Brands must put ‘purpose’ over profit, new Unilever boss tells Davos. The new boss of Unilever (ULVR) has claimed that the mass-produced consumer good market of the last 100 years is undergoing “seismic changes” amid soaring demand for brands to put “purpose” over profit. Alan Jope said that consumers wanted to know how brands are “making society and the planet a little better”. This burgeoning market is “an absolute magnet” – products that could demonstrate a clear purpose experience “dramatically better growth”, he said. “The consumer goods market has been operating on the same model for the last 100 years and that is mass groups of consumers being offered mass-produced products, sold through mass channels,” he added.
easyJet (EZJ) is seeking compensation from Gatwick airport after the airline suffered a multimillion-pound hit for flight chaos caused by drone sightings before Christmas. The low-cost carrier said on Tuesday that three days of drone-related disruption cost it £15m in customer welfare expenses and lost revenues. About 82,000 easyJet customers were affected as Britain’s second-biggest airport grappled with rogue drones. More than 400 flights were cancelled by easyJet, Gatwick’s biggest airline. Chief executive Johan Lundgren said it was unfair for easyJet to foot the bill for the drone-related costs.
Four House of Fraser stores slated for closure have been saved after Mike Ashley and shopping centre landlord Intu Properties (INTU) struck a truce following months of fractious negotiations. Mr Ashley, who owns the department store chain, had threatened to pull all 17 of his retail empire’s shops from Intu centres. He accused the company of being “unwilling to help retailers save stores and jobs” after it refused to meet his demands for rent cuts. However, the two sides have reached an “interim agreement” that will save the shops at Intu’s centres in Norwich, Nottingham, Lakeside in Essex and the Metrocentre in Gateshead open and 1,000 jobs.
Pets at Home Group (PETS) has revealed it may spend an extra £8m stockpiling “pet essentials” such as poo-bags and dog food as it braces for the prospect of a no-deal Brexit. The pet and vet chain is the latest company to reveal its preparations for the UK’s withdrawal from the European Union as the retailer shrugged off the high street gloom with record Christmas trading. The company revealed that its dog salons groomed a record 24,000 dogs in the week before Christmas as owners pampered their pets. The business also sold nearly 80,000 Brussel sprout-themed products, 170,000 dog outfits and 22,500 Santa hats for cats.
A fall in mobile phone sales dented Dixons Carphone (DC.) revenues in the run-up to Christmas amid reports of an activist investor taking a stake in the company. Sales of mobile phones in UK stores fell 12% in the 10 weeks to Jan 5 while sales in stores open for more than one year slid 7%. Total sales rose 1% compared to the same period the year before, as it reported a stronger performance in electricals. International sales rose 5%. The company maintained its full-year guidance, affirming that it expects to make a profit before tax of around £300m.
The boss of ailing construction contractor Kier Group (KIE) has been ousted after shareholders shunned a £250m emergency fundraise. Haydn Mursell, who led the business for more than four years, will leave “with immediate effect” following the bungled rights issue last month. Chairman Philip Cox will become executive chairman until an external replacement can be found, the company said. Mr Mursell’s abrupt departure comes as the construction industry continues to be buffeted by the fallout following Carillion’s collapse one year ago this month.
Patisserie Holdings (CAKE) lenders could be wiped out. Lenders to Patisserie Valerie fear multimillion-pound loans will be almost completely wiped out by the potential collapse of Luke Johnson’s troubled bakery chain. The Daily Telegraph has learned that HSBC and Barclays have no security over Patisserie Valerie’s assets, meaning that if is forced into insolvency by an accounting scandal, loans of almost £10m will rank no higher than suppliers and other creditors. It comes as a fresh twist in a shocking saga dating back to October when the company revealed that “potentially fraudulent, accounting irregularities” had opened up a £40m cash hole.
Apollo set for £3bn swoop on packaging maker RPC. A £3bn takeover of plastic packaging maker RPC Group (RPC) by US private equity giant Apollo Management could be announced as soon as Tuesday. Apollo was left in pole position to acquire the troubled firm last month after rival Bain Capital dropped out of the running. Last Friday RPC extended a deadline until Wednesday for the company to make a firm offer or walk away. The timing of the offer was first reported by the Wall Street Journal on Monday. RPC, which makes plastic food tubs, coffee pods and inhalers, had grown rapidly in recent years following an acquisition spree and rising demand from brands for customised and distinctive packaging.
Just Eat boss set for £750,000 payoff after 16 months in charge. A US activist investor has hailed the shock exit of Just Eat (JE.) chief executive Peter Plumb, who will pocket a £750,000 golden goodbye after just 16 months at the helm. Cat Rock Capital said Mr Plumb’s departure, which takes place with immediate effect, represented the board’s “recognition” that “change is badly needed at Just Eat”. Insiders said the former boss Moneysupermarket.com had been too slow to drive change amid a burgeoning challenge from deep-pocketed rivals such as Deliveroo and Uber Eats. As a “good leaver”, it is understood that Mr Plumb will be entitled to a severance package equivalent to 12 months of annual salary and benefits, which was £758,000 last year.
Superdry boardroom battle escalates with appointment of creative director. Superdry (SDRY) has appointed a new creative director as it attempts to fend off a boardroom revolt launched by co-founder Julian Dunkerton. Former Nike and Umbro executive Phil Dickinson will be in charge of product design and the creative direction of the brand and starts on Tuesday. The announcement comes a day after Mr Dunkerton threatened to call a shareholder meeting within four weeks in a bid to regain control of the company. Mr Dunkerton stepped down as brand director of Superdry in March 2018 to pursue other interests. But for months he has been attempting to rejoin the retailer, whose shares have collapsed by about two-thirds over the 12 months amid a string of profit warnings.
William Hill to close hundreds of betting shops. William Hill (WMH) will close hundreds of betting shops, many in a matter of weeks, as it shifts its focus to online gambling in the latest blow to the high street. The bookmaker revealed the financial fall-out from a tough 2018 on Monday, with operating profits falling 15%. Like many other in the sector, William Hill has been hit hard by a government crackdown on fixed odds betting terminals (FOBTs), the so-called “crack cocaine” of gambling. Maximum stakes will be slashed to just £2 from April, pushing many shops into loss-making territory overnight.
Top bosses leave British Land Company (BLND) in retail retreat. Two of British Land’s most senior bosses are departing as the property giant continues to beat a retreat from the country’s struggling high streets. The FTSE 100 landlord, which owns stakes in the Broadgate development in the City of London and Sheffield’s Meadowhall shopping centre, said it was folding its retail and offices arms into one as part of its new focus on mixed-use “campuses” that combine shops, homes and office space. Tim Roberts, head of offices, and Charlie Maudsley, who runs British Land’s retail, leisure and residential arm, will stand down at the end of March.
Questor: Vodafone Group (VOD) 9% yield looks too good to be true, so give the shares a wide berth. The telecoms group faces multiple challenges and cover for the dividend looks thin
