Media Bites 27 September: Morrisons’ mixed fortunes, Amazon pays tax, Freeport failure

Unsurprisingly, Morrisons’ Q3 results drew a lot of mixed headlines. The Telegraph[1] led on the supermarket’s fresh GBP22m loss, as private equity owner Clayton Dubilier & Rice continue to battle with debts. Despite losses narrowing from GBP39m during the 13-week period, the retailer was hit by a GBP110m debt finance bill.

The Guardian[2] was more positive in tone, highlighting the boost the supermarket has received through the sale of ground leases on 76 of its supermarkets to Song Capital. Morrisons’ market share has stabilised under Rami Baitieh, who revealed sales at its “established stores” were up 2.9% due to an increase in volumes. Clothing provided an added boost, being up by 8%.

The widespread coverage added to the The Grocer’s own[3], which also revealed that Morrisons, like other supermarkets, is bringing forward Christmas delivery slots this year[4] in response to calls from customers. Web giant Amazon has paid tax in the UK for the first time since 2020, writes The Guardian[5]. Amazon UK services paid 18.7 million in “current tax” last year following the end of Rishi Sunak’s so called ‘super deduction’.

Hospitality giant Mitchells & Butlers also has reason to celebrate this week, with 5.2% growth helping it to retain its “market leading position” during the final quarter of the year. This was despite dismal weather and the august riots, which took the shine off a strong summer for its All Bar One, Harvester and Toby Carvery chains, The Times[6] reported. Away from the mults, “Britain’s army of successful sole traders is dwindling”, putting the UK’s “proud history of entrepreneurship under threat”, warned The Times[7].

The number of self-employed people running their own businesses like farms, services firms and shops has fallen 18% since 2019, according to new figures from HMRC. Tina McKenzie, policy chair at the Federation of Small Businesses called on Labour to be “pro-small business” in the upcoming budget. The FT reveals new figures[8] showing the “meagre” take up of the Conservative’s flagship post-Brexit Freeports policy.

Just six UK business are currently using customs sites at Freeports, more than three years after the import scheme was introduced. Continuing the international theme, this time in the US, Reuters[9] picked up Costo Wholesale’s lower than expected trading. The wholesaler was bitten by cautious consumer spending on premium lines, and the global fall in petrol prices.

Despite sales being up 5.4% overall, it was below market expectations during Q4 trading.

References

1. ^ The Telegraph (www.telegraph.co.uk)
2. ^ The Guardian (www.theguardian.com)
3. ^ The Grocer’s own (www.thegrocer.co.uk)
4. ^ bringing forward Christmas delivery slots this year (www.thegrocer.co.uk)
5. ^ The Guardian (www.theguardian.com)
6. ^ The Times (www.thetimes.com)
7. ^ warned The Times (www.thetimes.com)
8. ^ The FT reveals new figures (www.ft.com)
9. ^ Reuters (www.reuters.com)