Food sales and clothing sales show signs of improvement
Marks & Spencer, the iconic chain that Brits love to moan about, is finally experiencing a significant turnaround. The company announced yesterday that profits have improved, with an 11% jump in food sales indicating that M&S is on the way back. The boost is not only due to posh sarnies or online grocery sales, but also thanks to the lower-priced "Remarksable" range that encourages shoppers to buy basics alongside ready-made treats. Clothing sales have also increased by 6% in the past 19 weeks, after years of slumps or sluggish sales. One reason for this is the company's shift in focus from chasing fast fashion-obsessed teens to catering to over-50s with a love for 70s styles and punk fashion. Time-poor parents are also benefiting from M&S's well-priced, trendy and versatile outfits.
Maddy Evans works magic at M&S
Maddy Evans, the ex-Topshop style guru, has played a major role in M&S's clothing success. With her expertise, she knows the difference between a fashion hit and a faux pas, and this has resonated with shoppers. One example is the 35,000 scallop-design swimsuits that were quickly snatched up this summer. Additionally, M&S has built up a retail crack squad rather than relying on consultants like many of its competitors. After years in the fashion doldrums and a fall to the FTSE 250, yesterday's 6.7% increase in share price means that M&S is once again knocking on the door of the FTSE 100.
Food prices in July see a fall
There is good news for shoppers as food price inflation fell for the fifth month in a row, reaching 12.7% in July, down from 14.9% according to market research group Kantar. The drop is the sharpest monthly fall since 2008. Although shopping bills are still higher than a year ago, supermarkets have started to cut the price of some grocery staples due to easing cost pressures. For example, average milk prices have fallen to £1.50 for four pints, compared to £1.69 in March. Sunflower oil has also been lowered to £2.19, which is 22p cheaper than in the Spring. However, the washout summer resulted in a 30% slump in ice cream sales, while the gloomy weather led to a 16% increase in soup sales.
ITV strikes deal with painkiller maker
In an unusual move, ITV has agreed to give Flarin, a manufacturer of a type of ibuprofen, £5 million worth of TV advertising in exchange for an equity stake in the company. This deal comes after a series of recent headaches for ITV. The broadcaster has previously made advertising deals with Carwow, a popular car buying marketplace.
888 experiences sales decline
Online betting giant 888 has reported a 7% drop in sales, reaching £881.6 million. UK sales were down by 3% to £615.3 million. Despite this decline, 888 is confident that it can achieve £150 million of cost savings. The company has faced money laundering investigations into its Middle Eastern business, and its licence is under threat from UK regulators if gambling industry veteran Kenny Alexander succeeds in his bid to become CEO.
Over 9 million Brits denied credit
In the past year, over 9 million Brits have been turned down for credit. The reasons given for these rejections include poor credit history, inability to afford repayments, and having too much other credit. This information comes from a study conducted by the Money and Pensions Service.
Russia raises interest rates as currency struggles
Russia's central bank has increased its interest rate by 3.5% in an effort to prevent the country's ailing currency from further decline. The Bank of Russia raised rates to 12% after the rouble fell below 100 to the dollar on Monday. The currency has dropped 25% in the past year due to Western sanctions and a struggling Russian economy.
Iceland cuts infant formula prices
Iceland has reduced the price of infant formula by around 20% to support families facing the cost of living crisis. Some brands of infant milk have increased in price by 40% over the past two years. Research by Iceland revealed that 86% of parents are concerned about the rising cost of these products. Legislation prohibiting retailers from promoting infant milk has made it challenging to lower prices, but Iceland has managed to cut the price of various brands, such as Aptamil, Cow & Gate, and SMA milk.
City watchdog may change bank guidelines
The Financial Conduct Authority (FCA) has indicated that it may revise its guidance to banks regarding the treatment of "politically exposed persons" (PEPs). The watchdog has sent a letter to MPs requesting any evidence that they may have been treated as PEPs by their banks. This comes after the controversy surrounding NatWest's "de-banking" of Nigel Farage, during which the private bank compiled a dossier on Farage's political views to justify ending their business relationship. The FCA will be publishing the full details of its review.
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