Howard Schultz, who led Starbucks as it grew from local chain to global brand, said Dec. 1 he will step down as CEO in April. His next effort? Building the company's new venture: very-high-end coffee shops. Photo: Reuters
Qlm referencing: (qlmbusinessnews.com via telegraph.co.uk – – Fri, 2 Dec, 2016) London, Uk – –
From pooling resources to using a hive mind: co-workspaces can prove fruitful for enterprises.
If running a small business sometimes feels like a lonely pursuit, shared working spaces could be for you. From networking opportunities to joining forces with university research teams, there are many advantages to communal working.
Kelly Molson found the Cambridge Business Lounge to be invaluable when she first moved to the city and set up her design agency, Rubber Cheese.
Following a Facebook advertisement, she found a mix of professionals from a variety of industries, the opportunity to run and take part in workshops, and spaces for networking, meetings and quiet time. It was affordable and had good biscuits.
Ms Molson says: “The owners are incredibly supportive and made a big effort to get to know me and why I was using the centre. Every time I worked there, they were able to introduce me to new people that they thought I’d get on well with, and potentially could work with too.”
Make the most of networking opportunities
“One introduction led to co-founding a networking group, Grub Club Cambridge, which has been incredible. I’ve met amazing people, gained new clients, raised my profile in the city, been a judge for the Cambridge Food & Drink awards, been interviewed on BBC radio and made fab new friends,” she recalls.
Ms Molson advises asking questions of co-workers and taking an interest in their activities. “I’ve met new suppliers, friends and new clients sitting right next to me, along with a valuable support network.”
Barnaby Lashbrooke, founder of virtual assistant platform, Time etc, is a big believer. When his company evolved to a model more reliant on remote workers, he offered his unused office space free of charge to start-ups and entrepreneurs in Birmingham.
Mr Lashbrooke says: “It's nice to be in a position where we can give something back. I'd have loved someone to offer me a free co-working space when I was 18 and running my first business from my very cramped bedroom at home, as it does get lonely at times.”
He’s in no doubt that working alongside new people can be highly motivating. “Entrepreneurs tend to be inspiring, go-getting types that are good to have around.
Think about collaboration, not just your own needs
“You can get so much out of shared office space if you view it as a community of people rather than simply a service available to your business. The knowledge and ideas stored in that community can be the difference between your start-up succeeding or not,” he says.
Some communal working spaces are open to all, while others are tailored towards specific needs. Hubble, an online marketplace for finding and renting office space in London, offers sector-specific shared working spaces.
Varun Bhanot, head of business development, explains: “The hope is that these companies help each other, and benefit from the perks of the environment such as access to industry resources, workshops and talks by thought leaders in their industry.”
He has advice for making the most of your working arrangement. “Shared spaces are designed to engineer fruitful networking and ‘collisions’. Take advantage of those around you, as the chances are they are working on a similar problem to yours, or your company might be a solution they are looking for.
“Spend time in breakout and communal areas. Go to events in the space, or host your own. The best thing about shared space is that there is already a captive audience which is likely to want to listen to your pitch or useful advice.
He also suggests approaching companies about pooling resources. This can go far beyond comestibles such as the milk and coffee, there can be an opportunity to share printing, whiteboards, TVs and meeting room space. It could work out most cost-effective for all the companies to pitch in.
Give yourself room to grow
Mr Bhanot’s key factors in choosing your perfect working space include scalability: is more space available when your company grows? Are there enough meeting rooms so you can book time whenever you need it? Also look for local amenities, such as coffee shops and bars which are great for out-of-the-office meetings with colleagues and clients. And don’t forget the perks, such as weekly fruit drops and pet-friendly areas.
Universities can provide a wealth of resources to SMEs. Lancaster University has business hubs dedicated to technology, the environment and chemistry. Among its £35m investment is the new Collaborative Technology Access Programme, which gives businesses access to a suite of cutting-edge instrumentation and facilities worth almost £7m.
Companies can relocate their entire company, or just their research and development staff, onto campus, or take a hot desk or lab space as and when required.
Dr Mark Rushforth, head of business partnerships and enterprise at Lancaster University’s Faculty of Science and Technology, says: “Renting offices and integrating all or part of a business onto the campus enables faster business growth by providing easier access to our research, knowledge, events, training and facilities. Company staff, academics and research groups are able to interact on a day-to-day basis, co-design new opportunities and have direct access to knowledge exchange staff.”
Each business is allocated a relationship manager, who acts as a link between businesses and academics, facilitating joint research projects and ventures. Companies can also benefit from student placements, access to international markets through a collaborative working scheme, and access to other campus facilities such as libraries and sports centres.
Dr Rushforth adds: “Ask questions, share ideas, get involved, test new employees through student placements, tap into everything you can. There’s a lot of support out there.”
By Tim Aldred
Over 1.3 million android phones have been infected with malware after hackers used fake apps to gain control of the phones.
Airbnb announced for the first time that it would enforce a legal limit on the number of nights a year a host in London and Amsterdam can rent out a home. Thursday's announcement, coupled with several deals made over the past year, shows the company has started to offer more compromises to make peace with cities.
(qlmbusinessnews.com via bloomberg.com – – Thu, 1 Dec, 2016) London, Uk – –
Rolls-Royce Holdings Plc will cut 800 more posts at its marine-equipment and ship-design unit, or about 17 percent of the remaining workforce, as the lower price of crude hurts demand for oil-industry exploration and service vessels.
Restructuring steps will include a further simplification of the unit’s structure, including a “streamlining” of senior management, plus unspecified cost-reduction initiatives, London-based Rolls-Royce said Thursday.
The measures will cost about 20 million pounds ($25 million), split between this year and next, and should deliver annualized savings of up to 50 million pounds from mid-2017, according to a statement.
Rolls, best known for its aircraft engines, has already cut more than 1,000 jobs at its marine operation since 2016, with the division currently employing 4,800 people across 34 countries, including 1,900 in Norway, where it is based.
The offshore market is showing no sign of recovery, with the outlook bleaker as the backlog shrinks, Chief Executive Officer Warren East said Nov. 16. The marine arm has already shut or sold 12 of its 27 sites, and is looking at cutting more locations and shifting some production to emerging economies.
Rolls-Royce’s aviation business has also been hit by a slump in sales of business and regional jets, lower utilization of older wide-body planes and a slowdown in A330 engine deliveries as Airbus Group SE switches to an upgraded model. East has said the company is on course to deliver savings close to 200 million pounds by the end of 2017.
The marine division currently supplies gear including propellers, rudders and propulsion equipment for offshore vessels, oil and gas platforms, freighters, cruise liners, ferries, trawlers, luxury yachts and naval craft, as well as designing entire ships. While the unit markets engines, they’re made by the power systems arm, which has also laid off staff.
As part of the changes Rolls plans to establish a services hub and research center for new propulsion products in Ulsteinvik, Norway.
By Christopher Jasper
In the lead up to the US election, Donald Trump insisted that he could run both the Presidency and his business perfectly. Not any more. The President-elect took to Twitter to announce a change of heart.
Foreign visitors and the London tourist board are two beneficiaries in the wake of Brexit, as bargain hungry tourists take advantage of the weak pound which has plummeted since the EU membership referendum in June.
(qlmbusinessnews.com via telegraph.co.uk – – Wed, 30 Nov, 2016) London, Uk – –
The European Union desperately needs finance from Britain and will face severe knocks to its economy if member nations do not agree to a transitional period to give banks and finance firms time to adapt to Brexit, Mark Carney has warned.
The Governor of the Bank of England wants a smooth changeover when Britain leaves the EU, to give companies time to adapt to the new setup, and avoid any wrenching change in the economy or in the financial markets.
That means Britain would not necessarily switch overnight from one regime to another when leaving the EU, which is expected to take place in early 2019.
“Banks located in the UK supply over half of debt and equity issuance by continental firms, and account for over three-quarters of foreign exchange and derivatives activity in the EU,” Mr Carney said.
“If these UK-based firms have to adjust their activities in a short time frame, there could be a greater risk of disruption to services provided to the European real economy, some of which could spill back to the UK economy through trade and financial linkages.”
“These activities are crucial for firms in the European real economy, and it is absolutely in the interests of the EU that there is an orderly transition and there is continual access to those services.”
The Governor has been criticised for his interventions on Brexit in the past, facing accusations that he wanted the UK to remain in the EU and tried to sway the debate.
Presenting the Bank of England’s financial stability report, he sought this time to align himself with Theresa May.
“As the Prime Minister has said, it is preferable that the process is as smooth and orderly as possible,” he said.
“It is preferable that firms know as much as possible about the desired end point [of the Brexit negotiations] and as much as poss as soon as possible about the potential path to that end point.”
That should mean businesses on both sides of the Channel are able to prepare for Brexit when it takes place, minimising any disruption.
“[Finance] firms are making contingency plans for a variety of potential outcomes, as we’d expect them to do. As supervisor, we have direct line of sight to those contingencies, and we know exactly what they currently intend to do under any circumstance,” said Mr Carney.
He believes that the average bank would need less than two years to implement its contingency plans for Brexit, once it knows exactly what it is preparing for.
That sets the scene for a much shorter transition period than the five to 10 years sometimes proposed by finance bosses and lobbyists.
China is the biggest risk to financial stability
Other risks to financial stability identified by the Bank of England include the buildup of debt in China, the potential for Donald Trump’s spending plans to cause the US economy to overheat, political risks in the eurozone, and the increase in household debt in the UK.
“The most significant risks to UK financial stability are global,” said Mr Carney.
“China’s non-financial sector debt has risen…. to 260pc of GDP. This is extraordinary leverage for an advanced, let alone emerging, economy.”
That is an increase from 160pc of GDP at the time of the financial crisis, and the Bank of England fears it leaves China “vulnerable to external shocks”.
Donald Trump could destabilise markets
One such shock could be a sharp rise in US interest rates, potentially prompted by President-elect Donald Trump’s plans to slash taxes and hike government spending.
“A significant fiscal stimulus at a time when the US economy is increasingly operating at close to full capacity … the consequence of that has been an increase in US market rates, the first elements of so-called snap-back risk, and a strengthening of the US dollar,” said Mr Carney.
Snap-back risk is a central banking term for a sharp jump in interest rates, rather than the slow and steady change which officials hope will take place in the coming years.
Higher rates would be expected to push up the dollar and encourage flows of capital from emerging markets and into the US, potentially hitting growth in those markets and creating financial instability.
Britons at risk from debt binge
In the UK the Bank of England noted that households are starting to increase borrowing, for the first time since the financial crisis.
Households’ debt as a proportion of their incomes has fallen by around 20 percentage points since the credit crunch.
That is now increasing, in part because higher house prices mean homeowners need bigger mortgages, but also because credit card debt is on the up.
“The good thing is households and businesses, young families looking to buy a home, can get access to credit, and get it on quite competitive terms,” said Mr Carney, arguing that the low interest rates which encourage this “are necessary for the economy, given the headwinds the economy is facing.”
But he said the Bank of England also has to make sure those loans are being given out responsibly: “We have tools that can help ensure the underwriting standards are responsible, that [the loans] are going to people who are likely to be able to pay off those debts. It doesn't do anybody a favour – the individual, the bank or the economy as a whole – if we slip into a position where that discipline is lost.”
By Tim Wallace
What is Sky Mobile, what contracts are on offer, and what are the main benefits?
(qlmbusinessnews.com via telegraph.co.uk – – Tue, 29 Nov, 2016) London, Uk – –
Businesses plan to hire more workers into the new year, as service sector employers’ worries in the summer after the EU referendum turn to cautious optimism.
Their longer-term plans are more uncertain, however, leading to investment cutbacks, a survey of service sector members of the Confederation of British Industry (CBI) has found, with spending on vehicles and machinery reduced.
Consumer companies are the most positive about their financial prospects, with households remaining upbeat since the Brexit vote and spending more in the shops.
The CBI found the proportion of consumer companies reporting above-normal business volumes outweighed those reporting low business levels by a margin of 22 percentage points. Firms are also increasingly optimistic about the coming months.
Companies serving other businesses, particularly in professional services markets, are less positive, however. A net balance of 10pc said business levels are below normal, and a balance of 17pc are pessimistic on the overall business environment. Companies in both sectors expect to keep on hiring workers, however, at an accelerating pace.
That bodes well for Britain’s wider economy, where unemployment is currently at an 11-year low and has fallen since the EU referendum in June, defying fears of an immediate slump.
The CBI’s chief economist, Rain Newton-Smith, said: “Employment growth remains strong and service sector firms are looking to hire in the months ahead. Many firms still plan to invest in IT, but uncertainty over future demand could act as a restraint.
“The Autumn Statement will have offered some comfort to businesses as the Government looks to build on the UK’s economic strengths, with an industrial strategy that helps deliver growth across the country.”
By Tim Wallace
Amazon is turning its attention to counterfeit items sold through third party sellers who deal in fake reviews and phony products. Bloomberg's Spencer Soper reports on “Bloomberg Markets.”
(qlmbusinessnews.com via bbc.co.uk/news – – Mon, 28 Nov, 2016) London, Uk – –
The UK should be careful with its plans to raise the National Living Wage, according to the Organisation for Economic Co-operation and Development.
The OECD said “caution” was needed in the roll-out of the policy, given its possible impact on employment.
In the Autumn Statement, Chancellor Philip Hammond pledged to raise the wage to £7.50 an hour next April.
The OECD also forecast that the UK would have one of the lowest growth rates among G20 countries by 2018.
The National Living Wage was introduced by Chancellor George Osborne in his Budget in July 2015.
It came into effect in April this year, and was set at a rate of £7.20 an hour for workers aged 25 and over, with the aim of increasing it to £9 an hour by 2020.
The UK's Office for Budget Responsibility estimated it would give a pay rise to 1.3 million workers this year.
The OECD said the UK's labour market had been “resilient”, although job creation had moderated recently.
“Real wages have been growing at a time of low inflation, but the fall of the exchange rate has started to increase price pressures,” it said.
“Caution is needed with the implementation of the policy to raise the National Living Wage to 60% of median hourly earnings by 2020.
“The effects on employment need to be carefully assessed before any further increases are adopted, especially as growth slows and labour markets weaken.”
The organisation's stance echoes the widespread claims of business organisations in the 1990s that the introduction of the UK's national minimum wage – which started in 1999 – would lead to widespread job losses.
Those fears proved to be groundless, with the number of people in employment rising from 27 million then to nearly 32 million now.
The OECD says the world economy has been stuck in a low growth trap for five years. It says government spending and tax policies could be used to provide a boost.
The report expects action on these lines from the administration of President-elect Donald Trump in the United States and predicts that will result in a modest boost beyond US borders.
It also suggests that other countries could afford to take similar steps.
But the OECD says that any benefit could be offset if countries resort to measures that restrict trade to protect their own industries.
The OECD predicts that the UK's economy will grow by 1% in 2018, slower than both Germany (1.7%) and France (1.6%).
However, the organisation has raised its UK growth forecasts for this year and 2017.
It now predicts the UK's economy will expand by 2% this year, compared with an earlier forecast of 1.8%, while in 2017 it has lifted the growth forecast to 1.2% from 1.0%.
The OECD said the upward revision was specifically because of Bank of England action and the depreciation in sterling since the Brexit vote.
Looking ahead, the organisation warned that the UK's unemployment rate could rise to more than 5% because of weaker growth.
It also predicted a sharp rise in inflation as the pound's slide against the dollar and euro starts to be reflected in prices in the shops.
“The unpredictability of the exit process from the European Union is a major downside risk for the economy,” it said.
The OECD's forecast for growth in the US has risen since the election of Donald Trump as the country's next President.
It revised its prediction for 2016 up to 1.5% from 1.4%, and next year's estimate to 2.3% from 2.1%. In 2018 it is forecasting 3% growth.
(qlmbusinessnews.com via bloomberg.com – – Mon, 28 Nov, 2016) London, Uk – –
Sky Plc is about to jump into the U.K. wireless market, betting that even as a latecomer it can pry customers away from the four established competitors by harnessing its powerful entertainment brand and millions of existing subscribers.
Prospects for Sky’s mobile offer remain hard to pin down for analysts. Their forecasts for the company’s share of the 15.2 billion-pound ($18.9 billion) U.K. market range from as little as 1 percent to 10 percent, which would bring it close to CK Hutchison Holdings Ltd.’s Three U.K., now the No. 4 player.
The outlook for Sky’s offer remains clouded by a lack of details, including pricing. Guy Peddy, an analyst at Macquarie Bank Ltd. in London, originally estimated Sky could capture about 2 million customers by mid-2021. He’s raised that figure by more than 50 percent to 3.12 million, saying this week in a report that the opportunity is bigger than he thought and the offer is more sophisticated. “Wireless risks for the existing operators are understated,” he wrote.
The type of customer Sky attracts is as important as the number. That’s because its biggest rival, BT Group Plc, has been busy establishing itself on Sky’s home turf in pay-TV. The former U.K. phone monopoly this year expanded its slate of Premier League soccer matches, long a Sky stronghold, and acquired mobile operator EE. That gave it a “quad-play” lineup of fixed and mobile phones, broadband and television. By adding a mobile offering, Sky has a chance to retaliate.
“The fact that they will be entering the quad-play space after BT/EE means that competition for similar customers could be intense by the time they come to market,” Ameet Patel, an analyst at Northern Trust Securities LLP in London, said in an e-mail. EE and Sky will be fighting for a broadly similar subscriber base of “higher-value, more data-hungry users,” Patel said.
Sky says it sees “substantial” potential for the cellular service. What little it has revealed suggests that the company, whose biggest investor is Rupert Murdoch’s 21st Century Fox Inc., is confident it can poach mobile customers from its rivals by bundling services across platforms. Existing Sky customers who indicate their interest in the mobile product online are told it will be “the smart network for your smart phone.”
Sky’s experience delivering content to mobile platforms means the new service is a natural extension, Sky Chief Executive Officer Jeremy Darroch said last week at an investor conference in Barcelona. Sky will first focus on signing up its existing customers, who currently get their mobile service from a range of providers, he said.
“It’s a market where I think we’ve got the right skills to be successful,” Darroch said. Sky’s success with broadband and its high-definition TV service show the company is good at marketing new products, he said. “Our ability to upsell that scale is very, very strong.”
EE had a 29 percent share of U.K. retail mobile subscriptions at the end of 2015, according to industry watchdog Ofcom. It was followed by Telefonica SA’s O2 with 27 percent, Vodafone Group Plc with 19 percent and Three with 11 percent.
Representatives for EE, Three and the Vodafone declined to comment. A Telefonica spokesman said the company will benefit from the traffic generated by Sky because the pay-TV provider is buying space on O2’s network for its mobile offering.
Sky built its pay-TV business on ownership of premium programming like top-flight soccer, rather than discounting, so analysts don’t expect it to try to undercut rivals on price in pursuit of volume. Still, its entry into an already crowded U.K. mobile market will intensify competition.
Some analysts underestimated the growth of Sky’s broadband business. After more than a decade of investments, including the acquisition of Telefonica’s U.K. fixed-line business, Sky has become the second-largest internet provider in the U.K. after BT. Its market share rose to 23 percent in 2015 from 15 percent in 2010, according to Ofcom.
BT mobile subscribers that don’t get broadband from the carrier may already pay for Sky services and may be the most likely candidates for switching to its cellular offering, said Allan Nichols, an analyst at Morningstar Inc. in Amsterdam.
“They’ve been way more successful with their broadband than I ever thought they would,” he said.
Research suggests two-thirds of Sky customers would consider the company’s mobile offering, Stephen van Rooyen, chief executive officer of the U.K. and Ireland business, said at a capital markets day last month. They’ve been able to register since October.
“We’ve long had our eyes on the size of the prize,” he said. “The mobile market is huge.
By Rebecca Penty and Kasper Viita
(qlmbusinessnews.com via bloomberg.com – – Mon, 28 Nov, 2016) London, Uk – –
Consumers and businesses increased their spending in the third quarter as the U.K. economy registered a resilient performance following the Brexit vote.
Household spending rose 0.7 percent from the second quarter and business investment increased 0.9 percent, the Office for National Statistics said on Friday. Growth overall was unrevised at 0.5 percent, with trade providing the strongest contribution. A separate report from the Confederation of British Industry showed retail sales grew at their fastest annual pace in more than a year in November.
The ONS report covers the first full quarter of gross domestic product since Britons upended U.K. politics and roiled financial markets by voting to leave the European Union. While there are few signs of any significant effect for now, growth is expected to slow next year.
In its twice-yearly review, the Office for Budget Responsibility on Wednesday slashed its 2017 forecast to 1.4 percent from 2.2 percent, saying uncertainty will lead firms to delay investment while the falling pound squeezes consumers by pushing up the cost of imports.
“Investment by businesses held up well in the immediate aftermath of the EU referendum, though it’s likely most of these investment decisions were taken before polling day,” said ONS statistician Darren Morgan. “That, coupled with growing consumer spending fueled by rising household income, and a strong performance in the dominant service industries, kept the economy expanding broadly in line with its historical average.”
The jump in business investment surprised economists, who had widely predicted a decline as the Brexit vote took its toll.
“In light of Brexit there was a case for uncertainty holding back investment,” said Alan Clarke at Scotiabank in London. “However, things are never black and white. Projects to build planes, ships, buildings etc. will have been signed off 12-18 months ago and that activity won’t shut off overnight.”
The increase in consumer spending was down from 0.9 percent growth between April and June but in line with the average of recent quarters.
The CBI said its monthly retail sales index rose to 26 in November — the highest since September 2015 — and stores anticipate another gain next month. They may be getting a boost from overseas visitors taking advantage of the weak pound, economists say.
The exchange rate may also be starting to boost trade by making British exports cheaper and imports more expensive. Net trade added 0.7 percentage point to GDP in the three months through September, the biggest contribution since the start of the 2014 and the first this year. Exports rose 0.7 percent and imports fell 1.5 percent.
An index of the dominant services industry rose 0.2 percent in September, leaving output 0.8 percent higher on the quarter. That more than offset declines in industrial production and construction. GDP growth overall was down from 0.7 percent in the second quarter.
By Lucy Meakin
Black Friday and small business Saturday may be behind us, but now many consumers are turning to Cyber Monday.
Domino's has an elaborate plan to train reindeer to deliver pizza in northern Japan as a way to deal with potentially harsh winter weather
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(qlmbusinessnews.com via uk.reuters.com – – Fri, 25 Nov, 2016) London, UK – –
It's the super-shopping day of the year: the so-called ‘Black Friday' where we spend billions chasing bargains and cut-price goods. But this year more than any, British shoppers have been shunning the actual shops to instead get their deals from the comfort of their computers or phones. Whilst it means stores on the high street have been quieter than expected, it's been a different story for online sales.
British retailers reported strong online demand in early “Black Friday” trading, as shoppers chased deals in a spending spree that is expected to top last year's record level.
Shoppers are looking for bargains ahead of an expected rise in prices in 2017 as a weaker pound starts to push up the cost of imports, putting household finances under pressure.
Last year marked a change in the nature of the U.S.-imported discounting day. It generated record revenue but was subdued in terms of store-based sales, with shoppers put off by bad weather and memories of chaos and scuffles in 2014. This year, shoppers are focussing even more online.
Currys PC World – part of Dixons Retail (DC.L), Europe's largest electricals and telecommunications retailer – reported its highest ever number of orders, up 40 percent on 2015, with over half a million visitors to its website before 0600 GMT.
Electricals to toys retailer Argos (SBRY.L) saw similarly robust trade with over half a million visits to its website between midnight and 0100 GMT, up 50 percent year-on-year.
“It will be the busiest trading day of the year,” Argos CEO John Rogers told Reuters.
“It’s becoming an increasingly mobile (phone) shopping day. We’d expect to be north of 60 percent online and almost 80 percent of our online orders are coming from mobile,” he said.
John Lewis [JLP.UL], Britain's biggest department store group, said its website was taking five orders every second.
UK retailers will be hoping the promotions kick-start Christmas trading, building on a strong October when cold weather and Halloween boosted sales.
Many, including Amazon (AMZN.O), Argos, Dixons Carphone and Tesco (TSCO.L), have extended Black Friday to run for a two week period either side of the main day.
UK consumer spending has held up since June's vote to leave the European Union. However, the Bank of England and many economists fear higher prices caused by the Brexit hit to the value of the pound and slower jobs growth will eat into households' spare income next year.
Wednesday's fiscal statement from Chancellor of the Exchequer Philip Hammond also did little to ease looming pressure on household budgets.
PwC, the accounting and consultancy firm, is forecasting revenue from Black Friday promotions to grow by 38 percent to 2.9 billion pounds.
Researcher ShopperTrak forecasts Friday's in-store shopper numbers will be down by 2.8 percent year-on-year – a second straight year of footfall decline.
Some analysts argue Black Friday discounts pull forward Christmas sales that store groups would otherwise have made at full price and can dampen business in subsequent weeks.
Retailers, however, say carefully planned and targeted promotions with global suppliers allow them to achieve a sales boost while maintaining profit margins.
An investigation by consumer group Which? Found half of the products “on offer” in last year's Black Friday were actually cheaper in the months before or after the event.
Peter Ruis, the boss of fashion chain Jigsaw, told the BBC that Black Friday discounts were “deceptions” as the goods are often not worth the original price. Shops risk being perceived as “traders peddling cheap stuff on a market stall,” he said.
Argos's Rogers countered by saying there was no “smoke and mirrors” at his firm. “Customers are great at sniffing out a bargain. They know when something’s a good deal,” he said.
And the popularity of Black Friday is spreading overseas.
“1.2 percent of the population of Denmark was on our Danish website at 1 minute past midnight … looking at our Black Friday deals. 60,000 people,” tweeted Dixons Carphone CEO Seb James.
By James Davey