‘Green shoots’ for retailers as firms pin summer hopes on warm weather, Taylor Swift and Olympics

Published

1 year ago

April 9, 2024

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Retail sales were up in March – and are expected to grow further in the coming months as warm weather and events such as Taylor Swift’s UK tour boost consumer spending, according to industry analysts.

Sports tournaments such as the Paris Olympics, along with factors such as falling energy bills, are also predicted to boost takings as shops recover from the impact of recent poor weather and high inflation on household budgets.

The forecasts come after year-on-year retail sales increased by 3.5% in March – which is above the average of 2.9% for the past 12 months, according to the British Retail Consortium (BRC) and KPMG.

The researchers said an early Easter was part of the reason for the rise, with food sales increasing by 6.8% year-on-year over the three months to March.

They also said further wet weather during the month had dampened demand for garden furniture, clothing, BBQs and DIY products.

However, Linda Ellett, from KPMG, said there were signs of “green shoots” for retailers, as economic indicators were “heading in the right direction with inflationary pressures easing” – although she warned that consumer confidence remained fragile.

BRC chief executive Helen Dickinson added: “After a difficult start to the year, retailers are hopeful that with warmer weather around the corner, consumer confidence will spring back up.”

Separate figures from Barclays, also released on Tuesday, found consumer card spending was “flat”, growing 1.9% in March – the same as the month before – largely due to a slowdown in non-essential purchasing blamed on the wet weather.

However, it found “growing stability” in housing costs, with its analysts also expressing optimism for the months ahead.

Karen Johnson, head of retail at Barclays, said: “The wet weather has been a key factor in the slowdown in discretionary spending, as it’s meant fewer visits to the high street and to hospitality venues.

“However, in spite of this initial lull, many retailers are confident that spending will rebound in the coming months, particularly in anticipation of better weather, the energy price cap drop, an uplift in the national minimum wage, and the buzz around major events such as Taylor Swift‘s Eras Tour and the Paris 2024 Olympics.”

Mark Arnold, head of savings & mortgages at Barclays UK, added that there were “reasons to be optimistic”.

He said: “Our data shows that housing costs are stabilising, the inflationary tide is easing, and interest rates are predicted to fall over the coming months, all of which should translate into increased consumer confidence and spending.”

Swift is playing a total of 15 UK shows this summer, starting on 7 June in Edinburgh before concluding at London’s Wembley Stadium on 20 August.

The US singer’s recent gigs in Australia were credited by officials for boosting the country’s economy.

The Australian Bureau of Statistics said Swift’s seven sold-out concerts in Sydney and Melbourne led to increased spending on clothing, merchandise, accessories and dining out in February.

Business

Guardian-backed research firm Streetbees on brink of collapse

Published

4 hours ago

August 18, 2025

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Guardian-backed research firm Streetbees on brink of collapse

An AI-powered market research firm which has counted Unilever and Vodafone among its clients is on the brink of collapse.

Sky News understands that Streetbees, which was founded in 2015, has filed a notice of intention to appoint the professional services firm FRP Advisory as administrator.

Sources said that a buyer was being lined up to take control of the business in the coming days.

Streetbees’ impending collapse follows efforts to find a solvent buyer – in a process also run by FRP – over the last couple of months.

Staff are understood to have been briefed on the insolvency filing late last week.

Streetbees, which has also worked with Heineken, Ferrero and Avon, has raised tens of millions of pounds in funding from blue-chip backers.

It raised a $40m Series B funding round from investors including Lakestar, LocalGlobe and GMG Ventures – the early-stage investment arm of Guardian Media Group – in 2020.

GMG Ventures has since rebranded as Mercuri.

A spokesperson for Streetbees said: “Streetbees has engaged advisors to oversee a process aiming to secure investment or sell the business and its assets.

“We have filed a notice of intention to appoint administrators, as a protective measure, to provide the time necessary to progress discussions that are at an advanced stage.

“We will not comment further on any market speculation.”

Business

Swatch apologises for ‘slanted eye’ ad after backlash

Published

5 hours ago

August 18, 2025

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Swatch apologises for 'slanted eye' ad after backlash

Watchmaker Swatch has apologised and pulled ads featuring an Asian male model pulling the corners of his eyes backwards following accusations of racism.

Images for the Swatch Essentials collection were criticised for the “slanted eye” pose, especially in China, with many commentators saying they appeared to mimic racist taunts.

The Swiss company has apologised in both English and Chinese on the social media platforms Weibo and Instagram – saying it had “taken note of the recent concerns” and removed all related materials worldwide.

“We sincerely apologise for any distress or misunderstanding this may have caused,” it said.

Shares in the company fell by as much as 2.7% in early trading on Monday.

It is the latest setback for the company, whose shares have dropped by more than half since early 2023 and now faces a 39% tariff on its exports to the US.

Swatch – which also makes Omega, Longines and Tissot watches – relied on China, Hong Kong and Macau for about 27% of its sales last year.

The company’s revenue fell 14.6% to 6.74 billion Swiss francs (£6.2bn) in 2024 after a drop in demand in China.

Swatch blamed this on “persistently difficult market conditions and weak demand for consumer goods overall”.

Business

Miniature classic car-maker Hedley Studios revs up rescue deal

Published

1 day ago

August 17, 2025

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Miniature classic car-maker Hedley Studios revs up rescue deal

A company which makes miniaturised electric versions of classic cars has secured a rescue deal led by an American merchant banking group.

Sky News understands that the future of Hedley Studios – formerly known as The Little Car Company – has been salvaged through a pre-pack administration deal.

FRP Advisory is understood to have acted as administrator before selling the business to an entity controlled by Island Capital Group.

Hedley Studios was founded in 2018, when luxury car-maker Bugatti approached Ben Hedley to see if he could recreate a 1920s Type 35 racing car at half-scale to mark its 110th anniversary.

In a statement issued in response to an enquiry from Sky News, the company said it had built and delivered more than 500 vehicles to clients in more than 60 countries in the last 17 months.

Hedley Studios manufactures its cars at three-quarters the size of the original model, with the resulting vehicles typically costing £75,000 or more.

“We’re thrilled to welcome Island Capital Group as a strategic partner in the next phase of Hedley Studios’ growth,” Mr Hedley said.

“Its investment and belief in our vision mark a pivotal moment for the company as we accelerate our expansion and reach new global audiences.

Hedley Studios makes its cars in partnership with a range of luxury manufacturers, including Aston Martin, Bentley and Ferrari.

Andrew Farkas, founder, chairman and CEO of Island Capital, which initially backed Hedley Studios in 2023, said: “This latest investment is testament to the entrepreneurial spirit of Ben and his team in building a successful British luxury brand in a short period of time.

“Automotive enthusiasts globally are increasingly keen to honour these historic icons, bringing them to new audiences in a new, fully electric way.

“Our broader investment marks the beginning of a new chapter for Hedley Studios, reinforcing its position as a leader in the creation of luxury, driveable artworks, and Island Capital is excited to be part of that growth journey.”