Rochdale-based Footasylum sees profits soar as sales hit £349m
Footasylum has confirmed a near 200 per cent surge in profit as its sales climbed to almost £350m during its most recent financial year. The Rochdale-based retailer, backed by German asset management firm Aurelius Group, reported a pre-tax profit of £17.2m for the year ending 25 January, 2025, as reported by City AM. This is a significant increase from the pre-tax profit of £6m posted in the previous 12 months. Over the same period, the company's total revenue also rose from £319.5m to £349.5m. Store sales saw a three per cent increase to £172m due to new store openings, while online sales grew by six per cent to £143.6m. Footasylum has been owned by Aurelius Group since it was purchased from JD Sports in 2022. David Pujolar, CEO of Footasylum, commented: "We are pleased to report another year of record revenue and profit performance, demonstrating our resilience in a challenging market environment." "Our strategic initiatives and new organisational structure have proven effective and position us strongly for sustained growth." Pujolar also highlighted the success of their new store format, based on their Oxford Street blueprint, which he said has improved the Footasylum shopping experience and received positive feedback from consumers. He added: "Our focus on customer service remains a cornerstone of our approach, strengthening brand loyalty and generating valuable feedback that informs our business decisions." "Additionally, our successful expansion into the wholesale channel demonstrates our ability to identify, and respond to, consumer preferences and emerging trends." "This year has been transformative as we evolve from a traditional retailer into a multifaceted group with diverse channels and creativity." "We are excited to have formed strategic partnerships with global brands such as Nike, Adidas and New Balance." "These collaborations elevate our offering and reflect our commitment to delivering the best on-trend products to our consumers." "Our leading social media and digital presence has enabled us to connect with our consumers in unique and engaging ways, fostering loyalty and community around our brand."
Gong Cha: Bubble tea brand to open 225 new UK stores in nationwide expansion
Bubble tea aficionado Gong Cha has unveiled ambitious expansion plans to launch over 225 stores in the UK, a move set to generate nearly 2,000 jobs, following a franchise agreement with Costa Coffee heavyweight Jinziex. Originating from Taiwan in 2006 and now headquartered in London, Gong Cha's partnership with Jinziex is a key part of its global strategy to hit 10,000 outlets by 2032, as reported by City AM. Jinziex, a nascent venture, is steered by a trio of industry experts: Diljit Brar of Goldex, Azha Rehman from Kaspa's Desserts, and Steve Falle, managing director at WY&SF Ltd. With a presence in 28 countries through more than 2,100 locations, Gong Cha currently operates 13 stores within the UK. Despite facing financial challenges as reported by City AM in September 2024, with sales declines in Korea, the US, and Australia, Gong Cha remains optimistic about its UK prospects. The first batch of Jinziex's Gong Cha stores are slated to open their doors in April, with locations including Sidcup, Gravesend, Romford, and Hornchurch. Paul Reynish, the global CEO of Gong Cha, expressed his enthusiasm for the UK market, stating: "Across Europe we continue to see fantastic interest from potential franchisees keen to bring the world's fastest-growing tea brand to their market." He added, "But where it mattered most to us was the UK, which is one of the most exciting markets for us globally." Reynish concluded with confidence in their new partnership: "After a careful selection process, we're delighted to partner with Jinziex – a proven and highly respected food and beverage franchise operator – who match our ambitions to become the clear bubble tea market leader in the UK. "As a market, the UK has huge potential for us. It's a market that is constantly evolving, ripe with innovation, and made up of consumers willing to try new and exciting products." "We firmly believe it is one of the most significant markets in the global F&B industry, and one of the reasons we relocated our global HQ to London in 2019." "Now, with our expanded footprint, we want to play a leading role in shaping the next decade of the UK's food and beverage industry, while cementing Gong Cha as a household name. We can't wait to show the UK how tea is meant to be." Diljit Brar, CEO of Goldex, added: "Gong Cha is a fantastic global brand with a truly unique customer offer that plays into the heart of changing consumer tastes and trends."
Thatchers Cider secures future of West Country supply with huge new orchard
The future of cider supply in the West Country has been secured into the 2030s following a significant effort to establish a new orchard in North Somerset. Thatchers Cider workers have spent around three years preparing around 10 acres of farmland near the company's base in Sandford. After three years of soil restoration, the large-scale planting operation has started, with each sapling carefully hand-planted from the back of a tractor trailer. The operation involves planting 30,000 new trees and is expected to take up to a week to complete. In addition to the trees, the Thatchers team plans to introduce a new hive with thousands of bees to aid in tree pollination. Two varieties of cider apple tree are being planted, as explained by Thatchers spokesperson Emma Russell. "It's a really exciting day for Somerset in general, and for cider drinkers," she said. "Thatchers Cider bought these fields about three years ago, they've spent that time making the soil super healthy and that means this morning we're planting 30,000 new trees in this new orchard," she added. The two varieties in question are Red Windsor and the renowned Katy variety, which is used in most of Thatchers' sweetest ciders and is a cider variety sold by Thatchers in its own right. "In about three years time we'll be able to harvest those and they'll go on to make delicious cider for everyone to enjoy," she said. "It's a great thing for British farming. It's a great thing for British apples. The new orchard, which will be larger than six football pitches, will also be home to bees and thousands of new cider makers, from the worms in the soil, to the birds and wildlife that will make it their home and help with tree health and pollination. "The orchard will sequester away tonnes of CO2 and lock it back into the ground."
Deliveroo called 'underappreciated' after quitting Hong Kong as rivals 'muscle it out'
London brokerage firm Panmure Liberum has hailed Deliveroo as "underappreciated" following its strategic withdrawal from the Hong Kong market. The firm downplayed concerns that the takeaway behemoth might be ousted from other markets by wealthier rivals, labelling such worries as mere "noise". This morning, Deliveroo disclosed its departure from Hong Kong, offloading some assets to Foodpanda and winding down others, as reported by City AM. The London-traded delivery service explained that persisting in Hong Kong "would not serve shareholders' best interests" Panmure Liberum analysts believe that Deliveroo's financial performance will see a positive impact from this move: "Both earnings before interest, tax, depreciation and amortisation (EBITDA) and group GTV growth [revenue] are set to benefit from this market exit," they commented. "[We think] Deliveroo can generate a level of cash flow over the long-term that is currently underappreciated by the market," Panmure further stated. While acknowledging the narrative that Deliveroo could be forced out of smaller markets by larger, better-funded competitors, analysts insisted that such fears should be considered "noise around the investment case." Keeta, an aggressive on-demand delivery titan from China known for its price-cutting tactics, entered the Hong Kong scene in May 2023 and swiftly dominated order volumes by the following May. Data from Measurable AI indicates that by January 2025, Keeta had captured a commanding 55.2 per cent market share. Analysts have noted: "With Hong Kong one of the most discount sensitive markets in Deliveroo's portfolio, it's clear that Meituan's Keeta has been able to muscle it out of the market through discount spend." In 2024, Hong Kong accounted for five per cent of Deliveroo's revenue and negatively impacted international revenue growth by five percentage points. Deliveroo reported a six per cent rise in revenue in the fourth quarter of 2024, aligning with its projected growth of between five and nine per cent.
Morrisons to close 52 cafes and axe 365 jobs in huge shake-up
Morrisons, the supermarket behemoth, has placed 365 jobs in jeopardy as it unveils plans to shutter over 50 of its cafes. The chain, headquartered in Yorkshire, announced that 52 of its cafes, 17 convenience stores and a multitude of meat and fish counters within its stores are earmarked for closure, as reported by City AM. The company stated that these closures form part of a comprehensive review of the business. In addition to the cafes and convenience stores, 13 florists, 35 meat counters, 35 fish counters, four pharmacies and all 18 Market Kitchens are set to be closed. As reported by City AM at the end of January, the Yorkshire-based chain posted revenues of £15.2bn for the year ending 27 October 2024, an increase from £14.7bn. The group's like-for-like sales also saw a rise from 1.8 per cent to 4.1 per cent. Morrisons CEO Rami Baitiéh commented: "The changes we are announcing today are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus our investment into the areas that customers really value and that can play a full part in our growth." He added: "Morrisons Cafés are rightly famous for their great quality well-priced food, their place in the local community and their appealing mix of traditional favourites alongside exciting new dishes." "In most locations the Morrisons Café has a bright future, but a minority have specific local challenges and in those locations, regrettably, closure and re-allocation of the space is the only sensible option." "Market Street is a beacon of differentiation for Morrisons and we remain committed to it." "But as we modernise we are making some necessary changes to the areas of the model which are simply uneconomic. In some stores where we are closing counters or Cafés, we plan to work with third parties to provide a relevant specialist offer." "Although these changes are relatively small in the context of the overall scale of the Morrisons business, we do not take lightly the disruption and uncertainty they will cause to some of our colleagues." "We will of course take particular care to look after all of them well through the coming changes." This move comes on the heels of a report by City AM in January that Sainsbury's was planning to eliminate more than 3,000 roles as it prepares to shut down all its remaining in-store cafes. The major restructuring will reduce its current workforce, which stands at 148,000, by two per cent. The move will also render about 20 per cent of senior management roles at Sainsbury's redundant. This initiative is part of the supermarket giant's plans to concentrate on fewer, larger roles and to streamline its head office and management teams.
New hope for Liverpool's landmark George Henry Lee building as owner vows to safeguard 'strategic asset'
Liverpool's landmark George Henry Lee building could be set for a new lease of life as a new owner has taken on the site vowing to safeguard its future. Concerns arose in 2024 that a £25m scheme to rejuvenate the former department store in Liverpool city centre might fall through after the company behind the plans hit financial troubles. In October 2023, Landlab Developments Ltd obtained planning consent from Liverpool City Council to repurpose the Basnett Street site into a 175-room hotel and casino. A design and access statement for the planning application noted that although the site was once a "very grand" department store, the interior of the building was in poor condition. The statement detailed how the site had undergone what it termed "a number of ad-hoc alterations, piecemeal demolitions and extensions here and there." Additional features proposed for the hotel included a games bar, sports bar, karaoke booths, cinema screens and a gym, spread over nine floors. Expectations were high that the firm would deliver the venue, with 200 jobs set to be supported during the construction phase. However, Landlab entered receivership in May, putting the renovation plans at risk, reports the Liverpool Echo. May 2024 saw the insolvency specialists Antony Batty and Company stepping in as the official receiver for Landlab. The receivership ended in December when AssetStone, a London-based lender, stepped in to rescue the firm, assuming control of its assets, including the leasehold of the iconic former George Henry Lee building. AssetStone is now asset managing the building, as it works on plans for its future AssetStone's CEO, Richard Symonds, said: "I can confirm that AIEF AssetStone took control of the property after we became mortgagee in possession in December 2024. We are actively asset managing the building as we recognise its importance to Liverpool city from both a heritage perspective and as a strategic asset key to building a sustainable future for the city centre and we are working closely with the city on this project so as to avoid any further failed proposals in such an important location." George Henry Lee opened his shop in Basnett Street in 1853 and the small store grew into one of the top department stores in the North, with its own landmark home, It was bought by John Lewis in 1940. In the 1960s, it joined forces with its neighbouring store, Bon Marche, extending to Church Street. It was rebranded as John Lewis in 2002, and six years later the store moved to Liverpool ONE. The former Bon Marche premises was taken over by TK Maxx, while the original section of the George Henry Lee building was occupied by Rapid Hardware - which itself closed in 2017. AssetStone is currently formulating plans for the future of the building. The company told the ECHO that a shoe store will be the first new tenant on the ground floor, with an announcement regarding the opening date to follow in due course.