Business confidence hits a two-year low
Plus, Greggs' sales growth slows, Beyoncé and Levi's team up for ad campaign and why you shouldn't make staff change their password
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Business Agenda
A summary of the most important business news
1. Company bosses are the most pessimistic they’ve been about the British economy since December 2022, just after the bond market turmoil caused by Liz Truss’s mini budget. The Institute of Directors’ Economic Confidence Index dropped to -38 in September, from -12 in August. Businesses also registered their lowest level of investment intent since September 2020. You can read more here.
2. Mulberry has rejected an £83m takeover bid from Frasers Group, which is owned by Mike Ashley. The Singapore-based hotelier Ong Beng Seng and his wife Christina, who own 56 per cent of the British luxury fashion company, say they have “no interest” in the possible offer. They will instead look to raise £10.75m from shareholders to support turnaround plans. You can read more here.
3. Shop price inflation has fallen to its lowest level in more than three years amid widespread discounting. Prices are now 0.6 per cent cheaper than they were a year ago, according to the British Retail Consortium and NielsenIQ Shop Price Index. Non-food items are 2.1 per cent cheaper than a year ago, although food inflation increased to 2.3 per cent. Find out more here.
4. Sales at Greggs increased by 10.3 per cent year on year in the 13 weeks to September 28 as the chain continues its expansion. Greggs says it is on course to open between 140 and 160 shops in 2024, on a net basis. On a like-for-like basis, sales rose by 5 per cent, down by about two-thirds compared to the same period last year and causing shares to drop. You can read more here.
5. Staff must be allowed to keep 100 per cent of tips from customers under a new law coming into force today. It means that workers across restaurants, cafes, pubs, hairdressers, taxis and hotels should benefit. If a company retains tips, a staff member will be able to bring a claim to an employment tribunal. You can read more here.
Business Question
What percentage of businesses in the US, UK France and Germany still use spreadsheets to track their emissions?
A. 78 per cent
B. 61 per cent
C. 40 per cent
D. 29 per cent
The answer can be found at the bottom of the page.
Business Thinker
Deep dives on business and leadership
By Sarah Vizard and Dougal Shaw
🔍 5 ways to turn curiosity into long-term success
The CEO of the digital music licensing company Merlin has had a varied career. Jeremy Sirota has been a brand designer, a fashion blogger, a technology lawyer, a record executive and an early employee on Facebook’s music team. In this piece for Big Think, he shares how curiosity has shaped his career and led him to leadership roles.
📋 The case for more company insiders on boards
Until the 1970s corporate boards were dominated by inside directors – people who were employed by or in some way affiliated with the company. Yet fast-forward to 2023 and 85 per cent of directors are independent. This piece from Harvard Business Review looks at whether there is a connection between board independence and company performance and suggests businesses should reconsider the merits of insiders.
🔒 Forcing people to change their passwords is officially a bad idea
Passwords keep our data safe from hackers, but they are also the bane of our modern, digital lives. How many are we expected to remember, for all our dozens of accounts? Life gets harder when some organisations – often our work – ask us to update our passwords on a regular basis. New advice from the US National Institute of Standards and Technology backs up what many experts have said all along.
Making employees update their passwords is actually counter-productive. It makes them choose simpler passwords that can be easily adjusted for every update. Simpler passwords are easier for hackers to crack. Better to have a complex password, which you only have to remember once!
Business Quote
Inspiration from leaders
“You don’t lead by hitting people over the head—that’s assault, not leadership.”
– Dwight Eisenhower
Business Leader
The best of our content
🍟 McDonald’s, Nike and Starbucks show the perils of losing sight of the customer
✋ Sorry, but Brits need to stop apologising and love success
😨 PureGym’s CEO on why leaders need a sense of healthy paranoia
And finally…
Beyoncé released her first country album with Cowboy Carter album earlier this year. On it was a duet with Post Malone called Levii’s Jeans that prompted the brand to change its name on social media to Levii’s.
Now, perhaps unsurprisingly, the two have teamed up for an ad campaign. The Reiimagine campaign will feature Beyoncé reinterpreting some of Levi’s most iconic ads. And first up is its infamous 1985 laundromat ad in which Nick Kamen stripped off his Levi’s and waited in his underwear while they washed.
A teaser is live on YouTube now and you can watch it by clicking on the video above.
The answer to today’s Business Question is A. 78 per cent.
