Business Brace For Budget 2025

Business leaders face a nervous final few days before the chancellor's second Budget, having borne the brunt of a brutal set of tax hikes this time last year. Firms are still reeling from those: the £25bn National Insurance increase and an inflation-busting rise in the minimum wage. Confidence in boardrooms has grown increasingly fragile as the Budget nears. Almost all measures of sentiment among chief executives and finance bosses in the last six months have shown alarm bells ringing. Business rates are a bug-bear. Many firms have seen their bills almost double, after a pandemic-era discount of 75% for retail, hospitality and leisure businesses was cut to 40% last year. According to a recent survey by Barclays, 55% of business leaders say they are delaying investment decisions until they have seen the Budget. But 43% say they expect to increase investment after it, a sign of possible pent-up optimism. But confidence is still very fragile. The chancellor will need to handle with care.

BBQ - What would a Business want from the budget this year?

Budget 2025

UK Youth Unemployment Hitting JD Sports Sales

Unemployment among young people in the UK is hitting sales growth and profits at JD Sports, the owner of the trainer and sportwear chain has said, amid warnings about the high number of under-25s not in work, education or training. The UK was the worst-performing market for JD Group, which also owns Blacks, Go Outdoors and a number of US and European sports chains. Régis Schultz, the chief executive, said JD was experiencing “pressures on our core customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment”. His comments came as official figures on Thursday showed the number of 16- to 24-year-olds who are not in education, employment or training (Neet) remains stubbornly close to the highest level in a decade. The squeeze on spare cash for young people contributed to a 3.3% slide in sales at established JD Group stores in the three months to 1 November. Sales were also down in the US and EU – by 1.7% and 1.1% respectively – amid similar pressures as well as a lack of new product launches to draw in shoppers and the slowdown in the trend for women’s vintage trainers. D said annual profits would now be at the lower end of expectations, at about £853m, compared with a once-hoped-for £1bn. 

BBQ - How blame can JD Sports put on the external pressures of youth unemployment? Do they need a new strategy?

JD Sports

Christmas Cheer & Business Blues

Newcastle’s festive market is back—but not everyone’s feeling the Christmas spirit. Local traders say the wooden chalets lining Nelson Street and Old Eldon Square are blocking shopfronts and hitting sales hard. Priory Press, a coffee shop on Nelson Street, claims it lost 70% of its trade the day stalls appeared outside its door. To make matters worse, one of those huts was selling coffee. “We were told there’d be no food or drink stalls on our street,” said owner Liam Douglas. “Then a rival coffee shop popped up right in front of us.” Fashion store Friday Vintage says vans and machinery setting up the Christmas Village have blocked its entrance and even knocked over signs. “Last year an excavator was hanging over my steps while customers were inside,” said owner Laura Jackson. “It’s unsafe and unnecessary.” Newcastle City Council and NE1 insist the market boosts the city economy—last year’s event brought in £96 million—and say they’re working with affected businesses. The rival coffee stall has now been moved, and Priory Press has been offered a hut to trade from.

BBQ - Should festive markets take priority over year-round businesses? 

Newcastle Christmas Markets

iPhone Pocket

 

Apple has unveiled its latest accessory, the iPhone Pocket, a limited-edition carrying case priced at £219.95, and the internet is having a field day. Designed in collaboration with Japanese fashion house Issey Miyake, the minimalist bag comes in vibrant colors and two strap lengths, but its sock-like appearance and lack of security features have drawn widespread criticism. Social media users mocked the product as “$230 for a cut-up sock,” while tech influencer Marques Brownlee called it a “litmus test” for Apple fans who buy anything the brand releases. Apple defends the price as a reflection of branding, exclusivity, and design heritage, positioning the accessory as a luxury fashion item rather than a practical case. This controversy highlights the tension between brand loyalty and perceived value, raising questions about how far consumers will go for status-driven purchases.

BBQ - Apple’s iPhone Pocket is priced far higher than similar accessories. Explain one reason why a business might use premium pricing for a product.

iPhone Pocket

The Steam Machine

 

PC gaming giant Valve, best known for its Steam platform, has announced the Steam Machine, a compact console designed to bring PC-quality gaming to the living room and rival the likes of Xbox Series X and PlayStation 5. Launching in early 2026, the six-inch cube runs on SteamOS, powered by AMD’s Zen 4 CPU and RDNA 3 GPU, promising 4K gaming at 60 FPS and whisper-quiet cooling. Unlike traditional consoles, the Steam Machine doubles as a fully functional PC, offering expandable storage and compatibility with most Steam titles. Valve also revealed a new Steam Controller and the Steam Frame VR headset, signaling a major push into both console and virtual reality markets. Pricing remains unconfirmed, but analysts expect it to compete at the premium end of the console spectrum. This bold move positions Valve as a serious contender in a market long dominated by Sony and Microsoft.

BBQ - Valve is entering a market dominated by established competitors like Sony and Microsoft. Explain one risk of launching a new product in a highly competitive market.

Steam Machine

Skims Hits $5bn Valuation

Kim Kardashian’s shapewear brand Skims has reached a staggering $5 billion valuation after raising $225 million in new funding, making it one of the most successful celebrity-backed businesses in recent years. Launched in 2019 as an online-only shapewear company, Skims has rapidly grown into a global lifestyle brand offering loungewear, menswear, and beauty products, with annual sales expected to exceed $1 billion. The company is now investing heavily in physical retail stores to strengthen its presence beyond e-commerce, alongside high-profile collaborations such as NikeSkims, which position it in the competitive athleisure market. Kardashian’s personal influence, savvy marketing, and strategic diversification have been key drivers of this growth, showing how strong branding and innovation can transform a niche product into a global powerhouse.

BBQ - Explain one reason why Skims might choose to open physical stores after starting as an online-only brand.

SKIMS

Worlds First $5 Trillion Business

 

Nvidia has made history again, becoming the first company in the world to reach a staggering $5 trillion (£3.8 trillion) market valuation. This monumental milestone, achieved in late October 2025, solidifies the chipmaker's position at the absolute epicenter of the global Artificial Intelligence (AI) revolution. The company's Graphics Processing Units (GPUs), initially designed for video games, are now the "new oil" for the tech ecosystem, powering everything from ChatGPT's generative models to massive corporate data centers. This rapid growth—reaching $5 trillion just months after hitting the $4 trillion mark—is fueled by Nvidia's near-monopoly, holding an estimated 80% market share in the critical AI accelerator market. Despite growing challenges from rivals like AMD and major customers like Microsoft developing their own chips, CEO Jensen Huang's strategy of pairing cutting-edge hardware (like the Blackwell chip) with its powerful CUDA software ecosystem has created a competitive barrier that is nearly impossible to breach. For investors, the question is now less about if the company will grow, but rather how its massive valuation will be sustained amidst geopolitical risks and increasing market competition.

BBQ - Explain two potential business risks that could threaten Nvidia's ability to maintain its dominant market position and high market value.

Nvidia

France vs Shein

The world's fashion capital just became the latest battleground in the war against ultra-fast fashion. On the same day Shein opened its first permanent physical store inside a historic Paris department store, the French government announced it was initiating proceedings to suspend the company's entire online platform in the country. The official catalyst for the suspension was the discovery of illegal weapons and highly controversial, childlike sex dolls listed on Shein's third-party marketplace, which authorities stated were in violation of French law. This sudden escalation compounds the existing fury from French politicians, luxury brands, and environmental groups who have long targeted Shein over its alleged poor labour practices and massive environmental footprint. The juxtaposition of excited shoppers queuing to enter the new store while police patrolled outside amidst anti-Shein protestors highlights a powerful consumer dilemma: the allure of incredibly low prices versus the growing awareness of the ethical and legal costs associated with ultra-fast e-commerce giants. For France, this move is not just a consumer protection measure; it’s a strong declaration in defense of the values, quality, and domestic retail sector of the nation's treasured fashion industry.

BBQ - To what extent should the ethical obligations of a global retailer like Shein take priority over its objective to maximise profit?

France vs Shein

Holidays AI Coming

Coca-Cola's decision to embrace generative AI for its recent Christmas advertisement has ignited a spirited debate across the internet, showcasing the tension between technological innovation and cherished holiday tradition. The campaign, which reimagines the brand's iconic "Holidays Are Coming" truck parade with entirely AI-generated visuals—sometimes featuring animals instead of people—is a bold move to modernize its festive storytelling. While some praise the company for pushing creative boundaries and demonstrating the speed and visual sophistication of AI tools, others have criticized the ad as "soulless," "creepy," and lacking the authentic human warmth that made the original campaigns so beloved. Despite mixed public reception, the beverage giant is clearly committed to exploring this new medium, signaling that AI-driven content is likely to become an enduring part of large-scale advertising, even for the most nostalgic of brands.

BBQ - To what extent is this reliance on AI a sustainable and beneficial marketing strategy for a global brand like Coca-Cola?

Holidays Are Coming