20th July 2022
Bite-sized business news from the UK and beyond
Good morning Overnight Netflix reported it had lost 1m subscribers in the last quarter better than the 2m drop it forecast back in April when it surprised investors with its first quarterly decline, of 200,000, in 11 years.
The streaming giant also announced it was launching a new cheaper service that would be supported by adverts and through new multi-household contracts.
- Real wages falling at fastest rate on record
- Cost of living bites into retailer profits
Real wages falling at fastest rate on record
Other stories to keep you in the loop
- Half-point interest rate rise ‘on the table’ next month, says Bank of England chief
- Martin Lewis warns next prime minister of ‘financial cataclysm’
- Postal strike looms as Royal Mail workers back walkouts in pay and jobs row
- Apple sued for monopoly on the iPhone’s tap-to-pay
- Twitter-Musk takeover dispute heading for October trial
- Ocado boss quits after ‘extremely challenging’ tenure
- UK ticket holder wins biggest ever EuroMillions jackpot of £190m
Cost of living bites into retailer profits
Yesterday furniture retailer Made.com and chocolatier Hotel Chocolat issued profit warnings citing that the rising cost of living is hurting consumer demand for their goods.
Shares in Made plummeted by 46% after it cut its revenue and profit targets for the third time in 2022. The company, known for its sleek Millennial-appealing design, said that sales in the first half of the year dropped 19%. With household budgets squeezed by soaring energy and food costs, demand for non-essential items like high-end designer furniture is falling.
Made is also dealing with rising costs from ongoing supply issues including disruptions at ports and higher freight costs.
Hotel Chocolat reported a 35% jump in UK sales grew 35% in the 12 months to June but warned that it expects to make a loss this year as it focuses on its domestic market and anticipates lower consumer demand.
The luxury chocolate retailer said it would close its US stores and only trade online in the country. The company also plans to step down investment in its Japanese joint venture.
Hotel Chocolat expects sales growth to slow this year as consumers cut back on upmarket confectionery in the face of the rising cost of living.
Stat of the day
Yesterday the UK recorded its highest ever temperature at 40.3°C in Lincolnshire
Interesting links from around the web