Category: Business News

  • Export boost for UK manufacturing

    A worker inspects rolls of steelImage copyright
    PA

    A surge in export orders helped to lift manufacturing activity last month, according to a closely-watched survey.

    The Markit/CIPS UK manufacturing purchasing managers’ index rose to 55.1 in July, up from 54.2 the month before. A figure above 50 indicates expansion.

    The survey found export orders rose last month at the fastest pace since April 2010, and at the second highest rate since the survey began.

    Markit said the weaker pound remained a “key driver” of export growth.

    The pound jumped to a 10-month high against the US dollar after the publication of the report.

    Interest rates

    The figures revealed the first pick-up in growth for three months.

    Rob Dobson, a director at Markit, said: “Although the exchange rate remains a key driver of export growth, manufacturers also benefited from stronger economic growth in key markets in the euro area, North America and Asia-Pacific regions.

    “Continued expansion is also still filtering through to the labour market, with the latest round of manufacturing job creation among the best seen over the past three years.”

    The Bank of England will make its latest decision on Thursday on whether to raise interest rates.

    Mr Dobson added: “If this trend of milder price pressures is also reflected in other areas of the UK economy, this should provide the Bank of England sufficient leeway to maintain its current supportive stance until the medium-term outlook for economic growth becomes less uncertain.”

    Economists warned that the figures would not necessarily boost wider UK growth.

    Samuel Tombs of Pantheon Macroeconomics said: “Markit’s survey remains consistent with only modest growth in manufacturing output that will provide insufficient compensation for the slowdown in the consumer sectors of the economy.”

    James Smith, an economist at ING, added: “Wider economic data, from the weak second-quarter growth reading to the latest dip in consumer confidence, suggests that the economy is losing speed.

    “For that reason, we think the Bank of England is unlikely to hike rates this year.”

  • Savers ‘rush’ to open cash Lifetime Isas

    Skipton Building Society branchImage copyright
    Getty Images

    As many as 28,000 savers have opened Lifetime Isas with the only provider offering a cash version of the product.

    The Skipton Building Society said there had been a high level of interest in the six weeks since it was launched at the beginning of June.

    The Lifetime Isa allows people under the age of 40 to put up to £4,000 a year into their account and receive a 25% government bonus.

    It is designed for first-time buyers or those saving for retirement.

    As with other Isas, there is no tax to pay on the interest or the capital.

    The Skipton said that just over half of those opening accounts were under 30.

    “It’s great to see many young people are using our Lifetime Isa as a step towards helping them own their own home,” said Kris Brewster, head of products at the Skipton.

    “We believe the Lifetime Isa could make a real difference to a new generation of savers, not only in helping them get a foot on the property ladder, but providing them with another option to help them save for their future too.”

    While other providers are offering a stocks and shares version of the Lifetime Isa, the Skipton is the only one accepting cash savings.

    Savers who remove their money for reasons other than buying a home or saving for retirement face heavy penalties.

    Some providers have decided not to offer the product, because they think the rules are too complicated.

  • Rare London fashion label goes into administration

    Sam Faiers poses in a Rare London dressImage copyright
    Instagram/officialrarelondon

    Image caption

    Sam Faiers poses in a Rare London dress

    Customers have been left “fuming” after a fashion label modelled by celebrities went bust.

    Rare London announced on Facebook that administrators had decided it should cease trading, making staff redundant.

    Customers took to the site to complain they had not received ordered items or refunds for returned goods.

    A statement by the company said they would have to make a claim against the insolvent estate to get their money back.

    The fashion label has 115,000 followers on Instagram and is also stocked by retailers Asos, Topshop and Next.

    Photos on social media show its clothing has been modelled by reality TV celebrities including The Only Way is Essex star Sam Faiers, Made In Chelsea’s Louise Thompson and Love Island’s Kady McDermott.

    Image copyright
    Instagram/officialrarelondon

    Image caption

    An Instagram post shows Louise Thompson wearing a swimsuit by Rare London

    In a statement posted on Facebook on Monday, Rare London said administrators from Duff & Phelps Ltd were appointed on 26 July.

    “The joint administrators had to take the unfortunate decision to cease to trade the company with immediate effect making all staff redundant.”

    The label told customers who had recently placed an order or were awaiting a refund to contact their bank or credit card company to see if they could get their money back through them.

    “In the event that you are unable to secure a refund of the monies paid then you will need to make a claim against the insolvent estate as this balance will rank [as] an unsecured claim against the company,” it added.

    Many customers took to Facebook to express anger that they had recently ordered items or asked for refunds and were now left out of pocket.

    Image copyright
    Facebook/officialrarelondon

    Image caption

    Customers have expressed their frustration after Rare announced it had gone bust

    Several commented that they had bought items in a 50% sale and had not received the goods.

    Natalie Wilson wrote: “So so bad!!!! Me and two friends ordered a few items and need to return goods!!! So now we are left with unwanted items that we will not be getting a refund for!!!”

    Claire Claire wrote: “They knew they was going bust but carried on advertising and taking our money knowing that none of us was going to receive orders. Promoting flash birthday sale of 50% off….”

    Claire Gwynne said: “Fuming. Returned 2 dresses a month ago, never had any refund in a month so you knew back then that things weren’t right! £136.”

    Image copyright
    Facebook/Stacey Cave

    Image caption

    Stacey Cave says she never received the items she ordered during a sale on the Rare London website

    Stacey Cave, 30, from Stoke-on-Trent, ordered three items from Rare London on 23 July for a holiday in Cyprus after being told by a friend it was holding a sale.

    “It was only £40 but I was banking on those things to take away with me tomorrow. So now I’ve got to go out tonight and find some more stuff to take away with me,” she said.

    “Good job I’ve paid on my credit card because hopefully I’ll be able to try and get the money back. I’m gutted because they obviously must’ve known but they’re still taking people’s money.”

    Ms Cave did not think there was any problem with the items as she received an email from a courier company to say they were on their way.

    However, she after finding that she could not get on to the company’s website on Monday, she saw the news online.

    “I was shocked. Yeah it’s only £40 but that’s not the point. I can’t see how they can get away with it.

    “I know there’s people who spent over £200 and they’ve been waiting a month for a refund.”

  • Why the Founder of This Once-Buzzy Salad Chain Had to Rethink Everything

    This story appears in the July 2017 issue of Entrepreneur. Subscribe »

    It’s 9 a.m. on a cool spring day on the Upper East Side of Manhattan, where the staff of the 71st Street location of Just Salad is about to be put through the wringer. Nick Kenner, the restaurant chain’s 36-year-old founder, is joining the team for the day. They’re standing in a circle, summer-camp style, running through introductions and icebreakers. “My passion has always been about operation, speed and throughput,” Kenner says when it’s his turn. 

    Related: Rethink Your Approach to the Competition

    After the intros, the group exercise starts. Employees take up their stations along the Chipotle-style salad line — cashier, lettuce packer, chopper, etc. — and a mock rush begins, with Just Salad’s head of HR pretending to be a first-time customer. As she follows her Caesar salad down the line, Kenner paces. He times the order while furiously typing notes on his phone, the lip of his coffee cup clenched between his teeth. “That was good,” he says afterward. The final time was a so-so 2:38. (The record is now 1:38.) 

    It’s what Kenner calls a “teamletics event,” and each U.S. store has one per quarter. Today’s was all about speed of service, and the team was well-prepped. But next quarter’s training will require more instruction. “It’ll be about our new menu items,” Kenner tells me, explaining that those new items are actually not just salads. And the move is about way more than expanding options — it’s part of Kenner’s plan to ensure his company lasts, amid rising rents and heated competition.

    When he first launched Just Salad in 2006 — the brainchild of years spent working on a trading floor with no tasty and healthy lunch options nearby — it was with a laser-like focus on selling quality salads quickly, cheaply, and to as many people as possible. “I felt like we didn’t need to do anything else to have a successful business,” he says. At first, he was right. Despite his neglecting design, branding and digital strategy, the core product alone was enough to create long lines of young, attractive customers and earn glowing local press. (“Cute guys plus carb-free dressing?” fawned a regular in New York magazine. “I’m so in.”) Five years on, there were six locations in New York City.

    Image Credit: Just Salad

    But as Kenner obsessed over operations, he missed important shifts in the still-developing healthy fast-casual industry — primarily that a burst of competing brands were providing a more upscale experience for a more clearly defined customer base. Founded in 2001, Chopt’s emphasis on “creative” salads made it a popular choice for the professional lunchtime crowd; fellow newcomers Sweetgreen, founded in 2007, and Fresh&co, founded in 2010, tied themselves to the fresh-and-local movement. Kenner thought Just Salad stood out as cost-effective and streamlined; in reality, in its attempt to reach the broadest customer base possible, it felt cheap and generic. In 2015, Kenner realized he needed to make substantial changes or risk being left behind.

    Related:  Stories That Will Make You Rethink Your Leadership Style

    Still, he worried that stronger branding would overshadow what he saw as the soul of the company. It wasn’t salads, per se. It was fast, affordable health. “There are a ton of places that do salads,” Kenner says, but their offerings creep toward $15 and $20 a meal. “To be an everyday solution to health, you have to do this at $10 and under,” he says. “We do that better than anyone. But the industry is at a place where you can’t just excel at one or two things. You have to be good at everything.”

    So Kenner eased himself into a complete makeover by first focusing on his store interiors, which for years had been green and carrot-orange — salad colors. He teamed up with a design firm to create a fresh concept: an airy, coastal atmosphere with lots of white, blue, and light-colored wood, and a tiny succulent at each table. “I always respected Trader Joe’s and Ikea for their no-frills environment, where they put the money into speed, efficiency, and quality,” Kenner says. “But people care about the decor and the experience.”

    Feeling good about the store update, Kenner felt empowered to tackle his biggest challenge: expanding Just Salad’s menu. It’s a tough task for any restaurant, made tougher when your company name boasts lack of choice as a selling point. Kenner and his team worked with a culinary agency for more than a year to develop menu items that would hit Just Salad’s central promise: fast, affordable, healthy. 

    “Had we come out and been like, ‘We’re going to do a healthy version of pizza or burgers,’ it wouldn’t have made sense,” Kenner says. Instead, they settled on a selection of bowls, toasts, wraps and plates, a larger variety of which will continue rolling out over the next few months, including a summertime avocado toast topped with an egg that Kenner is particularly jazzed about. And while items like avocado toast are having a culinary moment, the new menu is more brand-appropriate than trend-driven. After all, not everything healthy lends itself to being made on an assembly line. “I had one day where I was like, ‘It would be cool to do one really good poke bowl,’” Kenner says of the de rigueur raw fish dish being offered at restaurants across NYC. “And then we brought raw fish into a store, and I imagined this raw fish being at 30 different Just Salad locations, and I said, ‘No fucking way.’” 

    Image Credit: Just Salad

    As the menu evolved, Kenner considered changing the Just Salad name, but he ultimately decided against it, opting instead to add “wraps, bowls + more” to the storefront logo. “We looked at places like Dunkin’ Donuts,” he says, pointing to the cup of coffee in my hand. “It’s named for doughnuts! If we could execute the items we’re doing at a high level, they would integrate.” The first few new items launched in March, and already sales look promising. “Customers have taken to it very, very quickly.” 

    Refining and defining Just Salad’s voice is the last step in Kenner’s three-pronged revamp. A branding agency was hired to help on the digital front, and a new website is already doing a better job promoting the company’s mission and strengths, including its reusable bowls, which cost $1 and include free toppings with every visit. “We just launched the site in April,” Kenner says proudly. “A new online ordering site launches in June. Our new app launches in August. The focus is to make it all cohesive.”

    Related: 5 Signs It’s Time to Rebrand Your Company

    In hindsight, Kenner knows he should have focused on branding from the start. “I would have raised more money early on to bring in more consultants on store design and architecture, and consultants to help me get ahead of the curve on digital,” he says. But as the redesign takes root, it’s created a clear vision for the team. Just Salad currently has 31 locations worldwide, with stores in Chicago, Kansas, Dubai and Hong Kong, and is expanding aggressively. “We want to bring healthy eating to as many people as possible,” Kenner says. 

    Despite his early hesitations, he is confident Just Salad will make the needed changes without diluting its mission. “The soul of who we are has always been the same,” Kenner says. “We just want to tell that story better. Now that’s what we’re doing.”

  • Whisky collector-turned-CEO: Live your passion

    Sukhinder Singh is the CEO of the Whisky Exchange, one of the UK’s largest online retailers of fine wines and spirits. What is now his business began as his passion – he began collecting miniature bottles of whisky after helping out at his parents’ off licence in Hanwell, west London.

    Follow #CEOSecrets on our website here.

    Video journalist & series producer: Greg Brosnan. Follow Greg on Twitter @gregbrosnan

  • High-heel wearing should not be forced, study says

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    Media captionCommuting to work in high heels – is it worth the hassle?

    More needs to be done to stop women being forced to wear high heels at work, Aberdeen researchers have said.

    Calls to introduce a law banning companies from telling women to wear high heels at work were rejected by the government in April.

    The issue was debated after one woman who was sent home for wearing flat shoes set up a petition.

    The University of Aberdeen researchers recommended further investigation into the issue.

    The review examined research into the physical damage and injury that can be caused, as well as the social and cultural aspects surrounding the wearing of high heels.

    It found large amounts of studies showed a link between wearing high heels and an increased risk of bunions, pain and injury.

    However, it found a lack of clear evidence of an association between high heel wear and osteoarthritis.

    Risks and benefits

    The authors drew a distinction between the UK – where the government has pledged to develop guidelines and raise awareness that female workers should not be forced to wear high heels without introducing new legislation – and the Canadian province of British Columbia, which has amended legislation to now prohibit employers from requiring staff to wear high heels.

    Dr Max Barnish, who led the research, said: “From our review it is clear that despite the huge amount of evidence showing heels are bad for individuals’ health, there are complex social and cultural reasons that make high-heel wearing attractive.”

    Dr Heather Morgan, a lecturer at the University of Aberdeen, added: “Of course we are not trying to tell anyone that they should or shouldn’t wear high heels but we hope this review will inform wearers to help them weigh up the health risks with social benefits.”

    She added that it was hoped the review would “put pressure on law makers to toughen up legislation so that no-one is forced against their will to wear them in the workplace or in licensed public social venues”.

  • Direct Line leads FTSE 100 higher

    Trader watching monitorImage copyright
    AFP

    Direct Line led the market higher as investors welcomed the insurer’s half-year results.

    Shares in the company jumped 7% after it reported a 9.5% increase in operating profits to £354.2m.

    Direct Line was the biggest riser on the FTSE 100, with the index up 37.50 points at 7,409.50.

    Rolls-Royce was another big riser, with its shares up nearly 6% after a big rise in engine deliveries helped it swing back to profit.

    The aerospace giant said large engine deliveries were up by more than a quarter, savings were ahead of schedule and it was also on target to hit profit forecasts.

    The company reported a pre-tax profit of £1.94bn for the first half of the year compared with a £2.15bn loss a year earlier.

    Shares in British Gas owner Centrica were up 3% as the company announced it was raising household electricity prices by 12.5%.

    In the currency markets, the pound slipped 0.1% against the dollar to $1.3206 but rose 0.2% against the euro to 1.1182 euros.

  • Eurozone economic growth gathering pace

    Shoppers in SpainImage copyright
    Reuters

    The eurozone notched up growth of 0.6% in the second quarter of the year, official Eurostat figures showed.

    The figure puts annual growth in the 19-country bloc at 2.1% since a year ago.

    First-quarter growth was revised down slightly from 0.6% to 0.5%.

    Other figures released on Monday showed unemployment in the zone was at its lowest since 2009, building on the picture of improving economic health across the area.

    On Friday, figures showed Spain’s economy, one of the worst-hit by the financial crisis, grew by 0.9% in the second quarter, suggesting the country’s economy had finally grown back to the size it was before 2008.

    The International Monetary Fund last week said the outlook for several eurozone economies was brighter than initially thought, with countries including France, Germany, Italy and Spain seeing growth forecasts revised up.

    The European Central Bank is planning to tighten up monetary policy after years of pumping up activity through low interest rates and bond-buying.

    It intends to begin the process in the autumn, although inflation remains low at 1.3%, well under the 2% target for the eurozone.

    Low inflation is often one of the side effects of weak economic activity.

  • Shortage of homes keeping prices high, says Nationwide

    Sold signImage copyright
    PA

    The shortage of homes coming on to the market is helping to keep house prices high, the Nationwide has reported.

    The building society said that prices increased by 0.3% in July, the second month running there has been a rise.

    Nationwide said the increase appeared to be at odds with recent signs of cooling in the housing market.

    Over the last year, prices are up by 2.9%, slightly lower than last month’s rate of 3.1%.

    Earlier this month, the Royal Institution of Chartered Surveyors (Rics) said estate agents had fewer properties on their books than at any time over the last 40 years.

    “Constrained supply is likely to continue to provide support for house prices and, as a result, we continue to expect prices to rise by about 2% over 2017 as a whole,” said Robert Gardner, Nationwide’s chief economist.

    HM Revenue and Customs reported that the number of housing transactions dropped to its lowest level for eight months in June.

    And earlier this week, the Bank of England said the number of mortgage approvals in the month fell to a nine-month low of 65,000.

    The average price of a house or flat in the UK is now £211,671, the Nationwide said.


    Where can I afford to live?

  • Researchers say UK law should be tougher on high heels

    Researchers from the University of Aberdeen say the devolved nations of the UK should be more specific in legislation on high heels.

    They examined research into the physical damage and injury that can be caused, as well as the social and cultural aspects surrounding the wearing of high heels.