UK economic growth: what the economists say | Business. Britain’s economy was stronger than initially thought in the run-up to the EU referendum, growing by 0.7% in the second quarter, according to the Office for National Statistics. Separate figures from the ONS suggested the economy got off to a decent start in the third quarter, with the services sector growing by 0.4% in July, a month after the Brexit vote. Services account for almost 80% of the UK economy. The ONS said there was no sign that Britain’s decision to leave the EU triggered an immediate shock to the economy, but it was waiting for the full picture to emerge. Economists largely agree that while Britain will almost certainly avoid a recession this year, the economy is likely to slow in 2017 as businesses and consumers grapple with heightened uncertainty.
Here is a roundup of economists’ reaction to the latest figures. Martin Beck, senior economic adviser to forecasters EY Item Club John Hawksworth, chief economist at accountancy firm PricewaterhouseCooper. Foot Locker Earnings Boost Nike, Under Armour | News & Analysis | BoF. NEW YORK, United States — Foot Locker Inc. rose the most in four years after the sneaker chain’s second-quarter results beat analysts’ estimates, helping propel shares of Nike Inc. and Under Armour Inc.
Earnings grew to 94 cents a share last quarter, the New York-based chain said on Friday. Analysts had estimated 90 cents a share on average, according to data compiled by Bloomberg. Foot Locker cited basketball sneakers, running shoes and classic styles for helping drive the growth. Basketball shoes promoted by Kyrie Irving and Stephen Curry -- both of whom played in the NBA finals in the spring -- performed well in the period.
The company also worked with top suppliers to ensure its assortment matches current trends, Chief Executive Officer Richard Johnson said. “Most of the basketball shoes that we sell never see a basketball court, most of the running shoes that we sell never see the roads are the trails for the track to run in,” he said on a conference call. The Top 50 Global Fashion Schools in 2016 | Education, The State of Education | BoF. LONDON, United Kingdom — For the second year in a row, Central Saint Martins (CSM) has topped BoF’s global ranking of fashion schools, which this year has expanded to include 54 institutions across 17 countries, with more than 10,000 current students and alumni participating in our annual fashion education survey.
CSM’s BA Fashion programme is once again the top BA programme in the world. Not far behind is Kingston University, which climbed one spot to second place in the BA ranking, followed by a new entrant, Finland’s Aalto University School of Arts, Design and Architecture, which came third out of 50 BA programmes. The Finnish school, which is located in the outskirts of Helsinki and has only 60 students in each year of its BA programme, was distinguished by its long-term value — for which it ranked first out of all the BA courses. CSM’s dominance can be attributed to its near unrivalled reputation with the industry and with employers, who ranked the school very highly. Macy's to Shut 100 Stores and Invest Online | News & Analysis | BoF. NEW YORK, United States — Macy's Inc said it would close about 100 stores and boost investment in its online operations as it seeks to turn around its business after six quarters of falling sales. Shares of the company, which also reported a smaller-than-expected drop in quarterly sales at established stores, were up 11 percent at $37.79 in premarket trading on Thursday.
Total sales fell nearly 4 percent to $5.87 billion in the second quarter after falling 7.4 percent in the first quarter. Department stores have been struggling with stiff competition from online and off-price retailers. They are also under pressure due to a shift in spending patterns, with shoppers increasingly preferring to spend on big-ticket items such as electronics and cars than on clothes. Macy's said the annual net sales volume of the locations it plans to close was expected to be about $1 billion. The company also said it was in talks to sell its men's Store on Union Square in San Francisco for redevelopment.
Retail Outlets Are on the Outs - Bloomberg Gadfly. What happens to a cash cow after it stops delivering money? Factory outlets that have been a boon to retailers in recent years, for example, are starting to slow down, and it's hurting chains that had become overly dependent on them. As brick-and-mortar traffic slowed and online sales rose, outlets were a salve for many chains, giving them access to cheaper real estate and a stream of customers looking for bargains on Kate Spade handbags and the like. A relatively weak dollar, lower sales taxes and low prices helped make U.S. outlet malls tourist destinations, spawning a mega-industry of shopping excursions from China and other countries. About 25 percent of outlet centers are in or near major tourist destinations, estimates Garrick Brown, head of retail research at real estate firm Cushman & Wakefield.
Less Traveled Chinese tourism growth has slowed in the U.S. and around the globe Source: China Outbound Tourism Research Institute, Bloomberg Not My Bag, Baby Source: Bloomberg Take A Pause. In Wake of Terror Attacks, What Lies Ahead for France’s Luxury Industry? | News & Analysis | BoF. PARIS, France — Last week’s deadly truck attack in Nice, which killed at least 84 people celebrating Bastille Day in the French coastal city, became the third major terrorism-related event France has experienced in the past 18 months, raising questions over whether such shocking events are isolated or if the country is facing a new normal, with long-term implications for the country’s $18 billion fashion and luxury sector. Tragically, Paris had already experienced an attack at the beginning of 2015 when two brothers forced their way into the offices of French satirical weekly newspaper Charlie Hebdo, killing 11 people.
Later in the same year, terrorists killed 130 people in a series of co-ordinated attacks in and around the city. In the past, these kinds of shock events have resulted in a short-term plunge in retail sales before trading resumes to a normal level. So what are the long-term implications for France’s $18 billion luxury goods sector? Rising costs pile on the agony for Britain’s fashion retailers | Fashion. From culottes to “cold shoulder” tops and woven loafers last seen in Miami Vice, many Britons have struggled with this summer’s fashions, but now there is an even more unpalatable trend on the horizon – in the shape of higher prices. The devaluation of sterling following the June Brexit vote has had major ramifications for store chiefs who pay in dollars for large quantities of imported goods. The first indication of where prices could be heading came last week from Next, one of the UK’s biggest clothing retailers, which pencilled in increases of up to 5% in 2017.
“We have always taken the view that if our costs go up, our selling prices will go up,” said Next chief executive Lord Wolfson. But fashion retailers are already struggling to persuade shoppers to part with their cash as weak wage growth is compounded by a cyclical shift towards spending on eating out and other leisure activities. Kantar analyst Glen Tooke says its most recent reading shows the decline deepening. Britain Now World's Cheapest Luxury Market | News & Analysis | BoF. LONDON, United Kingdom — In the wake of Britain's vote to leave the EU, which pushed down the value of the pound about 10 percent against the euro, the country has become the cheapest luxury goods market in the world, helping to buoy British luxury labels, at least in the short term, according to new research by Luca Solca, the head of luxury goods at Exane BNP Paribas.
"The Brexit vote has made the UK the cheapest market in the world for luxury goods,” Solca told BoF. “A weak British pound will boost travel inflows to the UK, helping British luxury goods players like Burberry, Mulberry and Jimmy Choo. " While luxury goods companies are not expected to raise prices in the UK in the coming months — at least until there is more clarity around exactly when and how the country might exit the EU — Britain should see a boost from tourist inflows and spending due to its weakened currency. Burberry and Kering Best Positioned to Tap South Korea | Global Currents | BoF. LONDON, United Kingdom — South Korea’s large domestic luxury market, steady influx of Chinese tourists and strong department store distribution model represents a unique opportunity for global luxury brands, according to new research by Exane BNP Paribas.
Interest in South Korea has grown substantially over the past decade, driven, in part, by the country’s unique melding of fashion, music, entertainment and celebrity. Indeed, only last month luxury goods giant LVMH bought a minority stake in Clio Cosmetics in a deal valuing the South Korean cosmetics maker at $700 million. In 2014, the private equity arm of the French luxury conglomerate, L Capital, also invested around $80 million in YG Entertainment Inc, which manages Korean ‘idol’ musicians like Taeyang and G-Dragon. The country accounts for around 5 percent of the global market for personal luxury goods.
Seventy-five percent of this spending is concentrated in its capital Seoul and has grown two times faster than the country’s GDP.