Retail footfall declines again

Plus, Sage’s CEO on learning to lead as an introvert, economic growth upgraded and can Samsung get its mojo back?

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Business Agenda

A summary of the most important business news

1. Retail footfall has fallen for the 12th consecutive month as shoppers spent on holiday and leisure instead. Overall, footfall was down 3.3 per cent year on year in July, according to the data from the British Retail Consortium. Footfall on the high street was up 2.7 per cent, but in retail parks and shopping centres it fell, by 0.8 per cent and 3.9 per cent respectively. You can read more here.

2. The Bank of England has upgraded its forecast for economic growth, saying it expects the economy to expand by 1.25 per cent this year, up from 0.5 per cent in May. Growth will then slow next year to 1 per cent, before rising to 1.25 in 2026. Despite the improvement, this is still some way below the target of 2.5 per cent growth set by the government. The bank’s governor has also warned that the era of ultra-low interest rates is unlikely to return. You can read more here.

3. Apple’s revenues increased by 5 per cent to $85.8bn (£67.4bn) in the three months to the end of June – its highest ever revenue for the June quarter. New customers helped boost the numbers, with half of MacBook Air and iPad customers new to Apple. iPhone sales dropped slightly to 0.9 per cent, better than expectations due to rising demand amid plans for the launch of AI features. You can read more here.

4. The owner of British Airways is to pay a dividend for the first time since the coronavirus pandemic as revenue increased 8 per cent to €14.7bn. International Consolidated Airlines Group (IAG), which also owns Aer Lingus, Iberia and Vueling, says it is seeing strong demand for travel to the North Atlantic, Latin America and across Europe. You can read more he r e.

5. Amazon’s sales growth slowed in the second quarter of the year as it warned that consumers are seeking lower prices amid the cost-of-living crisis. Amazon’s CFO Brian Olsavsky said consumers are being “cautious” with their spending, trading down and looking for deals. You can read more here.

Business Question

Guess the year

British Telecom is privatised
The FTSE 100 Index is launched
The halfpenny is withdrawn from circulation
The first Virgin Atlantic flight takes off

The answer can be found at the bottom of the page.

Business Thinker

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By Josh Dornbrack

🧱 Patrick Vallance on the ‘really big block’ holding back UK chip start-ups at the scale-up phase

UK semiconductor startups are struggling to scale due to late-stage funding gaps, talent shortages and regulatory hurdles, according to Patrick Vallance, the new minister of state for science, research and innovation. The government’s £1bn semiconductor strategy aims to support early-stage startups, but Vallance emphasises the need for more focus on scaling.

📱 Can Samsung get its mojo back?

Samsung reported a 16-fold increase in operating profit for the most recent quarter, driven by its chip business amid rising demand from tech giants. Despite this, South Korea’s most valuable company faces significant challenges, including losing ground to competitors in both logic and memory chips, grappling with competition in OLED screens, and internal workforce disputes.

Business Quote

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“The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things.”

– Ronald Reagan

Business Leader

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Steve Hare, CEO of Sage standing with arms folded

🫥 Sage’s CEO on learning to lead as an introvert

Newcastle-upon-Tyne, known for its football fervour and Geordie spirit, is also home to Sage, the UK’s largest listed tech company. Founded in 1981 as a Newcastle University spin-out, Sage has grown into a £11bn FTSE 100 giant under CEO Steve Hare.

This article explores Sage’s rise, Hare’s leadership journey, and the company’s commitment to nurturing talent and driving innovation from the North East, rivaling global tech hubs.

You can read the article here.