Crisis news and archive

UK retail sales show modest growth amid summer spending

Retail sales in the UK saw a slight uptick in August, driven by summer-related purchases, according to the latest BRC-KPMG Retail Sales Monitor. Total retail sales increased by 1 percent year-on-year, outpacing the three-month average growth of 0.4% but falling short of the 12-month average of 1.2 percent. Non-food sales, which includes fashion,...

Fashion

Crisis partners with UKFT on recycling scheme

British homelessness charity Crisis is collaborating with the UK Fashion and Textile Association (UKFT) to trial a new approach to recycling in a bid to reduce clothing waste. The recycling trial forms part of the ACT project led by UKFT and is currently taking place in the charity's Peckham and Elephant & Castle stores in London until...

Retail

Primark profits under pressure due to weak pound and high inflation

Primark has seen an increase in foot traffic as its store visits returned to pre-pandemic levels, resulting in a 19 percent sales boost. However, despite this growth, the company's profits are under pressure due to a weak sterling and high inflation. Shares of Primark's parent company, AB Foods, fell 3.6 percent on Tuesday as shoppers prioritise...

Retail

UK footfall dropped in March as consumers face cost of living crisis

March delivered a sharp shock to UK retail destinations with a decline in footfall of -2.8 percent, according to data from Springboard. Where February saw an increase that bettered the same month in other years post pandemic, what came to pass was the first month on month decline in footfall in March since MRI Springboard started publishing its...

Retail

In the run-up to Christmas, cautious consumers are keeping footfall below expectations

As the UK awaits the Government’s Autumn Budget update on Thursday, the expected tax rises and spending cuts are keeping shoppers at bay. New data released by retail experts Springboard, show footfall rose by just 1.3 percent across UK retail destinations last week, despite the run-up to Christmas expected to improve trading conditions. Footfall...

RetailFeatured

Covid scars had deeper impact on UK retail than expected

The negative impact of the Covid-19 on the retail industry may have been underestimated, according to new official data. Findings from the UK’s Office for National Statistics (ONS) released on Monday indicate a shrunken economy and ongoing suffering in post-pandemic daily life for many individuals. The ONS said the revised estimates of GDP still...

RetailFeatured

Rise in living costs to cut into Christmas spending

The run-up to the holiday season is well underway, with retailers predicting a lacklustre Christmas as soaring inflation digs into consumer purse strings. While the end of the year is meant to be a bonanza for retailers and brands, companies from Adidas to Asos are cuttings their forecasts, with H&M responding to the current crisis by launching...

BusinessFeatured

Marks & Spencer to close 67 stores in bid to cut costs

British retailer Marks & Spencer will close 67 stores over the next five years as it aims to cut operational costs. In a report it also said it will attempt to fast-track the closures within three years, if possible. The closures equate to cutting 25 percent of Marks & Spencer’s full-line store portfolio in order to save 300 million pounds and...

RetailFeatured

Cost of living crisis to impact holiday season turnover

With four out of ten households worried about affording Christmas, researching for the best value deals will take precedence this holiday season. In the US inflation rose 8.3 percent since last August, while in the UK it rose to 9.9 percent since the same period in 2021. Online sales are expected to be 95 billion dollar less in 2022 compared...

BusinessFeatured

Global cotton crisis: Floods in Pakistan could damage 45 percent of country’s cotton

The devasting floods in Pakistan could be the beginning of a new cotton crisis. An estimated 40 to 45 percent of the country’s cotton crops have been ravished by storms. This will have a disastrous effect on the world’s cotton cycle, sending prices to rocketing heights. Pakistan is one of the world’s biggest cotton producers, the fifth largest...

Business

UK is set for slowest growth of G7 nations in 2023

Aside from all the political turmoil in the UK, its economy is only chugging along in comparison to other western nations. While the war in Ukraine has seen global growth shrink, the International Monetary Fund (IMF) has forecast UK’s growth to be just 0,5 percent in 2023, down from 1,2 percent. This compares to 3,2 percent of growth globally...

Fashion

VAT rise adds to retail crisis

Retailers are braced for a spate of bankruptcies amid fears that High Street spending is poised to drop sharply. Experts are warning that rising consumer debt and the increase in the VAT rate will prompt shoppers to begin to rein in spending this week. Sales have jumped over the past few days with the rush to beat the tax increase and to snap up...