The papers cover Diageo’s decision to sell its Gleneagles hotel to concentrate on core businesses this morning.
Diageo sold the property to a private investment group led by property and hospitality firm Ennismore for an undisclosed sum. Ivan Menezes, chief executive of Diageo, said: “The hotel is not a core business for us and therefore following the success of the Ryder Cup we feel this is an appropriate time to realise value through this transaction.” (The Telegraph, The Daily Mail, The Financial Times £)
Analysts said the price was likely to have been between £150m-£180m, which would be short of the £200m price tag. (The Financial Times £)
Also well covered is John Lewis’ decision to end its free click & collect service. The store is to introduce a £2 charge for click and collect orders under £30 from the end of next month because the current free service is “unsustainable” (The Times £).
The scheme – launched in 2008 – allows customers to order any item from the John Lewis website and have it delivered free of charge to their nearest John Lewis or Waitrose store or designated Collect Plus outlet. But the logistics of despatching regular orders of small and inexpensive items have become overwhelming, the retailer said. (The Guardian)
John Lewis is the first department store to introduce a charge for click-and-collect and it could prove to be a significant point in the evolution of online retail as businesses debate how to become more profitable. (The Telegraph)
The unpredictable British weather can have a devastating impact on retail sales, a comprehensive review by weather experts has claimed. A seasonal temperature of 1°C higher or lower than average typically leads to a 1pc change in sales, according to data from US-based The Weather Channel, a subsidiary of media conglomerate The Weather Company. In the £300bn UK retail sector, this would equate to a loss, or gain, of around £3bn. (The Telegraph)
Greene King has blamed a crackdown on drink driving in Scotland, a disappointing World Cup and consumers diverting their spending towards home refurbishments and cars for a slowdown in underlying sales growth. (The Financial Times £)
However, Greene King’s focus on selling more food in its pubs helped the brewer notch up £1billion of annual sales at its retail arm for the first time. (The Daily Mail)
The one-time chief executive of Asda believes his new discount clothing start-up has the potential grow to a 1,000-strong chain. Andy Bond, who led Britain’s second-biggest supermarket group for five years until 2010, yesterday opened Britain’s first Pep & Co store. The outlet, in Kettering, Northamptonshire, is the opening salvo in a blitzkrieg of store openings. (The Times £)