13th April 2022
Bite-sized business news from the UK and beyond
Good morning In the run up to Good Friday, frozen supermarket chain Iceland is selling vegetables (both frozen and fresh) online for 1p to help with the cost-of-living crisis.
But there is one catch, the grocer operates a £25 minimum spend online, meaning you'll have to buy other items to take advantage of the discount.
- Pandemic darlings warn of consumer headwinds
- Antsy Etsy sellers go on strike
Pandemic darlings warn of consumer headwinds
What’s going on?
Why is this important?
Asos and Deliveroo were among the big winners from the pandemic benefitting from locked down consumers buying more online and ordering food at home.
Since Covid restrictions have eased, there have been questions over how both companies would deal with renewed competition from high street retail and restaurants. Investors so far have been unconvinced, Asos shares have fallen 70% in the past year and Deliveroo shares are down 60% in its first year as a publicly listed company.
In the six months to February Asos swung into a £16m loss, compared with a £106m profit a year earlier with a 4% increase in revenue to £2bn. The company said performance was hampered by global supply chain issues and a slowdown in demand as consumers headed back to in person shopping.
Deliveroo reported a 11% increase in total order values to £1.8bn in the three months to March compared to a year ago when restaurants were shut due to Covid restrictions. But it said that that average order values fell by 7% to £21.70 which isn’t good for business as fewer, larger orders are more profitable because its largest cost are its gig-economy riders.
Both businesses expect a rough year ahead. They predict that consumer spending habits could change amid a backdrop of persistently high inflation, leaving households with less disposable income to spend on clothes and takeaways.
Other stories to keep you in the loop
- UK workers suffer sharpest fall in living standards since 2013 as real pay falls
- Time’s up for Time Out as London print edition of magazine to be axed
- US inflation climbed to 8.5% in March, highest rate since 1981
- EasyJet says govt delays in crew security checks are 'adding to flight cancellations'
- Extinction Rebellion protesters force Lloyd’s of London to close HQ
- Slaughter and May ups pay for new lawyers to £115,000 a year as talent war rages on
- LVMH sales jump despite fresh Covid-19 lockdowns in China
Antsy Etsy sellers go on strike
Stat of the day
The average workday has expanded by 46 minutes, or 13%, since the pandemic began
Interesting links from around the web