February 22, 2024

The Body Shop to appoint administrators in Britain; Biden Tells Snack Companies to Stop Shrinkflation – Business | Company

Introduction: The Body Shop lists administrators

Good morning and welcome to our in-depth coverage of business, financial markets and the global economy.

Thousands of jobs are at risk at The Body Shop as the cosmetics retailer’s new owners target administrators for its UK arm.

The Body Shop could go bankrupt as early as this week, leading to store closures, after disappointing trading over Christmas and early January.

The retail chain, which has more than 200 stores, was purchased last November by the pan-European private equity investor Aurelius.

Receivers at FRP Advisory are likely to be appointed as early as this week to handle an insolvency process, Sky News reported on Saturday, citing sources who said they expected the closure of a significant number of stores.

According to Retail Week, The Body Shop’s international activities have already been sold to an unknown family office.

Known for its ethical trading ethos, The Body Shop has been in business for almost 50 years, as my colleague Rob Davies explains:

An environmentalist, activist and entrepreneur, Roddick founded the Body Shop in Brighton in 1976. She owned the company for three decades until she sold it in 2006. Roddick died the following year.

By then, The Body Shop had become synonymous with its ethical stances, including refusing to stock products tested on animals and sourcing ingredients from natural products that are ethically traded.

It looks set to be another interesting week ahead for financial markets with a good mix of central bank speakers and data coming into play as the week progresses. Asian trading sessions will experience a drop in liquidity with several markets enjoying the Lunar New Year…

— IC Markets Global (@IC_Markets) February 11, 2024

“}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”>

It looks like it will be another interesting week for the financial markets, with a good mix of central bank speakers and data coming into play as the week progresses. Asian trading sessions will experience a drop in liquidity as several markets enjoy the Lunar New Year…

— IC Markets Worldwide (@IC_Markets) February 11, 2024

…before the Bank of England’s Governor Andrew Bailey speaks at the UK’s premier university – Loughborough.

— IC Markets Global (@IC_Markets) February 11, 2024

“}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”>

…before Bank of England Governor Andrew Bailey speaks at Britain’s premier university – Loughborough.

— IC Markets Worldwide (@IC_Markets) February 11, 2024

The agenda

  • 10am GMT: European Commission winter forecasts

  • Afternoon GMT: India’s industrial production data for December and inflation for January

  • 1:00 PM GMT: Russian trade balance for December

  • 6:00 PM GMT: Andrew Bailey, Governor of the Bank of England, lectures at Loughborough University

Updated on

The cost of living squeeze has made it harder for retailers such as The Body Shop to grow sales.

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And new research today shows that one-in-three working age families have not managed to build up a basic “rainy day” savings of at least £1,000.

“,”elementId”:”0408ddb2-2560-4c8b-ac01-41d5380c4fbd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

This highlights how the poorest households are struggling to build up financial resilience amid the cost of living crisis.

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The Resolution Foundation said people across Britain faced a “triple savings challenge” of insufficient savings, an inability to cope financially with major life events such as family breakdown, and inadequate retirement incomes.

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🚨New research: One-in-three families in the country have less than £1,000 in savings.

💷Around 13 million individuals aren’t saving enough for an adequate income in retirement.

Read more: https://t.co/Bcs1JLyQvZ pic.twitter.com/ZSvsC9fN65

— Resolution Foundation (@resfoundation) February 12, 2024

\n\n”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

It said 11.2 million people lived in households that had savings of less than £1,000, accounting for about one in three working-age households. As many as half lived in the poorest third of households in Britain.

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More here:

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President Joe Biden has launched an attack on food and drink companies who are cutting the size of their products but not the cost.

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In a video posted ahead of last night’s nail-biting Super Bowl LVIII, Biden pointed out that sports drinks bottles are smaller, while you get fewer crisps in a packet than you used to, and less ice-cream in a carton too.

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As Biden puts it:

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\n

I’ve had enough of what they call shrinkflation. It’s a rip-off.

\n

“Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won’t notice.

\n

“Give me a break. The American public is tired of being played for suckers. I’m calling on companies to put a stop to this. Let’s make sure businesses do the right thing now.”

\n

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While you were Super Bowl shopping, did you notice smaller-than-usual products where the price stays the same?

Folks are calling it Shrinkflation and it means companies are giving you less for every dollar you spend.

I’m calling on the big consumer brands to put a stop to it. pic.twitter.com/wL1NsEh78F

— President Biden (@POTUS) February 11, 2024

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Shrinkflation has helped consumer goods makers to grow profits despite inflationary pressures, and it isn’t only a US phenomenon.

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Retailers in the UK have been cutting the size of their products for several years, and also changing their ingredients, as they try to absorb the impact of higher raw material, energy and staff costs….

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…while in France, supermarket chain Carrefour has put labels on its shelves this week warning shoppers of “shrinkflation”, to shame retailers who have been cutting product sizes.

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Biden also seems happy with the result from Las Vegas:

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With their third Super Bowl win in just five seasons, the Kansas City Chiefs aren’t just champions today – they’re a dynasty.

Congratulations, Chiefs Kingdom.

Ready to welcome this team back to the White House. pic.twitter.com/8GZDRiopRX

— President Biden (@POTUS) February 12, 2024

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Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.

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Thousands of jobs are at risk at The Body Shop, as the cosmetics retailer’s new owners line up administrators for its British arm.

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The Body Shop could go into administration as early as this week, leading to store closures, having suffered disappointing trading over Christmas and in early January.

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The retail chain, which has more than 200 shops, was bought by the pan-European private equity investor Aurelius last November.

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Administrators at FRP Advisory are likely to be appointed as soon as this week to handle an insolvency process, Sky News reported on Saturday, citing sources who said they expected the closure of a significant number of the stores.

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The Body Shop’s international businesses have already been sold to an unknown family office, according to Retail Week.

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The Body Shop, known for its ethical trading ethos, dates back almost 50 years, as my colleaue Rob Davies explains:

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\n

Roddick, an environmental campaigner, activist and entrepreneur, founded the Body Shop in Brighton in 1976. The company remained under her ownership for three decades, until she sold it in 2006. Roddick died the following year.

\n

By then, The Body Shop had become synonymous with its ethical positions, including a refusal to stock products tested on animals and a sourcing of ingredients from natural products that are traded ethically.

\n

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It looks set to be another interesting week ahead for financial markets with a good mix of central bank speakers and data coming into play as the week progresses. Asian trading sessions will experience a drop in liquidity with several markets enjoying the Lunar New Year…

— IC Markets Global (@IC_Markets) February 11, 2024

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…before the Bank of England’s Governor Andrew Bailey speaks at the UK’s premier university – Loughborough.

— IC Markets Global (@IC_Markets) February 11, 2024

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The agenda

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    \n

  • 10am GMT: European Commission winter forecasts

  • \n

  • Noon GMT: India’s industrial production data for December & inflation for January

  • \n

  • 1pm GMT: Russian balance of trade for December

  • \n

  • 6pm GMT: Bank of England governor Andrew Bailey gives lecture at Loughborough University

  • \n

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Key events

Families need help to save more for rainy days

Pressure on the cost of living has made it harder for retailers like The Body Shop to grow their sales.

And new research today shows that one in three working-age families have failed to build up basic savings of at least £1,000 on ‘rainy days’.

This underlines how the poorest households are struggling to build financial resilience amid the cost of living crisis.

The Resolution Foundation said people across Britain were facing a ‘triple savings challenge’: insufficient savings, an inability to cope financially with major life events such as family breakdown, and inadequate retirement incomes.

🚨New research: One-in-three families in the country have less than £1,000 in savings.

💷Around 13 million individuals aren’t saving enough for an adequate income in retirement.

Read more: https://t.co/Bcs1JLyQvZ pic.twitter.com/ZSvsC9fN65

— Resolution Foundation (@resfoundation) February 12, 2024

\n\n”}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”/>

According to the report, 11.2 million people lived in households with savings of less than £1,000, which equates to around one in three working-age households. As many as half lived in the poorest third of households in Britain.

More here:

The Body Shop is being hit by intense competition and a lack of innovation, the company says Diane WehrleCEO of Rendel Intelligence And Insights:

“The news that The Body Shop has called in administrators is a serious blow to Britain’s high streets and shopping destinations, which will be concerned about how the 200-store portfolio can be saved to avoid closures and job losses in local communities.

Against the backdrop of the strong performance of the health and beauty sector in the fourth quarter of 2023, this undoubtedly reflects a lack of innovation and much stronger competition than ever before, with many health and beauty brands entering the natural and socially conscious space that was once owned by Carrosseriewinkel.

It is likely that the focus will be much more online in the future, which will be better suited to what is now clearly a diverse customer base.”

The administration could allow The Body Shop to move away from markets where it is struggling.

David Boynton, the former CEO of The Body Shop, told Radio 5’s Wake Up To Money this morning that The Body Shop is a “large and complex international company”, operating in more than 80 markets.

Some are very successful and profitable, but others are less so, and in recent years the company has not had the money to improve or exit its loss-making markets.

Boynton explains:

The fact is that it is very expensive to close markets due to rental obligations and severance costs, especially in countries such as Germany and France.

There are those who speculate that the potential board could be a means to remove some of the liabilities of closing less profitable markets.

Joe Biden tells snack companies to stop shrinkflation

President Joe Biden has launched an attack on food and beverage companies that reduce the size of their products but not the costs.

In a video posted ahead of last night’s nail-biting Super Bowl LVIII, Biden pointed out that sports drink bottles are smaller, while you get fewer chips in a pack than you used to, and also less ice in a carton.

As Biden puts it:

I’m fed up with what they call shrinkflation. It’s a rip off.

“Some companies try to score quickly by reducing the size of the products little by little and hoping you don’t notice.

“Give me a break. The American public is tired of being played as suckers. I’m calling on companies to put an end to this. Let’s make sure companies do the right thing now.”

While you were Super Bowl shopping, did you notice smaller-than-usual products where the price stays the same?

Folks are calling it Shrinkflation and it means companies are giving you less for every dollar you spend.

I’m calling on the big consumer brands to put a stop to it. pic.twitter.com/wL1NsEh78F

— President Biden (@POTUS) February 11, 2024

“}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”>

While shopping the Super Bowl, did you notice any products that are smaller than normal and the price remains the same?

People call it shrinkflation and it means companies give you less for every dollar you spend.

I call on the major consumer brands to put an end to this. pic.twitter.com/wL1NsEh78F

– President Biden (@POTUS) February 11, 2024

Contraction inflation has helped consumer goods makers grow profits despite inflationary pressures, and it’s not just an American phenomenon.

Retailers in Britain have been cutting the size of their products and also changing their ingredients for several years, as they try to cushion the impact of higher raw material, energy and staff costs…

…while supermarket chain Carrefour in France this week put labels on shelves warning shoppers of ‘shrinkflation’, shaming retailers who have cut back on product sizes.

Biden also seems happy with the result from Las Vegas:

With their third Super Bowl win in just five seasons, the Kansas City Chiefs aren’t just champions today – they’re a dynasty.

Congratulations, Chiefs Kingdom.

Ready to welcome this team back to the White House. pic.twitter.com/8GZDRiopRX

— President Biden (@POTUS) February 12, 2024

\n\n”}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”>

With their third Super Bowl victory in just five seasons, today the Kansas City Chiefs aren’t just champions – they’re a dynasty.

Congratulations, Chiefs Kingdom.

Ready to welcome this team back to the White House. pic.twitter.com/8GZDRiopRX

– President Biden (@POTUS) February 12, 2024

Updated on

Introduction: The Body Shop lists administrators

Good morning and welcome to our in-depth coverage of business, financial markets and the global economy.

Thousands of jobs are at risk at The Body Shop as the cosmetics retailer’s new owners target administrators for its UK arm.

The Body Shop could go bankrupt as early as this week, leading to store closures, after disappointing trading over Christmas and early January.

The retail chain, which has more than 200 stores, was purchased last November by the pan-European private equity investor Aurelius.

Receivers at FRP Advisory are likely to be appointed as early as this week to handle an insolvency process, Sky News reported on Saturday, citing sources who said they expected the closure of a significant number of stores.

According to Retail Week, The Body Shop’s international activities have already been sold to an unknown family office.

Known for its ethical trading ethos, The Body Shop has been in business for almost 50 years, as my colleague Rob Davies explains:

An environmentalist, activist and entrepreneur, Roddick founded the Body Shop in Brighton in 1976. She owned the company for three decades until she sold it in 2006. Roddick died the following year.

By then, The Body Shop had become synonymous with its ethical stances, including refusing to stock products tested on animals and sourcing ingredients from natural products that are ethically traded.

It looks set to be another interesting week ahead for financial markets with a good mix of central bank speakers and data coming into play as the week progresses. Asian trading sessions will experience a drop in liquidity with several markets enjoying the Lunar New Year…

— IC Markets Global (@IC_Markets) February 11, 2024

“}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”>

It looks like it will be another interesting week for the financial markets, with a good mix of central bank speakers and data coming into play as the week progresses. Asian trading sessions will experience a drop in liquidity as several markets enjoy the Lunar New Year…

— IC Markets Worldwide (@IC_Markets) February 11, 2024

…before the Bank of England’s Governor Andrew Bailey speaks at the UK’s premier university – Loughborough.

— IC Markets Global (@IC_Markets) February 11, 2024

“}}” config=”{“renderingTarget”:”Web”,”darkModeAvailable”:false}”>

…before Bank of England Governor Andrew Bailey speaks at Britain’s premier university – Loughborough.

— IC Markets Worldwide (@IC_Markets) February 11, 2024

The agenda

  • 10am GMT: European Commission winter forecasts

  • Afternoon GMT: India’s industrial production data for December and inflation for January

  • 1:00 PM GMT: Russian trade balance for December

  • 6:00 PM GMT: Andrew Bailey, Governor of the Bank of England, lectures at Loughborough University

Updated on

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