River Island Retrenchment

River Island has named the 33 shops it plans to close in the UK as part of a plan that puts hundreds of jobs at risk. The clothing retailer said last week that more people shopping online and higher costs to run stores were behind its proposals to creditors. It also wants its landlords to cut rents at a further 71 stores which are at risk. The family-owned retailer currently has 230 shops and employs about 5,500 people, but has suffered heavy financial losses. Ben Lewis, chief executive of River Island, said last week that although River Island is "a much-loved" British retailer, more online shopping means it has "a large portfolio of stores that is no longer aligned to our customers' needs". He added that a "sharp rise in the cost of doing business over the last few years has only added to the financial burden". He said a turnaround plan was in place, but restructuring was also necessary. "We regret any job losses as a result of store closures, and we will try to keep these to a minimum," he added. River Island made a £33.2m loss in 2023 after sales fell 19%, according to its most recent set of accounts. The chain said it will consult employees over possible job losses and will redeploy staff where possible. No head office workers will be directly affected by the proposed closures, a source said. Creditors will start to vote on the plan on 4 August, and a court will decide whether to approve the plan on 7 August. River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s. There is intense competition in fashion retail, not only from the likes of Boohoo, but also from Chinese giants such as Shein and Temu. Retail sales and consumer confidence in general have been down as households cut back to try to deal with inflation, she said, which all adds up to a difficult situation for River Island and its employees.

BBQ - Can the high street continue to compete against e-commerce?

River Island

New Nissan Leaf to be Made in UK

 

Car manufacturer Nissan has unveiled details of its new Leaf electric vehicle, which is set to be built at its UK factory. The third-generation model will be built at its Sunderland plant by its 6,000-strong team, the Japanese carmaker said. The new Leaf will be able to travel up to 375 miles (604km) on a single charge and will be available for customers to order later this year, Nissan said. It will be powered by batteries from AESC UK, Nissan's battery partner, which is based next to the Wearside factory. The site already also builds the carmaker's Juke and Qashqai models. Alan Johnson, senior vice president of manufacturing and supply chain management at Nissan Motor Manufacturing, said: "It's with immense pride that we unveil the third generation of our pioneering electric Leaf, 12 years after we brought EV and battery manufacturing to the UK. "It's a testament to the skill of our world-class team that we can bring into mass production a vehicle with such advanced technology and aerodynamic design." James Taylor, managing director of Nissan GB, said: "Leaf is a pioneering electric vehicle that has encouraged thousands to make the switch to electric motoring - and best of all, it's built here in Britain." It is the first model to be launched under the company's blueprint for electric vehicle production, Nissan's EV36Zero project, which aims for sustainability.

BBQ - Why is it good news that the car will be built in the UK?

Nissan Leaf

Trump Phone to be made in USA

 

Experts have cast doubt on the Trump Organization's claim that its proposed smartphone can be entirely manufactured in the US. Questions have also been raised about the ethics of what is the latest in a series of attempts to cash in on President Donald Trump's name. The phone which will retail at $499 (£367.50) will also come alongside a mobile phone service with a monthly fee of $47.45. The figure is a reference to Trump serving as the country's 47th and 45th president. Trump has said he has put his business interests in a trust, which is managed by his children. The White House has maintained he acts in the interests of all Americans. The Trump family has not said which company would manufacture its phone in the United States. Technology experts have questioned what the Trump Organization's "built in the United States" claim about its handsets means and argued it is probably not currently possible to manufacture smartphones from scratch in the US.The decision comes as Trump tries to pressure Apple chief executive Tim Cook to manufacture iPhones sold to American buyers in the US. The deal is an extension of a business strategy that Trump embraced long before his presidency, striking deals to sell his name to hoteliers and golf course operators in exchange for fees and royalties. The idea of a Trump-related smartphone has received mixed reaction online with some people ready to buy it and others mocking the concept.

BBQ - Why is it not possible for the phone to be manufactured in the USA?

Trump Phone

CEO Pay Inequality

 

The chief executive of a FTSE 350 company is paid 52 times as much as a typical worker, according to the latest measure of inequality between bosses and their employees. Median pay for FTSE 350 chief executives was £2.5m last year, which works out at 52 times a median worker’s pay, according to a new report from the High Pay Centre campaign group. The widest gap was found at the cleaning, security and waste management group Mitie, whose chief executive, Phil Bentley, was paid £14.7m, 575 times more than a middle-earner in the 2023-24 financial year. Tesco ranked the second highest for the same period among FTSE 350 companies legally obliged to report the figure. With a package worth nearly £10m, the supermarket’s chief executive, Ken Murphy, was paid 431 times more than a typical Tesco worker that year. The most recent ratio, for the company’s 2024-25 financial year, was lower, at a multiple of 373 as Murphy’s pay fell to £9.2m. Luke Hildyard, the director of the High Pay Centre, said a maximum pay ratio between chief executives and workers could help ensure that all workers received “a fair reward for their contribution to business success”. The High Pay Centre suggested all companies should be required to publish their CEO-to-worker pay gaps in their annual reports, and include pay figures for outsourced workers in their calculations.

BBQ - Do you think this gap is too big? Should there be a limit?

CEO Pay

Pink Digestives

Pladis is introducing a new limited-edition flavour to its McVitie’s Digestives range: Raspberry & Cream Pink Digestives. The product features golden-baked Digestive biscuits topped with a raspberry and cream-flavoured coating. It forms part of McVitie’s ongoing centenary celebrations for its Chocolate Digestives brand. Benazir Barlet-Batada, marketing director for Pladis UK&I, said: “As we continue to celebrate 100 years of McVitie’s Chocolate Digestives, we wanted to mark the next chapter in our history by reinventing the nation’s favourite". “We know consumers are currently enjoying nostalgic flavours across a wide range of food and drink products, and that nostalgia in food isn’t just about recreating the past, it’s about rediscovering it in a way that feels new and exciting. Meanwhile pink is also still trending as a popular colour across food and drink." “Our new Pink Digestives are fun, fresh and packed with fruity flavour, designed to delight loyal Digestives fans and foodies alike.” The new flavour will be available in Sainsbury’s from 16 June, with a broader rollout to other major retailers, convenience stores and wholesalers planned for July.

BBQ - Do you think this new flavour will be popular with customers? What flavour would you like to see?

Pink Digestives 

Poundland Sold for £1

Struggling budget chain Poundland has been sold for £1 and now faces a shake-up which could see up to 100 stores close. Its owner Polish firm Pepco confirmed it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers. Poundland has 825 UK stores and around 16,000 staff and was struggling to compete with other discount stores, with sales down this January and February.It comes after Pepco warned that increased employer National Insurance contributions which kicked in in April would put added pressure on the chain. Pepco Group has owned Poundland since 2016, but the firm had to auction the brand off after sales slumped over the past year. Pepco said it was effectively offloading an unprofitable part of the business and Poundland remained a well-loved brand with millions of customers annually. But retail analyst Sofie Willmott from GlobalData said Poundland's appeal has been waning as UK consumers sought better quality and value for money elsewhere. "Those who favoured Poundland for low price groceries have been tempted away by the supermarkets who have been aggressively competing on price, and the failure of its clothing range has been a distraction for the retailer", she said. Brands such as Temu and Shein have "fundamentally changed consumer expectations around price, speed and convenience"

BBQ - What do Poundland need to do to win back more customers?

Poundland

Ruly Energy Candy

 

‘Energy candy’ startup Ruly has secured a £500k investment to accelerate its rollout across UK retail. The funds, raised from angel investors – will support efforts to raise brand awareness and develop a “robust” NPD pipeline. Ruly’s first two flavours – Tropical and Red Berry – are currently being trialled in forecourts and independent retailers ahead of a wider trade rollout. Ruly was founded in 2024 by restaurant founder-turned-management consultant Sophie Murray and finance director Lydia Franks. The duo came up with the idea for a caffeinated gummy-style sweet to “power through the afternoon slumps” as an alternative to “the office birthday cake, sickly energy drinks, or a bit-too-late-in-the-day cup of coffee”. Each 42g pack of Ruly sweets contains 80mg of caffeine, alongside guarana and B vitamins. The gummies were designed for “micro-boosting” to “control your energy boost and not experience the crash that sugary energy drinks can cause”, according to the brand. With the sports and energy drinks category accounting for 34% of the £9.2bn carbonated soft drinks market in 2023, a similar share of the £1.9bn confectionery category would make ‘energy candy’ worth £640m in the UK, Ruly’s founders predicted.

BBQ - Is there a gap in the market for this type of product?

Ruly

Disney Cuts Costs

 

Disney says it is laying off several hundred more people around the world, with workers in its film, television and finance departments impacted. The entertainment giant has been under pressure as viewers move away from cable TV subscriptions in favour of streaming platforms. The latest job cuts follow major layoffs announced in 2023, when around 7,000 workers were let go as part of a drive by chief executive Bob Iger to save $5.5bn (£4.1bn). The cuts will impact multiple teams including marketing departments for its film and television units. Workers in Disney's casting and development and corporate finance departments will also be affected. "We have been surgical in our approach to minimise the number of impacted employees," said a spokesperson. The company also said that no teams will be closed down entirely. The California-based firm employs 233,000 workers, with just over 60,000 of those based outside the US. Disney owns a host of companies across the entertainment industry including Marvel, Hulu and ESPN. The firm reported stronger than expected earnings in May, with overall revenue of $23.6bn for the first three months of the year. That was a 7% increase from the same period in 2024. It said the growth was fuelled by new subscribers to its Disney+ streaming service.

BBQ - What could the impact be of the cost cutting done by Disney?

Disney Cut Costs

Dr Martens Profit Down

 

The maker of an iconic brand of footwear have seen its profits fall by more than 90% in the last year. Dr Martens, based in Wollaston, Northamptonshire, posted pre-tax profits. The figure for the previous year was £93m. The company said UK revenues had been hit by "a challenging market". The Dr Martens design originated in Germany in the 1940s and production started in the UK in 1959, when the Northamptonshire-based Griggs Group bought the patent rights. The familiar yellow-stitched boots, made at the factory in Cobbs Lane, Wollaston, have been bought by famous names from the Sex Pistols to the Dalai Lama. The company has been in the doldrums in recent years, with declining revenues exacerbated by the cost-of-living crisis. Underlying profits in the year to March, which do not include anything exceptional or non-recurring, have dropped from £97.2m to £34.1m. The group said sales to consumers in the US started to grow in the second half of the year and had continued to increase, but UK revenues had remained lower since the year-end "due to a challenging market". It flagged uncertainty over the impact of higher tariffs, including those imposed by the USA, but said it was holding off from price hikes for the the remainder of 2025. The group added: "We do recognise that there is continued macroeconomic uncertainty and the full outcome of tariffs is still unknown, and we will monitor this closely through the year and take action as appropriate."

BBQ - What strategies could Dr Martens use to improve their profitability?

Dr Martens

, external for the year to March of £8.8m.The figure for the previous year was £93m.

Aldi Cookie Copyright

The corporation behind Oreo has filed a lawsuit in the US against the budget supermarket Aldi, accusing it of "blatantly" copying the packaging of its famous snacks. Court documents showed that Mondelēz International said Aldi uses similar packaging likely to "deceive" consumers and "ride the coattails" of the company's "attraction, fame and prestige". The snack giant also is behind Wheat Thins, Nutter Butter, Chips Ahoy!, and Ritz - all products the company accuses Aldi of copying with its "discount" versions. Although Aldi did discontinue or alter the packaging of some products, the supermarket has continued making "unacceptable copies", the lawsuit stated. The company claimed that if Aldi is allowed to continued with its product lines, it will "irreparably harm" the Mondelēz brand. In the lawsuit, Aldi is accused of trademark infringement, unfair competition and unjust enrichment. Mondelēz said it is seeking damages. Mondelēz described Aldi's business model as hinging on "low-priced private label products that resemble the look and feel of well-known brands". Aldi, which has its headquarters in Germany, is known as a discount supermarket offering affordable alternatives to well-known brands. There are over 2,500 Aldi shops in the US however they are under the same ownership as the UK Aldi they operate as completely separate businesses

BBQ - Why is copyright important for Businesses?

Oreo Copyright

KFC Growth Plans

KFC has announced plans to create 7,000 new jobs across the UK and Ireland as rival fast food chicken chains such as Wingstop threaten to take a bigger bite of the market. The fried chicken firm is investing nearly £1.5bn over five years, part of which will be spent on new restaurants in "key locations" such as Ireland and north west England, where it opened its first-ever British restaurant 60 years ago in Preston. Consumers in the UK and Ireland spend billions of pounds in fried chicken chains every year. KFC revealed its plan as competitors expand in Britain and Ireland, including Popeyes, famed for catering singer Beyoncé and rapper Jay-Z's wedding in 2009. It said it will plough nearly £500m into 500 new sites as well as upgrading existing shops. It currently has more than 1,000 restaurants across the UK and Ireland, the majority of which are operated by franchisees. The fast-food chain said the 7,000 new jobs it expects to create in the UK and Ireland will include servers, kitchen-based roles and managers. KFC is by far the largest fried chicken chain in Britain. But in recent years, smaller competitors have been growing including America's Wingstop which, in December last year, sold its UK arm to US private equity firm Sixth Street for £400m. Wingstop currently has around 57 franchised sites in the UK and plans to open another 20. Meanwhile, Popeyes UK has 65 restaurants across the UK and Ireland after a big expansion last year when it opened 33 shops. According to market research firm Kantar, Britons spent about £2.4bn on fried chicken from fast food shops in the year to 20 April.

BBQ - Will increasing the number of stores be the best way to deal with increased competition for KFC?

KFC Growth

Labubu Craze

 

Fans of viral Labubu dolls have reacted angrily online after its maker pulled the toys from all UK stores following reports of customers fighting over them. The soft toys became a TikTok trend after being worn by celebrities like Rihanna and Dua Lipa. Now some retail experts are warning the stop on stock will only heighten demand. Labubu is a quirky monster character created by Hong Kong-born artist Kasing Lung, and popularised through a collaboration with toy store Pop Mart. Since gaining celebrity status they've gone viral as a fashion accessory. In the UK, prices can range from £13.50 to £50, with rare editions going for hundreds of pounds on resale sites such as Vinted and eBay. Pop Mart said it was working on a fairer system for when the toys return to its shelves. But fans on social media were not happy at the decision to pull the dolls. Collectible brands like Labubu use scarcity as "a powerful tool". Labubu will return to physical stores in June, and they are currently working on a new release mechanism that is better structured and more equitable for everyone involved.

BBQ - How should Labubu better handle the distribution of the dolls?

Labubu Craze