Tesco, Britain's biggest supermarket, upgraded its annual profit guidance on Wednesday as food inflation eased and shoppers snapped up both its low price offers and its premium "Finest" ranges.
British food prices fell in September for the first time in more than two years in month-on-month terms and the annual rate of food price inflation fell for a fifth month in a row to 9.9 per cent, helping to underpin an improveement in consumer confidence.
Tesco, which has a 27 per cent share of Britain's grocery market, says its overall price rises are lower than headline rates.
That has helped drive market share the group said, and it now expects 2023/24 retail adjusted operating profit, its preferred metric, to be between £2.6 billion and £2.7 billion.
It had previously forecast about £2.5bn.
"Food inflation fell across the half and while external pressures remain, we expect that it will continue to do so in the second half of the year," said Ken Murphy, chief executive.
Tesco, like most supermarkets, has reduced the prices of food staples, such as milk, pasta and vegetable oils, in recent months as commodity and other input costs have eased, and it competes with fast-growing German discounters like Aldi by matching prices on key items.
It has also benefited from consumers entertaining at home rather than dining out, and from shoppers switching to it from more expensive grocers.
In the first half, Tesco made retail adjusted operating profit of £1.42bns, ahead of analysts' average forecast of £1.35bn. UK like-for-like sales were up 8.7 per cent in the first half.
PayPoint has announced a new partnership with Leeds Credit Union (‘LCU’), a financial cooperative with 37,000 members, enabling them access to its CashOut service, effective immediately.
The partnership will mean that LCU customers can access their cash and savings across any of PayPoint’s UK network of 29,000 retailer partners. This represents an unprecedented growth in accessibility and the first partnership of its kind for LCU. Historically customers have needed to visit one of LCU’s four branches to withdraw money.
Leeds Credit Union provides straightforward, affordable financial services. As a mutual there are no shareholders, so it is owned by its members and always has the interests of the members at the heart of everything it does. The credit union prides itself on providing members with the most appropriate services based on their circumstances.
“Our partnership with Leeds Credit Union will enable its customers to access their funds more easily than ever before," said Jo Toolan, Managing Director of Payments at PayPoint. "We’re committed to pursuing these kinds of partnerships, which enable credit unions to offer a more competitive and technologically advanced service, while simultaneously making the lives of customers that little bit easier through enhanced access.”
Greg Potter, Head of Marketing & Member Experience at Leeds Credit Union, said: “Increasingly, we’re looking at ways that we can apply technological solutions and partnerships to add value to the experience of our members using Leeds Credit Union. This partnership is demonstrative of our determination to grow in their best interests and will make access to funds something that can be done at any of a number of PayPoint locations in the UK.”
Marlboro-maker Philip Morris said Tuesday it planned to close down its two production sites in Germany, citing falling demand for cigarettes among Europeans.
"In recent years, demand for cigarettes in Europe has fallen significantly," the company said in a statement, adding that it saw the same trend for roll-your-own tobacco.
"This trend is expected to continue in the coming years," the company said.
Many smokers have been shifting to e-cigarettes, or vapes, and heated-tobacco devices.
Philip Morris employs 372 workers at its factories in Berlin and Dresden. Both sites are scheduled for closure next year.
The tobacco giant said it would begin discussions with labour representatives to find "fair and socially responsible solutions" for staff.
Nisa retailer Prem Uthayakumaran has made significant donations totalling £3,500 to two local community organisations through Nisa’s Making a Difference Locally (MADL) charity.
The funds will provide essential support to groups within the communities that his stores serve, helping them continue their invaluable work.
The first of these generous donations was a £1,000 contribution from Broxbourne Service Station in Hertfordshire, directed to the Lea Valley Karate Academy. The funds will enable the academy to purchase much-needed equipment, ensuring that young people and adults in the local area have access to high-quality resources as they develop their skills in martial arts.
Additionally, a £2,500 donation was made by Eastfield and Cross Road Service Stations to the Mansfield Town Ability Counts Football Club. The club, which provides opportunities for individuals with disabilities to participate in football, will use the funds to support their programs, enhancing the experience for current players and making it possible for even more participants to join.
In July 2024, Prem donated £1,000 to Voice of the Vale – a group of young performers at Nottingham Trent University. This followed further self-donations from Prem to Broxbourne Organisation for Disabled and to Mansfield Under 12s Football Club in 2023.
Prem Uthayakumaran said: “Supporting the communities around my stores has always been important to me, and through Nisa’s Making a Difference Locally charity, we’re able to make a real, tangible difference. The Lea Valley Karate Academy and Mansfield Town Ability Counts Football Club both play vital roles in their respective communities, and I’m thrilled to be able to contribute to their success.”
Nisa’s Making a Difference Locally charity enables retailers to donate to local good causes through the sale of Co-op own brand products in their stores. A percentage of sales from these products goes into a MADL fund, which retailers can then use to make donations to charities, schools, sports clubs, and other community groups.Kate Carroll, Head of Charity at Nisa, said, “We are delighted to see retailers like Prem using their MADL funds to support such worthwhile local causes. Both the Lea Valley Karate Academy and Mansfield Town Ability Counts Football Club provide vital services to their communities, and donations like these enable them to continue their important work. At Nisa, we are incredibly proud of our retailers’ commitment to making a difference locally.”
Nisa’s Making a Difference Locally charity has been helping retailers like Prem Uthayakumaran give back to their communities for over 15 years, and with each donation, they help foster stronger, more Connected local areas.
High streets in the UK are collectively pay one third of all business rates while accounting for 9 per cent of the economy, British Retail Consortium (BRC) stated on Thursday (24), strengthening its call for a fairer level of business rates for hospitality and retail.
BRC and UKHospitalityare united in their call for the Chancellor to implement a fairer level of business rates for hospitality and retail at the Budget, which will rebalance a system that unfairly punishes our high streets and town centres. This was a manifesto pledge from Labour ahead of the election.
A lower rate for hospitality and retail, which together employ around six million people, would unlock investment in our high streets, while also stemming the loss of shops, pubs, restaurants and hotels, and the jobs that rely on them.
In 2023-24, retail and hospitality businesses combined to pay almost £9 billion in business rates, 34 per cent of the overall rates bill, while accounting for only 9 per cent of the overall economy.
Current business rates relief for retail and hospitality is set to end on 31 March, costing the sectors a combined £2.5bn. That would take their bill up to £11bn, accounting for 44 per cent of total rates.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Consumers want diverse and thriving high streets, but this is held back by the broken business rates system. It is the biggest barrier to local investment and prevents the creation of new shops and jobs.
"Already, the industry pays far more than its fair share – retail accounts for 5 per cent of the economy, but pays 7.4 per cent of all business taxes, and over 20 per cent of all business rates. The Budget is a great opportunity to right this imbalance, ensuring that retail pays a fairer level of business rates."
Kate Nicholls, Chief Executive of UKHospitality, said, "Hospitality is at the heart of our communities but the enormous value it delivers both socially and economically is under threat from the inflated business rates bill the sector has to foot.
"High street businesses paying one third of all business rates is absurd and one of the primary reasons why we see our businesses facing financial challenges – it makes running a pub, bar, café or restaurant, to name a few, incredibly expensive.
"Introducing a reduced level of business rates for the high street at the Budget can unlock millions in investment – from new venues to more jobs. Crucially, it would save our high street from countless closures if hospitality had to bear a billion pound business rates hike in April."
Northern Ireland family-run Nisa convenience store has come under Spar NI after 27 years following its acquisition by Henderson Retail. Nisa Circle K Silverwood store in Lurgan was operated by local retailer Patrick Hughes for the past 27 years.
Nisa Silverwood was acquired by Patrick Hughes in 1997. In the past 27 years the store has undergone significant developments due to Hughes' investments to help the business grow and provide more local jobs over the years.
Speaking of his decision to sell to Henderson Retail, Mr Hughes, said: “Henderson Retail taking over ownership and operations of the store is a great opportunity for the staff and the business itself.
“As a local grocer, I have seen how the company has accelerated the growth of convenience in Northern Ireland, investing in their properties to bring even more jobs, services and locally sourced products to communities.
"I have worked closely with the team to ensure the transition goes smoothly and our shoppers feel no disruption whatsoever. I have complete trust that the future of this store, future job creation for the local area and the opportunities surrounding that are vast and I’m delighted to leave this business in such capable hands.”
Under the new ownership, Henderson Retail will further develop and invest in the site, building on an already strong business model to enhance the services offered to shoppers in the local area. The company will soon submit a planning application that will further underpin their commitments towards improving the store for shoppers and staff through accessibility, sustainability, product range and modernisation of the store’s facilities.
Henderson Retail, which is part of the Mallusk-based Henderson Group, has invested £30 million in new stores, developments and renovations throughout its estate in 2024.
Henderson Retail now owns and operates 109 Spar and Eurospar stores in Northern Ireland. The company has recently opened an impressive new-build development at Eurospar Gilford and will open another at Eurospar Doury Road in Ballymena before the end of the year as part of the wider multi-million investment.