Not all jobs can be saved, but a sudden crunch of layoffs would have multiplying effects
Tesco’s plan this week to create 16,000 jobs was a reminder that not every retail employer is shrinking its workforce, but the broader picture is unmistakable. Job cuts in the sector are happening at the fastest rate since 2009, according to the CBI’s monthly survey of “distributive trades”, and worse is expected in September.
In one small respect, the CBI’s finding is surprising. For all the sound and fury, the retail sector had a half-decent end to the summer. Retail sales rose above pre-pandemic levels in July, according to last week’s data from the Office for National Statistics, as pent-up demand was released with the end of lockdown. August’s numbers may also be reasonable since some of the “eat out to help out” punters will have visited a shop or two on their way to the restaurant.
Continue reading...Either Rob Templeman or Paul Mason could possibly become chairman in a concluded deal
Two retail veterans are lining up to front rival £6.5bn private equity bids for Asda, the UK’s third largest supermarket.
Rob Templeman, a former chief executive of Debenhams, is understood to be assisting Apollo Global Management, while Paul Mason, a former Asda chief executive who also once led discount fashion group Matalan and the now defunct Somerfield supermarket, is linked to Lone Star Funds.
Continue reading...Motoring group’s shares rise after it says it has received three takeover approaches
The AA could be taken back into private equity ownership, as the motoring group said it was in talks with three suitors in an effort reduce its £2.65bn debt pile.
The firm, which was founded in 1905 as the Automobile Association, said it needed to raise funds to pay down its debts. With 3,000 patrol vehicles, the AA provides roadside assistance to 12 million members, including 3 million personal members, and also offers home and car insurance and driving lessons.
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