Auto Amazon Links: No products found. Blocked by captcha.
Associated British Foods (ABF), the owner of Primark, has stated that it may invest more outside of the UK due to concerns that the High Street will be burdened by taxation increases. “We’re an international business as well, we have choices about where we will invest,” said ABF CEO George Weston. ABF reported a year-on-year rise of 43% in profits before tax, taking it to £1.9bn over the year ending 14 September. Although ABF had fewer customers between April to June due to challenging weather conditions, the company is expecting a strong winter performance.
Following the latest update to investors, ABF’s chief executive has revealed that the company is preparing for the costs associated with new measures introduced by Chancellor Rachel Reeves. In Labour’s first Budget in 14 years, Reeves made changes including an increase in employers’ national Insurance contributions, which have been criticised by many businesses. Weston stated that ABF’s wage bill would “go up by tens of millions”. He added that it is clear that, within the budget, the “weight of the tax rises are falling on business – within that, it’s fallen particularly on the high street”.
The British Retail Consortium (BRC) has predicted a disappointing October for retail, with shoppers holding back on spending on bigger-ticket items such as winter coats and jackets. The uncertainty created by the budget and rising energy bills may have spooked some consumers, said BRC’s chief executive, Helen Dickinson OBE, who added that October’s figures may have been depressed by half-term falling a week later this year. Ms Dickinson suggested that stronger November sales would likely give a boost to retailers’ sales figures.
Also on Tuesday, Asos, a UK-based online fashion retailer, reported mounting losses, reaching £393m in the year ending 1 September. Asos has implemented a turnaround plan that includes reducing stock and launching clearance sales to shift old ranges. Chloe Collins, head of apparel at research firm GlobalData, suggested that Asos has failed to counter the threat from other companies such as Shein, as well as the rise of second-hand clothing markets such as Vinted. However, Asos CEO Jose Antonio Ramos Calamonte claimed the company’s new clothes ranges have shown some “green shoots” over recent months, claiming “We will do things in the right way and we’re going to be patient.
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.