Posts Tagged ‘ UK retailers ’

Retailers call for underage sales rules overhaul

Tuesday, August 31st, 2010

Leading UK retailers including Asda and Tesco are calling for a review of underage sales legislation.

A reform of laws governing the sale of cigarettes, alcohol and a variety of other products has been demanded by British retailers, who claim that existing rules are too complicated.

The group of retailers, which operate more than 250,000 outlets across Britain including independent stores numbering in their thousands, has urged the government to review and streamline the current regulations. Presently, there are 18 separate pieces of documentation that govern sales of items to underage children, which retailers claim are far too complex and should be combined into one, single, over-arching piece of legislation. Retailers are also calling for trade bodies and local regulators to grow stronger partnerships to tackle the problem.

Increasing pressure has been placed on retailers to tackle the problems of underage drinking and knife crime at the point of sale. However, they believe they are being singled out for what is a community issue. They also suggest that the complexity of the regulations, while increasing staff training and vigilance, has done little to protect their employees in the event of prosecution.

Chairman of the CBI’s Consumer Affairs Panel, Geoffrey Budd, said that using retailers as a part of the solution rather than the source of the problem would be far more effective in tackling issues.

Sainsburys leads IT spending

Tuesday, August 17th, 2010

Sainsbury’s has bucked the economic trend away from spending on new technology.

Investment in technology in the retail industry is set to be stagnant in the UK for the foreseeable future, as most high street stores and supermarket chains brace themselves for another economic downturn.

The austerity budget and impending VAT rise has seen widespread speculation that the industry could be confronted with a period of loss, leading to financial outlays for development of existing technology to be capped as most leading companies say that they have no IT overhauls planned. In some cases, computer systems are up to 20 years as old but are kept on as long as they do the job.

According to a report published last week by Martec International, a leading retail sector consultancy specialist, Tesco is the retailer that seems most content with its incumbent IT system. Their latest upgrade was in 2007 while the yearly spend on IT investment is £200 million. Rival Sainsbury’s spends around £220m per year on IT according to the Martec study, which also reported that UK’s leading supermarket chain is planning on updating its store, e-commerce and supply chain systems next year. The in-house system used by staff, installed first in 1995, will be upgraded the following year.

While Frances Riseley, practice manager at Martec, said that many retailers were hesitant to reveal their IT plans for fear of rivals being alerted to their developments, his group’s survey did establish that 19 per cent of the 142 British retailers polled said the reason for not revealing any details was that they were either being finalised or had not been considered.

UK high street stores investigating allegations of sweatshops in India

Monday, August 9th, 2010

Several of the leading British fashion retailers are launching inquiries into allegations of substandard working conditions in India.

The move comes at a time when the same high street stores, including Marks and Spencer, are embroiled in a wage dispute crisis in Bangladesh that has seen garment workers stage violent protests.

Marks and Spencer has been joined by other well-known stores Next and Gap in launching investigations into their Indian suppliers, after allegations have emerged that young children have been left unattended as parents work in factories on the outskirts of the capital Delhi. According to a report by the London Observer, the fashion houses are responding to claims that these factories have been using middlemen to hire workers for just 25p per hour for Next and Gap, and 26p per hour at for Marks and Spencer. Some workers have also alleged that they have been paid under half of the legal overtime rate.

The trio of retailers have each pledged to end the practice of reportedly excessive overtime which Indian labour laws states is a clear breach of the ethical trading initiative (ETI). The three have apparently advised the Observer that abuses in their supply chains would not be tolerated and that they are 100 per cent committed to ethical trading.

While Marks and Spencer has stated it has not as yet been presented with the appropriate evidence to support the allegations, Gap has advised that it had discovered irregularities with wage violations and ordered its supplier to pay the appropriate compensation to those affected immediately.

Summer sales hit the High Street

Wednesday, July 14th, 2010

The great summer sales have arrived, so get ready to spend at Britain’s leading high street retailers. Prices have come tumbling down as the sale signs have gone up, meaning now is the ideal time to grab that chic summer wardrobe item or get in on old stock before the cold arrives.

In even better news for shoppers, official figures have shown that the price of clothing fell by a record margin in the month of June, with retailers wielding the axe earlier than expected. This has analysts worried that the coming months could result in a raft of profit warnings, as Britain’s leading retail chains look to sacrifice immediate profit for the sake of sales. While this may be bad news for business, it is nonetheless great news for consumers.

Chancellor George Osborne’s so-called ‘austerity’ Budget has not yet hit shoppers where it matters most – in their pockets, as retailers steady themselves for an excepted economic downturn as consumer spending will be reduced in the months ahead. The result is that right now is the best time to find the best bargains, with fashion stores offering a huge range of incentives and promotions to tempt the last remaining pennies from the public.

Debenhams, Next and Marks & Spencer are all featuring great deals on fashion-wear at the moment, with customers being openly wooed to spend and save. These stores are just some of the group which saw price-slashing of around 3.4 per cent last month, with women’s wear leading the way in cost reductions.

Fashion industry buoyed by consumer confidence

Wednesday, July 7th, 2010

The slow pace of economic recovery has not appeared to have slowed down spending on fashion.

That is the verdict according to the latest just-style Apparel Industry in 2010 report, which found that fast and value fashion operators will be the most likely businesses to succeed in 2010, leading the way in profit forecasting.

The report  claimed that retailers who offer fashion collections at low prices are in the best position to take advantage of the current consumer climate in the UK, with organisations such as Primark set to  boom thanks to their strategy  of high volumes at low prices.

 The just-style survey also found that in the value fashion sector, where Primark is joined by the likes of New Look, the growth rate was at a high 59 per cent, while respondents also suggested that chains such as Mango and Zara, which are classified as fast fashion, could also expect to see growth of 56 per cent.

However, it was traditional favourite H&M that was seen as being the retailer who will see the greatest levels of growth in the remainder of 2010. 26.5 per cent of those polled said they expected H&M to top growth tables, while Zara was second with 20.6 per cent of the vote. In the five company query, Primark was third on 14.4 per cent, ahead of New Look on 7.5 per cent and Mango at 6.6 per cent.