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UK retail spending shows remains muted, consumers want to buy British if they can

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Two regular monthly reports came out on Tuesday, one showing general consumer spending and the other retail sales specifically. While there was talk of green shoots, you had to look very carefully to find them and the overall picture is that caution remains the watchword for many shoppers.

We’re not exactly in a boom period. Looking first at the Barclays report, the company that processes a huge chunk of UK consumer spending via its payment cards said consumer card spending grew only 0.5% in March, which was lower than the 1% in February and undershot the latest CPIH inflation rate of 3.7%.

But importantly, while ‘essential’ spending contracted 2.9%, with consumers making cutbacks in anticipation of rising household bills, confidence in discretionary spending remained resilient, with 58% confident in their ability to spend on non-essential items. Discretionary spend increase 2.2%, which was still below inflation but a step in the right direction.

Interestingly too, the impact of tariffs may not have quite kicked in yet but 71% of UK adults plan to buy more ‘Made in Britain’ products, reflecting sentiment expressed in other countries in Europe and also in Canada in reaction to the US imposing extra import duties.

As far as discretionary spending was concerned, garden centres saw the biggest spike with a 13.4% increase, which was hardly surprising given the sunny weather during March.

But pharmacy, health & beauty also rose strongly with an 11% jump – the category’s greatest increase since April 2022. Clothing spend meanwhile was up a more anaemic 1.1%.

While retail as a whole was down 0.2%, some particular store categories fared worse with department stores falling 3.2% and discount stores 3.1%. 

Meanwhile, the BRC-KPMG Retail Sales Monitor, which excludes general consumer spending and focuses on retail specifically, reported total retail sales up 1.1%. This was lower than +3.5% a year earlier but March and April are always tricky months to assess given the way the timing of Easter moves around between the two months in successive years.

The monitor showed non-food sales up by 0.6% year on year in March, against a decline of 0.4% in March 2024.

In-store non-food sales fell by 0.1% year on year, against growth of 0.1% in March 2024 while online, they rose 1.8%, beating last year’s 1.4% drop.

BRC CEO Helen Dickinson said: “Despite a challenging global geopolitical landscape, the small increase in both food and non-food sales masked signs of underlying strengthening of demand given March 2025’s comparison with last year’s early Easter. The improving weather made for a particularly strong final week, with gardening and DIY equipment flying off the shelves. Jewellery and beauty products were helped by Mother’s Day, though sales of bigger ticket items like furniture remained weak.”

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Fashion is the next frontier for clean tech as textile waste mounts

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Bloomberg

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April 23, 2025

The $1.7 trillion fashion industry is a major polluter: By one estimate, it’s responsible for between 8% and 10% of annual greenhouse gas emissions, more than aviation and shipping combined.

Bloomberg

Clothes manufacturing relies on fossil-fuel-derived fibers like polyester and guzzles energy and water. And the churn of fast fashion means that many items are discarded soon after they’re purchased, which has contributed to eye-popping amounts of textile waste. 

Two textile-focused startups are among this year’s BloombergNEF Pioneers award winners: Circ, in Danville, Virginia, turns mixed-fiber fabric back into its reusable raw materials, while Paris-based EverDye has developed a lower-impact textile dyeing process. 

Much of the fabric produced today is a blend of cotton and polyester, which is more durable than pure cotton. But the blended fibers are extremely difficult to separate and therefore challenging to recycle. 

“It’s so hard to mechanically separate them. You can’t comb it apart,” says Sonja Salmon, a textile science professor at North Carolina State University. “A machine will think it’s the same thing.” 

That’s why Circ turned to chemistry instead. Its technology uses water as a solvent, plus pressure, to break down large polyester molecules — polymers — into their building blocks, or monomers, says Peter Majeranowski, the company’s president. This helps separate the two types of fiber. Circ then purifies the polyester monomers and the cotton so they can both be reused in textile production. 

The startup has spent significant time “refining and developing our process to ensure that our materials are better than virgin, from a greenhouse impact,” says Majeranowski.

In addition to venture and supply chain investment, Circ has received investment from Patagonia, Inditex (Zara’s parent company) and the European fashion platform Zalando SE. The company would like brands to sign multi-year contracts to use material recycled with its technology. But making commitments for several seasons is uncommon in the industry, Majeranowski says — “a muscle that brands aren’t used to.” 

Dyeing the fabric that gets sewn into garments is an energy-intensive step in the manufacturing process. Conventionally, pigments are heated to very high temperatures so that the color can bind. EverDye says it’s found a way to do this with room-temperature water.

Mineral pigments used for textiles are generally negatively charged, says Christelle Chauffeton, a research scientist at EverDye. The fabric is also negatively charged, so the two have no affinity and the color won’t adhere. That’s why the dyeing process typically relies on additives, binders and high heat. 

EverDye takes mineral pigment and “synthesizes it directly on a nanoparticle of biopolymer,” says Chauffeton, that was chemically modified to be positively charged. When the biopolymer (or natural polymer) is put next to a negatively charged fabric, the pigment will go on the fabric without additives or the need for intense heat. Later, another application of heat causes the nanoparticles to come together and form a film on the surface of the fibers, trapping the pigment. 

The startup can now dye fabrics brown, orange or yellow and is fine-tuning its approach to create blue, red and black hues. “It takes time to adapt the formulas,” says Victor Durand, EverDye’s head of operations.

It launched a small capsule collection last October and is doing pilot testing with brands including Lacoste and Petit Bateau. The company is currently raising money for its series A funding round.

“Our goal is to be a regular provider of dyes in the supply chain,” Durand says. 

EverDye and Circ join a host of firms innovating in pursuit of lower-impact textiles, such as Boston-based Galy, which grows cotton in a lab to reduce the crop’s heavy water and fertilizer use, and Algaeing, an Israeli startup that makes biodegradable yarns and dyes out of algae.

Buying clothing secondhand — or just buying less of it — is an effective way to shrink fashion’s footprint. But the global business of making new garments isn’t going away anytime soon. Circ, EverDye and their peers are working to clean up the process step by step. 

 



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Adidas posts forecast-beating quarterly profit on strong sneaker demand

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Reuters

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April 23, 2025

German sportswear and apparel maker Adidas on Wednesday reported first-quarter sales and profit above expectations, citing growth across all its markets and channels.

Adidas

First-quarter operating profit jumped 82% to 610 million euros ($692 million), the group said, resulting in a margin of 9.9%. Analysts, in a company-provided consensus, had expected a margin of 8.9% and profit of 546 million euros.

The success of sneakers including Samba and Gazelle has helped Adidas gain further market share from U.S. rival Nike, opens new tab as well as maintain a competitive advantage over newer sportswear brands like On Running and Hoka, opens new tab in uncertain times.

Chief Executive Bjorn Gulden has turned Adidas around since the brand cut ties with rapper Ye and scrapped its lucrative Yeezy sneaker line in October 2022, with the last Yeezy inventories sold at the end of 2024.

First-quarter sales rose 13% to 6.15 billion euros, also higher than the 6.095 billion consensus, Adidas said, adding that excluding sales from the Yeezy line a year earlier quarterly revenue of the Adidas brand was up 17%.

Frankfurt-listed shares in Adidas, which is scheduled to release final first-quarter results on April 29, were 6.2% higher at 1702 GMT.

© Thomson Reuters 2025 All rights reserved.



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Prada goes global on Mytheresa as e-commerce platform finalizes YNAP deal

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Translated by

Nazia BIBI KEENOO

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April 23, 2025

German luxury e-commerce platform Mytheresa is expanding the global distribution of Prada‘s womenswear, menswear and lifestyle collections. Originally set to launch on April 23, 2022, the move is now officially being announced and implemented in April 2023.

Mytheresa x Prada goesworldwide – Jorin Koers

Previously available only to European customers, Prada’s collections on Mytheresa will now reach audiences in the United States, Canada, the Middle East and the Asia-Pacific region. The launch is being celebrated through a dedicated editorial campaign, photographed by Jorin Koers and featuring models Sara Blomqvist and Kim Artur.

“We are very proud now to offer Prada’s beautiful collections to our beloved customers worldwide,” said Michael Kliger, CEO of Mytheresa. He added that the platform is “deeply grateful for the strong and fruitful partnership with Prada.”

The announcement aligns with another major milestone for Mytheresa. Also on April 23, the company finalized its acquisition of Italian-British online retail platform Yoox Net-a-Porter (YNAP) from Swiss luxury group Richemont. This acquisition marks a pivotal step in the evolution of LuxExperience B.V.—formerly MYT Netherlands Parent BV—renamed in January to integrate Mytheresa, Net-a-Porter, Mr Porter, Yoox and The Outnet under a unified operational structure. The strategic merger aims to strengthen the group’s position as a global leader in multi-brand luxury e-commerce.

Mytheresa x Prada goes worldwide
Mytheresa x Prada goes worldwide – Jorin Koers

Mytheresa also reported strong financial performance in recent quarters. In the second quarter of the fiscal year, the platform recorded a 13.4% year-over-year increase in net sales. Growth in the United States led the results, rising 17.6% and bringing total net revenue to €223 million—up from €196.6 million in the same quarter the previous year.

At the close of fiscal year 2024, Mytheresa’s total net sales rose by 9.8%, reaching €840.9 million. The results were driven by double-digit growth in the second half of the year.

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