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