September

IN THE NEWS

Retailers paid homage to Body Shop founder Dame Anita Roddick, who died of a brain haemorrhage at the age of 64.

Virgin Megastores was sold by Sir Richard Branson as part of a management buy-out led by managing director Simon Douglas. The business was given a new trading name – Zavvi.

As the Bank of England stepped in to keep Northern Rock afloat, brokers warned that the ongoing corporate lending crisis could take a slice of retailers’ profits.

B&Q unveiled plans to conduct an extensive review of its smaller Supercentre stores, illustrating the far-reaching changes the board was making under the leadership of chief executive Ian Cheshire.

Delta Two’s bid for Sainsbury’s edged forward as it continued to work on increasing the equity portion of its offer.

Christmas came under the spotlight, with analysts warning that there were difficult times ahead this festive period. The forecast came as figures revealed footfall and retail sales dropped in August.

Ikea launched a campaign encouraging consumers to do up their homes rather than sell them, as the threat of a slowdown in the property boom began to seem plausible.

Mothercare was to launch a social networking forum, Retail Week revealed, to create a deeper relationship with and between its customers.

Tesco, Asda, DSGi and Carphone Warehouse were among those reported to have blocked staff from accessing social networking site Facebook. IT experts hit back, saying that in the longer term businesses will need to embrace such platforms to reach customers.

Tesco announced plans to become the first UK grocer to sell clothing online.

Mike Ashley, Blacks’ largest shareholder, was hindering the process of recruiting a chief executive for the company. It was reported that candidates were unwilling to commit to the role until his intentions regarding the retailer were confirmed.

Princesshay was opened in Exeter by developer Land Securities. It comprised 530,000 sq ft of space and was anchored by Debenhams and Next.

STORE OF THE MONTH
HMV, Merry Hill
These are difficult times for entertainment retailers as the online onslaught continues to eat away at their share and the reasons for visiting a shop seem to become ever fewer. Much, therefore, was riding on HMV’s new-look store at Merry Hill in Dudley.

In the event, this exercise in black and white fit-out was as stark as it was surprising. New elements included game kiosks, where shoppers could sit down to play arcade games, as well as a juice bar and an internet area, where selected sites could be accessed for free. A high-gloss white rafted ceiling and low rectangular open-wardrobe fixturing completed a slick design.

Despite its successes, the jury remains out on whether this will appear elsewhere.

ON THE MOVE

Former Marks & Spencer retail director Anthony Thompson became managing director of Asda’s George, replacing Angela Spindler.

Asos hired former New Look marketing director Hash Ladha as marketing director. He assumed responsibility for marketing, PR and ad revenue.

Tesco promoted its UK IT director Mike McNamara to the position of operations director, filling the role previously occupied by new DSGi chief executive John Browett.

Sir Ian Gibson, former deputy chairman of Asda, was picked by Morrisons to be non-executive deputy chairman.

RETAIL LOSES A GREAT DAME

In September, a wealth of leading figures from both inside and outside the retail industry paid tribute to Dame Anita Roddick following her death from a brain haemorrhage at the age of 64.

Roddick has been credited with not only transforming attitudes towards environmental and social responsibilities in the retail industry, but also inspiring a generation of entrepreneurs with her drive and ambition.

Motivated by the high price of cosmetics and their lack of natural ingredients, she saw a gap in the market and created a whole new business concept. “If something irritates you, there’s a good chance others feel the same,” she once said. She started with a single store in Brighton in 1976 and turned it into an empire of 2,000 shops, spanning 49 countries.

Behind a unique business model was a unique character. Mark Constantine, founder of eco-cosmetics retailer Lush and one-time colleague of Roddick, said shortly after her death: “Her audacity was legendary. She was intuitive, a great saleswoman, a true leader with great strengths and a few flaws. She was argumentative, inquisitive, persuasive and dynamic. I would say that she inspired a generation of people to get off their arses and do something.”

However, with such a strong focus on ethics many were surprised, if not disappointed, when she sold the Body Shop to L’Oréal for£652 million last year. Fran Minogue, managing partner at Heidrick & Struggles and a former general manager at Body Shop, told Retail Week: “Some will think that she sold out, but I don’t believe it will have a major impact on her legacy.”

Roddick was born at Littlehampton in West Sussex in 1942 to immigrant Jewish-Italian parents. She was a firm believer that her background was instrumental in propelling her forward.

She once said: “Entrepreneurs are obsessed with freedom. We’re outsiders, which is why immigrants often make the best entrepreneurs. We’re obsessed by a vision, an idea, and we’re pathologically optimistic. Why would you march to a different drum beat if you’re instinctively part of a crowd?”