Large-format stores could be hit the hardest if the UK government moves them into higher business rates tax band. And this could result in a wave of closures, according to the British Retail Consortium (BRC).
Primark
New analysis by the BRC shows that 400 large-format stores out of 4,000 in the UK are at risk of closure if they’re included in the government’s new business rates surtax on premises with a rateable value over £500,000.
The threat has prompted Primark, one of the UK’s biggest large-format store retailers, to also warn the government that proposed business rates changes are “mistaken” and heap pressure on big stores on UK high streets.
George Weston, the boss of Primark parent Associated British Foods, told the PA news agency: “Increases to labour and packaging have already had an impact and it is important not to make it harder for businesses looking to invest and create jobs. My message to Government is that that should not increase taxes on businesses any more.”
The BRC said large-format stores are already pressured by soaring employment costs, high taxes, and rising rates bills, “which is why 1,000 such stores have closed over the last five years”.
It said: “The retail industry accounts for 5% of the economy yet pays over 20% of all business rates bills. This load is keenly felt by large stores (those with a rateable value of over £500,000), which pay around a third of retail’s total business rates bill. Given the small profit margins that exist across retail (around 2-4% for food), a significant rise in rates for large stores would force these shops to raise their prices, employ fewer people, or even close their doors entirely”.
The BRC anticipates that if all 400 at-risk stores were to close, up to 100,000 jobs could be lost and local councils’ business rates receipts from retail would fall by well over £100 million a year.
It added: “The Government knows high streets are in trouble, which is why it is introducing a new permanent reduction in business rates for retail, hospitality and leisure (RHL) premises. This will replace some of the previous reliefs available to RHL premises, and will be funded by the new, higher business rates tax band on large properties”.
Instead, the body’s calling on the Chancellor to use the Autumn Budget “to deliver this vital change without simply shifting the cost onto larger stores – which would be massively damaging to our high streets”.
It says this can be done without cost to the public purse, “by removing those stores from the new higher business rates tax band and slightly increasing the rates to be paid by the remaining large properties like office blocks and other big commercial buildings, where business rates are a much smaller share of costs and the knock-on impact on jobs and prices is far lower”.
BRC CEO Helen Dickinson added:“Britain’s largest shops are magnets, pulling people into high streets, shopping centres and retail parks, supporting thousands of surrounding cafes, restaurants and smaller and independent shops. After years of rising costs, far too many stores have disappeared – leaving behind empty shells that once thrived at the heart of our communities. Four hundred more large stores could disappear if the Government forces them into its new higher tax band. This would mean less revenue for the Exchequer.
German womenswear brand Marc Cain has named a new CEO and it’s clearly preparing well in advance as he’ll take the reins of the business as of June next year.
Dr. Patric Spethmann – MARC O’POLO
He’s Dr Patric Spethmann, who will be responsible for all areas of the business. Helmut Schlotterer, founder and owner of Marc Cain, will remain chairman of the board, “primarily to mentor Patric Spethmann and act as a coach and advisor”.
So what is it about Spethmann that made the company (whose products are available internationally include the US and UK) pick him? He joins from Marc O’Polo, where he most recently held the position of COO. There, his focus was on “optimising internal processes, increasing the efficiency of workflows and organising structures”.
“In Patric Spethmann, we have gained a leader who brings with him many years of experience in the industry. Together, we will set the course for maintaining our brand and values and strategically driving them forward. This puts us in an excellent position for the future and enables us to respond quickly and efficiently to the challenges of the new era,” Schlotterer said.
And Spethmann added: “I am very much looking forward to joining Marc Cain in June 2026. As a leading player in the field of premium women’s fashion, I am particularly impressed by the company’s extraordinary innovative strength and its clear focus on forward-looking technologies. This combination of creativity, quality and progressive thinking makes Marc Cain, in my opinion, a company that sets trends for the entire industry.”
South African fashion retailer Mr Price will acquire NKD Group, a German-based discount retailer for up to 487 million euros ($567.55 million), it said on Wednesday, marking its first entry to the European market. By 1030 GMT, Mr Price shares were down 13.35%.
A shopper pushes a trolley outside a branch of South African clothing and homeware retailer Mr Price, at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023 – REUTERS/Siphiwe Sibeko/File Photo
Mr Price said that NKD, an apparel and homeware retailer with 2,108 stores in seven Central and Eastern European countries, is a strategic fit. Market data indicates that the growth in the value retail market is outpacing that of the overall retail market. In Europe, value retailing accounts for about 22% of the market.
“After meeting the NKD team, it was evident that this was the right business to pursue,” said the group’s Chief Executive Officer Mark Blair. “Like us, they are value-retailers at heart and have a very clear understanding of who their customer is and how to best serve them,” he added.
The acquisition of NKD, which is from funds managed by TDR Capital LLP, includes the purchase of all NKD shares and income from shareholder loans. The deal will be settled using a mix of existing cash reserves and debt facilities, Mr Price said in a statement.
The transaction is subject to regulatory approvals, including clearance from the European Commission and the South African Reserve Bank. It is expected to close by the second quarter of 2026, Wednesday’s statement said.
Once completed, Mr Price’s annual revenue would increase to approximately 53 billion rand ($3.12 billion) from 40.9 billion rand, while the number of its stores would reach more than 5,000, up from around 3,100, and it would have more than 40,000 employees.
Private equity firm CVC Capital Partners is seeking a sale of FineToday Holdings, the Japanese personal-care company behind the Tsubaki shampoo brand, after shelving plans to list it in Tokyo, said four sources with knowledge of the matter.
The Tsubaki shampoo brand retails in numerous Asian countries – The Beauty Room- Facebook
FineToday, which counts China as its second-biggest market, postponed its Tokyo Stock Exchange initial public offering (IPO) in October, citing market conditions, according to a company statement. FineToday was expected to debut with a market capitalisation of about 169 billion yen ($1.08 billion) in the postponed IPO. The company had previously targeted roughly 219 billion yen in a 2024 attempt to go public.
Both valuation outcomes fell short of CVC’s internal expectations, two of the sources said. One of the sources said CVC is now seeking a valuation of over $2 billion, or around 14–15 times earnings before interest, taxes, depreciation and amortisation (EBITDA), for FineToday.
Interest has emerged from global buyout firms and at least one Chinese strategic investor, one of the sources added, but declined to name any of the interested parties. All the sources declined to be identified as the information is confidential.
CVC and FineToday declined to comment on Wednesday. The planned sale comes amid renewed strains in Japan–China relations. FineToday noted in its latest preliminary offering document that sales in China and Hong Kong were hit by a consumer backlash against Japanese brands after Japan released treated water from the Fukushima nuclear plant in 2023, and warned that it remains exposed to any future geopolitical tensions.
FineToday was created in 2021 after Shiseido Co carved out its personal-care unit and sold it to CVC in a 160 billion yen deal. The Tokyo-based company manufactures and markets haircare, skincare and deodorant products under brands including Tsubaki, Fino, Senka, Uno, Ag Deo24 and Kuyura, according to its official website and IPO filing.
About half of its sales come from overseas markets, with China a key market. In the six months ended June 30, 2025, 35.9% of revenue came from China and Hong Kong, while Japan contributed 44.3%, the filing showed.
FineToday posted 107.3 billion yen ($688.66 million) revenue in 2024 and 56.6 billion yen in the first half of 2025, with an adjusted EBITDA margin improving to 21.0% from 15.5% a year earlier, according to the filing.
Politics8 years ago