Retail & Consumer
Deliveroo called 'underappreciated' after quitting Hong Kong as rivals 'muscle it out'
2025-07-15 01:06:31
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.
Retail & Consumer
Airbnb's top boss in UK and Northern Europe quits after four years in role
2025-06-30 19:52:55
Retail & Consumer
Welsh footfall growth the strongest in the UK despite cooling on January
2025-06-18 12:18:32
Retail & Consumer
Brits spent nearly £1bn on Valentine's Day as couples opt for home celebrations
2025-07-12 19:49:46
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Retail & Consumer
Pukka Pies warns price rises are 'inevitable' as it battles 'significant' inflation
2025-06-27 20:31:11
Pukka Pies, a staple in chip shops across the UK, has warned that price increases are "inevitable" as it grapples with "significant levels of power and labour inflation." The Leicester-based firm revealed that it had postponed price hikes during its most recent financial year to "assess the mid to long-term implications from the underlying inflation", but has since determined that rises are necessary, as reported by City AM. These remarks were included in the company's accounts for the financial year ending 25 May, 2024. Over this period, the company saw its turnover rise from £79.1m to £85.2m, while pre-tax profit fell from £6.7m to £3.4m, according to newly-filed accounts at Companies House. The firm's UK turnover increased from £78.7m to £84.7m, and European sales rose from £353,527 to £493,707. Elsewhere in the world, turnover grew from £8,749 to £12,992. Founded by the Storer family in 1963, Pukka Pies initiated an investment search in March 2024, leading to a corporate restructure. A statement approved by the board read: "The directors are satisfied with business performance during its first year of trading as a group following the corporate reorganisation which inserted two new companies into the corporate structure." Pukka Pies also noted that its turnover increase was due to new product launches, gaining new customers, improved distribution among existing customers, and growth in the retail category. The directors expressed their satisfaction with the company's operating profit before exceptional items, which dropped from £6.8m to £4.5m, citing the long-term benefits expected from a recent corporate restructuring. Pukka Pies commented: "Over the course of the financial period the group has seen significant levels of power and labour inflation." The firm initially delayed implementing higher sales prices to evaluate the mid to long-term implications of underlying inflation but has since concluded that price increases are inevitable over the next 12 months. Regarding its future, Pukka Pies stated: "The group continues to build brand awareness and the directors expect the business to grow over the coming years."
Fenwick launches Colmans Fish and Chips restaurant in latest foodie collaboration
2025-07-01 21:29:28
Co-op admits to 107 breaches of order to stop blocking rivals from opening nearby
2025-06-25 19:50:33
Jollyes continues to sink into the red despite sales surge as it takes on Pets at Home
2025-06-28 17:37:52
High Street shops, pubs and restaurants face £1bn tax bill from April
2025-07-05 13:55:14
Begin a New Chapter
Retail & Consumer
Julia Hoggett calls for UK to revise retail investment rules favouring crypto over bonds
2025-07-03 14:54:49
Julia Hoggett, CEO of the London Stock Exchange Group (LSEG), has called for a shift in the UK's "perverse" approach to retail investment. Speaking on the Following the Rules podcast, she highlighted that it is currently easier for retail investors to put their money into crypto than heavily regulated assets such as corporate debt or government bonds, as reported by City AM. "We have a regulatory structure that has historically made it easier to buy a riskier product and then hardest to buy the least risky product in the stack, which is perverse," she stated. "(Debt) sits higher up the cap table in terms of its credit worthiness than equity, and yet we have made it harder for retail to buy plain vanilla debt...than we have equity or crypto," she added. Hoggett argued that it should be "much more straightforward" for retail investors to engage in these markets, which would help reduce the cost of capital for businesses and stimulate growth. Post-financial crisis rules classified bonds issued under £100,000 as retail products, subjecting them to closer scrutiny. This inadvertently discouraged companies from issuing smaller denominations and excluded individual investors from the market. A recent report by Barclays revealed that US retail investors held approximately $6.2 trillion in debt securities at the end of Q3 2024, while only 36 corporate bonds from 21 firms were listed in the UK's orderbook for retail bonds. Hoggett highlighted the discrepancy in regulatory approaches, noting that while corporate debt remains under tight control, retail investors are granted "all the access to (crypto) in the world". In a recent move, the Financial Conduct Authority (FCA) proposed measures to facilitate retail investors' entry into the corporate bond market by reducing paperwork for smaller debt portions. Hoggett sees this as indicative of a wider issue with risk aversion, which she believes has significantly hindered economic growth. "The UK's got the second largest pool of institutional capital in the world. We have not been spending it on ourselves as a nation, and we have been de-risking it to a point that has not been healthy for ourselves," stated the LSEG chief. She pointed out that the UK's investment shortfall could be up to eight per cent less than that of its G10 and G20 counterparts, leading to lower growth and consequently reduced tax revenue for public services. Hoggett argued against a "zero failure regime" in the UK, advocating instead for practical KPIs that could drive investment funds and regulators towards goals like advancing the green energy transition or enhancing financial security for retirees.
UK shop prices drop as food inflation soars, British Retail Consortium reports
2025-07-15 10:45:08
Aldi to cut up to 350 jobs at UK headquarters as cost pressures increase
2025-07-11 22:25:41
Manchester Airport to get third Premier Inn hotel as bosses eye new site
2025-06-18 06:28:43
Kitchenware brand Procook to open Bristol Cabot Circus store
2025-06-27 01:12:33
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Retail & Consumer
Gousto to take on Hellofresh in major expansion as it creates dozens of new jobs
2025-06-18 21:43:30
Gousto, the recipe kit provider, has unveiled ambitions to extend its market reach by launching operations in the Republic of Ireland, a move that is set to introduce new employment opportunities as the company intensifies its rivalry with Hellofresh. This expansion will lead to more than 30 new roles in 2025, encompassing areas such as management, marketing, food, supply chain, and fulfilment, as reported by City AM. Entering a space already inhabited by Hellofresh, Gousto anticipates further job creation as the Irish arm of the business grows. The company has committed to sourcing over one-third of ingredients locally from the island of Ireland from the outset. Gousto founder Timo Boldt commented on the strategic step: "Our research reveals Irish consumers are highly engaged in health but until now this has not been reflected in dinner choices across the country." He continued, "We aim to fill this gap in the market, with an inspiring range of nutritious, fresh, home-cooked recipes, which make healthy eating simple." Emphasising the progression of the company's growth, he added, "Launching into the Republic of Ireland was the natural next step following our successful expansion into Northern Ireland." Expounding further, Boldt elaborated on the company's offer to the Irish market: "We will deliver to the nation's 1.8 million households an unrivalled recipe choice, expanding their cooking repertoire with simple to create dishes from around the world, exceptional value, combined with the convenience to make cooking from scratch the obvious choice, all backed up by local fulfilment and local sourcing." This announcement comes as the company seeks a return to profit after experiencing extensive job cuts. Gousto's expansion follows its September 2023 announcement that it was on track to return to profit within the financial year. However, accounts released in October 2024 showed that the company had not achieved this goal, although it did manage to reduce its pre-tax loss from £157.5m to £75.6m. In 2023, Gousto reduced its workforce from 1,750 to 1,416. A trading update issued in May 2024 revealed the business was now profitable, but exact figures were not disclosed. The company's next full set of accounts are due to be filed with Companies House at the end of September this year. Since its inception, Gousto has raised nearly $350m (£276.8m) in equity from global investors including SoftBank and Fidelity International. Recently, UK meal box companies have been contracting following significant growth after their initial launch. In September 2024, City AM reported that the UK branch of Hellofresh significantly reduced its pre-tax loss as its turnover neared the £500m mark and it cut 15 per cent of its workforce. The last time the UK arm of Hellofresh reported a pre-tax profit was the £8m it made in 2020. Since then, it has lost almost £50m.
M&S defies National Insurance hike to increase staff pay by 5%
2025-06-27 20:24:02
Historic Preston Guild festival looks set to continue despite council abolition
2025-07-05 01:27:19
Women risk being left without a pension for 14 years
2025-06-21 21:31:05
Fenwick says it has 'no plans for store closures' as it calls in restructuring experts
2025-06-20 11:59:42