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  • Insolvency review - Week 32

     

    RCM Weekly review - August 2019 - Week 32

     

     This week: Tesco announce 4,500 job cuts at their Metro stores & UK economy contracts for the first time in 7 years.

    9th August 2019

     UK economy has contracted for the first time in 7 years.

    Latest GDP figures estimate that the UK economy has contracted for the first time in 7 years.

    ONS releases GDP first quarterly estimate, UK: April to June 2019

    UK gross domestic product (GDP) has been estimated to have fallen by 0.2% in Quarter 2 (April to June) 2019. This follows from the first quarter where GDP was reported to have grown by 0.5% and year-on-year when compared to the same quarter in 2018, GDP increased by 1.2%.

    Within the figures, the production sector contracted by 1.4% in the quarter providing the largest downward contribution to growth. It would appear that this sector is experiencing an unexpectedly severe hangover from a pre-Brexit stockpiling boost in the previous quarter that was in anticipation of 29th March date of leaving the EU. The ONS documents states “There is evidence that stockpiling was taking place in the first quarter of the year, which provided a boost to GDP, with the latest figures showing that these increased stock levels were partly run down in Quarter 2 2019.”

    GDP by quarter 2008-Q1 - 2019-Q2

    GDP by quarter 2008-Q1 - 2019-Q2

    Source: ONS


    Production by quarter 2017-Q1 - 2019-Q2

    Production by quarter 2017-Q1 - 2019-Q2

    Source: ONS


    Read the Full report here:
    GDP first quarterly estimate, UK: April to June 2019


    5th August 2019

     Bathstore rescue?

    Tesco announce 4,500 job cuts at their Metro stores

    Tesco, the UK’s largest supermarket chain, have announced that they are to cut around 4,500 staff. The job will mainly be cut from 153 of their medium sized Metro stores as they attempt to overhaul that format. Tesco said "The Metro format was originally designed for larger, weekly shops, but today nearly 70% of customers use them as convenience stores, buying food for that day"

    The chain also said that 134 out of 1,750 of its Express stores would see a reduction in opening hours due to lower footfalls.

    Jason Tarry, UK & ROI CEO, said: “In a challenging, evolving retail environment, with increasing cost pressures, we have to continue to review the way we run our stores to ensure we reflect the way our customers are shopping and do so in the most efficient way”

    Read more here:
    https://www.tescoplc.com/news/2019/tesco-to-simplify-store-operations-with-focus-on-metro/


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