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Asda strengthens leadership team, George chief Evans adds CCO role permanently

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January 15, 2025

Under-pressure Asda has announced changes to its leadership team to strengthen its group of executives as it “refocuses on its mission to satisfy the daily and weekly shopping needs of ordinary working people and their families who demand value”. 

George x Roksanda – Photo: Sandra Halliday

It has confirmed that Liz Evans is taking up the position of chief commercial officer, non-food and retail, “leading its large store operations on a permanent basis, alongside her continued leadership of the George clothing brand”. 

There’s also a new position on its executive team – chief supply chain officer – “to oversee all its food and general merchandise operations”.  

The remaining positions relate solely to the firm’s food operations.

Allan Leighton, executive chairman, said: “Asda’s mission is to deliver the value ordinary working people, and their families demand from us. To do this, we need to be and are rediscovering our ‘Asda-ness’. I’m delighted to be announcing these leadership changes as we start this journey.”

Asda is one of the big four UK supermarkets (along with Tesco, Sainsbury’s and Morrisons) and always traded heavily on its reputation for low prices. But nimble rivals like Aldi and Lidl have taken that crown in recent years and Asda’s market share has been heading downwards.

Its performance was declining while it was still under Walmart ownership but its struggles accelerated under private equity firm TDR Capital and billionaire brothers Mohsin and Zuber Issa who linked up to buy it half a decade ago.

They brought in Lord Stuart Rose (former CEO of Arcadia and M&S) to chair the business. But he was replaced by retail industry veteran Allan Leighton late last year with the task of turning the business around.

After a tough Christmas trading period for the retailer (Kantar data showed its sales fell almost 6% in the last quarter of the year), only this week it was revealed that it has cut a number of regional manager roles. That followed HQ job cuts in November.

But despite Asda’s sales woes, the George fashion operation appears to have been a bright spot in general across the past few years. 

The company has issued a number of upbeat George-linked reports. And at the time of its last results in November, it said Q3 total group revenues, excluding fuel, fell 2.5%, but George sales rose 4.9%, helped by the Back to School season.

Liz Evans’ permanent elevation to the commercial role is perhaps a reflection of the strong performance she’s put in at George, which takes in homewares as well as fashion.

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Fashion

German retailers see slower sales growth over consumer uncertainty

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January 31, 2025

German retail sales rose in 2024, but growth should be more modest this year due to the high level of uncertainty, according to retail association HDE.

Last year, retail sales rose 1.1% compared to the previous year in inflation-adjusted terms, official data showed on Friday. The HDE forecasts 0.5% growth in real terms this year.

“Consumption and the retail sector in Germany will not really gain momentum in 2025 either,” said HDE managing director Stefan Genth.
“There is simply too much uncertainty,” he said. “Wars, high energy costs and overall economic stagnation are a toxic cocktail for consumption.”

In nominal terms, retail sales rose by 2.5% in 2024 and are expected to grow by 2.0% in 2025, according to HDE’s forecast.

The latest HDE survey with 700 retailers shows that 22% of respondents expect sales to increase this year, while almost half of them expect results to be below the previous year’s level.

In December, retail sales fell by 1.6% compared with the previous month, official data showed. Analysts had predicted a 0.2% increase.

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John Lewis had disappointing festive season

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January 31, 2025

Many big names in UK retail had a good Christmas season — despite the sector being generally sluggish — but it seems John Lewis Partnership (JLP) may not have been one of them.

The retailer — which operates its eponymous department stores and webstore, plus Waitrose supermarkets — has missed its profit target after a disappointing festive season.

It hasn’t shared any info officially but internal documents seen by The Telegraph suggest bad news to come when it does release its results.

Those internal documents have only been shared with staff so far with the company saying that sales have fallen short of expectations and it’s unlikely to achieve its hoped-for £131 million full-year profit.

The company is said to have blamed “lower consumer confidence and weaker than expected market confidence” for the sales miss in the month to 21 December, although also the fact that key trading days fell outside the period.

Sales targets were missed at both of the firm’s chains, although the newspaper said it still claimed it outperformed rivals and staff should be “proud of our performance”.

It will be interesting therefore to see exactly what its figures were as  a number of rivals have actually reported a good Christmas. If its stores have beaten other supermarkets and chains like M&S, perhaps its targets were too ambitious in the first place.

We won’t know for a while, but we do know that with M&S resurgent, JLP’s supermarkets and department stores have lost some of their lustre as the destination of choice for Britain’s middle classes.

So what were the firm’s benchmarks? Back in September it had said it was seeing strong demand and expected a significant rise in profits for the year to January. The prior year’s pre-tax profit had been £56 million and the year before that it made a loss.

It had also talked about its turnaround efforts paying off and that it was seeing a “considerable improvement” in performance, with the John Lewis chain in particular expected to benefit from a buoyant second half.

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Kim Jones steps down from Dior menswear creative helm

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January 31, 2025

Christian Dior Couture announced on Friday that Kim Jones, its Dior Homme artistic director, is leaving the post after seven years.

Dior Men – Spring-Summer2025 – Menswear – France – Paris – ©Launchmetrics/spotlight

It’s been rumoured for some time that he would exit the label but it’s not yet known what his next step will be.

Jones has been widely praised for his work at Dior with his latest men’s collection shown this month being hailed as a success.

He’s been a key creative at LVMH having also designed its Fendi women’s collections. And he helmed Louis Vuitton’s menswear before he joined Dior.

The company said it “wishes to express its deepest gratitude” to the designer “who has accelerated the development of Men’s collections internationally and has greatly contributed to the worldwide influence of the House by creating an inspiring wardrobe that is both classic and contemporary, and connected to some artists of our time”.

And Delphine Arnault, who’s chairman and CEO of Christian Dior Couture, added: “I am extremely grateful for the remarkable work done by Kim Jones, his studio, and the ateliers. With all his talent and creativity, he has constantly reinterpreted the House’s heritage with genuine freedom of tone and surprising, highly desirable artistic collaborations.”

Jones meanwhile called it a “true honour to have been able to create my collections within the House of Dior, a symbol of absolute excellence. I express my deep gratitude to my studio and the ateliers who have accompanied me on this wonderful journey. They have brought my creations to life. I would also like to take this opportunity to thank the artists and friends I have met through my collaborations. Lastly, I feel sincere gratitude towards Bernard and Delphine Arnault, who have given me their full support.”

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