A Day in the Life:

Langton is on hols this week so there’s something of a skeleton email going out.

There won’t be a full ‘Day in the Life’ until next week but we couldn’t let the opportunity pass to mention the football on Saturday.

Because the Mighty Hull City, yes, the Mighty Hull City is back in the Premiership alongside the likes of Chelsea, Arsenal and Manchester United.

It’s clearly where we belong and, with us being the City of Culture as well next year, what could possibly go wrong for that Venice of the North Sea, that Pearl of the Humber? On to the news:

The News:

PUB, RESTAURANT & DRINKS PRODUCER NEWS:

• Intertain is to live stream a Euros preview event at its Walkabout Temple site. The group says ‘the live streaming of the Euros Preview event we are holding at Walkabout Temple is indicative of just one of the many ways we are building on our reputation for unbeatable match day atmosphere through market-leading developments and quality partnerships.’ It continues ‘in addition to a special Euros-inspired menu, with food from all participating countries, there will be dedicated drinks offers and some bars – including Walkabout Reading – have either had or are due to have one-of-a-kind stadium style seating installed. The seating can be pre-booked with eskies (cool boxes full of beer) ahead of the big game, giving fans a true taste of big match atmosphere.’

• West Berkshire Brewery is extending its £1.5m crowdfunding offer by two weeks & promises ‘very exciting news’ shortly.

• Anti-drink lobbyists helped set the UK’s new, low and controversial drink limits reports The Times.

• PizzaExpress is currently weighing up whether to aggressively roll out its Delivered concept of Firezza brand, writes MCA. Chief executive Richard Hodgson said the group’s recently acquired 17-strong Firezza chain has ‘exceeded all expectations’.

• Figures show that hundreds of people have been arrested in the UK over the past two years for being drunk on a plan or at an airport. Some 442 passengers have been arrested on suspicion of being drunk either on a plane or at an airport since March 2014, although the number has probably risen since the findings came to light a couple of months ago.

• Neil Rankin’s new ‘modern barbecue, wine bar, and counter dining restaurant’ concept, backed by the Imbiba Partnership, is set to be called Casper & Cole. Rankin’s venture aims to open six or seven sites around central London over the next five years and is believed to be in talks on a site in Soho for its debut.

LEISURE TRAVEL:

• Strikes in France have led airlines to warn of ‘increased disruption’ to flights and other transport services over the next week. French trade unions are expected to step up their efforts on Wednesday.

OTHER LEISURE:

• Alton Towers experienced a ‘25% drop in visitors’ in 2015, according to a report by Themed Entertainment Association. Merlin Entertainments commented that the TEA’s figures are estimates, and have not been confirmed.

• Goals announces appointment of Senior NED. Michael Bolingbroke, CEO of Inter Milan, will join the board 13 June. Goals says ‘at Inter Milan, Michael has established a business culture and commercial strategy which has led to increases in both revenues and EBITDA, as well as significantly expanding the club’s international fan base. Prior to joining Inter Milan, he was COO of UK Premier League football club Manchester United F.C. from 2007, where as part of his role he oversaw day-to-day management and operations of the club including venue operations and facility development.’ Goals chairman Nick Basing reports ‘following a wide ranging and exhaustive search for a new Senior Independent Director, I’m delighted that Michael will be joining the Board. He is an exceptional appointment as his outstanding career demonstrates and a perfect fit. Goals is a
market leading soccer based consumer business and Michael will bring significant experience and value, as we seek the many opportunities ahead of us.’

FINANCE & MARKETS:

• The Federal Reserve should raise interest rates ‘in the coming months’ if the economy picks up and jobs continue to be generated as expected, according to Janet Yellen. Yellen added further weight to the possibility of a rate rise in the near future last Friday, commenting: ‘It’s appropriate … for the Fed to gradually and cautiously increase our overnight interest rate over time, and probably in the coming months such a move would be appropriate.’

• Nine out of 10 of Britain’s top economists believe the economy will be harmed if Britain leaves the EU, according to an Observer poll. The survey of 600 economists, carried out by pollster Ipsos-MORI found that 88% of respondents said Brexit would damage Britain’s growth prospects over the next five years and 82% said there would probably be a negative effect on household incomes. Tony Blair has weighed in on the debate, by saying leaving the EU would lead to ‘an enormous economic problem’.

• Greece has told the EU that it cannot be expected to implement some of the changes being asked of it

• World markets: UK up Friday, Europe up and US markets also higher. Far East up in Tuesday trading

• Consumer confidence in the Eurozone rose in May to minus seven. Still negative but better than April’s minus 9.3

Retail Roundup from Nick Bubb:

Saturday Press:
The news that the wretched CMA has, at this late stage, decided to think about investigating the Sainsbury takeover of Argos (with a July 25th initial deadline for a decision) got some coverage, notably in the Guardian, which noted that Sainsbury was unfazed about the news. Otherwise, BHS again dominated the papers, with the Times flagging that one of the bizarre late bidders for BHS, the banker Nicholas de Scossa, was involved in a rugby ticket application fraud, whilst the Guardian highlighted that the £5m of value created by the serial bankrupt Dominic Chappell in his previous vehicle, Olivia Investments (to boost his credentials to buy BHS), was simply an accounting trick. On a brighter note, the FT noted that trading at BHS has been so good recently, thanks to the viral patriotic “Save BHS” campaign, that the administrator has had more time to find a buyer for
the chain, although it also had an article, based on LDC data, about the smaller retailers in smaller towns who may suffer if the nearby BHS stores are closed. M&S was also in the spotlight, with the highly respected FT commentator Neil Collins arguing that the M&S share buyback smacked of “poor judgment and a lack of flair” (contrasting it with the discipline of “Mr Share Buyback Man” at Next), whilst the FT Review of the Week highlighted that the M&S share price hit an 18 month low as its turnaround plans were questioned, with the Telegraph market report noting a downgrade on Friday of M&S by SocGen. In other news, the Daily Mail had an interview with the CEO of Body Shop, Jeremy Schwartz, and the Times had a feature article about the decline of Retail Spending, noting the advice of Goldman Sachs and the famous fund manager Neil Woodford to
avoid investing in the retail sector.

Sunday Press:
BHS again dominated the Sunday papers, with the Sunday Times flagging that the £35m deposited with Dominic Chappell’s acquisition vehicle by property speculator Jack Dellal’s family was simply a loan that was then used to buy up the BHS HQ freehold for a song…The Business Editor of the Sunday Times also thundered that Philip Green “must keep his cool and open his chequebook” (to help pay off the BHS pension deficit) when he appears before the Select Committee inquiry, whilst Prufrock column noted that the PR veteran, Neil Bennett of Maitland, is now advising Philip Green. And the Mail of Sunday noted that while MP Frank Field is fuming about the quality of the City advisers who have appeared before the Select Committee inquiry, the rescue deal for BHS is on a knife edge with the administrator hoping to settle things on Thursday. In other news, the Sunday
Times had an interview with M&S CEO Steve Rowe, which gave a good airing to the issues and challenges facing management, and it also flagged that the Edinburgh Woollen Mill group is looking at biding for Dobbies Garden Centres. The Mail on Sunday had an interview with Charles Dunstone of Carphone Warehouse, in which he recalled that he was advised not to open his first site on Oxford Street. The Sunday Express highlighted the UK expansion plans of the discount chain Tiger and its decision to change its name to Flying Tiger Copenhagen. The Sunday Telegraph flagged that Morrisons is to introduce more “For Farmers” ranges. Finally, the Observer, in its Review of the Week, mocked Halfords (“H is for hot air”), Sports Direct and M&S in turn, whilst its Business Leader column thundered that M&S “needs to start putting clothes before
shareholders”.

Bank Holiday Monday Press; BHS again featured, inevitably, with the Times flagging MP Frank Field’s fury that City advisers have been presenting “the monkey, not the organ-grinder” before his Select Committee inquiry, whilst the Guardian highlighted the revelation that property investors provided the £35m loan that helped Dominic Chappell to buy BHS. Otherwise, Halfords was the main feature, with the FT previewing Wednesday’s final results and the Telegraph providing a useful “SWOT” analysis of the Halfords business (eg “Heavy store portfolio as Online sale are rising” as a weakness).

Today’s Press and News: At last BHS has been knocked off its perch and today’s papers look to be a BHS-free zone. The Telegraph runs with a gloomy survey by PWC of Retail CEO’s, the Times flags that the Online group The Hut has bought Salu Beauty, an upmarket US and Australian etailer that trades as www.skincarestore.com.au and www.skinstore.com, from Walgreens Boots Alliance, for an undisclosed amount and that data from Hammerson on sales in its shopping centres shows consumers were either buying technological gadgets or booking exotic holidays last month.

Grocer Watch: The widely followed Grocer “33” weekly supermarket pricing survey in Saturday’s magazine was won by Tesco, beating Asda by just 10p with its £53.64 basket. Sainsbury manged to close the gap against its rivals a bit, coming in 3rd with a £55.59 basket, just ahead of Morrisons, with Waitrose in last place as usual, with a chunky £64.47 basket…The separate Grocer “Mystery Shopper” weekly survey on Store Service and Availability was won by Sainsbury, as its 35,000 sq ft supermarket in Drumchapel, Glasgow, topped the rankings, with a reasonably solid score of 75 out of 100. The Waitrose store in Towcester came in last, on 62 points.

News Flow This Week:  Things are quiet this week after the Bank Holiday, in terms of company news, but, as we head into June, the Halfords final results are out tomorrow and the latest Kantar and Nielsen grocery market share figures will also be out tomorrow morning. Nick Bubb – nicholas_bubb@hotmail.com

Yester-tweet – Yesterday in a Nutshell: Live Tweets on Website:

Some of the early tweets:

• Greene King has announced that it has finalised the terms of a tap of its secured financing vehicle. No trading update in 423pg document

• Insurance company Aviva reports that a million more young people aged 21-34 will be living with their parents over the next decade

• Enterprise Inns has announced a 4th ‘managed expert’ partnership, this one with Oakman Inns & Restaurants to be named Hunky Dory Pubs

• Goals Soccer appoints Mark Jones, latterly Yates, Ultimate Leisure & Rank Group, as CEO. Mr Jones will join the board on 1 July

• Survey of 31k users of Mappiness app (mood-tracker) finds that alcohol makes people approximately 10% happier

• Royal Caribbean reports its vessel Harmony of the Seas (the world’s largest cruise ship) is to feature a 10-storey water slide

• HM Treasury has warned that pensioners, present and future, will be worse off if the UK leaves the EU. Still a month to go.

Other Tweets:

• Sterling up as Brexit fears seep out of currencies & share prices. Still a month to go, room for slippage but helps holiday companies

• Sugar prices on the up. Slipped off radar a little but the white stuff is up 44% over the last 12mths

• Soft commodity prices generally very strong. Soy, sugar, OJ. What’s going on? Demand stable so likely to be supply

• Betting that Fed will slip June rate rise to July. Would take it other side of Brexit vote. Yellen speaks later today

• Fashion retailers seeking to push pain of a slack spring back on to the manufacturers. See today’s Nick Bubb

• MKS down (as we write) for 3rd day. Many if not most stock market shocks see a 2nd or at least a 3rd day bounce – e.g. TCG last week