking our summer holidays, we understandably worry about the risk of travelling when something like this happens. The effect on travel and tourism has had an immediate adverse effect on those markets. This article explains:

http://www.theguardian.com/business/2016/mar/22/travel-tourism-holidays-shares-sink-tourism-europe

 

THE BUDGET & ONLINE VAT DODGING: Well, this has turned out to be quite a circus of a budget. We could say much about the twists and turns since Mr Osborne presented his budget and all the various political fallouts. But we’ll keep it focused on an issue which has had little coverage. The Chancellor is closing a loophole which many firms felt resulted in unfair competition. This loophole has until this budget allowed some overseas online retailers to avoid paying VAT. Read here the full – although succinct – document that explains about this issue:

https://www.gov.uk/government/publications/vat-overseas-businesses-and-joint-and-several-liability-for-online-marketplaces/vat-overseas-businesses-and-joint-and-several-liability-for-online-marketplaces

 

BREXIT WILL HIT RETAILERS MOST: The credit ratings agency Moody’s has said that it believes the biggest risk to Britain leaving the EU would be to retailers, restaurants, and food and drink companies. It’s based this view on predicting slower economic growth for British companies due to several potential changes, such as trade barriers and constraints on migration. This is a good article that sets out Moody’s view more fully:

 

http://www.telegraph.co.uk/business/2016/03/22/brexit-could-hit-retailers-and-food-suppliers-moodys-warns/

ARGOS/HOME RETAIL GROUP TAKEOVER: We’ve been following this story for a couple of weeks now, and it took another turn last week when Steinhoff bowed out of the race in favour of buying Darty’s. Apparently Sainsbury’s has matched that bid, so it would be surprising if it wasn’t successful. However, experts are estimating that if the takeover does go ahead, 330 Argos stores will close as Sainsbury’s moves it into an online retailer. This story explains more.

http://www.retailgazette.co.uk/blog/2016/03/sainsburys-takeover-threatens-to-close-330-argos-outlets

That’s our roundup for this week. Next week – 30 March – will be our Monthly Newsround, so do look out for it. Between now and then it is of course Easter, in the middle of which the clocks go forward. Here at The Hub Retail Recruitment we wish you a very happy Easter weekend.

 

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THE HUB’S WEEKLY NEWS SNIPPETS

Another week full of headlines for The Hub Retail Recruitment to tell you about. So many to choose from, but we’ll focus on: Sainsbury’s quest to buy Argos & Habitat; John Lewis’s bonuses; Philip Green and the BHS pension gap; and a report that estimates a third of us are disappointed with our careers.

SAINSBURY’S QUEST TO BUY ARGOS & HABITAT: It would seem that Sainsbury’s has until Friday to increase its bid to buy Home Retail Group – which own Argos and Habitat – if it’s to beat off the competition from South African firm Steinhof. Experts are tipping Sainsbury’s to increase its offer from £1.3b to £1.5b. Friday is the deadline – so we should know next week if Sainsbury’s has pulled it off. Meanwhile, both Sainsbury’s and HRG’s shares have increased because of better than expected sales over recent months – Sainsbury’s has just had its first increase in two years. Here’s a couple of articles that we found interesting:

http://www.thisismoney.co.uk/money/markets/article-3489414/Now-Sainsbury-s-set-raise-Argos-bid-1-5bn-surge-share-price.html

http://www.bbc.co.uk/news/business-35809517

JOHN LEWIS’S BONUSES: John Lewis has announced that its staff – or partners – will get 10% bonuses, which Charlie Mayfield, its Chairman, equates to about 5 weeks’ salary. However, it continues the downward trend – in 2013 it was 17%, 15% in 2014, and 11% last year. Its apparently because the pre tax profits went down from £343m to £305m partly due to an increase in pension costs. Here’s a couple of articles that go into more details:

http://www.bbc.co.uk/news/business-35772319

http://www.theguardian.com/business/2016/mar/10/john-lewis-waitrose-staff-bonus-falls-again

PHILIP GREEN & BHS PENSION GAP: It would appear that The Pensions Regulator might require Philip Green to pay £280m toward the BHS pension hole. Whilst it would seem that Mr Green is already offering several £ms, it falls way short of the £280m. Even if the money were to be paid, it is estimated that pensions would be cut by about 10% – although those already drawing it would be unaffected.  The Pensions Regulator can require former owners of a company to meet a pension gap – but this would be a bit of a test case if it did – so one to watch. A helpful article explains the ins and outs.

http://www.retailgazette.co.uk/blog/2016/03/sir-philip-greens-super-yacht-is-ready-just-as-hes-asked-to-contribute-ps280m-to-bhs-lifeboat-scheme

A THIRD OF US ARE DISAPPOINTED WITH OUR CAREERS: According to the Chartered Institute of Personnel & Development, a third of us are disappointed with our careers. Apparently, the root of this discontent is twofold: poor career advice whilst in education which put us on the wrong career path in the first place, and/or poor management once in work that has then held us back. Here’s the press release from the CIPD about this, which includes a link to the full report.

http://www.cipd.co.uk/pressoffice/press-releases/eo-skills-careers-150316.aspx?utm_medium=email&utm_source=cipd&utm_campaign=press_release&utm_term=68296&utm_content=eo-skills-careers-150316-5247-6915–20160315173908-http%3A%2F%2Fwww.cipd.co.uk%2Fpressoffice%2Fpress-releases%2Feo-skills-careers-150316.aspx

And finally…Last week we reported that Parliament was voting on devolving Sunday trading decisions to local councils – which was likely to mean extending existing hours. The Government was defeated on this occasion – but it won’t be the end of the story. Another one to watch.

As ever, we hope you’ve found these headlines interesting, and relevant. Do let us know your thoughts – and look out for THE HUB RETAIL RECRUITMENT’S WEEKLY NEWS SNIPPETS next week on Wednesday 23rd March.

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THE HUB’S WEEKLY NEWS SNIPPETS

We hope you found last week’s NEWS SNIPPETS interesting. It’s amazing how many stories there are in seven days – and this week’s been particularly busy – but here THE HUB RETAIL RECRUITMENT’S top four which we think apply to the industry but also to each of us as individuals.

BHS UNDER THREAT: When Philip Green sold BHS last year for £1, it was obvious that all was not well with the business. KPMG has now reported that the company will go into administration after 25th March if it cannot reach an agreement with its landlords when rents become due that day. Although the business has been ailing for years, it’s one of our High Street institutions, much the same as C&A was. Here’s a full article on the situation – we wish the company well, and especially the staff for whom this is such a difficult situation to be living through.

http://www.telegraph.co.uk/business/2016/03/07/bhs-warns-over-13bn-in-unpaid-debts-if-it-goes-out-of-business/

MORRISON’S COURT RULING HAS FAR REACHING IMPLICATIONS: What happens when a member of staff commits a criminal act? They are dealt with through the criminal justice system, and likely to be sacked by the employer. But now the landscape has changed because of a ruling by the Supreme Court. A Morrisson’s employee attacked and assaulted a customer at one of its petrol stations – it was racially motivated.  The ruling has said that Morrison’s was accountable for the behaviour of that employee. So from now on, a company can potentially be sued for the behaviour of staff in a customer-facing role. This ruling has far reaching implications so here’s a couple of links to help understand what those might be.

http://www.theguardian.com/law/2016/mar/02/supreme-court-finds-morrisons-liable-for-employees-at-work

http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2016/03/03/employers-may-be-massively-more-liable-for-staff-misdemeanours.aspx?utm_medium=email&utm_source=cipd&utm_campaign=cipdupdate&utm_term=68296&utm_content=090316-5117-6606–20160309091502-Employers%20may%20be%20‘massively%20more%20liable’%20for%20staff%20misdemeanours

WORKING INTO OUR 70s?: More depressing news this week about pensions. It seems likely the State pension age is going to rise to 70, and probably beyond that, within a generation. What this means is that not only will we have to work a lot longer that we ever thought, but that our pension contributions have to increase if we want to be be able to retire and be financially comfortable. Estimates are that contributions must double to about 15% of salary. As individuals – and employers – we’re going to have to work out how to do this. Here’s a couple of links that help with understanding the direction this is all going in.

http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2016/03/03/what-would-a-new-state-retirement-age-mean-for-employers.aspx?utm_medium=email&utm_source=cipd&utm_campaign=cipdupdate&utm_term=68296&utm_content=090316-5117-6606–20160309091257-headlines

SUNDAY TRADING: Moves to change the Sunday Trading laws and letting local councils decide on the right times for their communities may now falter as the Scottish National Party has said it will block the move. Estimates are that Sunday Trading might extend by up to six hours if the change gets through. And it will go a long way to ironing out some of the quirks that have built up since Sunday hours came in over 20 years ago. This is an interesting article that sets out the issues well. We’ll be watching out for the result.

http://www.bbc.co.uk/news/uk-politics-35759590

We could go on as so many things have emerged this week. We hope you find these top 4 of interest – and of course we’ll add any updates. Do let us know what you make of the stories, or if there’s other topics you’d be interested in – at The Hub Retail Recruitment we’re always interested in your views. Our next issue will be out on Wednesday 16th.