Boxing Day Debate

Tesco and Morrisons will open their shops on Boxing Day despite calls to give staff the day off. Unions say supermarket staff should not have to go in on 26 December as a thank you for their work during the pandemic Asda, Marks & Spencer, Pets at Home, and toy store The Entertainer have all said they will close. But Tesco and Morrisons have joined Sainsbury's in saying they would open on Boxing Day for a limited number of hours. Tesco said it would reward frontline staff with an extra 10% bonus over the Christmas and New Year period. Morrisons said that working on the day would be voluntary with staff getting double pay. Sainsbury's will open but has reduced the hours after requests from staff. It said most workers would have Boxing Day off. As part of a thank you to staff for their work during the pandemic, Asda said that all of its 631 shops would close for two days over the Christmas break. Frontline staff will also get 100% of their bonus entitlement regardless of whether they have reached sales quotas.

Boxing Day Debate

Pop Mart Success

A Chinese mystery toymaker has seen his wealth surge after his company was floated on the stock market on Friday. Pop Mart, founded by Wang Ning, has grown rapidly to become a company worth around $7bn (£5.3bn). The firm sells collectible figures for about $8 each in packaging that doesn't allow buyers to see what's inside. Mr Wang owns around 50% of Pop Mart following the stock market launch in Hong Kong on Friday, and now has a net worth of $3.2bn, according to Forbes. Beijing-based Pop Mart raised $674m from the share sale, which it will use to open more stores and expand overseas. It shares rose 100% higher in early trading after the stock market debut. "Chinese are stressed over long hours but face low pay at work and unaffordable housing prices, so they look for cheap forms of entertainment and purchases," said Shaun Rein, managing director at China Market Research Group. Pop Mart sells its products in 21 countries outside China and says its customers are mostly aged 18 to 35, while 75% are female. China's millennials spend more on mystery toys than any other hobby, including designer shoes and e-sports, according to a report from e-commerce platform Tmall, which is owned by Alibaba.

Pop Mart

Britain's Worst Hotel

Dirty loos and scathing reviews by guests have led Britannia hotels to be named as Britain’s worst hotel chain for the eighth year running. Described by one guest as a “filthy hovel” and another as “by far the dirtiest hotel room I have ever stayed in”, Britannia props up the table in Which?’s rankings of the best and worst large UK hotel chains. The consumer group said Britannia, which has 62 hotels across the country, had received a customer score of 37%, with the lack of cleaning a particular concern. One of the most scathing reviews was so bad it was “unprintable”, it said. In response Britannia said: “We are totally committed to providing a safe environment for visitors. We have so far spent around £2m on Covid-19 precautions, but we accept there is more to do.” Which? asked more than 4,000 people to rate their experiences at UK hotels on a range of criteria, including bedrooms, bathrooms, cleanliness, customer service and value for money.

Worst Hotel Chain

Will Santa Have Enough Bikes for Christmas?

While bicycle sales shot through the roof as people took to exercising outdoors or commuting to work by pedal power during the pandemic, manufacturers struggled to keep up as factories were temporarily shut down, leading to a worldwide shortage.  This mismatch between rocketing demand and dwindling supply led to empty floors in bike shops, leaving many disappointed customers. Like the majority of products nowadays, most bikes are made using parts sourced from all over the world, and particularly from Asia. Halfords says it has a diverse supplier base across the world, and is "working increasingly closely with our suppliers to meet the demand as more consumers take to cycling in the UK". It has had tens of thousands of customers on waiting lists for deliveries. Looking ahead into 2021, the question is whether bike sales will continue to shoot up, or return to normal levels after Covid-19 eventually passes.  One report estimates the growing popularity of cycling will only continue. UK sales are predicted to exceed £1bn by 2023, up from £842m this year.

Christmas Bikes

Nike Diversity Ad Causes Backlash in Japan

Nike is facing a backlash in Japan over an advert which highlights racial discrimination in the country. The video shows the "real life experience" of three young soccer players from mixed heritage.  It has about 25 million views on social media and almost 80,000 shares. But it has sparked fierce debate as Japan is unaccustomed to openly discussing sensitive issues such as race, with some questioning whether a foreign brand should have waded in. Nike Japan said the ad highlights how people "overcome their daily struggles and conflicts to move their future through sports".  But some comments on social media said Nike was exaggerating the scale of discrimination, arguing that it was unfair to single out Japan. Other users threatened to boycott Nike products. One comment said: "It's as if they are trying to say this kind of discrimination is everywhere in Japan." However, there were also positive comments about the ad, entitled The Future Isn't Waiting, for highlighting the issue of racism.

Nike Japan Advert

Topshop on Brink

Sir Philip Green's retail empire Arcadia, which includes Topshop, Burton and Dorothy Perkins, is understood to be on the brink of collapse. Sir Philip had been in talks with potential lenders about borrowing £30m to help the business through Christmas. However, these talks have failed and administrators could be appointed on Monday, putting 13,000 jobs at risk. Arcadia said it was working on "contingency options". Arcadia admitted that the coronavirus had had "a material impact on trading across our businesses". However, even before the pandemic, Arcadia's best-known names - like Topshop - were struggling against nimbler online-only fashion retailers like Asos, Boohoo and Pretty Little Thing. With his Arcadia retail empire teetering on the brink of collapse, it is the latest saga in a colourful career that once saw him branded as the "unacceptable face of capitalism".

Topshop

Black Friday

Black Friday started earlier this year as shoppers turned to online services during the pandemic with sales expected to reach over £750m. The number of parcels being delivered started increasing sharply from the end of October. In a normal year, retailers would expect the week in which Black Friday falls to be the most profitable of the year. But sales were already up by between 50 and 60% in each of the first three weeks of November, according to IMRG, which collects data from online retailing companies. However nearly nine in 10 products sold on Black Friday are available for the same price or cheaper earlier in the year, according to consumer group Which?. Some big High Street names have decided to shun the Black Friday shopping bonanza even though online spending in the UK is set to soar. Several retailers told the BBC they were focussed on offering good value all-year round instead.

Black Friday

Pack Light, Pack Right

 

Mondelēz International has reduced plastic across Cadbury, Bournville and Toblerone selection boxes in a bid to become more sustainable. As part of the company’s broader ‘Pack Light and Pack Right’ packaging strategy, all UK and Ireland adult selection boxes will now use cardboard trays, resulting in a reduction of 33 tonnes less plastic used this Christmas. This move will contribute to its global target to eliminate 65,000 tonnes of packaging by the end of 2020. Following the recent 15% packaging reduction the company implemented across its Cadbury large share bags, this initiative is another step forward towards Mondelēz Interational’s vision of creating zero net waste packaging. It has already eliminated over 64,000 tonnes of packaging globally since 2013, made 100% of its paper-based packaging sustainably sourced, and is on track to reach its target to make all its packaging designed to be recyclable by 2025.

Green Selection Box

McPlant

Fast food giant McDonald's has announced it will introduce a line of plant-based meat alternatives called "McPlant" in 2021.  McDonald's said it would offer plant-based burgers, chicken substitutes and breakfast sandwiches. Barclays Bank forecasts that consumption of meat alternatives might be worth $140bn (£106bn) by 2029. McDonald's has tested out a plant-based burger in Canada with Beyond Meat - a producer of plant-based meat.  However, shares of Beyond Meat plummeted after the announcement by McDonald's as it was not clear who would supply the fast-food chain with the meat alternative. The move towards meat substitutes has been driven primarily by concerns over meat's effects on health, the environment and animal welfare. McDonald's still relies on its flagship products like the "Big Mac", "McNuggets" and French fries, which account for around 70% of its sales in its key markets. The company, which reported market-beating profits for its third quarter on Monday, declined to say which supplier it would use for its McPlant line of products

McPlant

Procurement Problems for PS5

Many customers hoping to get hold of a PlayStation 5 on its launch day have been left disappointed after online retailers sold out of the console. In an email to customers, Game blamed courier firm Yodel, which has strenuously denied it is at fault, for some pre-ordered consoles not being delivered on launch day. Currys PC World and John Lewis had sold out of the PS5 by lunchtime. That led some gamers to pay nearly double the retail price on eBay. The PS5 was released in the UK on 19 November but lockdown has meant that people cannot purchase one in physical stores. The US launch took place last week.Currys PC World was forced to institute a virtual queuing system which grew to 150,000 long.

PS5 Delays

Nintendo Profits Boom

Japanese gaming giant Nintendo's profits are soaring as a coronavirus boom in video games continues. The industry has been enjoying runaway sales during the pandemic as lockdowns and restrictions on movement have left many looking for entertainment. Rival Sony said last week that pre-release demand for its Playstation 5 was higher than expected. Global industry sales have topped $10bn (£7.6bn) each month since March, with sales growing each month, he said. Nintendo is one of the firms riding the crest of this wave, and its games have capitalised on different lockdown trends, Mr Evans said. Its Animal Crossing games lets users interact in a virtual world, which appeals to people who cannot meet up face-to-face. "You can visit people in the game, and it's become a way to socialise," he said. The big seller for Nintendo in terms of hardware was its Switch consoles, where it sold 12.5 million units in its first half.

Nintendo Profits Boost

Flights To Nowhere

Thai Airways is getting creative as it looks to raise cash during the travel downturn. Later this month it will launch special flights that will fly over 99 holy sites in Thailand, building on the "flights to nowhere" craze. Thai Airways has already found new sources of income including an airline-themed cafe, dough fritters and handbags made from life vests. But the airline has huge debts which have been mounting during the pandemic. Many airlines have launched flights to nowhere that take-off and land at the same airport. Australia's Qantas offered "sightseeing" flights over Antarctica while an airline in Taiwan hosted a flight to no-where on its Hello Kitty-themed plane. Last month, Singapore Airlines offered diners the opportunity to have lunch on a stationary Airbus A380 parked at the city's main airport. Despite a price tag of up to US$496 (£380), the first two dates sold out within half-an-hour. The airline industry is facing its worst ever crisis with thousands of job losses and many carriers already out of business.

Flights to Nowhere

Luxurious Takeover

 

France’s LVMH will pay slightly less to buy the US jeweller Tiffany & Co after the two firms agreed to end a bitter dispute triggered by the Covid-19 pandemic and salvage the luxury sector’s biggest-ever deal. The new takeover price was set at $131.5 (£101.6) a share, down from $135 in the original deal, the companies said on Thursday, bringing the total price tag to about $15.8bn. The deal is designed to bolster LVMH’s smallest business, the jewellery and watch division that is home to Bulgari and Tag Heuer, and help it expand in one of the fastest-growing areas while also strengthening its US presence. New York-based Tiffany retains a resonance as the go-to purveyor of engagement rings that only a handful of rivals can match.

LVMH x Tiffany

Chocolate Sales Soar

Spending on chocolate has soared by £50m year on year, powered by sales of chocolate bars bought in supermarkets to eat at home. The increase in sales of multipacks and large “sharing bars” has offset a dip in sales of single bars, often impulse buys to eat on the go, from newsagents and other outlets. While the £50m sales increase is only 3% up on the total value of chocolate sales, the amount of chocolate eaten is likely to have risen by two or three times that level because the kind of chocolate bought in supermarkets is so much cheaper. Sales of small single bars and gift boxes for family and friends have declined after travel and visits to other households were curtailed by government restrictions. Analysts put the rise in chocolate sales down to the “lipstick effect” – a spending pattern where cheap treats sell especially well during tough economic times.

Chocolate Sales

iPhone 12

Apple has confirmed its iPhone 12 handsets will be its first to work on faster 5G networks. The company has also extended the range to include a new "Mini" model that has a smaller 5.4in screen. The US firm bucked a wider industry downturn by increasing its handset sales over the past year. But some experts say the new features give Apple its best opportunity for growth since 2014, when it revamped its line-up with the iPhone 6. "5G will bring a new level of performance for downloads and uploads, higher quality video streaming, more responsive gaming, real-time interactivity and so much more," said chief executive Tim Cook. There has also been a cosmetic refresh this time round, with the sides of the devices getting sharper, flatter edges. However, for the first time none of the devices will be bundled with headphones or a charger. Apple said the move was to help reduce its impact on the environment. Interesting bout 40% of the 950 million iPhones in use had not been upgraded in at least three-and-a-half years, presenting a "once-in-a-decade" opportunity.

iPhone 12

Christmas Without Sparkle

Morrisons, Waitrose and John Lewis have said they won't be using glitter in own-brand Christmas products this year. The tiny pieces of plastic can wash into the environment, harm wildlife, and get into the food chain. The move is part of a wider push by retailers to try to reduce festive plastics pollution. Boots said it would be cutting out single-use plastic packaging from Christmas gifts, taking 2,000 tonnes of plastic from its ranges. Asda announced in September that it would launch its first sustainable Christmas range, and Tesco uses only edible glitter. Between four and 12 million tonnes of plastic waste makes its way into oceans every year, mainly through rivers, according to estimates. That plastic then breaks down into smaller, toxic pieces, which can be ingested by creatures, harming and potentially killing them, if it fills their stomachs.

Christmas Sparkle

Sausage Roll Crisps

 

Walkers has teamed up with LadBaby and announced a new festive crisp flavour for 2020: sausage roll. The YouTuber and chart-topper will be taking the helm from pop icon Mariah Carey to star in the company’s Christmas advert this year. Crisp fans will be able to enjoy the new flavour from Monday, 19 October. On top of trying the brand new flavour, you can also enjoy the warm and fuzzy feeling of spreading goodwill towards your fellow man, as 5p from the purchase of each pack will be sent to food bank charity Trussell Trust.

Sausage Roll Crisps

Green Entreprenuer

 

Making money and saving the planet don't always go hand in hand. But slowly, things are changing.  As we all become more aware about the crisis facing the environment, more young people are turning their green ideas into successful businesses.Now Sir David Attenborough and Prince William want people to come up with 50 solutions to the world's biggest environmental problems by 2030. They're giving £1m to the best ones which will be known as the Earth Shot prize - the biggest environmental prize ever.The aim is to find "new solutions" that have a positive effect on environmental change and improve living standards globally, particularly those communities most at risk from climate change. The prize could go to a new technology, a new way of doing things or a new policy - basically any good idea.

Earth Shot

Suits You Madam

Kathryn Sargent has become the first female master tailor to open a shop on London's historic Savile Row. The 41 year old is the first female in the street's 213-year history to have her name 'above the door'. She said just 20 years ago it was "very unusual" to see a woman working on Savile Row. She said: "As a tailor it has been a long-held ambition of mine. I am thrilled to be making history, although for me being a woman is incidental - I am a tailor first and foremost." After completing a fashion design degree, Sargent began an apprenticeship at Gieves & Hawkes, becoming head cutter in 2009 - the first woman in Savile Row history to hold the position.

Savile Row Suits

Uncle Ben's Rebrand

 

Uncle Ben's Rice will change its name to Ben's Original and remove the image of a smiling, grey-haired black man from its packaging. The change follows through on a pledge its owner Mars Food made in June to review the brand amid global protests over police brutality and racism. Uncle Ben's entered the market in the 1940s and was for decades the best-selling rice in the US. Its marketing has been criticised for perpetuating racial stereotypes. Titles such as uncle and aunt were used in southern US states to refer to black people, instead of the more formal and respectful "Miss" or "Mister". The name Uncle Ben's was supposedly inspired by a Texas farmer known for his high-quality rice. The company asked the head waiter at a fancy Chicago restaurant, Frank Brown, to pose as the face of the brand, which launched in 1947.  In 2007, the company sought to update its marketing with a campaign that cast Ben as chairman of the board, a move away from the previous, more servile presentation."We understand the inequities that were associated with the name and face of the previous brand, and as we announced in June, we have committed to change," Mars said. The new packaging is expected to begin reaching shops in 2021.

Ben's

Adidas x Lego

Adidas has launched a new pair of trainers in partnership with Lego, taking inspiration from the world-famous children’s toy for its brand new footwear. Adidas first launched its ZX footwear series in 1984, manufacturing shoes specifically with runners in mind. More than three decades later, the classic ZX 8000 silhouette has been reimagined for the sportswear company’s collaboration with Lego, which was founded in Denmark in the mid-20th century.  The shoes are designed to celebrate the classic Lego brick, incorporating bold primary colours and green on panels across the shoes. The trainers are being released on Friday 25 September exclusively through the Adidas app, which can be downloaded on the Apple App Store and on Google Play. In the UK, the bold footwear is retailing at £99.95. 

Lego x Adidas

Console Wars

Sony has matched the price of the forthcoming flagship PlayStation 5 to that of Microsoft's Xbox Series X.  Last time round, the PS4 significantly undercut the Xbox One at launch. Sony also confirmed the PS5's "digital edition" - which does not have a disc drive - would cost about 40% more than the low-end Xbox Series S. Both PS5 consoles are set to be released on 19 November in the UK, and 12 November in the US, Japan and Australia. That puts them slightly later than Microsoft's 10 November launch date. Sony was the clear leader in the previous generation of the so-called console wars. The various PlayStation 4 consoles outsold the Xbox One range by a factor of more than two to one. But the £449 cost of the Japanese firm's new top-end machine and £360 price of the digital edition means it may be a closer battle this time, at least to begin with.Some industry-watchers believe Microsoft's combination of a £250 price for the XBox Series S and the value offered by the Xbox Game Pass subscription service could give the US firm an advantage.

Console Wars

An Expensive Cup of Coffee

A coffee shop in London is selling what it claims is “the most expensive cup of coffee in the UK” for £50, with only 15 servings of the costly brew available. Queens of Mayfair, which was opened by sisters Grace and Victoria Sheppard in March 2020, is located on Queen Street in Mayfair. The Ethiopan “Cup of Excellence” Queens Coffee being sold by the artisan coffee shop was purchased at auction by the company’s roaster. The rare beans, which won first place at the Cup of Excellence Competition, typically retail for approximately £2,000 per kilogram. Once the coffee has been prepared at Queens of Mayfair – a process that involves the beans being ground by hand – it is served to customers in a crystal wine glass. The coffee shop states that one serving of the coffee could be enough for either one or two people.

Expensive Coffee

Pringles Recycling Nightmare

The distinctive Pringles tube is being re-designed after criticism that it’s almost impossible to recycle. The current container for the potato-based snack was condemned as a recycler’s nightmare. It's a complex construction with a metal base, plastic cap, metal tear-off lid, and foil-lined cardboard sleeve. The Recycling Association dubbed it the number one recycling villain – along with the Lucozade Sports bottle. Now Pringles' maker Kellogg's is trialling a simpler can – although experts say it’s not a full solution. The existing version is particularly troublesome because it combines so many different materials. The new designs have been 12 months in the making. Pringles have a shelf life of 15 months - and three million cans are made across Europe every day.

Pringles Recycling

Haribo Stocks Run Low at Tesco

Tesco is allowing stocks of Haribo sweets to dwindle from its shelves following a row with the confectioner over price cuts. The supermarket giant is demanding suppliers lower prices to allow it to compete with German discounter Aldi. Haribo and Tesco have failed to reach a deal and ranges such as Tangfastics and Starmix are unavailable online. In March, Tesco launched its "Aldi Price Match" campaign, to match the prices on hundreds of its goods with the German discounter. It subsequently asked suppliers to cut their prices as part of a strategy to take Aldi. Companies were told they had until 10 July to agree. While many sectors have struggled during the coronavirus pandemic, supermarkets have thrived after customers initially panic-bought produce and demand for online grocery deliveries surged.

Haribo Stocks

Lego Continuing To Build

The rise of the kidult helped boost UK toy sales during the coronavirus lockdown, with Lego the latest business to benefit from parents joining their children on the playmat while pubs, cinemas and playgrounds were closed. Despite hundreds of stores being shut during the pandemic Lego remains on track to open 120 new shops this year. The Danish toy firm said bricks-and-mortar stores had a solid future, despite the drop in footfall on high streets and social distancing restrictions in shops. "When our stores have reopened after lockdown, there have been queues," boss Niels Christiansen said."We give people the brand experience in our shops which we can't do outside." It comes as the toy firm announced revenues of DKK 15.7bn (£1.8bn) for the first half of the year, up 7%, while operating profit grew by 11%. The company currently has 612 stores across the globe, with 14 in the UK. Of the new stores it is opening, 46 were launched in the first half of the year. Overall, 80 of them will be based in China. Alongside its store openings, the firm said e-commerce remained vital to the business, with visits to its website doubling to 100 million in the first half of 2020.

Lego Lockdown

Coffee Crisis

It’s the multibillion-pound industry that kept on growing, based on a bean that Britons couldn’t seem to get enough of: coffee. Until, that is, the pandemic struck. As is the case with many businesses hit hard by coronavirus, the ubiquitous coffee chains that have powered city centres and high streets across the UK are in deep trouble. This week, Costa announced it is cutting more than 1,500 jobs. Pret a Manger is losing almost 3,000 staff and closing 30 outlets. The problems are laid bare in figures that would undermine any business model: spending on takeaway hot drinks in the UK slumped nearly 90% in April, the peak of the high street lockdown, according to the market research firm Kantar. The demise of the barista undoubtedly goes hand in hand with the struggles of city centres caused by the emptying of office blocks and a massive slowdown in travel and tourism. Pret a Manger is to offer customers up to five coffees a day if they sign up to a monthly subscription service. The chain is hoping that the price tag of £20 is low enough to win back some of the business lost in the pandemic.

Coffee Crisis

Swizzles Drumstick Chocolate

The Drumstick lolly is a childhood classic – it always turned up in a party bag after a birthday and pulling it apart as you chewed was all part of the fun. But if you fancy an updated version of the raspberry and milk flavour lolly, creators Swizzels is now making a chocolate bar with a Drumstick filling. It’s a soft milk flavour chew with real dried raspberry pieces, covered in milk chocolate and you can currently pick up a bar at Home Bargains for 99p. The bar is wrapped in the Drumstick yellow and red colours. This is a good example to use for product development for Ansoff & Boston Matrix.

Drumstick Chocolate

Intu Warns of Closures

The owner of some of the UK's biggest shopping centres, Intu, has said there are doubts that it can survive unless it raises extra funds. Its comments came as the firm - which owns Manchester's Trafford Centre and the Lakeside complex in Essex - reported a £2bn loss in 2019. The weakness in the retail sector meant Intu wrote down the value of its shopping centre sites by nearly £2bn. Intu will try to raise extra cash after an earlier plan to raise £1bn failed. The collapse and contraction of High Street retailers has left landlords such as Intu struggling to fill vacant space. At the same time, Intu has run up debts of nearly £5bn. In January, the firm approached its shareholders to ask for more money amid the downturn in the retail sector. But last week, Intu said it was at risk of breaching debt covenants after it was forced to abandon the fundraising attempt. It said "extreme market conditions" deterred investors from giving fresh cash. To help it keep going, the firm said it would try to engage with investors, or it might have to sell more of its assets. The company has already been selling shopping centres to raise cash.

Intu Closures

Morrisons Paying Up

Supermarket chain Morrisons is to pay its small suppliers immediately to help keep them afloat amid coronavirus uncertainty. The move aims to help suppliers get through any difficulties caused by the spread of the disease, a spokesman said. Morrisons is the first major UK supermarket to make this kind of change to its payment terms. It follows government measures to support small firms and the UK economy. Small firms supply Morrisons with thousands of its products. Paying them immediately will help them weather any difficulties they face through disruptions to their manufacturing processes, or if any of their staff go sick, the spokesman said. "We're aiming to help them through the next weeks and months," he said. "We want to help local producers, farmers, and fishermen during an uncertain time." For the smallest suppliers, with an annual turnover of £100,000 or less, the normal Morrisons payment period is 14 days. For firms with a turnover between £100,000 and £1m, that period is from 30 to 60 days. All firms with a turnover of up to £1m will be paid immediately. For larger firms, the payment period will remain at 60 days.

Supplier Payment

Super Mario Lego

Lego and Nintendo have announced a joint product named Lego Super Mario, which combines the toy maker’s playsets with the gameplay of the Mario platformers. Although Lego has collaborated with other video game franchises in the past, such as Sonic the Hedgehog, this is the first time Mario has appeared in Lego form. Lego Super Mario is being described as a product line rather than one-off. The Lego Super Mario sets seem to be aimed at a younger crowd, of around five- to nine-year-olds. Lego is betting big on physical stores despite falling demand in the wider toy market. It plans to open 150 branded shops around the world in 2020, having opened the same amount last year. Lego's chief executive, Niels Christiansen, told the BBC that he "wanted people to get their hands on bricks and be a part of the brand". The company estimates that the global toy market shrank by 3% in 2019.

Super Mario Lego

John Lewis Bonus Cut

John Lewis has warned it could close shops as a plunge in profits forced it to cut staff bonuses to their lowest level in almost 70 years.  The retailer, which also owns Waitrose, has launched a review of the business which it said would involve "right sizing" its stores across both brands.  The review would involve store closures "where necessary" as well as space reduction in existing stores, it said. The John Lewis Partnership is owned by its staff - known as partners - who usually receive a bonus each year. This year, staff bonuses have been set at 2%, the lowest since 1953 when it paid no bonus.  Profits at the partnership dived by 23% last year to £123m - the third year in a row that profits have fallen - as it continued to struggle with the slowdown in consumer spending. The key competitive edge John Lewis has is customer service, that is delivered by its staff. If you take away part of their remuneration then your customer service levels are likely to be impacted.

John Lewis Bonus

Flybe Collapse

Flybe, Europe’s largest regional airline, has collapsed into administration with the loss of more than 2,000 jobs, less than two months after the government announced a rescue deal. The impact of the coronavirus on flight bookings proved the last straw for the Exeter-based airline, which operates almost 40% of UK domestic flights, as the government stalled on a controversial £100m loan.  Before the viral outbreak, Flybe was already struggling with rising fuel costs – a key factor in any airline’s ability to make a profit – soft demand and competition. The airline employed more than 2,000 people directly and about 8 million people a year used its services. Flybe has long struggled to balance the books, despite cost-cutting plans and redundancies, and was reporting losses of about £20m a year before the Connect takeover.
Flybe Collapse

Panic Buying

Tesco, the UK's largest grocer, has begun restricting sales of essential food and household items as a result of coronavirus stockpiling. Shoppers are limited to buying no more than five of certain goods, including antibacterial gels, wipes and sprays, dry pasta, UHT milk and some tinned vegetables. The rules apply in stores and online.According to a survey from Retail Economics, as many as one in 10 UK consumers is stockpiling, based on a sample of 2,000 shoppers. UK retailers have been warned that they face prosecution if they exploit the coronavirus scare to hike prices for products such as hand sanitisers and face masks. The Competition and Markets Authority (CMA) has told suppliers to act responsibly and said it was monitoring pricing practices. It comes as Facebook and Amazon have cracked down on profiteers hiking prices online of face masks and hand sanitisers.

Panic Buying