From accounting scandals to crushing collapses, the thrills and spills of retail have provided plenty to talk about this year. As 2023 dawns, here’s our pick of the biggest eyebrow-raising stories from the industry in 2022
Made.com and Joules collapse
On November 1, Made.com came undone. In less than 18 months, the millennial homeware hotspot went from a valuation of £775m in a highly publicised IPO to collapsing into administration.
Its fall from grace was largely deemed to be down to a business model change that meant it bought millions of pounds worth of stock just as the homeware boom weakened and warehousing costs soared.
The change left it unable to withstand the downturn and Made’s brand and intellectual property was bought out of admin by Next just over a week later.
Next followed that up with the acquisition of Joules, alongside founder Tom Joule, following the fashion retailer’s fall into administration.
Frasers, too, was on the acquisition trail. It picked up businesses including Studio Retail and Missguided, and ended the year with the purchase of a host of brands, including Pretty Green, from rival JD Sports.
‘Never Knowingly Undersold’ pledge retired by John Lewis
It was one of the best-known price promises in retail, but John Lewis abandoned the famous line after using it for almost 100 years.
Although the pledge did not apply online, the slogan’s ultimate demise reflected a determination to resonate better with shoppers by offering “everyday quality and value”.
In September the department store business unveiled its new positioning as a business that was there “for all life’s moments”.
Customer director Claire Pointon told Retail Week then: “‘Never Knowingly Undersold’ was very much about reassurance and trust on price. Ultimately, we weren’t leading in value, we were following. This is all-encompassing. You’ll still have value, quality and service, connected to those moments.”
Etail travails
Pureplay online retailers had a tough 2022 as lockdowns eased and shoppers hit the streets again.
Asos was the first to send up a flare, reporting a drop in pre-tax profits in April after supply chain challenges reduced stock availability and customer numbers slowed. Then, in June, Boohoo posted a 28% fall in adjusted EBITDA year on year to £125m, citing similar challenges.
The difficulties were too great to overcome for a number of new-wave IPO companies, with Made.com and Eve Sleep falling into administration.
Life remains tough for many with In The Style swinging to a loss and ProCook issuing a profit warning earlier this month.
Amazon warns on Christmas trading
At the end of October, Amazon did what seemed like the unthinkable when it warned the market that its operating profit could be all but wiped out during the crucial Christmas trading period.
It was a prediction that stunned Wall Street. The etail giant cautioned that fourth-quarter operating income was “expected to be between $0 and $4bn (£3.3bn)”.
Boss Andy Jassy said: “There is obviously a lot happening in the macroeconomic environment and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets.”
The fact that even the mighty Amazon finds making money difficult in the current environment showed just how tough conditions are.
All change at the Co-op
After five years of stability at the top, 2022 brought in a managerial merry-go-round at the Co-op.
In February, long-serving food boss Jo Whitfield announced she would be taking a four-month break to help her sons with their exams. Weeks later, long-serving group chief executive Steve Murrells revealed his shock resignation.
Then, in September, the Co-op confirmed Whitfield would not be returning to the business as originally anticipated.
The leadership changes undoubtedly put a strain on the business, which was already struggling in tough trading conditions, and Co-op members will hope that under the new leadership team of group chief executive Shirine Khoury-Haq the retailer can get back to growth in 2023.
Big four no more
This year brought a paradigm shift in the established order of the grocery sector. While the writing had been on the wall for some time, discounter Aldi officially overtook Morrisons by market share in September – a sesmic moment, marking the end of the supremacy of the established big four grocers that had been the accepted status quo for decades.
While insiders at both Aldi and Morrisons chose to play down the moment, albeit for different reasons, it capped a tumultuous shift in food retailing in a year dominated by rampant inflation and the cost-of-living crisis.
With Aldi now firmly established as the fourth-biggest grocer in the UK, and Lidl nipping at Morrisons’ heels in sixth place, the era of the traditional supermarket big four has come to an end.
Sports titans depart
Another retailing era that came to an end in 2022 was in the sportswear sector, where two personal and professional rivals stepped out of the limelight.
Frasers Group founder Mike Ashley and former JD Sports executive chair Peter Cowgill had fought tooth and nail against one another for nearly two decades – expanding their respective businesses beyond trainers and tracksuits into big apparel empires and cementing their respective reputations as retailing giants in the process.
However, Ashley formerly stepped away from Frasers at its last AGM in October, while Cowgill’s 18-year reign at JD Sports ended abruptly in May following a row with the board over governance issues spurred by the collapse of its Footasylum acquisition.
Boots sale derailed
Health and beauty titan Boots was left in limbo this year when US owner Walgreens put up the for-sale sign in February but never managed to secure a deal.
Reliance Retail and Apollo were among the frontrunning suitors when they teamed up on a £5bn binding bid, but it was not enough for Walgreens, which canned the sale in June and told the market that no interested party had made an offer that “adequately reflects the high potential value of Boots”.
The month after pulling the plug, Boots posted a rise in sales across all categories, driven by market share gains in beauty.
Revolution Beauty controversy
All eyes were on Revolution Beauty in October when news of an audit failure emerged, and chief Adam Minto and executive chair Tom Allsworth “voluntarily agreed to step away from the day-to-day management of the business for the time being” while an investigation was being conducted.
Law firm Macfarlanes and consultant Forensic Risk Alliance were asked in September to carry out the independent investigation after auditor BDO raised “serious concerns” over the business’ inability to publish an audit report for the latest financial year.
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