Retail

Why private equity sharks are shopping at Morrisons

The late Sir Ken Morrison — founder of the eponymous supermarket chain that’s the latest UK target for US private equity — had the blunt manner of the Yorkshire cattle farmer he became in reluctant retirement after he was ousted by his own board. Criticising his successors from the floor at one of his last AGM attendances, he roared: ‘I have 1,000 bullocks… but you’ve got a lot more bullshit than me.’ So I’m sorry he’s not around to accost the suits from the New York firm of Clayton, Dubilier & Rice (and their adviser, former Tesco chief Sir Terry Leahy) on the intentions behind the takeover bid that sent

Is Farrow & Ball’s business model flaking?

The happiest thing that happens in May is the coming into leaf of my long beech hedge. The shift from brown to green symbolises, for me, an annual economic revival — of openings, reopenings and entrepreneurial optimism. This year, after April’s frosts on the end of a dismal winter, it was especially welcome. And as revival collides with new fears of ‘the Indian variant’, I’m clinging to optimism while watching for new-season winners and losers. In that spirit, I’ll make this column a collage of consumer themes. First — though I’m not sure what this symbolises — a friend tells me he celebrated relative freedom by driving to Bicester Village

The insidious creep of corporate friendliness

Have you noticed it? The slide towards faux-friendliness and fake sincerity from the companies with whom we used to have an impersonal and transactional relationship. The deal used to be simple: we paid them, they did things or provided stuff, thank you and goodbye. If something went awry, we told them and, with luck, they fixed it. Feelings, other than occasional frustration, did not come into it. But in recent years, presumably inspired by American corporate culture, companies are no longer content with worming their way into our wallets. Now they want to commandeer the emotional part of our brains as well. They’ve done their research into behavioural science and

The importance of gossip (according to the ancients)

Gossip appears to be good for the mental health. That should make the females of the ancient world some of the healthiest people around. Not that men did not gossip. The essayist Plutarch (c. ad 100) wrote disapprovingly of the ‘adulteries, seductions, family quarrels and lawsuits’ they loved to hear about (barbers’ shops were especial hotbeds of gossip); but his big gripe was that they were such bores. He described one droning on to Aristotle, and indulgently adding how amazing his stories were. Aristotle replied: ‘What is amazing is that anyone with feet puts up with you.’ Another crasher, after a long rigmarole, said: ‘I’ve bored you, philosopher.’ Aristotle replied:

Can the ‘next Bicester Village’ take off without tourists?

Retail footfall will be the first measure of recovery this spring. Everywhere I look, from central London to small-town Yorkshire, shopkeepers who survived the winter cull have been dusting their counters, cleaning their windows — and waiting in their doorways for the crowd of customers who have accumulated £150 billion of savings during lockdown and, despite the cornucopia of online offerings, can’t wait to start browsing and shopping for real again. Indications were mixed at the beginning of the week, with numbers still down on pre-pandemic levels, but at least the stock market is buying the theory. The FTSE 350 General Retailers index, which includes the likes of Dixons Carphone, Dunelm,

Can John Lewis and Waitrose really remain partners?

Historians of unforeseen crises talk about ‘chaos theory’ and the ‘butterfly effect’, in which a small perturbation far away — the flapping of a butterfly’s wings in Australia, as it were — have impacts across much larger connected systems. More usually applied to weather events, the theory had its 2008 moment when the collapse of AIG, a US insurer whose name meant little over here, threatened to cripple so many banks that, without immediate bailouts, our high street ATMs (we were told) might have been switched off there and then. Let’s hope Greensill Capital, a little-known ‘shadow bank’ created by former Queensland sugar farmer Lex Greensill, doesn’t turn out to

Portrait of the week: A royal baby, Boohoo buyouts and France legalises lunch al desko

Home On Sunday 7 February, as the week began, 11,465,210 people in the United Kingdom had received a first vaccination against Covid-19 and 510,057 a second. Those aged 70 or over were invited to book a vaccination online or by telephone if they had not received one. Illegal immigrants were advised to register with a GP without risking deportation. South Africa, possessing a million doses of the Oxford-AstraZeneca vaccine, decided to suspend its use after a trial of 2,000 people (42 of whom developed Covid) seemed to indicate that it offered ‘minimal protection’ against mild and moderate cases; no one in the trial was old. Professor Jonathan Van-Tam, the deputy

Had the kitchen shop assistant been drugged and handcuffed?

The kitchen tap began dripping as if it knew perfectly well that this would land me in a predicament whereby I would have to brave a phone line. I tried a friend who is a plumber but he confirmed that getting a new valve would involve contacting the kitchen shop where I bought the tap, and he didn’t fancy it. ‘Fine,’ I said, ‘I’ll call them. But if I’m going to do the worst bit, then I might as well get him to fit it for nothing.’ By which I meant the builder boyfriend. My plumber friend agreed and then abandoned me to my fate. And so I dialled the

Portrait of the week: Vaccine battles, illegal haircuts and Biden’s chat with Boris

Home Supplies of the Pfizer vaccine (made in Belgium) were feared to be at risk from a declaration by the European Union health commissioner, Stella Kyriakides, that EU companies would have to ‘provide early notification whenever they want to export vaccines to third countries’. This came after AstraZeneca was said to be able to deliver by the end of March only 31 million of 80 million doses ordered by the EU. The company, with a factory in England, had undertaken to deliver two million doses a week to the UK. Nadhim Zahawi, the minister for vaccination, said that supplies were ‘tight’ but the mid-February target of 15 million vaccinations would

The Darvell marvel has brought joy to a Covid Christmas

Many ingenious ways of evading Covid-19 have been devised to assist commerce, fewer to assist worship. In our next-door village, however, is Darvell, a large, longstanding Bruderhof community, part of a worldwide Anabaptist movement. Always welcoming to neighbours, they normally hold a carol concert in Advent. This year, such a thing is forbidden. Instead, the brotherhood devised a ‘Christmas Drive Through Darvell’. I slightly feared a gigantesque version of the dropsical Father Christmases and reindeer which people stick on their roofs, but I was wrong. At dusk on Saturday, we arrived with three generations of our family. The drive stretches well over a mile before exiting into another lane. It

Can Mike Ashley defy high street reality?

Separating heroes from villains in the great retail survival struggle is like spotting bent coppers in Line of Duty — whose sixth series, I’m pleased to report, has just finished filming. The plot just keeps twisting. Sir Philip Green, as I said last week, is seen as an irredeemable baddie; and most commentators (though not usually me) put sportswear tycoon Mike Ashley in a similar category, as an opportunist with a track record as a harsh employer. But now here he is, trying through his company Frasers Group to launch a last-ditch rescue for Debenhams, despite having lost £150 million last year in previous pursuit of the department store chain.

The government is sending the high street to an early grave

Does it matter that Debenhams and the Arcadia group have gone under this week, taking 25,000 jobs with them and leaving large gaps in the high street? In normal times we would be minded to say no. The failure of businesses — large ones, included — is part of a healthy market economy. It is a routine aspect of the renewal process, whereby good upstart businesses drive out tired and stagnant retailers, to the benefit of consumers and employees alike. If unemployment were as low as it was at the beginning of this year, the redundant staff would not have had to wait long, or search far, for alternative employment.

Portrait of the week: Tiers, Scotch eggs and a devastated high street

Home The Commons voted by 291 votes to 78 for new coronavirus regulations putting 55 million people in England into the restrictive Tier 3 or the little less restrictive Tier 2, apart from the 700,000 or so folk of Cornwall, the Isle of Wight and the Scilly Isles. There were 55 Tory rebels, whom the government had attempted to placate by publishing a 48-page dossier, generally regarded as thin stuff. There would, they were also assured, be a review on 16 December of the areas put into tiers. ‘We do want to be as granular as possible,’ Boris Johnson, the Prime Minister, told the Commons encouragingly. Labour let the regulations

What are the best pandemic board games?

Dangerous games Sage scientists advised against playing board games at Christmas. Some games to consider if you are feeling subversive:Pandemic Co-operative board game inspired by 2003 Sars outbreak in which players pool their talents to defeat a deadly disease. Was stocked by the unlikely gift shop at the US Centers for Disease Control.Corona Battle Against Covid-19 German game where players battle to defend their businesses against the pandemic.Plague Inc. Players compete as diseases to infect the greatest number of people.Viral Players compete to try to infect a human body, braving its immune system.Infected One person plays plague doctor, while the others are villagers competing to try to stop him infecting

It’s make-or-break time for retailers – and the economy

Take a stroll through central London and you’ll be overwhelmed with Christmas cheer. The angels and fairy lights are draped above Piccadilly, the shop windows packed full of evergreen, holly and ornaments. Fortnum & Mason has been transformed into the most decadent Advent calendar imaginable, and Cartier’s building is wrapped up in a giant red bow. Similar festive displays can be spotted all across the UK: Cardiff Castle is now a winter wonderland, the Edinburgh Zoo has unveiled its Arctic adventure, and the Belfast Christmas lights were switched on by domino effect, one part of the city following another. But although the decorations may be displayed in all their glory,

Martin Vander Weyer

The Co-op Bank isn’t worthy of its name

We’ve heard a lot this week about infrastructure spending, and how much more will be needed if the UK is to achieve the ‘Green Industrial Revolution’ that the Prime Minister seems to have sketched on the back of a pizza box. We’ve also heard that the Chancellor is looking at ways to squeeze billions for Treasury coffers out of the private pension sector. What we haven’t heard so far is a plan to join those two pieces of the economic jigsaw — by encouraging pension managers to become committed investors in infrastructure projects. There are signs of a small shift in that direction among local authority pension funds, but at

Why is buying a car such an ordeal?

Why is it so insanely difficult to buy a car? And especially if you are a woman? Part of the trouble is that car salesmen are a particularly unreconstructed breed of men who think ‘lady’ customers will be more interested in the size of the vanity mirror than the fuel consumption. But it’s not just that — it’s the fact that they treat the transaction with all the pomp and gravitas of applying for a half-million-pound mortgage. This started back in February when I left a party (remember those?), got into my Volkswagen and set off into St James’s. Somehow I pressed the accelerator instead of the brake and drove