Retail Round-up: 9th November

Retail Week - Waitrose disputes Marks & Spencer cheaper price campaign

Waitrose MD, Mark Price, is speaking out against claims by Marks & Spencer that its products are typically cheaper than those in Waitrose. M&S have launched an advertising campaign directly targeting Waitrose’s Essentials range, suggesting that M&S not only beats the range on quality but also on price. Price said that Waitrose products are typically between 5-6% cheaper on up to 800 comparable lines.more

Retail Week - Boots awaits decision on bid for Swedish chain
Alliance Boots is today awaiting news of its success in entering the Swedish market following its bid to buy part of the country’s pharmacy monopoly. Boots is looking to buy two sizable groups, totaling 400 stores that are being sold off by the Swedish government in the privatisation of the Apoteket chain. If successful the purchase would see Boots extend its reach further beyond its current presence in the UK, Ireland, Norway, Italy, the Netherlands, Russia and Thailand.more

Retail Week - TM Lewin rules out IPO after strong half
Following the announcement of better than expected results, a sales increase of 11% and an EBITDA leap of 15% to 29th August, TM Lewin is now ruling out the possibility of an IPO. The company has also dismissed speculation that HBoS is looking to exit their 20% share in the business. Company management has said that the idea of floating does not appeal – “we do what we want to rather than have to make other people happy”. With 76 stores and concessions in the UK, TM Lewin is confident of strong Christmas trading.more

The Grocer - Today’s the day for Kraft’s Cadbury bid
Kraft is expected to launch its £10bn-plus hostile bid for Cadbury today ahead of the deadline imposed by the UK’s Takeover Panel. If the US food giant does not launch a formal approach by 5pm today, it will be forced to wait for at least six months before making another attempt at a takeover. Kraft valued Cadbury at 745p a share – around £10.2bn. However, the confectioner’s stock has fallen since then, with shares in Cadbury last week closing at 720p – valuing the Dairy Milk maker at £9.8bn. It was previously thought a bid of 800p per share would be required to secure a sale.more

The Grocer - One third of First Quench stores were not profitable
Up to a third of the First Quench’s 1,200 off-licences, which include Threshers, Wine Rack, The Local and Haddows, were not profitable, according to administrator KPMG. FQR’s like-for-like sales were down 6% year-on-year as a result of competition from supermarkets, supply problems and the economy, he said. Creditors could lose “tens of millions of pounds”, he predicted. KPMG has set a deadline of Friday (13 November) for indicative offers and Fleming said he hoped to complete the sale of stores by 26 November.more

The Grocer - Northern to postpone ‘Project Golden’ factory closure
Workers at Northern Foods, maker of Fox’s biscuits, are set for a reprieve amid reports the manufacturer is set to ditch plans to close one of two UK biscuit factories. Northern had previously indicated it would close either its plant at Batley in Yorkshire or the Uttoxeter facility in Staffordshire to build a new £40m factory – a move dubbed Project Golden. According to the telegraph these plans are now on hold. The official announcement is due tomorrow when Northern is due to announce its latest trading figures.more

Marketing Week - After Eights back on the box
After Eight mints are to release television ads the first time in eight years. The new ad, part of a £2.6m media spend by Nestle, will feature Jim Haynes, who hosts a regular Sunday dinner for friends and strangers. This marks a shift from the brand’s last campaign, fronted by TV smoothie Stephen Fry.more

Marketing Week - M&S rolls our branded products
Marks & Spencer is to introduce branded products across all of its stores following a successful trial period. The retailer, which previously only stocked own-label products, will aim to stock branded items in areas where its own range has no equivalent, or where there is low market share.more

Marketing Week - Waitrose increases Essentials range
Waitrose is to extend its Essential range into beauty basics such as shampoo, soap and cleansing wipes. Most items in the range will retail at 99p. The range aims to raise Waitrose’s game versus value competitors, such as Asda. A spokesperson said the consumer “won’t have to splash out to afford all your beauty basics”. more