Budget has wiped more than £1billion off Britain’s biggest high street names
Date: 2024-11-01MORE than £1billion has been wiped off Britain’s biggest high street names as investors digested the Budget’s hit of higher employment costs.
The move to hike employers’ National Insurance Contributions is set to hit the retail sector — which analysts say will hurt profits.
Castore, which has Everton among its partnerships, has slumped to its first loss in years[/caption]
BRITISH sportswear brand Castore, which has Everton among its partnerships, has slumped to its first loss in years despite its sales jumping by two-thirds.
The business, which counts tennis ace Sir Andy Murray and the billionaire Issa brothers as investors, posted a loss of £28.9million for the year to February, compared with profits of £14.7million in the previous year.
Castore has invested in more stores, warehouses and staff as it adds partnerships including England Cricket and Oracle Red Bull in Formula One.
The firm said: “We’re excited to push the boundaries of sportswear even further.â€
Shell of a hike
SHELL has called for clarity after Labour confirmed plans to raise a windfall tax on North Sea oil and gas firms.
Chancellor Rachel Reeves said she would raise the energy profits levy from 35 per cent to 38 per cent.
Shell said: “We look for policies that provide certainty. We invest over the long-term.â€
It came after the oil giant posted £4.64billion earnings for the last quarter, beating forecasts of £4.13billion. But earnings are down 3.1 per cent from 2023, partly due to low Brent crude prices.
Drinkers reject a pricy pint
TWO of the world’s biggest beer giants have admitted that drinkers can no longer stomach their increasingly expensive pints.
Budweiser and Carlsberg both outlined how they were rethinking their strategies to combat changing demand.
It followed news that Budweiser’s total beer volumes fell by 3.1 per cent in the third quarter compared to the previous year.
The brewer, which also owns Stella Artois and Corona, said total revenues were still 2.1 per cent higher due to higher prices and customers opting for premium craft beers, such as its Camden Hells range, but in smaller quantities.
Carlsberg also said it would focus on its cheaper brands after beer sales shrunk by 1.3 per cent. The average price of a pint of Stella is now £5.47, while a pint of Carlsberg is £4.25.
Boss Jacob Aarup-Andersen said: “The average consumer’s holding back.â€
Argos card deal
SAINSBURY’S has sold its Argos credit cards business for £720million as the supermarket gets back to the basics of flogging groceries.
The deal with financial services firm Newday comes just five months after Sainsbury’s sold its banking business — which provided credit cards and loans — to Natwest.
Sainsbury’s said around two million customers have Argos credit cards which they use in around a fifth of transactions at the retailer.
Boss Simon Roberts said the deal was a “milestoneâ€.
Loan scandal stopping cars
CAR-makers including Honda and BMW have suspended deliveries of new vehicles after a shock ruling on loans.
A court said last week that buyers should be told if lenders had given commission to car dealers for brokering finance.
Millions could now be in line for compensation from the scandal, dubbed PPI 2.0 after the insurance protection debacle.
Big lenders briefly suspended some deals while telling dealerships not to deliver cars amid fears they could face up to £16billion of payouts.
Lloyds scrapped commission payments across its car finance arm.
EU probe for Temu
CHINESE online retail giant Temu has been hit with a probe by European regulators into the sale of illegal products.
The firm, which has an estimated 15.6million UK users, is a big rival to Shein, which recently shifted its HQ to Singapore and is planning to list in London next year.
The European Commission is investigating whether Temu is selling toys and cosmetics that could harm consumers by not complying with EU rules.
