The pound sterling experienced a sharp decline to a six-month low following the Bank of England’s decision to maintain current interest rates, resulting in a 0.7% drop to $1.226 and a 0.5% decrease to 1.151 euros. This decision by the central bank came as a response to the recent unexpected decrease in inflation, causing investors to pull back on expectations of further rate hikes.
In a related development, fashion giant H&M has announced a reversal of its return policy for online shoppers. Earlier this week, reports suggested that customers would face a £1.99 fee to return items either in-store or online, with the cost deducted from their refund. However, H&M has since clarified its stance, stating that there will be no return fee for parcels returned in-store. This amendment comes as a relief to many customers, and while the exact reason for the change remains uncertain, it is seen as a positive step by the retail community.
In contrast, Co-op’s food business reported significant losses, with a £33 million deficit in the first half of this year. This downturn has been attributed to a record-high number of shoplifting incidents, creating a severe problem for UK communities. Co-op executives have expressed concern about the rising trend of shop looting, which they attribute to prolific offenders and organised criminal groups. They also emphasised the impact on store employees who face verbal abuse and threats, emphasising that shoplifting is not a victimless crime.
On a more positive note, Next, a prominent fashion-to-homewares retailer, has raised its annual profit expectations for the third time in four months. This decision follows better-than-expected sales and cost management in the first half of the financial year. Next reported a 5.4% increase in total group sales during the first six months of the year, with full-price sales up by 3.2% compared to the same period last year. As a result, the company anticipates annual profits of £875 million, a notable increase from its previous guidance of £845 million.
Similarly, JD Sports Fashion, known for its strong performance in challenging economic conditions, reported a significant growth in underlying sales during the first half of the year, with a 12% increase. This achievement underscores the resilience of certain retailers in the current economic landscape.
