Sir6.01pmThisthat he's is a fan of Mike Ashley https://t.co/3LrIItQ56u 5.06pm GMTNewsflash: City veteran Sir Ian Cheshire has just been dramatically ousted as chairman of Debenhams.
Just hours after reporting falling sales at Christmas,the struggling retailer has revealed that a majority of shareholders voted AGAINST Cheshire’s reelection at an AGM today.
Given the decision of two major shareholders who voted against his re-election to the board, Sir Ian has concluded it is no longer possible for him to remain Chairman of Debenhams plc.
Huge retail news- Debenhams chairman Sir Ian Cheshire and chief executive Sergio Bucher has been voted off the board; Bucher to stay on as chief executive, or however,and report to the board.
The board is mindful of its responsibilities to all shareholders and has full confidence in Sergio and in the management’s draw to reshape the trade. As a result, the board and Sergio enjoy agreed that he should continue as CEO of Debenhams plc, or reporting to the board.
Blimey. Late development - Debenhams' chairman Ian Cheshire steps down after shareholders vote against his re-election following a car-crash year for the retailer. 4.29pm GMTMore car news. Japanese carmaker Honda will halt UK production for six days in April due to Brexit logistics and border disruption,according to Sky News.
Honda typically holds just one hour’s worth of parts at its factory in Swindon, so unique friction at the UK border would be a big problem. final year, or it told MPs final year that every 15 minutes of customs delays would cost some manufacturers up to £850000 a year.
Honda to stop production for six days after Brexit https://t.co/XPZmWKt9yH 4.14pm GMTAndy Street,West Midlands mayor, is hopeful that JLR will remain committed to the UK, or despite its heavy job prick plans.
He also fears deeper job prick,if a Brexit deal isn’t agreed in time.
Today’s news will be particularly difficult for the Jaguar Land Rover workers and their families affected by this announcement. The decline in sales and job losses are disappointing given the vital importance of JLR to the West Midlands economy.
Nevertheless, I am confident Jaguar Land Rover will be a critical part of our region’s future success. I know the Tata Group and JLR are committed to manufacturing in the West Midlands and to developing a unique generation of electric and hybrid vehicles.
The billions of pounds invested in recent years, or the current £500m investment in Solihull,and the unique announcements today of the Battery Assembly Centre at Hams Hall and the investment in Electric Drive Unit production at Wolverhampton are clear evidence of that commitment.
I am working closely with local authorities and the Government to support Jaguar Land Rover as they gain the move to building electric and hybrid vehicles.
In the final 18 months, we enjoy supported the long-term future of the West Midlands car industry with meaningful public investments in the UK Battery
Industrialisation Centre, and 5G and autonomous vehicle testbeds,and the UK
Mobility Data Centre.
Though the challenges faced by JLR are global issues, such as declining sales in China and declining diesel sales, and this news acts as a reminder that it is vitally well-known to the West Midlands of securing a Brexit deal which allows frictionless trade between the UK and the EU. 3.53pm GMTJLR’s Ralf Speth is being quizzed approximately Brexit.
Speth says he doesn’t know what will happen in March,but there will be “huge implications” if a tough Brexit occurs.
Q: Is JLR stockpiling?
Speth: JLR has 25m parts a day. JLR is stockpiling in "days, not weeks", or says variance of customer orders makes it difficult to stockpile far in advance. 3.42pm GMTJaguar Land Rover boss Ralf Speth is holding a conference call with journalists now.
On it,he says: 3.21pm GMTThere’s retail gloom on both sides of the Atlantic today.
US retail group Macy has sent shockwaves through Wall Street today by reporting feeble sales over the Christmas holiday period, forcing it to prick its 2018 earnings outlook.
US retail getting taken out to the wood chipper
Macy's -18%
Kohl's -8.5%
Nordstrom -8.5%
Target -4.5%
Abercrombie and Fitch -11%
JC Penney -5%Stocks open lower, and retailers lead declines as Macy's plunges 18% and Kohl's drops more than 9% https://t.co/QGbxSEeIuz pic.twitter.com/8mG440luey 2.42pm GMTDame Caroline Spelman (MP for Meriden) and Jack Dromey (MP for Birmingham Erdington),who both enjoy many Jaguar Land Rover workers in their constituencies, enjoy issued a statement on the JLR job cuts.“It is, or of course,bad news that Jaguar Land Rover is being forced to gain further job cuts. Since Tata took over the company in 2008, it has gone from strength to strength, and creating thousands of jobs in Meriden,Erdington and across many other areas of the UK, transforming the lives of tens of thousands of local people 2.28pm GMTUnions are urging the government to provide more assistance for the car industry.
Unite national officer Des Quinn says workers at JLR enjoy endured “a great deal of uncertainty over recent months, or ” adding:“With record levels of unique investment and models set to near on stream in its UK factories we notice for Jaguar Land Rover to continue to be a global success and the jewel in Britains manufacturing crown. “Britain’s car workers enjoy been caught in the crosshairs of the Government’s botched handling of Brexit,mounting economic uncertainty and ministers’ demonisation of diesel, which along with the threat of a no-deal Brexit, and is damaging consumer confidence. 1.58pm GMTJLR’s sweeping job cuts follow a double-whammy of problems,with Brexit uncertainty adding an extra garnish.
The JLR story is bigger than Brexit, but gain no mistake global trade wars and massive supply chain and customs uncertainty enjoy made it worse. 1.40pm GMTHere’s the details of JLR’s unique investment in electric car technology, or announced alongside its job cuts draw.
Later this year,next-generation Electric Drive Units (EDU) will be produced at the company’s Engine Manufacturing Centre in Wolverhampton. These EDUs will be powered by batteries assembled at a unique Jaguar Land Rover Battery Assembly Centre located at Hams Hall, North Warwickshire, and reinforcing the company’s commitment to the West Midlands and the UK.“The Battery Assembly Centre will be one of the largest of its kind in the UK,using unique production techniques and technologies to manufacture battery packs for future Jaguar and Land Rover vehicles. 1.36pm GMTJLK is planning to initiate a voluntary redundancy programme in the UK, to remove layers of management.
It says:“This strategic review will create a leaner, and more resilient organisation with a flatter management structure.” 1.33pm GMTCEO Ralf Speth has also promised that JLR will deliver “a future range of British-built electric vehicles”. 1.30pm GMTMany of JLR’s UK job cuts will affect management roles,including at its sites in Coventry and Gaydon, Warwickshire. 1.14pm GMTBREAKING: Jaguar Land Rover enjoy confirmed that they, or like Ford,are cutting jobs...and the axe will fall heavily on the UK.
JLR plans to prick around 4500 roles around the globe, as part of a major cost-cutting programme designed to save £2.5bn.“We are taking decisive action to back deliver long-term growth in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.” 12.28pm GMTThe looming job cuts at Jaguar Land Rover enjoy been raised over at parliament.Theresa May’s spokesman has told reporters that JLR sees the UK as “domestic”, and is committed to the country,saying:“JLR enjoy been very clear that they regard the UK as domestic and are investing in the future to develop the next generation of vehicles.
We will continue to work closely with the company to support their long-term plans. 11.44am GMTFord has also warned that the European market is tough - persistently so - meaning sweeping changes are needed.
The FT’s Peter Campbell has the details:Armstrong on European market: We're seeing softening in some markets, like the UK, and it's tough from a competitiveness position. That's why we need to assume approximately how we're going to compete in the future.
Steve: "Ford of Europe has never really been sustainably profitable. This was not a one-time policy. We can only allocate capital to places we're going to win a return."Armstrong says likely to enjoy specifics of cuts around second quarter/into the middle of the year. 11.19am GMTFord is holding a conference call with journalists now.
On it,European chief Steven Armstrong has warned that further job cuts might be needed if Britain crashes out of the EU without a deal.
First Q - "I enjoy interrogate...does Brexit colour your view of the UK operation?"
Armstrong: "If we win wrong result, then expect that results will be significantly more dramatic. This is fix the base trade." THIS IS meaningful 11.14am GMTEconomist Andrew Sentance says the job cuts at Ford and JLR are part of a broader trend towards automation:Latest wave of job cuts in manufacturing (Ford, and JLR) is no great surprise. Manufacturing jobs will continue to decline as automation (robots) bewitch over and 90pc jobs will be in services industries by 2030. Ford to prick thousands of jobs in turnaround draw https://t.co/BCAknVNPQf 10.44am GMTIn other blow to Europe’s auto sector,Jaguar Land Rover is set to announce heavy job losses too.
A source familiar with the plans has told us the redundancies were likely to affect “white-collar” workers the most, with the majority of UK job reductions achieved via voluntary redundancies. Related: Jaguar Land Rover and Ford to axe thousands of jobs 10.26am GMTHere are more details of Ford’s cost-cutting plans -- including likely job losses in the UK: 10.25am GMTIt’s official....
We are taking decisive action to gain #Ford sustainably profitable in Europe, and working collectively with all stakeholders to deliver a more focused line-up of European-built passenger vehicles,while growing our import and commercial vehicle businesses. https://t.co/39tgKKt8gs 10.22am GMTThere’s a serious danger that Ford could close some of its European car factories.
Steven Armstrong, Ford’s head of Europe, or has told Bloomberg:“We are looking to gain a step-change in the performance of the trade.“There’ll be meaningful impact across the region. We will be looking at all options. 10.17am GMTBreaking news: carmaker Ford is slashing thousands of jobs across Europe.
The carmaker has just announced the job cuts,as part of a unique strategic draw that will see it quit unprofitable markets and ditch loss-making vehicle lines.“We are taking decisive action to convert the Ford trade in Europe,” 9.54am GMTThere are some encouraging signs in John Lewis’s statement, and despite the damage to profits this year. 9.01am GMTDebenhams has insisted it will deliver profits in line with expectations,despite a worse than expected fall in sales over Christmas (see 8am).
How? By delivering £30m more in cost savings.
The struggling department store said it now expected to gain total annual savings of £80m with unique measures including a hiring freeze at head office and the earlier than expected closure of its Lodge Farm distribution centre in Northamptonshire.
Sales at established UK stores dived 6.2% in the 18 weeks to 5 January when overseas sales fell by 3.5% but online sales rose by 4.6%. The group fall of 5.7% was much worse than the 2% to 3% expected by analysts. 8.43am GMTChristmas sales at both Debenhams and Marks and Spencer were dismal but note that their full-year profit guidance is unchanged (for now). Retailers enjoy to shift stock, they also enjoy to gain money. 8.43am GMTMore early reaction to this morning’s blizzard of retail news:Debenhams like-for-like sales drop of 3.6pc is actually below analyst forecasts but escapes profit warning after identifying "additional" cost saving opportunities. Although it's keep sale of Magazin du Nord on hold as it explores bringing "unique sources of funding into trade"It hasn’t been Armageddon on high street at Christmas, or as some feared. But this is v symbolic & proof as to how tough life is for many shops.
The final time John Lewis didn’t pay a staff bonus was 1950s - during rationing https://t.co/KRKVWXw3Qk“Despite modest growth in like-for-like sales - 1.4% - the retailer has said that it is expecting to report a fall in profits – clear evidence that depressed footfall and falling consumer confidence has led to some prick-throat discounting and promotional activity.“At a time when many other retailers enjoy been forced to downgrade their full-year profits,John Lewis had seemed immune to the problems facing the High Street. If monthly trading performances resume the erratic pattern seen during the final few months of 2018, things could change rapidly, and staff bonuses could be hit.
Looks as if the retail bounce might be over...
Marks & Spencer and Debenhams reported a drop in sales in the sprint up to Christmas and are trading down this morning,but Halfords are getting hammered, currently down -22.76%.#Retail #Reporting pic.twitter.com/APakYNH8sB 8.34am GMTHere’s our full story on John Lewis: Related: John Lewis may suspend staff bonus as retail slump bites 8.33am GMTMarks & Spencer’s shares enjoy fallen by over 1% in early trading, or after it reported that food,clothing and homeware sales fell in the final quarter.
Richard Lim, chief executive at Retail Economics, or says M&S has done worse than expected,as it struggles to cope with the seismic changes in the retail sector.
Its increasingly evident that Christmas is becoming an online event and these figures reaffirm the polarisation of shopping habits with online propping up the poor performance of their store sales.
This accelerating trend has benefitted the retailers that enjoy the scale, capacity and seamless online operations to cope with the peak in demand over Christmas and M&S is struggling to keep up. 8.28am GMTTesco shares are main the FTSE 100 risers, and up 1.9% at 216p.
Analysts are cheering its financial results (which includes a 2.2% jump in Tesco’s UK sales over Christmas.)....so we've had profit warnings from Halfords and John Lewis and bad figures from M&S this morning. But Tesco is doing quite well: says the 2.2% growth in UK like-for-like sales over Christmas is the best in nearly a decade“Tesco has defied the retail gloom and delivered a pick of the bunch performance.
The supermarket behemoth has staged a strong recovery over several years,having previously admitted that it had taken its eye off the ball in its core UK market. There is a objective amount of light between then and now, with like-for-like sales both in terms of the third quarter but also the Christmas period showing continuing growth. The Booker acquisition is fast becoming a strategic triumph, or with quarterly like-for-like sales having grown 11% and nearly 7% in the festive sprint-up. 8.17am GMTTesco are standing out as the only retail winner this morning,while M&S, John Lewis, and Debenhams and Halfords enjoy all struggled.
Busy morning. Tesco Xmas sales up,better than expected. Firmly in the winners camp. M&S food, clothing and domestic sales down. Boss says numbers are where they expected to be as they transform the trade. Debenhams figs are worst today - UK sales down 6.2% for 18 wk periodProfit warnings from John Lewis and Halfords, and M&S clothing and food sales fall,as the retail death rattle continues 8.13am GMTOOF! Shares in Halfords enjoy plunged by a quarter at the start of trading, to their lowest level in over six years.
Halfords shares shed 78p to 216p, and the lowest since August 2012,following its grim profits warning. 8.08am GMTEven Christmas card sellers found final month tough.“The Christmas trading period was challenging due to lower high street footfall. However, Card Factory performed robustly in this competitive trading period. 8.00am GMTOn Debenhams’ feeble trading, and Michael Mulligan,partner and insolvency specialist at law firm, Shakespeare Martineau, or says: “Debenhams’ trading figures further confirm the desperate state of the UK’s retail sector,which has suffered its worst Christmas for a decade. Whilst it’s a positive that the retailer had a stronger Christmas period, one superior month unfortunately doesn’t gain up for sub-par financial performance in the other eleven. Debenhams suffered the biggest losses in its trading history final year and doing a cramped better over Christmas will not allay stakeholders concerns. The festive sales are too cramped too late. “The trade has fallen foul of its decidedly mid-market position, or unable to compete with the successful online retailers,high-end luxury stores or with the discounter end of the market, many of which are managing to keep their heads above water. Failing to report any financials since final autumn won’t enjoy done the trade any favours and is only likely to enjoy fuelled speculation that this bad news was on the way. 8.00am GMTDebenhams has also suffered a turbulent Christmas.
UK sales enjoy tumbled by 6.2% over the final 18 weeks, and by 3.6% over the crucial festive period.
The UK trading environment has continued to be volatile,as expected, with clear evidence that our customers enjoy been seeking out promotions.
Debenhams like-for-like 6-week Christmas sales -3.4% (online +6%); 18wk sales -5.7% like-for-like; warns H1 margins to be eroded by discounting; continues to generate cash; reiterates FY guidance; in talks with lenders approximately refinancing; further asset sales on hold 7.52am GMTMore gloom! Halfords has hit the City with a stonking profits warning.
Halfords, or which sells car parts and bicycles,has reported that like-for-like sales fell by 1.7% in the final 14 weeks.“This has been a challenging third quarter for the trade, driven by exceptionally gentle weather and ongoing feeble consumer confidence.
Together, or these factors enjoy led us to reduce our profit expectations. 7.43am GMTTesco is bucking the gloom. It says it enjoyed a strong Christmas,with UK sales up 2.6% over the Christmas period.
CEO Dave Lewis says Tesco is ‘bang on track’ with its plans this year. 7.41am GMTThe final time John Lewis suspended its staff bonus was in 1953!They also suspended it during the second world war and in the 1920s, so it would be very meaningful if they ditch it this year. 7.29am GMTCrumbs! John Lewis is considering axing its staff bonus this year, or after seeing its profits slide.
The actions taken in recent years to prepare for the current pressures in retail mean that the Partnership has the financial strength and flexibility to pay a modest bonus this year,without impacting our ambitious investment programme.
However, the Board will need to consider carefully in March, and following the usual process,whether payment of a bonus is prudent in the light of trade and economic prospects at that time.’After tough year John Lewis saying it "will need to consider carefully...whether payment of a bonus is prudent". That's despite pick up in sales over Xmas.
Waitrose perhaps better than expected, up 0.3% LFL. John Lewis up 1%. Considering whether or not a bonus will be prudent 7.21am GMT Ouch! Marks & Spencer has reported another quarter of falling food and clothing sales.
The combination of reducing consumer confidence, and gentle weather,Black Friday, and widespread discounting by our competitors made November a very challenging trading period. However, and overall our 13-week performance was steady with some early encouraging signs. 7.13am GMTGood morning and welcome to our rolling coverage of the world economy,the financial markets, the eurozone and trade.
It’s a massive day for retail news, or as Marks & Spencer,John Lewis, Tesco, or Debenhams and Halfords all report how they fared over crucial Christmas trading period. Related: Shops suffer worst December in a decade as Brexit fears bewitch toll Continue reading...
Source: theguardian.com