Boohoo buys Debenhams brand and website – but no rescue of high street stores or workforce

Posted on 25th January 2021 by Sam Giltrow

The online fashion giant, Boohoo has bought the Debenhams brand in a £55 million deal that will not include rescuing the retail chain’s physical stores or its workforce.

Instead, Boohoo plans to “rebuild and relaunch the Debenhams platform” as it continues in its ambitions to lead the fashion ecommerce market, while growing into new categories such as beauty, sport, and homeware.

The brand has even hinted at taking on the likes of Amazon in the ‘creation of the UK’s largest marketplace’ across the sectors, as it expands the range of products sold via Debenhams marketplace by maintaining current third party relationships and expanding further.

The deal does not include the rescue of Debenhams’ remaining stores, which, according to those close to the topic, are now likely to be broken up and sold to the likes of Mike Ashley’s Frasers Group.

The announcement brings an end to Debenhams’ high street brand, a position it has held since 1778.

Debenhams has around 300 million website visits a year, making it a top ten UK online retailer. It’s this strength that Boohoo will now build a relaunch from.

Boohoo chief executive, John Lyttle, said: “The acquisition of the Debenhams brand is an important development for the group, as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail.”

Founder and executive chairman, Mahmud Kamani, added: Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion eCommerce, but in new categories, including beauty, sport, and homeware.”

Debenhams had already announces significant job losses and the permanent close of six stores, including its flagship outlet on London’s Oxford Street.

Retail warns of “revenue-crushing” impact on sector should click-and-collect ban spread

Posted on 14th January 2021 by Sam Giltrow

The British Retail Consortium and Scottish Retail Consortium have warned that the curb on non-essential click and collect services could prove ‘disastrous for an already beleaguered retail industry,’ with far wider implications for the UK’s retail sector should the ban widen.

The warning has been issued since yesterday’s breaking announcement that Scottish first minister, Nicola Sturgeon was to impose a ban on non-essential click and collect services for shops across Scotland.

It followed plans detailed by John Lewis Partnership to halt its own click and collect services across the UK in a bid to help the government drive down non-essential travel.

Both moves have been met with disappointment by the retail industry who has united in voicing concerns over the impact it would have on the sector, should the ban spread UK-wide. Until now, retailers have relied on their click and collect efforts to weather a relentless storm of lockdowns and social restrictions that have heavily impacted footfall and business as customers turn to online shopping.

Click and collect services of the non-essential retailers have been their life-line and, in many cases, their last remaining link to local communities, themselves driven to spend more with online giants such as Amazon.

Tom Ironside, director of business and regulations at the British Retail Consortium, said: “Click and collect is used by a wide array of companies and allows the public to get many of the goods they need in a safe, convenient and timely manner.

“Retailers have implemented systems to ensure people are kept safe while queueing and collecting goods, and we have seen no evidence to suggest otherwise.

“Preventing people using click and collect services would harm the viability of many retailers, already suffering under lockdown, as well as severley limiting the choice for some consumers.”

David Lonsdale, director of the Scottish Retail Consortium has called the restrictions now set to come into force from Saturday, January 16th as “revenue crushing”.

“The situation with the pandemic is fast moving and we fully recognise government wants people to stay at home. However, these further revenue-crushing restrictions and the fresh complexity they bring, together with constant chopping and changing to the Covid Strategic Framework, are disconcerting and come at an incredibly difficult time for retail.

“Firms operating click and collect or food to go takeaway have taken every reasonable step to make their operations as safe as possible, complying with every twist and turn to government guidance and often at pitifully short notice.

“They have demonstrated they can operate safely and have invested significantly to make their premises Covid-secure, and it appears no evidence to the contrary has accompanied this announcement.”

NPD: UK toy market grows five per cent, fulled by games, puzzles, and kidult toy fans

Posted on 14th January 2021 by Sam Giltrow

The lockdown success of the games and puzzles market, a surge in the kidult market, and early Christmas trading all fuelled by the restrictions and implications of the Covid-19 pandemic, has helped the UK toy market hit a five per cent sales increase for its overall value.

According to the latest results from The NPD Group, total sales for the year hit £3.3 billion, helping the UK maintain its position as the largest toy market in Europe and the fourth largest in the world.

The biggest spike in toy sales of the past year came during the first nationwide lockdown, throughout which toy sales increased by 22 per cent. The NPD has cited the nation’s rediscovery of the value of play to stimulate children and adults, as well as alleviate pressures imposed by the stay at home messaging alongside the closure of tourism, hospitality, and leisure.

Games and Puzzles saw the highest category growth with a 19 per cent increase, as families spent more time playing together. Puzzles, which can be enjoyed both in groups and individually, increased by 38 per cent.

Building Sets and Outdoor Toys also experienced significant growth in 2020, growing by 18 per cent and 15 per cent respectively. Good weather in the spring and early summer lockdown provided opportunities for families to bring fun and add in some exercise to combat the increase in indoor screen time. They also had the benefit of helping to compensate for missed holidays at Easter and in the summer.

The periodic closure of schools also meant that many parents turned to educational toys for assistance to help bolster their children’s cognitive development. This drove a nine per cent increase in sales of Learning and Exploration toys such as Scientific Sets and Musical Instruments.

‘Kidults’ now responsible for more than one quarter of toy sales

In addition to these trends, the industry witnessed yet further evidence of the kidult market’s appetite for toys.

This adult and teen category now represents 27 per cent of total toy sales, up by 16 per cent since 2016. In 2020, with more time on their hands, kidults completed complex building set kits, played more games and entertained themselves with puzzles.

As this group tends to purchase higher priced toys, their buying power helped increase the average sales price of toys overall.

Meanwhile, with concerns over shortages of supply and of delivery capacity, people were urged to shop early for toys in Christmas 2020. The result was a very strong November for the toy market, that saw sales increase 11 per cent year on year. This was, however, followed by lower than usual sales in December – down nine per cent year on year – exacerbated by lockdowns in November and December.

Classified as essential retail and therefore able to remain open during lockdowns, grocery chains fared well for toy sales in the last two months, up ten per cent year on year.

Joining the click and collect debate, The NPD Group has said that online services ‘proved to be essential’ for retailers operating within the confines of lockdown and social restrictions. Britons moved online to buy their toys throughout 2020 as retailers adapted and maximised their omnichannel offering to reach them.

As a result, in the 12 months ending September 2020, online toy sales grew to almost half of all sales.

Frédérique Tutt, global industry analyst at The NPD Group, said: “The top 15 sellers of the year tell much of the story for toys in 2020. We turned to toys and games to help fill the long weeks of lockdown.

“Toys provided the hub for fun, entertainment, education, exercise and stress relief. They helped make the decidedly abnormal feel normal – especially at Christmas. Manufacturers and retailers worked hard to meet the need for toys of all kinds for all ages, shifting sales to online and Click & Collect, and to grocery chains to fulfil demand. 2020 accelerated changes already underway in the toy sector and underlined the importance of innovation, strong supply chain and channel management.”

Roland Earl, director general at the British Toy & Hobby Association, added: “2020 was an extremely challenging year for retail as a whole, and toy retailers of all sizes had to adapt and innovate in this difficult environment in order to ensure consumers could still obtain the products they require.

“The end of year statistics reflect the role that toys and games played in bringing enjoyment and assisting families and individuals to navigate the difficulties of repeated closures and lockdowns. Despite varying functions, objectives and age suitability, all toys are ultimately designed with one overarching goal – to bring fun, enjoyment and play value to the recipient and never has this been more important.

“Looking ahead to 2021, the uncertainty surrounding the pandemic will remain for some time, though toy designers will continue to innovate during tough conditions to ensure families have access to the items they want and need.

“Brexit will continue to have an impact on all industries in 2021, and the toy sector specificially will continue with its thorough preparation following the deal announced at Christmas.”

NPD’s Tutt, concluded: “One thing is certain, the importance of playing together with toys, games and puzzles as a family, group or alone has been re-established during the lockdowns.

“Many people have also rediscovered the value of nature and the environment in the pandemic, and one encouraging sector trend is that green issues have come to the fore, and many manufacturers are reducing packaging and incorporating eco-friendly materials in their products.

“Finally, when cinemas hopefully reopen later on in the year, blockbusters will boost toy sales once again.”

Games Workshop valued at £3.8bn as hobby demand fuels its latest sales surge

Posted on 13th January 2021 by Sam Giltrow

Games Workshop, the British firm behind the wildly popular Warhammer tabletop miniatures gaming franchise, has reported blockbuster sales and profits driven by the stay at home messaging of the last year and the surge in the hobbyist and gaming markets.

The company’s chief executive, Kevin Rountree has billed its 2020 results as “another cracking performance from a truly amazing global team”, as it rang in sales of £186.8 million and a profit of £91.6 million for the six months to November 29th, 2020.

The results outstripped the estimated figures, equating to around a 25 per cent surge in sales and a leap of 53 per cent in profits year on year. Games Workshop is now valued at £3.8 billion on the stock market – £1 billion more than Marks & Spencer.

The group managed to turn around the initial impact of the Coronavirus pandemic that saw Games Workshop stores closed during the UK’s first lockdown period last year. Most of the group’s 529 shops around the world have been closed, causing some initial concern over how it will reach its active customer base over the course of the year.

A surge in demand for the hobby market, and a particular rise in board gaming and the gaming sector, as well as the lean into online shopping saw Games Workshop’s online sales grow by 87 per cent. To meet customers in the digital space, the group also hosted a series of live-streamed online preview events to showcase new products and its own team of creatives.

Covid-19 has delayed production on some of Games Workshop new releases, such as titles like Death Guard Codex and pieces for the Age of Sigmar franchise, however the firm has promised fans that these will go on sale fortnightly from next week.

Chief executive Rountree has commended the global team for the success of the Games Workshop brand over what has been a challenging year for the retail sector overall, and has said that the company will continue to “focus on what is in our control” as it builds upon the success over the coming months.

“Like every other company we have our internal plans as to our future performance, which show a range of outcomes which are not shared with the stock market; predicting the future is always a risky business,” he said.

“We will focus on what is in our control; delivering on our operational plan rather than worrying about, for example, any short term share price or the weather.

“Our biggest risk is senior management becoming complacent, I will continue to do my best to ensure that does not happen.”

Looking to the months ahead, Rountree gave little away: “Like every other company we have our internal plans as to our future performance, which show a range of outcomes which are not shared with the stock market; predicting the future is always a risky business.”

“We will focus on what is in our control; delivering on our operational plan rather than worrying about, for example, any short term share price volatility or the weather.”

Perhaps referring to the garlands it receives in the retail and games industry for its stellar success around the world, he added: “Our biggest risk is senior management becoming complacent. I will continue to do my best to ensure that does not happen.”

Chancellor details £4.6bn relief package for retail, hospitality, and leisure as England enters third lockdown

Posted on 5th January 2021 by Sam Giltrow

Chancellor Rishi Sunak has detailed a £4.6bn relief package for the retail, hospitality, and leisure sectors that will offer UK businesses a one-off grant worth up to £9,000.

The measures were announced this morning, following a public message from Prime Minister Boris Johnson last night that England is to enter a full lockdown period for a third time in the ongoing fight against the coronavirus pandemic and the latest developments surrounding a new strain of the virus here in the UK.

The payments, detailed by the chancellor on Tuesday, January 6th, are expected to support 600,000 business properties across the UK. A further £594 million will be made available to councils and devolved nations to support businesses not covered by the new grants.

Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

“Throughout the pandemic, we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring. This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they able to reopen.”

The third national lockdown will once again see the closure of all retail, hospitality, and leisure facilities deemed non-essential. A lesser blow to the toy industry than the previous national restriction measures imposed in the build up to the Christmas shopping period, its impact will still likely be felt across the indie retail network.

The cabinet secretary, Michael Gove, this morning said that he hoped the gradual lifting of restrictions could begin mid-February, but that the time it will take for the vaccines to take effect meant it was likely to be at least another couple of weeks before measures could start to be eased.

It is likely the measures will be in place until March this year.

“We can’t predict with certainty that we’ll be able to lift restrictions the week commencing February 15th,” he told Sky News this morning. “What we will be doing is everything we can to make sure that as many people as possible are vaccinated so that we can begin progressively to lift restrictions.

“I think it’s right to say that, as we enter March, we should be able to lift some of these restrictions – but not necessarily all.”

School closures of course mean that children will now be spending time at home, offering up more opportunity to the toy industry to capitalise on the need for home learning resources and toys. Many independent retailers are already primed for yesterday’s news, having implemented click and collect and delivery services throughout the course of England’s lockdown throughout the spring/summer of 2020.

US retail giant Authentic Brands makes plans for Debenhams and Arcadia Group takeover

Posted on 14th December 2020 by Sam Giltrow

The US retail giant, Authentic Brands, has divulged plans for a double takeover of the collapsed department store chain Debenhams and Topshop-owner Arcadia Group.

According to a report from The Sunday Telegraph, Authentic Brands, the owner of the New York department store brand, Barneys, has been in talks with the administrators and was lining up bids for both companies.

The Sunday Telegraph reported that the firm, which was founded by Canadian Jamie Salter in 2010, was lining up bids for both brands.

Authentic Brands comes with the backing of heavyweight financiers such as Blackrock and Leonard Green & Partners. Prior to the pandemic, it was on course to book turnover of $15bn. Throughout the crisis, founder Jamie Salter has seized the opportunity offered to buy up a number of struggling brands, including Forever 21 and Brooks Brothers.

Last week, Mike Ashley’s Frasers Group said it was in negotiations to buy Debenhams from administrators in a rescue deal. It was also interested in participating in the sale of Philip Green’s collapsed Arcadia Group.

Frasers, formerly Sports Direct, said that it hoped a deal could be agreed and jobs at Debenhams saved after the Covid-19 pandemic sunk its business, but cautioned that the transaction was complicated and talks needed to take place quickly.

Administrators for Debenhams said earlier in December it would be wound-down, closing all its shops after 242 years in business and putting 12,000 jobs at risk. Green’s Arcadia fashion group collapsed into administration late in November putting more than 13,000 jobs at risk.

Bing-le bells: Pre-school IP lands major Italian toy retail presence this Christmas shopping season

Posted on 11th December 2020 by Sam Giltrow

Acamar Films’ flagship pre-school property, Bing, is to be a big presence across Italy this Christmas, thanks to the implementation of a marketing strategy throughout the region’s largest toy and retail stores, spearheaded by the Italian licensing agent, Maurizio Distefano.

The aim is to strengthen the Bing property and the consumer awareness around it both in-store and online throughout the key trading period.

Kicking off the strategy, leading Italian toy retailer Toys Center has set up new branded shelf areas dedicated to the popular pre-school series. With over 90 locations participating and with some areas including a light-up display, the concept will make it easy for consumers to make their Bing purchases this season.

Bing will also have a significant branded area at Toys Con Te, starting at the retailer’s newly opened location in Rome Tiburtina. Bing will then roll out across the retailer’s best-performing locations.

On top of this, and through a collaboration with Bing’s master toy partner Giochi Preziosi, 157 Bing-branded bay areas have been created for Italy’s main mass-market retailers, including Carrefour, Finipier, Conad, Bennet, and Mondadori.

As Bing’s presence continues to grow in stores, the hit pre-school show’s e-commerce footprint is also expanding. Toys Center and Acamar Films recently collaborated on a dedicated Bing shop-in-shop on the Toys Center website. Various Bing products are now available to purchase via a direct link on Toys Center’s home page.

Acamar Films has also launched an Italian Bing Store on Amazon which was recently highlighted in a successful paid media campaign ahead of Amazon Prime Day on October 13th to 14th.

The series is currently number one on Rai Yoyo’s RaiPlay app and is the most watched series on DeA Junior. Pre-school fans have also been treated to the release of two new episodes on Rai Yoyo this November, including a Halloween episode and the Nicky Nicky episode.

In addition, as part of Acamar Films’ multi-platform distribution strategy, the Italian Bing episodes (together with various educational games and activities) are available to stream and download through the recently launched Bing app called Bing: Watch, Play, Learn, and on the official Italian YouTube channel.

The YouTube channel today boasts an average of 30 million views each month. Bing is also available on TIMVision’s on-demand platforms and on Amazon Prime Video in Italy.

LEGO opens its first airport LEGO Store in the US in Marshall Retail Group partnership

Posted on 9th December 2020 by Sam Giltrow

The LEGO Group has opened its first airport LEGO Store in the US, having partnered with The Marshall Retail Group – a WHSmith Company – to set up shop inside Salt Lake City International Airport.

The all-new LEGO store allows visitors the opportunity to shop for hard-to-find products from the LEGO portfolio, as well as its top sellers, unique featured items, and more.

“Marshall Retail Group is honoured to open the first ever LEGO retail store in the United States in an airport and we’re thrilled to partner with The LEGO Group as it continues to inspire and develop the builders of tomorrow through creative play and learning,” said Michael C Wilkins, chief executive officer of Marshall Retail Group.

“With its inimitable products and playful atmosphere, we’re confident the LEGO storefront will provide visitors of all ages an unforgettable experience as they travel through the newly-constrcuted Salt Lake City International Airport.”

Among the ranges in stock at the new store will be toddler-friendly LEGO Duplo play-sets, best-selling LEGO City builds, LEGO Friends, and a raft of specialist builds from LEGO Technic, including the Lamborghini Sian FKP 37.

“We are proud to have the first out of many LEGO airport stores in the US here in Salt Lake City. The LEGO airport store offers a premium retail experience to the traveler and engages families, children, and adults with a broad range of products from LEGO DUPLO to very sophisticated LEGO Technic models,” said Simon S. Bast, head of sales for Travel Retail Americas.