Sainsbury’s ill-starred ownership of the Argos retail business looks likely to end as the supermarket negotiates a sale to the Chinese retailer JD.com. No agreement has yet been reached but Sainsbury’s confirmed it was in discussions to hive off Argos, the general merchandise arm it bought for more than £1bn less than a decade ago. Sainsbury’s said a sale to JD.com would speed up the transformation of Argos, whose business has gone increasingly online and within larger Sainsbury’s branches. JD.com (unrelated to JD Sports) is one of China’s biggest retailers…
Tag: Retail industry
Trump tariffs: global parcel shipments to US lose exemption
The US tariff exemption for package shipments valued under $800 officially ended on Friday, raising costs and disrupting supply chain models for a range of businesses, with Trump administration officials saying the change would be permanent. There is now a six-month transition period under which postal service shippers can opt to pay a flat duty of $80-$200 per package depending on the country of origin, the officials added. The US Customs and Border Protection (CBP) agency began collecting normal duty rates on all global parcel imports, regardless of value, after…
Kmart faces legal action in Australia over potential forced labour links – podcast
Earlier this month an Australian-based Uyghur group launched legal action against Kmart in the federal court. The case has put the retailer’s supply chain under scrutiny for potential links to forced labour in China’s Xinjiang province. Nour Haydar speaks with senior reporter Ben Doherty about the legal action against Kmart and the warnings that Australia could become a dumping ground for products linked to forced labour The Guardian
Kmart supply chains under scrutiny for potential Uyghur forced labour links in Australian court case
The letter was effusively polite, the allegations anything but. “We have the honour to address you,” the seven United Nations special rapporteurs began their correspondence to the head of Jiangsu Guotai Guosheng garment factory in China’s Xinjiang province. The 2021 letter then detailed allegations of brutal working conditions for members of China’s Uyghur minority, reportedly forcibly transported hundreds of kilometres and arbitrarily detained for re-education and forced labour. “Workers are reportedly required to work in fenced-in factories … allegedly exposed to intimidation, coercion, threats, and restriction on their freedom of…
Shein looks at moving back to China for Hong Kong listing after London IPO stalls
The online fashion retailer Shein is understood to be considering moving its base back to China from Singapore to pave the way for a Hong Kong listing. The business, which was founded in China and moved its headquarters to Singapore in 2022, had been considering a £50bn float in London after failing to win approval from regulators in the US for a New York flotation. However, Chinese authorities have not given the nod to a UK listing and the fast-fashion group has faced questions about conditions in its supply chain…
EU commissioner shocked by dangers of some goods sold by Shein and Temu
The EU justice commissioner has expressed shock at the toxicity and dangers of some goods being sold by Shein and Temu, amid a crackdown on the popular Chinese retail platforms. With 12m low-value parcels each day coming into the EU from online retailers outside the bloc, Michael McGrath has vowed to crack down on the sale of goods that blatantly break the law. He is waiting for the imminent results of an EU-wide secret shopper operation to further test evidence already gathered that Chinese retailers are bypassing EU laws. Among…
Nike says Trump tariff war could cost it $1bn
Nike expects costs to increase by about $1bn (£728m) as a result of Donald Trump’s tariff war, as the sportswear company looks to significantly reduce its manufacturing in China. The market value of the company has plummeted by a third over the past year and it is taking action to reduce the hit, including price increases in the US and sourcing from other countries. “These tariffs represent a new and meaningful cost headwind,” said Matthew Friend, its chief financial officer. “With the new tariff rates in place today, we estimate…
Shein turns to Hong Kong for flotation as London attempt stalls, reports say
Shein is reportedly aiming to list on the Hong Kong stock exchange as the online fast-fashion retailer struggles to gain the go-ahead from Chinese regulators for a flotation in London. The company, which was founded in China where the majority of its suppliers are based but now has its headquarters in Singapore, is aiming to file a draft prospectus with Hong Kong’s stock exchange in the coming weeks, according to Reuters. It said Shein plans to go public in the Asian financial hub this year, which would scotch hopes of…
This pause in the trade war will be brief. Small businesses, plan accordingly
Donald Trump’s massive Chinese tariffs are on pause. The media debated. Wall Street rejoiced. Many of my clients breathed a sigh of relief. Big retailers jumped for joy. But for how long? For starters, the tariffs that weren’t paused – a 10% levy on all Chinese goods, plus a bonus 20% tax that somehow relates to fentanyl, are still in place. When you take into consideration existing tariffs on steel from previous Trump and Biden administrations, the effective tariff rate on Chinese goods is actually closer to 40%, according to…
Ethical alternatives to American goods | Brief letters
Pleased to see I’m far from alone in trying to avoid American products (This un-American life: can you really divest yourself of everything from the US?, 19 April). Mostly there are alternatives. There is no need to make your own cleaning products – for example, there are Bio-D and Faith in Nature. I have a Kobo e-reader and a Doro phone. A good source of alternatives is Ethical Consumer magazine.Ruth ClancyWhaley Bridge, Derbyshire For someone who sees nothing wrong in saying the US wants Greenland, no wonder Donald Trump thinks…