In a move that has sent shockwaves through the retail industry, The Range is finalising a £5 million deal to acquire the renowned Wilko brand. The agreement, set to be announced later today, will grant The Range ownership of Wilko’s website, allowing them to potentially stock and sell some of its products. However, this deal does not spell good news for Wilko’s physical stores, as 400 of them are set to close by early October, resulting in the likely loss of thousands of jobs.
Wilko’s unfortunate spiral into administration in August led to an unsuccessful search for a buyer for the entire business. As a result, companies in competition with Wilko have been quick to seize the opportunity, carving up the company for themselves. Billionaire owner of HMV, Doug Putman, had hoped to keep hundreds of Wilko shops open, but his bid fell through, leaving no other interested buyers willing to take on the stores under the Wilko brand.
Yesterday, the owner of Poundland came to an agreement to take on the leases of around 71 Wilko shops, planning to reopen them under their own brand. Additionally, B&M has also secured a deal to purchase 51 of Wilko’s shops in a £13 million transaction.
Meanwhile, across the Atlantic, consumer prices in the United States have exceeded expectations, driven by rising costs of rent and fuel. The Labor Department reported that the inflation rate stood at 3.7% over the 12 months leading up to August, up from 3.2% in July. These figures highlight the ongoing challenges faced by officials in managing and stabilising prices after last year’s rapid inflation rates, the highest seen in decades.
Despite a significant drop in the inflation rate since its peak, the US central bank remains concerned that the issue has not been adequately resolved. In an effort to counter price rises, the bank has already raised its benchmark interest rate to its highest level in 22 years, targeting a range of 5.25% to 5.5%. Later this month, the central bank is set to convene and consider whether further rate increases will be necessary.
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