Black Friday Rebound

Black Friday sales bounced back this year as shoppers looked out for good deals, despite predictions the higher cost of living would dampen the event. Barclaycard Payments, which processes £1 in every £3 spent on UK cards, said transactions rose 3.2% on last year. An all-time Black Friday record was made for the number of transactions per second between midday and 1pm. Currys said energy-efficient products led its sales as customers looked to save money on energy bills. Footfall in shops was up on 2021 with no Covid rules this year, but was down compared to before the pandemic. Experts had predicted overall sales and profits would be lower than last year, due to customers tightening their purse strings as prices rise at the fastest rate for 41 years.

Black Friday

Dr Martens Boots Up Prices

Dr Martens is to step up the price of its boots by 6%, as it says the cost of labour, energy and supplies, including the bouncy soles and leather, has risen. The Northamptonshire-based footwear group will increase prices for the second year in a row on the classic boot, which currently costs about £159, adding £10 to the price. The rise will come next autumn to reflect higher production costs that the company has now locked in over the course of next year. Staff costs are rising, and Dr Martens is offering a £500 cost of living bonus – paid out over October and November – to about 2,000 of its 3,500 workers around the world. Wilson said the company was making the payment as its workers were facing “very tough levels of inflation” around the world: “At the end of the day, people are the differentiator. We have a highly engaged workforce and wanted to show we cared for people who work for Dr Martens, and actions speak louder than words.” Shares dived almost 24% as the company warned of “variable trading” in recent weeks, partly because of mild autumn weather in the UK and Europe, and said that profit margins would take a hit.

Dr Martens

Apple Workers Protest in China

Protests have erupted at the world's biggest iPhone factory in the Chinese city of Zhengzhou, according to footage circulated widely online. Videos show hundreds of workers marching, with some confronted by people in hazmat suits and riot police. Those livestreaming the protests said workers were beaten by police. Videos also showed clashes. Manufacturer Foxconn said it would work with staff and local government to prevent further violence. In its statement, the firm said some workers had doubts about pay but that the firm would fulfil pay based on contracts. Last month, rising Covid cases saw the factory locked down, prompting some workers to break out and go home. The company then recruited new workers with the promise of generous bonuses. But one worker said these contracts were changed so they "could not get the subsidy promised", adding that they were quarantined without food. The Zhengzhou plant employs more than 200,000 people, making Apple devices including the iPhone 14 Pro and Pro Max.

Apple China Protests

Lucozade Pulls Out of World Cup

England sponsor Lucozade will avoid having a brand presence at the FIFA World Cup in Qatar. Lucozade is a partner of England, rather than FIFA or the tournament itself, and has chosen to remove its branding at “press conferences, training sessions, and pitches”. It is understood that it is a matter for England partners how they activate their sponsorship of the England team in Qatar. A statement from the drinks company to The Athletic read: “Lucozade Sport is a proud long-term sponsor of the England team, but we are not an official FIFA World Cup partner. We continue to support all England teams, who celebrate diversity, equity and inclusion. “While the England team have access to our drinks for hydration purposes we will not have a brand presence at press conferences, training sessions or on pitches.” Other brands have also attempted to minimise their presence at the tournament. For example, Hummel, Denmark’s kit manufacturer, “toned down” its logo and design on the team’s World Cup kits because it does not want to endorse Qatar, the host nation.

Lucozade World Cup

Bezos to Give Away Fortune

Amazon founder Jeff Bezos has said he plans to give away most of his $124bn (£107bn) fortune during his lifetime. The businessman told news network CNN he would donate his wealth to fighting climate change and reducing inequality. He has previously been criticised for not promising to dedicate his fortune to charity. Investor Warren Buffett, Microsoft founder Bill Gates and Mr Bezos's ex-wife MacKenzie Scott have all promised to give their money away.  Mr Bezos revealed his plans after donating $100m to the country music star and philanthropist Dolly Parton to use for charitable causes. The multi-billionaire previously pledged $10bn to the Bezos Earth Fund, which he launched in 2020 to help fight climate change. The move came after Mr Bezos and other entrepreneurs were criticised for spending vast amounts of money on trips into space instead of solving problems on Earth. Amazon had also been criticised in the past by its workers over its record on climate change. Mr Bezos became one of the richest people on the planet after Amazon, the internet retailer he founded in 1994, became a global phenomenon.

Bezos Fortune

Primark Trials Click + Collect

Primark's website crashed on Monday, shortly after the retailer finally launched its click-and-collect service. It is starting a trial in 25 stores in north-west England, Yorkshire and north Wales for children's products only. The budget chain, which lost more than £1bn in sales during the pandemic when its stores had to close, has succumbed to the online shopping revolution but it is not planning deliveries. Primark said it was aware some people had issues accessing its site. "We're working hard to address this to ensure that everyone can access and browse the site easily," the company said in a statement. By mid-afternoon the website appeared to be back up and running for some customers. During the pandemic lockdowns Primark's 190 UK stores were forced to close its doors, and it had no online operation to fall back on. Given the costs of fulfilling and delivering online orders, and dealing with high levels of returns, it can be hard for retailers to make the economics of e-commerce stack up. Primark has also been upping its game at its biggest "destination" stores, like its vast Manchester city centre one, with cafes, a barber shop, a vintage concession store and pop-up space to personalise Primark products.

Click + Collect

KFC Promotion Mistake

KFC has apologised after sending a promotional message to customers in Germany, urging them to commemorate Kristallnacht with cheesy chicken. The Nazi-led series of attacks in the country in 1938 left more than 90 people dead, and destroyed Jewish-owned businesses and places of worship. It is widely seen as the beginning of the Holocaust. The message, heavily criticised for its insensitivity, was later blamed on "an error in our system". The fast-food chain sent an app alert on Wednesday, saying: "It's memorial day for Kristallnacht! Treat yourself with more tender cheese on your crispy chicken. Now at KFCheese!" Around an hour later another message was sent with an apology, according to the Bild newspaper. "We are very sorry, we will check our internal processes immediately so that this does not happen again. Please excuse this error," the message is reported to have said.

KFC Apologise

Meta Cut Staff

Meta, which owns Facebook, Instagram and WhatsApp, has announced that it will cut 13% of its workforce. The first mass lay-offs in the firm's history will result in 11,000 employees, from a worldwide headcount of 87,000, losing their jobs. Meta chief executive Mark Zuckerberg said the cuts were "the most difficult changes we've made in Meta's history". "I know this is tough for everyone, and I'm especially sorry to those impacted," he wrote in a statement. Mr Zuckerberg blamed massive long-term expectations for growth based on the firm's rise in revenue during the pandemic. "Many people predicted this would be a permanent acceleration," he wrote, "I did too, so I made the decision to significantly increase our investments." Instead he said "macroeconomic downturn" and "increased competition" caused revenue to be much lower than expected "I got this wrong, and I take responsibility for that," he said. The announcement of job cuts was widely expected. Mr Zuckerberg told hundreds of Meta executives of the plans on Tuesday, the Wall Street Journal reported.

Meta Job Cut

Christmas Advert Season

 

Christmas adverts have started on TV - and as ever, many conjure up sentimentality, nostalgia and joy. But as the cost-of-living soars, some retailers have opted for a more muted approach to their campaigns this year. John Lewis said its advert, featuring a foster family, was less about buying things and more about kindness. But some retail experts warned scenes of bountiful buffets in other ads were still out of touch as families struggle with rising prices. John Lewis is the latest big-name brand to beam its festive message into homes around the UK. It told the BBC the cost-of-living crisis was "front of mind" when deciding what tone the advert should take. Market research experts say brands were being careful not to look out of touch with their customers. John Lewis would not comment on how much it cost to make the advert, which is 90 seconds long and set to a cover of Blink 182's All The Small Things by the artist Mike Geier. Retail and marketing experts agree that brands will have had to work hard to get the tone right this year, at a time when many people are cutting back.

The John Lewis & Partners Christmas Advert

Twitter Takeover

 

Twitter's new owner Elon Musk says he had "no choice" but to slash the company's workforce as the firm is losing more than $4m (£3.5m) a day. Half of the company's staff are being let go, a week after Mr Musk bought Twitter in a $44bn (£38.7bn) deal. Twitter staff have been using the platform to talk about their dismissal. There are concerns Twitter could water down content moderation but Mr Musk said the firm's policies remain "absolutely unchanged". An internal email sent to staff earlier on Friday said the mass job cuts were "unfortunately necessary to ensure the company's success moving forward". Staff confirmed on Twitter they had been logged out of work laptops and Slack, a messaging system. A host of major brands have halted advertising spending with Twitter, including Volkswagen, General Motors and Pfizer. Almost all of Twitter's revenue currently comes from advertising, and Mr Musk has been looking for ways to cut costs and make money in different ways from the platform, including plans to charge a monthly subscription fee for users to be verified on the platform.

Twitter

Fiesta Finished

The popular Ford Fiesta is set to be discontinued as early as next year as costs of parts rise and drivers opt for SUVs. Ford bosses are expected to announce in the next few days that the production of the Fiesta will end by mid-2023. Executives are believed to be holding talks with dealers, suppliers and staff ahead of the announcement. Ford apparently has no plans for an electric version of the car despite its popularity. A spokesman for Ford said that it was "accelerating our efforts to go all in on electrification", and so the company is reviewing the portfolio of cars it has on offer. He added that the carmaker does not comment on speculation and that more information would be made available soon. The Fiesta is currently produced in Germany, although the first model rolled off the production line in Dagenham, Essex, in 1977. The car was at the forefront of the US carmaker's efforts to corner the British car market because of its more affordable price point. Although last month, the Fiesta was still the sixth best-selling new car in the UK with 4,570 registrations. Ford is thought to be using electrification as an opportunity to reinvent the brand for eco-conscious consumers.

Ford Fiesta

Bounty Bars Removed from Celebrations

 

The maker of Celebrations chocolates is to remove Bounty bars from some tubs next month after finding 40% of people hate the coconut-flavoured treat. Mars Wrigley said a limited run of "No Bounty" tubs would be available at 40 Tesco stores in the run-up to Christmas. It comes after the brand let shoppers return unwanted Bounties last year. However, the food maker said it was yet to decide whether the divisive treats would be banished for good. Mars Wrigley said its own research of 2,000 people aged between 18 and 65 suggested that 18% would feel irritated to find only Bounty bars were left in a tub, while 58% believed it would lead to a family argument. Some 22% said they liked Bounty the least of all the options in tubs of Celebrations, while 39% wanted the bars gone for good, However, Mars Wrigley said it was not prepared to make a final decision yet after 18% of people named the Bounty as their favourite. Its polling also suggests the sweet is popular with older consumers, with 38% of over-55s choosing it as their preferred bar. Mars Wrigley said the limited edition tubs would include additional Mars, Snickers, Milky Way, Galaxy and Maltesers sweets.

Bounty Removed