Filters BETA Key events (5)Made.com (3)M&S (3) Zoe Wood The comments came as an interactive guinea pig which has babies and a “booty shaking” disco giraffe are predicted to be among the bestselling toys this Christmas as retailers battle for custom with toy ranges tailored to suit “every budget”. With the cost of living crisis looming large, the DreamToys list drawn up by the Toy Retailers Association (TRA), features a selection of cheaper toys this year, with eight of the top 12 under £35. The cheapest item on the list is an £8 Squishmallow, a cuddly toy expected to be a popular stocking filler. Nearly £1bn will be spent on toys between now and Christmas Eve. Paul Reader, chair of the DreamToys selection committee, said that the committee had paid heed to the challenging economic climate. “We know many use the DreamToys list for guidance when it comes to making purchasing decisions and we feel we have selected the best toys to delight children this Christmas while suiting different budgets.” At the more expensive end of the list is the £65 Mama Surprise guinea pig. Careful grooming makes her heart light up and is a sign that a baby is on the way. The pups arrive behind closed hutch doors (mercifully they drop out of the roof) and in “normal” mode arrive over two days. For shorter attention spans, in “fast” mode they drop every 10 minutes. Updated at 09.29 GMT
M&S says Brits buy Xmas gifts early
M&S co-chief executive Stuart Machin said customers were definitely prioritising Christmas in their spending plans. Consumers are (cleverly) spreading out the cost of Christmas, buying gifts early so they don’t face a major squeeze in December. Several retailers have noted in recent days how shoppers, desperate to still enjoy the festive season despite the cost of living crisis, have started shopping for presents early. Katie Bickerstaffe, co-chief executive, told reporters on a call that customers have already bought about 30% of their Christmas gifts. That echoes similar trends seen at supermarket Sainsbury’s and fashion retailer Primark. George Weston, the CEO of Primark owner Associated British Foods, told Reuters yesterday: People are spreading their Christmas purchases across three or four pay days, rather than relying on cash that they have in hand in December. This morning we’ve announced our half year results to the market. Trading in the first half has been robust, with both businesses growing ahead of the market – reflecting the beginnings of a reshaped M&S. Hear my thoughts below⬇️ pic.twitter.com/JPLmCRYOlH — Stuart Machin (@MachinStuart1) November 9, 2022 Updated at 09.27 GMT
European shares, oil prices dip
European stock markets are drifting lower as investors wait for more results from the US mid-term elections. The UK’s FTSE 100 index is down 24 points, or 0.3%, to 7,281. Germany’s Dax is also down 0.3%, while the French bourse has edged 0.15 lower and the Italian borsa is 0.4% higher. Oil prices have dipped after industry data showed US crude stockpiles rose more than expected last week, and amid worries about Chinese demand. Last week, there were hopes that China might move towards relaxing its stringent Covid-19 restrictions but over the weekend health officials said they would stick to the current policy in response to new infections. Brent crude, the global benchmark, has fallen 36 cents to $95 a barrel while US light crude has lost 48 cents to $88.43 a barrel. Sterling has inched up 0.1% to $1.1552 against the dollar and is flat versus the euro, at €1.1464. Updated at 08.52 GMT
Wetherspoons to sell 39 more pubs as sales slow
Wetherspoons said it was selling 39 more pubs, as sales slowed and the pub chain warned of “substantially higher” costs for staff, food and repairs. Like-for-like sales in the 14 weeks to 6 November were 9.6% higher than in the same period last year, and 0.4% higher than pre-pandemic levels. In the last five weeks, sales were up 8.9% year-on-year, but 1.1% lower than the same period in 2019. Wetherspoons fell more than 4%. The company, run by Tim Martin, said: Trading has been broadly in line with expectations, although October has been a slightly slower month. The company wants to sell 39 pubs that are close to other Wetherspoons and has sold five other outlets. Martin said: In my comments on the full year results released on 7 October 2022, I set out various threats to the hospitality industry and these continue to apply. Those caveats aside, in the absence of further lockdowns or restrictions, the company remains cautiously optimistic about future prospects. A JD Wetherspoon pub. Photograph: Tim Ireland/PA Updated at 08.54 GMT Here are our full stories on Marks & Spencer and Made.com: Marks & Spencer has said it faces a “gathering storm”, with next year likely to be more challenging than this after reporting a near 24% fall in profits. The clothing, food and homewares retailer said sales rose 8.8% to £5.6bn in the six months to 1 October but underlying pre-tax profits sank 23.7% to £205.5m as its Ocado online grocery joint venture fell into the red and it pulled out of Russia. The online furniture retailer Made.com has collapsed into administration after weeks of speculation, putting about 500 jobs at risk and leaving customers disappointed. The company’s brand, domain names and intellectual property were immediately bought by the fashion and homeware retailer Next. The Guardian understands that Next offered £3.4m to buy the brand but has not taken on the company’s workers or any of its stock of furniture, lighting and homeware. Updated at 09.13 GMT Made.com’s remaining 500 employees will be told the sad news by administrators at PwC between 9am and 10am this morning, reports my colleague Joanna Partridge. The failed furniture chain’s shares, which were suspended on 1 November, will be cancelled, any residual value will be distributed to shareholders and the company will be wound up. It stopped taking orders in September, and thousands of customers are anxiously waiting to see if they will get any refunds for items they have ordered. Susanne Given, chair of Made.com, said: Having run an extensive process to secure the future of the business, we are deeply disappointed that we have reached this point and how it will affect all our stakeholders, including employees, customers, suppliers and shareholders. We appreciate and deeply regret the frustration that MDL going into administration will have caused for everyone. I want to sincerely thank all our employees, customers, suppliers and partners for your support throughout the past 12 years and especially during this difficult time where we have tried so hard to find a workable solution for the company and all its stakeholders. Just last year, Made.com was valued at almost £800m when it listed on the stock exchange in June, and was heralded as the future of furniture retail. One of its founders wanted to turn it into an alternative to Ikea, leading a similar revolution in stylish and affordable furniture. Li said in 2017 that Made.com wanted to be the new Ikea, “the pioneer of the next trend of how people shop for their home”. But while the business enjoyed booming orders during the pandemic when people were stuck at home, sales fell away when Covid restrictions came to an end. The company has also been caught up in the global supply chain crisis, and customers complained about long waits and delayed deliveries of their made-to-order velvet sofas and armchairs. The Made.com store in Charing Cross Road, London. Photograph: Yui Mok/PA Updated at 08.24 GMT To help struggling consumers, M&S relaunched its ‘Remarksable’ value range at the start of the year. The range includes ‘bigger packs, better value’ on 40 lines offering 5% savings per unit volume and this month it locked the prices of 100 family favourites through to 2023. The dine-in programme has been expanded to include the Gastro range in an ‘always on’ family meal deal for four, for £12. Updated at 08.25 GMT
Taylor Wimpey reports slower sales, cancellation rate up sharply
More evidence that the housing market is entering a downturn: After Persimmon yesterday, Taylor Wimpey, one of the UK’s largest housebuilders, has also reported slower sales for its new-build homes and a sharp rise in the cancellation rate, to 24% in the last six months (its second half) from 14% a year earlier. Its net sales rate for private homes fell to 0.51 from 0.91 a year earlier, “reflecting customer response to heightened levels of economic uncertainty”. It expects sales over the year as a whole to be flat compared with the previous year, but says it remains on track to deliver a full-year operating profit of £922m. Taylor Wimpey’s total order book excluding joint ventures has shrunk to £2.6bn from £2.8bn at this stage last year, and is comprised of 9,153 homes versus 10,643 in 2021, of which 79% is exchanged. Jennie Daly, the chief executive, said: We have further increased cost control, increased management controls and focused our sales teams for selling in a tougher market. Customer visits to our website continue to be at good levels, albeit with conversions taking longer. Where customers have locked in mortgage rates, they remain keen to complete their purchase. With resilient pricing in the order book and a focus on cost discipline, we expect to deliver operating profit in line with our expectations. We expect group volumes to be at broadly similar levels to 2021, given the uncertainty in the market. Higher mortgage rates will contribute to the wider cost of living challenges affecting our customers. Veteran property journalist Peter Bill tweets: Taylor Wimpey report a 10% y-o-y jump in the cancellation rate to 24% over last six months. Order book down to 9,153 homes from 10,643 last year. Sales per outlet per week nearly halved from 0.91 to 0.51. But profit will be ‘in line with expectations’ of £922m. — Peter Bill…
