LONDON – Music retailer HMV announced today that Simon Fox has been appointed as its new chief executive. Fox will succeed Alan Giles, who steps down on September 28.

Simon Fox quit as the chief operating officer of Kesa Electricals last week. HMV said in a statement that Fox was “chief operating officer, with responsibility for Comet in the UK, Kesa’s subsidiaries in Continental Europe and e-commerce developments.” The appointment comes even as HMV struggles to gain a foothold in the market being dominated by the supermarkets and the Internet. On July 6, it reported a 21 percent drop in annual profits.

Like-for-like sales for the nine weeks to July 1 fell 10 percent. HMV also owns Waterstone’s book stores and is hoping to recoup its losses through a strong online presence as well as considerable price cuts. “The board of HMV is delighted to announce someone of Simon’s caliber as chief executive. He has a strong strategic mind combined with a first rate track record in all aspects of retailing,” said HMV’s non-Executive chairman Carl Symon. “The board is highly confident that [Mr Fox] will successfully lead the transformation of HMV into a truly world-class multi-channel retailer.”

Mr Fox said he was a “huge admirer”” of the HMV and Waterstone’s brands. “We all know that these are highly competitive markets, but I firmly believe that the stellar attributes which are in the DNA of the brands and operating culture will enable the group’s businesses to successfully differentiate themselves and to compete effectively,” he added.

LONDON – The Royal Bank of Scotland has announced that it would be closing is final salary pension scheme to new recruits from October this year. In lieu of his, new members will be given a 15 percent annual pay rise with the option to spend it as they liked.

The RBOS becomes the latest big name employer to close its final salary pension scheme. Many companies have announced such measures after the stock market crash in 2000-2003 resulted in a huge deficit in pension funds. Currently there are 225,000 members in the final salary scheme in Royal Bank and at the end of 2004, the pensions deficit for the Bank stood at 1.9 billion. The RBOS scheme does not require staff contributions and is entirely funded by the Bank.

The Edinburgh-based bank has already contributed 933 million as an exceptional payment into the fund and doles out about 380 million a year. Commenting on the new scheme, Neil Roden, the bank’s head of personnel said that it would offer new members more flexibility and choice. “It is important to stress that for existing staff if they do nothing, nothing changes,” he added.

“But a one-size-fits-all solution is no longer appropriate for the demands of a 21st century workforce who require flexibility to meet their needs in different ways at different times in their lives.”

RBS also said that the new plan made no difference to its 50,000 pensioners or its 90,000 deferred members. The latter belong to the group that has since left the bank, but is yet to draw its pensions. Additionally, 85,000 current staff of the bank will also be offered the option of leaving the scheme for an exchange of a 15 percent annual pay rise. They can keep the extra money, invest it in the bank or make alternate pension arrangements, the bank said.

LONDON – Tottenham Hotspur have landed a mega shirt sponsorship deal as Internet casino group Mansion signed a £34 million agreement with the fifth-placed club in last season’s Premiership. Spurs were dramatically defeated on the last day of the Premiership by West Ham as 10 players went down with an inexplicable case of food poisoning. They lost the game and with that the fourth place to Arsenal.

The new shirt deal becomes effective from July 1 when the deal with current sponsors Thomson expires. “Tottenham has made progress both on and off the pitch in recent years. It has put the club in a good position to improve its commercial partnerships and the new agreement marks a significant uplift,” said Daniel Levy, the chairman of Spurs. The four-year deal with Mansion is being hailed as the best thing to happen to the club. Mansion was launched only in September 2004 and hit the headlines when it was rebuffed by Manchester United who ultimately went with insurance company AIG.

It was reported that the Red Devils were uneasy about being linked so openly with a gaming company. But Tottenham has not voiced any such concerns. “Mansion will partner Tottenham Hotspurs across a wide range of commercial activities including the extension and expansion of the club’s brand into key territories across Asia and other important international markets … and other special commercial projects that may be of mutual interest and benefit to both Tottenham Hotspurs and Mansion,” said a joint statement issued by Spurs and Mansion.

David Kinsmann, chief operating officer of Mansion said that the company was keen to sign on with a major Premiership club this season and Tottenham fitted them perfectly. “Spurs have enjoyed an excellent season, with European football to look forward to next year,” he added.

LONDON – Britons go on a spending spree of over £1 trillion-a-year hoping to buy themselves goods that will confer a posh lifestyle on them, says a new research report from Mintel. On an average each British household spends £37,000 each year on home improvement.

The rest of the amount is spent on furniture, cars, holidays and on the newest hi-tech gadgets in the market. Mintel said that spending on non-essential items had jumped by 57 percent over the last decade and 43 percent in real terms after considering the prevailing inflation. The most frivolous spending included exotic holidays, the latest audio players and luxurious furnishings.

Mintel’s British Lifestyles report also says that spending on TVs, mobile phones, stereos, video and DVD players jumped by a whopping 642 percent. Lat year Britons spent £327.5 billion on housing alone. “The £1 trillion mark is a significant milestone in the expansion of the British consumer economy. The last ten years have clearly been the decade of big ticket purchases and buoyant expenditure on these items such as holidays, cars and appliances reflects the growing affluence of the British nation as a whole,” said Paul Rickard, the director of research at Mintel.

The minutest expenditure growth was seen in everyday food items, which grew by only 18 percent in the last decade. Insurance and pensions products saw a 36 percent increase, while net consumer credit hit a high of £23 billion in 2004.

“Our priorities as consumers appear to reside with fashionable ‘must-have’ products like satellite navigation systems, flat-screen TVs and holidays. Compared to a decade ago, we’re living in a society of instant gratification, and more and more of us have the financial means to fund that desire,” Rickard said.

LONDON – The Body Shop International PLC has reported a 5 percent increase in full-year profits and has said that sales have improved in the New Year. The shop had been criticized for agreeing to a £652 million takeover by cosmetics giant L’Oreal in March.

Like-for-like sales were up by 5 percent in the eight weeks to April 22. This sales trend was much better than corresponding figures for last year, the firm said. Body Shop said pre-tax profit in the year ending 25 February increased 5 percent to £37.6 million. The Littlehampton-based company said that operating profit increased 6 percent to £41.5 million during the same time. There was also a 7 percent increase in total retail sales to £772.0 million, the firm added.

“Our overall retail sales performance demonstrates the global strength of The Body Shop brand. The roll out of our new store format has progressed during the year and we have continued to grow,” said Body Shop executive chairman Adrian Bellamy. “The Body Shop At Home and e-commerce channels in line with our multi-channel strategy. We have also expanded into new markets, with store openings taking place in both Russia and Jordan during the year.”

L’Oreal’s 300 pence a share offer has been agreed to by 89 percent of the Body Shop’s shareholders, the French firm announced last night. It also extended the deadline to May 31.The sale will fetch about £130 million for Gordon and Anita Roddick, the founders of Body Shop.
Commenting on the recent results, a Body Shop spokesman said, “As we can see from current trading, our customers continue to shop with us and buy our ethical profits. Body Shop has the highest ethical standards, particularly when it comes to animal testing, and that is not going to change at all.”

LONDON: Wyevale Garden Centres Plc. is being acquired by WCC Hortis, a takeover company promoted by millionaire retail entrepreneur Tom Hunter’s TBH Trading and Icelandic investment group Baugur.

The company, which is Britain’s largest plant retailer with some 114 horticulture stores, said it has agreed to a cash offer of 310.9 million pounds and is recommending it to shareholders. The offer is at 555 pence-a-share of the company, which is at a 11 per cent premium on the company’s closing price on 16 January, the day before the bid was made.

Including debt, the deal is worth 445.1 million pounds.

Hereford-based Wyevale said Bank of Scotland is providing debt facilities for the acquisition. The loans will be used to refinance the company’s current debts, to provide working capital after the acquisition is completed, to pay fees and expenses and to pay a lump sum to its pension fund.

WCC Hortis already owns 28.7 per cent of Wyevale after it had acquired a 14.99 per cent holding from private equity group Laxey Partners at 555 pence-a-share in February. Wyevale had said at that time there could be full takeover. Laxey Partners had in December managed to oust the chairman and two directors of Wyevale in a boardroom power struggle.

Wyevale had earlier been eyed by private equity firm Cinven, which had made an offer of 325 million pounds.

Once the takeover is completed, TBH Trading will own 40.1 per cent of the company and Baugur’s BG Holding 26 per cent. Besides, HBOS Plc. unit Uberior Investments Plc. will have 19.9 per cent, Prestbury Investment Holdings, an investment company set up by Nick Leslau and Nigel Wray, 12 per cent and LxB SmallCo, a company owned by Hunter, Baugur, Uberior and company managers, the balance 2 per cent.

Wyevale had reported a net income of 505,000 pounds for the year ended 1 January, down from 11.2 million pounds a year earlier. Revenue for the period had fallen 2.5 per cent to 187.6 million pounds.

The company’s chairman, Jim Hodkinson, who joined the firm in December after his predecessor, David Williams, was removed, had said the decline in profit had been on account of declining sales and a one-time cost of 18.2 million pounds, including a 4.7-million-pound inventory write-off, 4.3 million pounds of costs related to Laxey’s efforts to remove Williams and other directors, and 9.2 million pounds resulting from a revaluation of property.

Shares of Wyevale fell 3 pence, or 0.5 per cent, to 549.5 pence Friday. They had gained 14 per cent after the bid was announced and Hunter’s name was linked to it.

LONDON: Britain’s electrical retailer DSG International Plc. is buying a controlling 75 per cent stake in Fotovista Group, the firm that owns Pixmania, a major European online camera and consumer electronic goods retailer. DSG International is paying 184 million pounds in cash for the stake.

Fotovista is market leader for online consumer electronics in France, Italy, Spain and Portugal, while it has presence in 25 European countries, including all those where DSG operates. It has some 250 stores in France alone and an online digital photo service. The deal will give DSG International an exposure to the markets in 12 new European countries, including Poland, Germany and the Netherlands.

The acquisition is subject to approval by the European Union Competition Authority.

Fotovista, set up in 1970 by two brothers, — Pierre and Jean-Claude Rosenblum — had made an underlying profit before tax and interest of 7.6 million euros for the year ended March 2006 on sales of 450 million euros.

DSG International is buying the stake held by LMBO, a French venture capital firm, which now controls Fotovista, and from the Rosenblum family and a handful of managers. Under the deal agreed, the company has an option to buy out the balance 25 per cent over the next three to five years, though if Pixmania hits its financial targets the founders can hike their stake in the business.

The deal happens just days after DSG International has decided to move its Dixons brand online, rebranding its highstreet stores as Currys.digital.

DSG International’s chief executive John Clare said the stake acquisition represented a significant step in the company’s goal of becoming Europe’s leading electrical e-tailer.

The company said Fotovista’s current management team, including two sons of founder Jean-Claude Rosenblum, will continue with the firm.

LONDON: Britain’s catering company Compass Group Plc. is selling its travel concessions unit Select Service Partner, to investors including Macquarie Bank and EQT Partners for about 1.82 billion pounds in cash.

Compass said while a consortium led by Macquarie Bank will acquire the motorway services arm of Select Service Partner, EQT will buy the airport and railway food concession business of the unit.

The company also announced that it has sold 90 per cent of its European Inflight catering business, a further part of its travel concession catering business.

The company will return 500 million pounds from the sale to shareholders through buybacks over the next 18 months and pay 275 million pounds to its pension plans. It is also earmarking 250 million pounds to acquire the 51 per cent stake it does not hold in Levy Restaurants in the U.S. and the rest to pay back debts.

The Select Service Partner unit offers catering for roadside, railway, and airport concessions in some 26 countries under brands like Upper Crust and Burger King. It has outlets at sites like London’s Waterloo Station and Paris’s Gare du Nord.

The unit had operating profit before goodwill of 114 million pounds for the year ended 30 September 2005, on sales of 1.8 billion pounds.

Compass’ finance director Andrew Martin said the company will now be focusing on its core contract catering and support services and with the sale it will be able to exploit the organic growth opportunities from a strong financial base.

The catering company’s another unit, Eurest Support Services, is facing legal cases relating to supplies contracts with the United Nations. The U.N. had suspended the company as a registered vendor pending an inquiry into charges that the unit had obtained information concerning a three-year contract to supply food and water to the U.N’s peacekeeping forces in Liberia, before it bid for the contract. Compass said in February that investigations conducted by lawyers and auditors had found irregularities in obtaining the contract and the action taken by some members of the staff was not above board.

The company will have a new chief executive, Richard Cousins, formerly with plasterboard maker BPB, from June this year, when incumbent Michael Bailey steps down.

Compass shares rose to 236.25 pence, giving the company a market value of 5.10 billion pounds.