Unilever Slashing Jobs

Unilever, one of the world’s largest consumer goods companies, has announced plans to cut a third of its office-based roles in Europe by the end of 2025. This decision comes after a global cost-cutting announcement in March, which will affect approximately 7,500 roles. About 3,200 jobs in Europe are expected to be axed as part of this plan. The company has begun a consultation process with those affected by the cuts. These changes are part of a broader effort to revive growth under CEO Hein Schumacher, who took over last year following a period of underperformance. Unilever also plans to split off its ice cream business, which includes brands like Wall’s, Ben & Jerry’s, and Magnum, as part of a strategy to “do fewer things better”. The company, which has major offices in London and Rotterdam, employs a total of 6,000 staff in the UK.

Blog Q - How will cutting a third of the workforce affect the morale at Unilever?

Unilever

Burberry Appoint New Boss

Burberry, a renowned UK fashion group, is undergoing significant changes as it grapples with a sales slump. Joshua Schulman, previously at Michael Kors, has been appointed as the new CEO, replacing Jonathan Akeroyd. This leadership change coincides with a sharp drop in sales and a warning from Burberry that profits may fall short of expectations if current trends persist. The company has also decided to suspend dividend payments for the current financial year. Retail revenues have fallen by 21% in the three months leading up to 29 June, with sales in the Asia Pacific region and the Americas experiencing some of the largest declines. Amid these challenges, Burberry is taking decisive actions, including cost-cutting measures and a potential return to more traditional colours and designs, to improve its performance in the second half of the year. Despite these efforts, shares in Burberry have more than halved over the past year, indicating that the new CEO has a significant task ahead to stabilise the company and restore investor confidence.

Blog Q - How might the appointment of a new CEO, such as Joshua Schulman at Burberry, influence the strategic decisions of a company facing a downturn in sales?

Burberry New Boss

Carlsberg Buys Britvic

Carlsberg, the Danish brewer, has agreed to a £3.3bn deal to acquire Britvic, the maker of drinks such as Robinsons squash and J20. The takeover will result in a single beverage company, Carlsberg Britvic, aimed at expanding its business in the UK and western Europe. Despite a previous lower offer being rejected, the final deal will provide existing Britvic investors with £13.15 per share. The acquisition is expected to diversify Carlsberg’s portfolio and enhance its global partnership with PepsiCo. On the same day, Carlsberg also agreed to take control of its UK brewing joint venture with Marston’s for £206m. Russ Mould, investment director at AJ Bell, said Britvic would add "some diversification" to Carlsberg's portfolio. "The Danish outfit is having to react to a world in which younger age groups are less likely to indulge heavily in alcohol," he said. Britvic holds an exclusive licence with US firm PepsiCo to make and sell brands such as Pepsi, 7up and Lipton iced tea in the UK, and Carlsberg also has a bottling deal with the US company.

Blog Q: What are the potential benefits for Carlsberg in acquiring Britvic and taking control of its UK brewing joint venture with Marston’s?

Carlsberg Britvic

Tubi Launches

Rupert Murdoch’s Fox Corporation is launching Tubi, a free, ad-supported video streaming service, in the UK. Tubi, which has nearly 80 million monthly active users in the US, will compete with Netflix, Disney+, ITVX, Channel 4’s streaming platform, and the BBC iPlayer. The platform will launch with over 20,000 films and TV series from Disney, Lionsgate, NBCUniversal, and Sony Pictures Entertainment, as well as British, Indian, and Nigerian content. Fox Corporation acquired Tubi in 2020 for $440m (£348m) to attract younger audiences. Other streaming companies like Netflix, Amazon Prime Video, and Disney+ have launched ad-supported services and raised subscription prices to boost revenues. However, Abi Watson, a senior media analyst at Enders, suggests that Tubi might struggle to gain traction in the UK’s already well-catered free online video space.

 

Blog Q: How might the entry of Tubi, a free, ad-supported streaming service, impact the competitive landscape of the UK’s video streaming market? 

Tubi

Tesco Staff Shares Scheme

 

Over 20,000 Tesco employees are set to share a £30m windfall generated from the supermarket’s share schemes. An employee who invested an average of £68 per month over the past five years would receive around £6,640 from their £4,080 investment, yielding a profit of £2,560. The majority of the beneficiaries are shop floor or distribution centre workers.This payout is due to Tesco’s strong performance. The news comes after Tesco CEO Ken Murphy faced criticism for his £10m pay package last year. The company’s share schemes offer staff the chance to buy discounted shares in the company. Those who invested the maximum amount of £500 per month stand to make significant profits from the three-year and five-year schemes.

Blog Q: Discuss the impact of such a scheme on the company’s relationship with its employees.

Tesco Staff Shares

Cowboy Couture

Cowboy Boot Store owner Pete Tooley credits recent albums by Taylor Swift and Beyonce with making country music and fashion more popular with a mainstream audience. Mr Tooley says he has seen a rise in the number of younger customers coming through the doors of his Division Street shop, which sells boots as well as Stetsons, belts and buckles. Mr Tooley, 63, first began selling cowboy boots as an online venture, but says customers from across the UK are making their way to Sheffield to get their hands on his goods. The footwear on offer is often handmade and comes from makers across the globe including Spain, Italy, the US and Mexico. Mr Tooley initially believed there would not be enough demand from people in Sheffield to warrant a physical store - but says time has proved him wrong. The store sells boots at music festivals around the UK and Mr Tooley says he has even kitted out some of the performers.

Cowboy Fashion Trend

McVitie's Gold

McVitie’s has brought together two of its biscuit brands to capitalise on the blonde chocolate trend. It has unveiled limited-edition Gold Digestives, which are classic digestive biscuits half-coated with golden caramel. They will hit Sainsbury’s shelves on 7 July (rsp: £1.89/232g), rolling out more widely later in the month. A £1.99 price-marked pack will be available to independent retailers. According to McVitie’s, the NPD aimed to build on the success of Gold’s debut brand extension, Gold Billions Wafer, which hit shelves last year. “McVitie’s Gold Digestives have been created with the latest flavour trends in mind to unlock another golden sales opportunity for retailers,” said McVitie’s marketing director James King. Golden chocolate was only continuing to “grow in popularity”, said King. “So, who better to bring this to biscuits than the nation’s number one?” “Even better is that an overwhelming 96% of 18-35-year-olds have already expressed intent to purchase McVitie’s Gold Digestives, clearly signalling the opportunity for retailers,” King added [Kantar concept test September 2023].

McVities Gold

Nike Shares Tumble

 

Nike has said it expects a surprise 10% drop in quarterly revenue, as it faces growing competition from newer rivals such as On and Hoka. The news sent Nike shares plunging more than 12% in after hours trading, which could mean a loss of $15bn in market value if the losses hold on Friday. The world's largest sportswear company also told investors it is facing weakening demand in international markets, including in China. But Nike is optimistic that new products and a marketing campaign at the upcoming Olympic Games in Paris will help the company regain momentum with consumers. The company also lowered its outlook for the 2025 fiscal year. It said direct-to-consumer business declined 8%, as some customers went for more trendy upstart brands. "There's a sense that Nike just hasn't innovated enough, it hasn't marketed enough, it hasn't told enough stories around its products," the Managing director of GlobalData Retail, Neil Saunders, told the BBC. The sportswear giant's strategy to sell its products through its own stores and website instead of wholesales like Foot Locker hurt sales, Reuters said.

Nike Trainers

M&S Launch Clothing Repairs

 

Marks & Spencer is launching a new service for clothing repairs and alterations. From August, customers will be able to book through a dedicated online hub and have their fixed items posted back to them within seven to ten days. The work will be carried out by Deliveroo-style repairs start-up Sojo, and its in-house team of tailors, with prices starting at £5. The move comes as retailers try to encourage more sustainable habits among their shoppers. M&S said its partnership with Sojo aimed to provide customers with ways to extend the life of their clothing. “Through the launch of our repair service, we’re making it even easier for customers to give their clothes Another life, whether they are using our new repair service or long-standing clothes recycling scheme," said Richard Price, managing director of clothing & home at M&S. M&S is not alone in looking to repair services as a way to seemingly embrace and encourage sustainability. M&S said its research suggested only 10% of the UK population feels confident enough to carry out clothing repairs themselves. But as well as meeting greater consumer demand for more sustainable practices, Ms Gehin pointed out that retailers may also be "thinking forward to regulatory pressures" they may face in future if they are not seen to be taking action.

M&S