Friday, 12 September 2025

John Lewis Losses Triple

The John Lewis Partnership, which includes the renowned department store chain and Waitrose supermarkets, has reported a significant deepening of its financial struggles, with half-year losses nearly tripling to £88 million. This considerable deficit, up from £30 million in the same period last year, was recorded despite a rise in overall sales, a performance that highlights the intense challenges the business is facing. The company attributed the poor result to a combination of exceptional costs, including £54 million spent on a major business restructuring programme which involved redundancies and reorganising its operations. Further compounding the financial pressure were new regulatory charges, such as a £29 million hit from the government's new plastic packaging tax and higher national insurance contributions. Despite these financial setbacks, the company remains optimistic, noting that its ongoing turnaround plan has led to increased sales and improved customer satisfaction. The Partnership maintains that its substantial investment in updating its stores and digital infrastructure is necessary to return to profitability by the end of the full financial year, a goal which would allow for the reinstatement of the cherished staff bonus.

BBQ - A core part of the John Lewis Partnership's business model is providing its employees with an annual bonus. Analyse why the company's decision to withhold this bonus due to financial losses could have a negative impact on its human resources.

Mitchum Deodorant Recall

A well-known deodorant firm has been forced to issue a public apology and halt sales of one of its new antiperspirant products following a significant number of customer complaints. The company, which is a major player in the cosmetics industry, faced a firestorm of negative feedback across social media platforms. Users reported severe and painful reactions, including "chemical burns," "itchy, burning armpits," and painful rashes after using the product. In response to the crisis, the firm's leadership posted a formal apology, acknowledging the consumer reports and stating that they were taking the matter with the utmost seriousness. The company has since initiated a full product recall, urging customers to stop using the deodorant immediately and promising a full refund to anyone affected. This incident serves as a stark reminder of the financial and reputational risks associated with product development and highlights the critical importance of rigorous quality control and a rapid, transparent response to consumer safety concerns.

BBQ - Analyse the potential long-term impacts that this product safety issue could have on the firm's brand reputation, customer loyalty, and future sales.

Greggs Rolls Into Homeware

Greggs, in a bold move to capitalize on its massive brand loyalty, has teamed up with interiors specialist Icon to launch its first-ever homeware collection. The "Greggs Icons" range, which was teased on social media before its official release, includes a fun and unique line of products designed to bring the bakery's most beloved items into people's homes. The highlight of the collection is a series of giant, plush cushions and bean bags shaped like the iconic sausage roll and steak bake. Additionally, the limited-edition line features a recliner gaming chair and a cushion designed to look like a classic Greggs paper bag. This product diversification strategy aims to connect with a younger, online-savvy audience, particularly Gen Z, by offering them a tangible and quirky way to express their love for the brand. The launch demonstrates how Greggs is innovating beyond its core food business to engage its customer base and extend its brand presence in a highly creative and memorable way.

BBQ - Greggs has launched a limited-edition homeware collection. Explain two possible reasons why this product diversification strategy might be successful for the company.

Friday, 5 September 2025

Legendary Italian designer Giorgio Armani dies

 
Legendary Italian designer Giorgio Armani, who passed away at the age of 91, leaves behind a legacy not only of timeless fashion but also of remarkable entrepreneurial achievement. Armani began his career in fashion as a window dresser and sales assistant before launching his own brand in 1975 with business partner Sergio Galeotti. His entrepreneurial spirit was evident in his ability to identify market gaps—introducing relaxed tailoring for men and empowering professional women with elegant, functional suits. Armani maintained full control of his brand empire, which expanded into perfumes, hotels, restaurants, and home furnishings, generating billions in revenue. He was known for his hands-on leadership, even personally arranging boutique displays well into his 80s. Armani’s success was built on a clear vision, independence of thought, and a relentless work ethic, making him a powerful example of how creativity and business acumen can combine to build a global brand.

What entrepreneurial qualities did Giorgio Armani demonstrate throughout his career, and how did these contribute to the global success of his brand?

Tesco Trials Avocado Scanner

 
Tesco has launched a trial of infrared avocado ripeness scanners in five UK stores, aiming to revolutionize how customers shop for fresh produce while tackling food waste. Developed by Dutch agritech firm OneThird, the scanners use light-based technology to assess the internal ripeness of avocados in seconds—eliminating the need for squeezing, which often damages the fruit. This innovation is part of Tesco’s broader sustainability strategy, which includes removing plastic labels and packaging from avocado products, saving over 20 million pieces of plastic annually. With avocado sales surging—15 million more sold this year compared to last—the scanner helps shoppers choose fruit suited to their needs, whether for immediate use or later consumption. By improving customer experience and reducing waste, Tesco demonstrates how technology can be leveraged to solve everyday retail challenges and support environmental goals.

BBQ - How can technological innovation like Tesco’s avocado ripeness scanner improve operational efficiency and customer satisfaction in retail?

Lululemon Squeezed by Tariffs

   
Lululemon Athletica, the Canadian athleisure giant, is facing mounting pressure as a combination of U.S. tariffs and weakening domestic sales disrupt its growth trajectory. The recent removal of the "de minimis" exemption, which had allowed duty-free shipments under $800, is expected to cost the company around $240 million in gross margin this year. This change, coupled with escalating tariffs, has forced Lululemon to revise its full-year revenue forecast downward, triggering a 15% drop in its share price. CEO Calvin McDonald acknowledged that the brand had become "too predictable," with stale product cycles failing to excite consumers in a cooling U.S. market. While international markets like China continue to show strong growth, the company is now focused on refreshing its product lineup and adjusting its supply chain to mitigate rising costs. The situation highlights the vulnerability of global retailers to policy shifts and changing consumer behavior, even for well-established brands. Adidas warned that the tariffs will cost it €200m (£173m; $233m) and raised prices for American customers. Nearly half of the company's products are made in Asia.

BBQ - How might changes in international trade policy, such as tariffs and the removal of duty exemptions, affect a company’s pricing strategy and profitability? 

Monday, 14 July 2025

No Longer White Chocolate

 
If you look closely at certain packets of McVities Digestives and NestlĂ© KitKats in the UK, you might notice something rather surprising. They are no longer being described as ‘white chocolate’ biscuits.  Instead, you’ll find that it just says the word ‘white’ rather than ‘white chocolate’ on the front of the packs. The product descriptions have also been tweaked to say the biscuits have a ‘white coating’ or a ‘white chocolate flavour’. It can’t be helped though, as the sweet treats no longer contain the required level of cocoa butter needed to legally be described as chocolate. In order to be classified as white chocolate a product needs to contain a minimum of 20% cocoa butter. However, the amount in White KitKats (including the Chunky version) no longer meets this requirement. Interestingly, McVities has removed cocoa butter from its White Digestive recipe altogether. Instead, both brands now use a mixture of palm and shea fats to make their white coatings.  As such, NestlĂ© quietly removed the word ‘chocolate’ from the front of its White KitKat packets earlier in 2025, while McVities made a similar change to the White Digestive packaging recently. ‘Recently, due to a business continuity issue with our coating supplier, we have carefully crafted a new recipe for White Digestives. Sensory testing with consumers showed the new recipe delivers the same great taste and texture as the original they know and love.’

BBQ - Would this impact your decision to purchase these products?