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Nick Beighton left ASOS last autumn and he’s certainly been in demand elsewhere since then. Not long after he was announced as Chairman of Secret Sales, it now emerges that he’s being brought in to run Matchesfashion, replacing CEO Paolo de Cesare.
At least, that’s according to Sky News. It said he would be unveiled as the new chief executive at the luxury online and physical stores retailer on Tuesday.
Matches is controlled by Apax Partners – which bought its majority stake five years ago – and the report said that it's looking to improve the performance at the business. It added that the appointment of the new CEO is likely to come with an injection of further capital into the firm by Apax. However, Sky added that details of the funding hadn't been finalised as of Monday.
Paolo de Cesare took over in the hot seat only 10 months ago and is now reportedly leaving to pursue other opportunities. Beighton would therefore be the fourth head of the company in under three years.
The retailer has faced challenging times in recent periods, not only because of the pandemic, but also as a sales boom post-pandemic has faltered.
Beighton certainly has experience of the ups and downs of online fashion retail and steered ASOS through both some turbulent times as well as more buoyant periods.
However, he left with immediate effect last October as the company said new leadership would “underpin delivery of the next phase of its global growth strategy”. It only recently announced a permanent replacement for him.
It seems De Cesare had already started making headway at Matches, having overseen a move from double-digit declines to double-digit growth in recent months. He's also scaled back the heavy discounting that had been seen at the company.
It’s unclear how this fits in with Beighton’s new part-time role as Chairman of Secret Sales. He was announced as chair of the fast-growing business just over a month ago.
BNPL giant Klarna is expected to announce soon that The Canada Pension Plan Investment Board (CPPIB) is to become a shareholder. It’s to unveil a new $800m fundraising, a media report claims.
Sky News said the fundraising will value the firm at around $6 billion, despite the business having a valuation of more than $45 billion just two years ago.
This reflects less confidence by investors in fast-growing technology-based businesses since the pandemic and also the likelihood of greater regulatory scrutiny of the BNPL sector.
The company, which is based in Sweden, could announce the new money as early as this week, with a report saying that existing investors, such as Sequoia Capital and Silver Lake, and other new backers have taken part in the fundraising round.
SoftBank's Vision Fund is also an existing investor in the company, although it's unclear whether it's taking part in the new round.
Sky added that the Abu Dhabi state investment fund Mubadala had also been in talks with Klarna in recent weeks about taking part in the capital-raising, and that the $800 million it's believed to have raised is larger than had been expected.
Neither Klarna nor CPPIB have commented on the development yet.
Nick Beighton left ASOS last autumn and he’s certainly been in demand elsewhere since then. Not long after he was announced as Chairman of Secret Sales, it now emerges that he’s being brought in to run Matchesfashion, replacing CEO Paolo de Cesare.
At least, that’s according to Sky News. It said he would be unveiled as the new chief executive at the luxury online and physical stores retailer on Tuesday.
Matches is controlled by Apax Partners – which bought its majority stake five years ago – and the report said that it's looking to improve the performance at the business. It added that the appointment of the new CEO is likely to come with an injection of further capital into the firm by Apax. However, Sky added that details of the funding hadn't been finalised as of Monday.
Paolo de Cesare took over in the hot seat only 10 months ago and is now reportedly leaving to pursue other opportunities. Beighton would therefore be the fourth head of the company in under three years.
The retailer has faced challenging times in recent periods, not only because of the pandemic, but also as a sales boom post-pandemic has faltered.
Beighton certainly has experience of the ups and downs of online fashion retail and steered ASOS through both some turbulent times as well as more buoyant periods.
However, he left with immediate effect last October as the company said new leadership would “underpin delivery of the next phase of its global growth strategy”. It only recently announced a permanent replacement for him.
It seems De Cesare had already started making headway at Matches, having overseen a move from double-digit declines to double-digit growth in recent months. He's also scaled back the heavy discounting that had been seen at the company.
It’s unclear how this fits in with Beighton’s new part-time role as Chairman of Secret Sales. He was announced as chair of the fast-growing business just over a month ago.
The latest figures from the IMRG Capgemini Online Retail Index show that times are still tough for e-tailers at the moment, although the fashion sector remains the standout performer and continues to be in positive territory.
The index, which tracks the online sales of more than 200 retailers, showed overall e-tail growth was negative again last month with a 2.3% fall year-on-year.
That said, it was the highest result the index has seen so far this year and significantly better than the three-, six-, and 12-month averages.
And when compared to May, the index also showed 1.5% sales growth. But before we get carried away with the good news, we have to bear in mind that a reading between 2% and 5% is more typical for this time of year.
So while the freefall has eased slightly, the overall picture is still reasonably weak.
While that 2.3% year-on-year drop isn't too bad in isolation, it comes after an 8.6% fall this time last year, so the overall picture is poor.
The monthly report also said that the Average Basket Value (ABV) dropped slightly for the first time in five months, from £150 to £145, “suggesting a degree of stabilisation”. Yet the report said the basket spend remains very high historically.
Of course, the fall in basket size this time could also suggest consumers cutting back on their spending in June at a time when prices are rising fast. Basket sizes could be expected to grow simply because of inflation had shoppers been purchasing at the same rate as in May.
At a category level, the trends seen throughout H1 continue to dominate, with all categories reporting negative growth aside from clothing. In fact, clothing continues to recover from the pandemic at +4% year to date and +11.3% year-on-year, perhaps buoyed by the uptick in in-person events and summer travel.
Andy Mulcahy, Strategy and Insight Director at IMRG, said: “It speaks volumes that a decline of 2.3% feels quite good in the context of 2022. The cost-of-living crisis is having a profound impact on customer behaviour in ways that set it apart from the pandemic.”
The UK saw its lowest like-for-like sales growth last month since February 2021, the latest BDO High Street Sales Tracker (HSST) showed on Friday. However, the fashion sector stood out as strong.
Even with fashion’s ongoing good performance though, BDO’s head of retail and wholesale, Sophie Michael, said that with consumer confidence at historically low levels, real wages falling to a 20-year low and interest rates set to rise further, there are few signs of encouragement for retailers.
And this week’s resignation-but-not-leaving-yet announcement by Prime Minister Boris Johnson means the stability and clear direction that retailers (and the customers) are looking for from government is unlikely to be forthcoming any time soon.
So what did the report actually tell us? Well, on the surface, it didn't look that bad. Total like-for-like (LFL) sales increased by 8.4% — including sales through physical stores and online — against June 2021. But as mentioned, this was the lowest rise for 16 months. And much of that growth will have been about inflation, which is running at historically high levels after decades of low-single-digit price rises.
Total non-store LFL sales were unimpressive at just 1.6% higher in June. While this is the online retail sector’s third consecutive positive result, it’s a very disappointing performance given that it comes after fairly low growth of 8.2% in June 2021. It most likely shows that online has reverted back to a level of normality post-pandemic and underlines how fully consumers have embraced the return to physical shopping.
The month started particularly slowly, as total LFL sales grew by just 4.65% in the first week of June, which included the Platinum Jubilee bank holiday. They rose 7.63% in the second week, and 7.3% in the third week. The final week of the month saw the strongest LFL growth, with sales jumping by 18.61% above those recorded in 2021.
And the fashion sector was a big contributor to the increases. Despite a slow start in early June, it saw total LFL growth of 15.2% compared to a surge of 73.7% this time last year on the back of the big reopening post-lockdown.
Of course, fashion has continued to be buoyed by the fact that many consumers need to update their wardrobes in ways that they haven't for several years. That means they’ve been buying clothing and footwear for occasions, such as a return to the office, a holiday or social event.
But one category that had boomed during the pandemic – homewares – had a tough month with a fall of 8.8% this time. It was the third negative month for the category this year.
Sophie Michael said: “The fashion sector has undoubtedly been boosted by consumers refreshing their wardrobes for summer holidays. However, the weak sales growth for online retailers and the negative results for the homewares sector are key indicators that consumers are tightening their purse strings on discretionary spend and in particular on big-ticket items.
“Retailers who have accumulated high levels of stock are now faced with a real challenge: with their own cost base rising, they cannot afford to discount it to increase sales, but neither can they afford to sit on unsold product. Effective management of stock levels and working capital will be essential for retailers to trade successfully through this period of unprecedented challenge.
“Ultimately, however, retailers will be looking to the government to use the levers at its disposal to get inflation under control, ease the cost-of-living crisis and create the economic conditions where the retail sector can flourish.”
JD Sports Fashion had big news on Friday as it revealed the name of its new Chair. Andy Higginson has been appointed to the role as of 11 July, following a long search.
The company said Higginson “is a highly experienced and proven retailer and Chair with over 28 years of continuous non-executive director experience on PLC boards, including senior leadership roles over nearly 15 years at Tesco”.
He replaces the man who built JD into the multinational retail powerhouse it is today, Peter Cowgill, who stepped down as Executive Chairman in May after shareholder pressure. But the search had begun some time before that with the company already bowing to pressure around its corporate governance. Best practice for UK-listed companies is seen as having the Chairman and CEO roles kept separate.
As mentioned, Higginson is hugely experienced and most recently held the same role at William Morrison Supermarkets from January 2015 until the takeover of the business by private equity firm CD&R last November. During this time he “oversaw a major turnaround of the business and significant value realisation for shareholders”.
JD’s Interim Chair Helen Ashton said: “The board was impressed with the high-quality candidates that we met throughout the recruitment process. Andy, however, stood out as the best candidate with his extensive board experience and his strong track record in the international retail sector.
“It is a testament to the quality and attractiveness of JD that we have recruited Andy to the important role. JD is a great business with a clear strategy, occupying a unique place in the market and we look forward to working with him on our global development opportunities.”
London-based buy now pay later (BNPL) platform Playter has raised $55m (£45m) in a funding round from the backers of fellow BNPL firm Klarna.
Playter is a platform that gives businesses access to BNPL purchases in the same way companies like Klarna provides instalment payments to consumers.
“BNPL for business is a completely different concept to B2C BNPL,” said Playter founder and CEO, Jamie Beaumont.
“Right now, there are very few B2B purchases happening online. We’ve created a platform that gives total control for businesses to dictate what payment terms they want to have.”
SMEs can use the service to spread the payments for business-related purchases, including software, agency fees, office rent, marketing, and more, over six months to a year.
“For SMEs, the ability to take advantage of annual discounts on software as well as smoothing out cashflow can be invaluable in tougher times,” Beaumont added.
“Playter doesn’t just help businesses with cash flow, it also helps redistribute liquidity, allowing businesses to invest in high-growth areas such as marketing, hiring and development.”
The new round, which follows a $1.7m seed round in March, was led by Klarna backers Adit Ventures, along with Fasanara Capital, with participation from Fin Capital, Act Venture Capital, and 1818 Ventures.
“[Playter is] a unique SME-focused BNPL platform that helps growing companies better manage their working capital,” said Jon Cholak, managing partner at Adit Ventures.
“We see a growing need for their services across the ecosystem, particularly as capital and credit conditions tighten because of broader macroeconomic trends.”
The latest cash injection will go towards the company’s UK growth, although it is also eyeing up the possibility of international expansion down the line.
BNPL has come under criticism recently from consumer protection groups and credit firms. The service is similar in principle to a loan, however, it is largely unregulated.
The government recently announced a proposal to regulate the BNPL industry, although it is focusing on consumer-facing BNPL products.
SumUp, a London-based fintech, has raised €590m (£507m) in a funding round that’s landed the firm an enterprise valuation of €8bn (£6.8bn).
Founded in 2012, SumUp provides payment solutions to small merchants. Its services include a free business account and card, access to an online store, and invoicing solutions.
“SumUp has received consistent support from the global investment community in our mission to help small merchants succeed,” said SumUp co-founder and CFO Marc-Alexander Christ.
“We stand by our merchants whatever the circumstance ‒ whether that be Covid or macroeconomic uncertainty. The funds we’ve raised will enable us to continue to build out our product ecosystem, expand into new markets, pursue value-adding acquisitions, and continue levelling the playing field for small merchants at a global scale.”
The latest investment brings the total amount of funding raised by the unicorn up to €1.5bn (£1.29bn). Its previous funding round came back in March 2021 when it raised £642m.
The round was led by Bain Capital Tech Opportunities, with participation from funds managed by BlackRock, btov Partners, Centerbridge, Crestline, Fin Capital, and Sentinel Dome Partners, among others.
“SumUp has continually evolved to empower a growing and diverse field of small businesses with payment solutions and tools to efficiently connect with their everyday consumers,” said Darren Abrahamson, a managing director at Bain Capital Tech Opportunities.
“SumUp’s leadership team have led the company to sustained and accelerated growth through expansion to more than 30 countries where they have had a direct and positive impact on the small business ecosystem.”
SumUp serves more than four million small businesses operating in 35 countries worldwide. Last year the firm acquired the Lithuanian fintech Paysolut, with the aim of creating stronger banking solutions and expanding the company’s international reach.
Soaring food prices pushed British consumer price inflation to a 40-year high of 9.1% last month, the highest rate out of the Group of Seven countries and underlining the severity of the cost-of-living crunch.
The reading, up from 9% in April, matched the consensus of a Reuters poll of economists. Historical records from the Office for National Statistics show May's inflation was the highest since March 1982 — and worse is likely to come.
Sterling, one of the worst performing currencies against the U.S. dollar this year, fell below $1.22, down 0.6% on the day.
Some investors judge Britain to be at risk of both persistently high inflation and recession, reflecting its large imported energy bill and continuous Brexit troubles which could further hurt trade ties with the European Union.
That could seriously dent discretionary spending on items such as fashion and beauty goods.
"With the economic outlook so unclear, no one knows how high inflation could go, and how long it will continue for - making fiscal and monetary policy judgements particularly tough," said Jack Leslie, senior economist at the Resolution Foundation think tank.
Earlier on Wednesday the Resolution Foundation said the cost-of-living hit for households had been compounded by Brexit, which had made Britain a more closed economy, with damaging long-term implications for productivity and wages.
Britain's headline inflation rate in May was higher than in the United States, France, Germany and Italy. While Japan and Canada have yet to report consumer price data for May, neither are likely to come close.
The Bank of England said last week that inflation was likely to remain above 9% over the coming months before peaking at slightly above 11% in October, when regulated household energy bills are due to rise again.
The British government was doing all it could to combat a surge in prices, finance minister Rishi Sunak said after the data.
Prices for food and non-alcoholic drinks rose by 8.7% in annual terms in May — the biggest jump since March 2009 and making this category the biggest driver of annual inflation last month.
Overall consumer prices rose by 0.7% in monthly terms in May, the ONS said, a little more than the 0.6% consensus.
British factory-gate prices — a key determinant of prices later paid by consumers in shops — were 22.1% higher in May than a year earlier, the biggest increase since these records began in 1985, the ONS said.
The UK has been ranked fourth in Europe for green tech innovation, according to a study of the European clean energy sector.
The research placed the UK behind Germany, which topped the list, followed by Sweden. France and the Netherlands were placed in joint third according to the model, which analysed investments and patents.
The study, conducted by sustainable consumer goods firm Bower Collective, found that just under four in 10 green startups in the UK are working towards affordable and clean energy.
It also noted that the UK has issued the third most green technology patents in Europe at 1,066.
Bower Collective reported an average of around €1.3bn per country having been invested into green tech startups since 2018.
However, the top nations for green tech investments were significantly higher. Sweden has seen the most funding, raising a total of €7.6bn.
“Overall, it is heartening to see significant capital coming in to support businesses focused on creating a more sustainable future,” said Nick Torday, co-founder of Bower Collective.
“The UK is in the top five and we certainly see lots of opportunity and innovation happening in our space, with increasing appetite from investors to prioritise impact as one of their key investment criteria.”
The UK has been working towards net-zero carbon emissions by 2050. The Department for Business, Energy, and Industrial Strategy published the plan last year, which included investments into non-carbon energy tech.
Since then, more and more startups in the UK have been working towards innovative methods of decarbonisation.
However, data shows that UK energy tech startups are struggling to scale and attract later-stage investment compared to other areas, such as fintech and AI.