RCM Weekly review - February 2019 - Week 7
This week: Patisserie Valerie saved by private equity firm and retail sales bounce back in January
14th February 2019
Patisserie Valerie saved by private equity buyout from administration
Irish-based private equity firm Causeway Capital Partners commented that they had bought a "heritage brand" through a deal with the administrators. The new owner hoped that they could keep all 96 sites open, resulting in collectively saving 2,000 jobs. Sister brand Philpotts has also been sold in a separate deal to retail specialist A F Blakemore, saving 21 stores. Collectively, the chains realised £13m, a fraction of the £450m market cap reached in early 2018.
15th February 2019
UK retail sales bounce back in January - February 2019
The Office for National Statistics (ONS) have released January 2019 retail sales figures. The monthly growth rate increased by 1.0% in January 2019, easily beating expectations of a 0.2% increase. This follows a decline of 0.7% in December 2018 which was also revised up, from the previously estimated fall of 0.9%. Compared to the previous year, retail sales were 4.2% higher in January.
What does this say?
There has been a trend towards consumers delaying pre-Christmas spending until the new year's sales, but also with consumer confidence low due to political uncertainty, are consumers starting to stockpile ahead of March 29 in the expectation of price rises?
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