Tesco PLC Will Deepen Cooperation With Arcadia

Britain's largest retailer, Tesco PLC (TSCO:L), Tesco and

Retailers Arcadia Group Ltd. will deepen cooperation, and may open more Dorothy Perkins, Burton, Evans & Wallis in the group's supermarkets.

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By the end of this year, the group will open 26 Arcadia Group Ltd. brand stores at its supermarket.

The cooperation between the two sides started last year and deepened cooperation. On the one hand, Tesco PLC and Tesco hope to introduce more brands to meet the needs of consumers, while Arcadia Group Ltd. is due to department stores.

Bankruptcy closes many licensed stores.

BHS previously also belonged to Arcadia Group Ltd. boss Philip Green Philip Green family. At the beginning of this year, the bankruptcy of BHS made Philip Green Philip Green fall into public opinion whirlpool. Government members and BHS all indicated that it was the Philip Philip Green, the Philip Green family's greedy emptying, and then sold 1 pounds to "bad businessmen".

Facing the British fashion market, especially the high street market downturn, Arcadia Group Ltd.'s life is not easy.

According to the data, under the double pressure of fierce competition and economic downturn, Arcadia Group Ltd. Ltd. recorded a profit growth of 5.5% in the 2015 fiscal year ended August 29, 2015, but profits mainly benefited from the sale of loss department store BHS.

Sales of Arcadia Group Ltd. 2015 were rather weak in the financial year of the year when fish and eggs were recorded for profit growth.

The group's total sales in fiscal 2015 totaled 2 billion 69 million 300 thousand pounds, up 1.8% from the previous year's 2 billion 32 million.

During the period, the group's overall sales in the same store recorded a 0.7% decline, of which retail sales in the same store in the United Kingdom dropped by 0.9% compared to the same period last year, while in the 10 week of the 2016 new financial year ending in the 2015 fiscal year to the end of November 2015, the group's overall sales decline further expanded to 2.3%.

Under the sluggish sales, Arcadia Group Ltd. recorded an increase of 23.9% in fiscal year 2015, and its performance was excellent. Therefore, Arcadia Group Ltd. launched the "Buy Now, Pay Later" project, which is expected to continue to stimulate the growth of the business.

The company did not disclose the current proportion of electricity supplier business, but at present, the majority of the public retail business company's electricity supplier target share is 20%.

According to the market, 26 franchise stores can rent Tesco pounds per year for PLC, while the number of stores will increase to 60 in the next five years, and the rental income from Arcadia Group Ltd. will reach 40 million.

Philip Green Philip Green expressed the hope that cooperation between the two sides could provide new opportunities for growth of the group.

In addition to the above cooperation, Tesco PLC, chief executive of Tesco, Dave Lewis also warned suppliers not to take advantage of the depreciation of the pound brought by Europe to raise prices.

After the announcement of the Brexit results at the end of June, the pound continued to depreciate, and the dollar fell to a record low. This caused the inflation pressure in the retail market to increase.

Dave Lewis said that inflationary pressures have already affected the food industry.

Due to the consumption of tourists and the driving effect of cold weather and Thanksgiving, the British retail industry recorded the largest monthly growth in 14 years in October.

However, most analysts consider inflation pressure as unsustainable last month.

The warning of price rise of Dave Lewis may be very difficult to play. Before Unilever PLC (ULVR.L), Unilever has already raised the price of the British pound by depreciating sterling in the UK market.

To protest, Tesco PLC Tesco has withdrawn Unilever PLC Unilever products from the online shopping mall, although Tesco PLC Tesco has said that physical supermarkets are not affected, but some products still have shortages in some stores due to supply problems.

Unilever PLC Unilever is the largest supplier of Tesco for Tesco PLC.

However, Dave Lewis also said that the group could not resist the depreciation of the pound, and would increase the price strategy for some products with significant cost increase.