Tesco has bought the brand and intellectual property of Paperchase, after the struggling stationery retailer collapsed into administration (The Guardian). Tesco has acquired the Paperchase brand out of administration in a deal that puts the future of 106 stores and 820 jobs at the gift and stationery retailer at risk (The Times £). The supermarket group’s surprise acquisition for an undisclosed amount casts doubt over Paperchase’s presence on UK high streets and the future of 918 employees, though its 106 stores will continue trading for now (The Financial Times £). The supermarket giant swooped on the wreckage of the stationery brand after its collapse – but the deal only includes the name and intellectual property, not the stores (The Daily Mail). High street stationery brand Paperchase has officially entered administration with no buyers interested in acquiring the company’s brick-and-mortar shops and physical assets (Sky News).

The acquisition of Paperchase risks being an expensive distraction from the real threat, writes The Telegraph’s Ben Marlow. “Why on earth is Tesco boss Ken Murphy wasting his time and energy bartering over the remnants of a card shop that has lurched from one crisis to another, particularly at a time when Aldi and Lidl are eating his lunch?” (The Telegraph £)

Tesco has announced a shake-up of its shop management in large UK stores along with the closure of its remaining meat, fish and hot deli counters, affecting 2,100 jobs (The Guardian). More than 2,000 roles are at risk at Tesco as it announces more changes to the way it runs its supermarkets (The BBC). The UK’s largest supermarket chain said it had seen a significant decrease in demand for the counters since 2019 and that customers no longer say they are a big reason for them to visit shops (Sky News).

Pets at Home shares jumped more than 10% after the retailer hiked its profit guidance, as consumer spending on animals continues to grow despite squeezed incomes. (The Daily Mail). Pets at Home has signalled that the pandemic-era boom for household pets will continue as it raised its annual profit guidance for the year (The Financial Times £). Pets at Home has raised its profit guidance thanks to higher demand for pet food, accessories and vet services over the festive period, sending its shares sharply higher (The Times £).

Kelso Group, the activist investor, has taken a stake in Matthew Moulding’s beauty empire THG to push for a revival of the “significantly undervalued” business. (The Times £)

Irn-Bru maker AG Barr is on track to deliver forecast-beating annual results in March following a fizzing sales performance last year (The Times £). AG Barr anticipates full-year sales and profits will surpass market forecasts, supported by price rises and strong performances from its newly acquired brands (The Daily Mail).

The FTSE 100 consumer healthcare business spun out of GSK last year is reported to be already exploring large potential deals to expand its brand portfolio. (The Times £).

British American Tobacco is cutting its business units and overhauling its regional structure, in a move that could lead to job losses (The Daily Mail).

British American Tobacco, the maker of Lucky Strikes, appointed Luciano Comin as its first director of “combustibles” as it now calls cigarettes. This could pave the way to jettisoning the cash-rich business (The Financial Times £).

Gusbourne is the latest English winemaker to toast booming demand after revenues jumped last year (The Daily Mail).

Coffee lovers looking for a strong pick-me-up should avoid Starbucks and head to Costa, after it emerged its cappuccinos deliver almost five times as much caffeine (The Guardian). Costa may not be the first destination for coffee snobs but the “massive” caffeine content of its cappuccinos makes it the best choice for those wanting the strongest hit (The Times £). Consumer group Which? measured the caffeine in cappuccino, espresso and filter coffee at Caffè Nero, Costa, Greggs, Pret a Manger and Starbucks – finding Pret’s single espresso had six times as much caffeine as Starbucks’ (The BBC).

Morrisons has lost yet more ground against rival grocers as its woes under private equity ownership continue (The Daily Mail).

Grocery inflation has hit a new record level since Christmas, according to closely watched industry data which has abruptly ended hopes that price falls would gain momentum (Sky News). Britain’s retailers have said shop price inflation has yet to peak this year, with the cost of basic essentials expected to remain high, after figures showed grocery prices accelerating at the fastest rate on record (The Guardian).

China’s baijiu makers risk hangover from liquor glut despite new year’s binge. Industry was among first to benefit from country’s reopening but distributors struggle to offload inventory (The Financial Times £).

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