BUSINESS LIVE: Retail sales fall; Deliveroo ups guidance; DFS demand slowdown

The ousted boss of Endeavour Mining has been stripped of more than £20million of pay just weeks after he was fired for gross misconduct.

Sebastien de Montessus, who had led the gold miner since 2016, was sacked earlier this month after an investigation into two separate incidents including an irregular payment of £5million relating to the sale of a company asset as well as allegations about his personal conduct.

Deliveroo expects 2023 earnings to be ‘slightly’ ahead of the £60million to £80million forecast in previous guidance, with the total value of orders on its platform having risen by 3 per cent.

Founder and chief executive Will Shu said the company delivered a good performance in the UK and Ireland in the fourth quarter, and its international business returned to growth.

‘As we saw ongoing signs of stabilisation in consumer behaviour in the quarter, we continued to invest in the consumer value proposition to lay the foundations for future growth,’ he said.

Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club:

‘Retail sales volumes ended the year on a sour note, registering the largest monthly decline since January 2021.

‘Partly, this is because UK consumers did their Christmas shopping early this year. Nevertheless, December’s decrease was much worse than expected and suggests pressure on the UK consumer may be intensifying.

‘Results from retailers themselves over Christmas paint a very mixed picture. The supermarkets fared reasonably well, as did Next and M&S.

‘But sales from the likes of JD Sports and Superdry have been very disappointing. This suggests UK consumers are becoming more choosy about where to spend their money.

‘Whether December’s weak retail sales are a blip or the start of a more worrying trend remains to be seen. But one thing’s for sure – despite optimism around interest rate cuts, the UK economy certainly isn’t out of the woods.’

From deepfake videos and mass job losses, the shadow of artificial intelligence has hung over Davos.

The Swiss mountain resort hosting global elites at the World Economic Forum has this week been dominated by the opportunities and dangers posed by AI.

Many hope it will bring a golden age of life-saving scientific developments – and higher profits.

Jacqui Baker, head of retail at RSM UK:

‘After a slight uptick in November, we’ve seen the biggest fall this year in December, marking a shocking end to the Golden Quarter. Black Friday tempted some consumers to bring forward their spending to November, but ongoing cost-of-living pressures meant most households cut back across all retail categories.

‘This meant retailers were forced to prolong their heavy discounting into December to shift stock which will have been a big hit to margins.

‘Last year was a challenge for retailers and sadly this looks set to continue into 2024. Despite consumer confidence increasing and real wages rising, inflation had a slight setback in December showing just how fragile the economy is.

‘As a whole, things are slowly improving but consumers probably won’t start to feel like they have more money in their pocket until the summer. After a challenging year, another six months of tough trading could be too long for some retailers.

‘To compound the problem and hit retailers when they’re down, disruption from events in the Red Sea, and the possibility of cost increases and supply delays could be another headwind they have to navigate this year.

‘This could be particularly damaging for fast fashion that relies on speed to deliver the latest trends at the right price.’

Retail sales volumes slumped by 3.2 per cent in December from November, marking the biggest decline in nearly three years, fresh data from the Office for National Statistics shows.

Economists had forecast a 0.5 per cent dip and the disappointing figures could risk a contraction in the British economy for the fourth quarter.

The ONS said retail sales are likely to subtract 0.04 percentage points from British economic output in the fourth quarter.

‘Food stores performed very poorly, with their steepest fall since May 2021 as early Christmas shopping led to slow December sales,’ Heather Bovill, deputy director for surveys and economic indicators at the ONS said.