Marks & Spencer Group (MKS) reported a fresh slump in clothing sales as poor levels of availability in its stores were compounded by an out-of-date supply chain. The chief executive, Steve Rowe, blamed the 5.5% decline in like-for-like clothing sales on buying errors that meant popular sizes sold out too quickly. A new design team was shedding its womenswear’s reputation for “frumpiness”, it said, but progress was undermined by the 135-year-old company’s slow and complicated logistics, which meant it could not move products around the country fast enough. This setup contributed to a dire performance from its website, where sales were flat. Rowe conceded the numbers for the first half of its financial year were “not pretty”. “Clothing is not where I wanted it to be,” he said. “We are about 18 months behind and racing to make up lost time. My No 1 priority is to get under the bonnet of the clothing business.” He pointed to the stronger performance delivered by M&S’s food halls, where the results of its “transformation” programme were “beginning to show”. The food business returned to growth over the period, with like-for-like sales up 0.9% in the six months to 28 September, thanks to a programme of price cuts and new ranges.
Intu Properties (INTU), the company behind shopping centres such as Lakeside in Essex, has said a cash call could be on the cards after being engulfed by the high street crisis. The heavily indebted shopping centre operator said its like-for-like rental income had fallen by about 9% this year and would fall again next year owing to the tough retail climate. Intu blamed the declines in part on the company voluntary arrangements – an insolvency process used to reduce rent bills and close stores – used by Sir Philip Green’s Arcadia group and Monsoon. Shares in Intu fell on Wednesday by 17% to just 33p on the back of the gloomy update. Its chief executive, Matthew Roberts said options on the table also included selling some of the company’s assets in order to reduce its near-£5bn debt pile.
The London Stock Exchange Group (LSE) is to consider lopping 90 minutes of the trading day in a bid to improve mental health and attract more women and working parents to a high-pressure environment known for gruelling hours. The LSE made the announcement after City lobby groups sent a letter to nine exchanges, including Germany’s Deutsche Boerse and the Amsterdam-headquartered Euronext, urging them to adopt the proposal. The Investment Association, which represents City firms that have £7.7tn in assets under management, and the Association for Financial Markets in Europe (AFME), said that the 81/2-hour European trading day was one of the longest in the world but did not deliver “material benefits to savers, investors or firms”. In Asia, the trading day is usually six hours, and in the US it is 6.5hrs.
Wetherspoon (J.D.) (JDW) investors should vote against the company’s annual report at its shareholder meeting because of the pub chain’s spending on pro-Brexit materials, according to an influential shareholder advisory group. Pensions & Investment Research Consultants (PIRC) said shareholders should oppose Wetherspoon’s annual report after the Guardian raised questions about the company’s spending of almost £95,000 during the 2016 Brexit referendum campaign. Legal experts said the pub chain appeared to have broken company law by buying and distributing 1.9m beermats supporting Brexit. PIRC advised shareholders to vote in favour of Wetherspoon’s annual report in 2018, but has changed its recommendation this year because of the Brexit referendum spending and what it said were weak policies on sustainability. “Due to these sustainability concerns, and as a precautionary measure against potential political expenditure concerns, an oppose vote is recommended,” PIRC said in a note to investor clients. In response, Wetherspoon’s chairman Tim Martin told the Guardian by text message: “PIRC rhymes with berk.” He said he would not comment further on the matter until after the AGM on 21 November.
Virgin Media has agreed a five-year mobile deal with Vodafone Group (VOD) after deciding not to renew its agreement with BT Group (BT.A). The deal, which will involve more than 3 million mobile customers, ends a 20-year relationship between Virgin Media and BT-owned EE. Virgin Mobile services will start to move across to the Vodafone network from late 2021 and its 5G products will be hosted on the latter in the near future, the company said. 5G is expected to bring radical change to the mobile sector when it is rolled out across the UK, with broadband-speed downloads promised. The third-party deal – called a mobile virtual network operator (MVNO) venture – is a significant shift for Vodafone, which has so far resisted signing such agreements in the UK.
Nichola Pease, a high-profile investment manager, has been appointed chair of a fund management company her husband’s hedge fund is betting against. Jupiter Fund Management (JUP) said Pease would replace Liz Airey from 2 March. Odey, a prominent Brexit supporter, runs a hedge fund called Odey Asset Management (OAM). According to daily filings at the Financial Conduct Authority, Odey holds a 0.66% short position on Jupiter, equivalent to a £10.8m bet that its shares will fall. OAM first notified the City watchdog of a short position on the FTSE 250 firm in February, equivalent to 0.97% of the stock. In mid-October it rose to 1% before it was gradually reduced.
