Latest news with #Smiggle
Herald Sun
6 days ago
- Business
- Herald Sun
John Cheston takes over as Lovisa CEO
Don't miss out on the headlines from Retail. Followed categories will be added to My News. Longstanding fashion executive John Cheston has taken charge of ASX-listed jewellery behemoth Lovisa as its new chief executive, with the company's board promising him multimillion-dollar pay cheques if he hits key performance targets. The $3.5bn retailer confirmed the new era on Wednesday morning alongside the appointment of Mark McInnes as new executive deputy chairman. Mr Cheston will be paid a base salary of $2.35m but could earn additional short-term cash payments up to $2.35m if he substantially elevates the retailer's earnings. According to the renumeration conditions set out by Lovisa's board, Mr Cheston will receive an extra $2.35m on top of his base salary if he guides the company to earnings growth of 30 per cent or more. If he achieves 18 per cent growth in the EBIT metric, or earnings before interest and taxes, he gets $188,000 but zero if EBIT does not hit the 18 per cent threshold. John Cheston is Lovisa's new global chief executive. Picture: Supplied Further, Mr Cheston, who ran children's retailer Smiggle for more than a decade before Lovisa, could receive up to $7.05m over three-years under a long-term incentive plan if he continually hits EBIT growth of 30 per cent or more for each financial year. The reward will be issued in company shares rather than cash and is subject to a two-year holding period. Mr McInnes, meanwhile, will enjoy a cash salary of $2m in his new role on the board. Lovisa, backed and run by billionaire entrepreneur Brett Blundy, recruited Mr Cheston and Mr McInnes from Solomon Lew's Premier Investments last year. 'Mark's extensive experience and proven track record of success in a large Australian ASX-listed retailer, combined with his leadership skills, make him an invaluable member of the board and executive management team,' Mr Blundy said on Wednesday. 'We are confident that his contributions will further strengthen our position in the industry and drive long-term value for shareholders'. Mr Blundy, through his investment vehicle BB Retail Capital, owns 39 per cent of Lovisa's issued capital. Lovisa holds an international footprint with 943 stores worldwide, including 180 in Australia. Picture: Brenda Strong / The Observer Lovisa, along with all retailers, is navigating an increasingly uncertain global trade environment. Over a five-year time horizon, the company's value has boomed 312 per cent, moving from about $7 a share in June 2020 to $29.33 before Wednesday's trading. The share price spiked 8.2 per cent across Wednesday morning to hit $31.74 at midday. The company has 943 stores worldwide as of December, including 180 in Australia. It has recently opened its first franchise stores in the Ivory Coast and Republic of Congo in Africa and Panama in Central America. In its half-year report from February, the company reported $405.9m in revenues and $56.9m in profits. Originally published as Fashion retailer Lovisa appoints John Cheston as new global CEO
Perth Now
6 days ago
- Business
- Perth Now
Big paydays for new fashion giant bosses
Longstanding fashion executive John Cheston has taken charge of ASX-listed jewellery behemoth Lovisa as its new chief executive, with the company's board promising him multimillion-dollar pay cheques if he hits key performance targets. The $3.25bn retailer confirmed the new era on Wednesday morning alongside the appointment of Mark McInnes as new executive deputy chairman. Mr Cheston will be paid a base salary of $2.35m but could earn additional short-term cash payments up to $2.35m if he substantially elevates the retailer's earnings. According to the renumeration conditions set out by Lovisa's board, Mr Cheston will receive an extra $2.35m on top of his base salary if he guides the company to earnings growth of 30 per cent or more. If he achieves 18 per cent growth in the EBIT metric, or earnings before interest and taxes, he gets $188,000 but zero if EBIT does not hit the 18 per cent threshold. John Cheston is Lovisa's new global chief executive. Supplied Credit: Supplied Further, Mr Cheston, who ran children's retailer Smiggle for more than a decade before Lovisa, could receive up to $7.05m over three-years under a long-term incentive plan if he continually hits EBIT growth of 30 per cent or more for each financial year. The reward will be issued in company shares rather than cash and is subject to a two-year holding period. Mr McInnes, meanwhile, will enjoy a cash salary of $2m in his new role on the board. Lovisa, backed and run by billionaire entrepreneur Brett Blundy, recruited Mr Cheston and Mr McInnes from Solomon Lew's Premier Investments last year. 'Mark's extensive experience and proven track record of success in a large Australian ASX-listed retailer, combined with his leadership skills, make him an invaluable member of the board and executive management team,' Mr Blundy said on Wednesday. 'We are confident that his contributions will further strengthen our position in the industry and drive long-term value for shareholders'. Mr Blundy, through his investment vehicle BB Retail Capital, owns 39 per cent of Lovisa's issued capital. Lovisa holds an international footprint with 943 stores worldwide, including 180 in Australia. Brenda Strong / The Observer Credit: News Regional Media Lovisa, along with all retailers, is navigating an increasingly uncertain global trade environment. Year-to-date, shares in the company have traded down 3.5 per cent. Over a five-year time horizon, however, the company's value has boomed 312 per cent, moving from about $7 a share in June 2020 to $29.33 today. The company has 943 stores worldwide as of December, including 180 in Australia. It has recently opened its first franchise stores in the Ivory Coast and Republic of Congo in Africa and Panama in Central America. In its half-year report from February, the company reported $405.9m in revenues and $56.9m in profits.
Yahoo
6 days ago
- Business
- Yahoo
Big paydays for new fashion giant bosses
Longstanding fashion executive John Cheston has taken charge of ASX-listed jewellery behemoth Lovisa as its new chief executive, with the company's board promising him multimillion-dollar pay cheques if he hits key performance targets. The $3.25bn retailer confirmed the new era on Wednesday morning alongside the appointment of Mark McInnes as new executive deputy chairman. Mr Cheston will be paid a base salary of $2.35m but could earn additional short-term cash payments up to $2.35m if he substantially elevates the retailer's earnings. According to the renumeration conditions set out by Lovisa's board, Mr Cheston will receive an extra $2.35m on top of his base salary if he guides the company to earnings growth of 30 per cent or more. If he achieves 18 per cent growth in the EBIT metric, or earnings before interest and taxes, he gets $188,000 but zero if EBIT does not hit the 18 per cent threshold. Further, Mr Cheston, who ran children's retailer Smiggle for more than a decade before Lovisa, could receive up to $7.05m over three-years under a long-term incentive plan if he continually hits EBIT growth of 30 per cent or more for each financial year. The reward will be issued in company shares rather than cash and is subject to a two-year holding period. Mr McInnes, meanwhile, will enjoy a cash salary of $2m in his new role on the board. Lovisa, backed and run by billionaire entrepreneur Brett Blundy, recruited Mr Cheston and Mr McInnes from Solomon Lew's Premier Investments last year. 'Mark's extensive experience and proven track record of success in a large Australian ASX-listed retailer, combined with his leadership skills, make him an invaluable member of the board and executive management team,' Mr Blundy said on Wednesday. 'We are confident that his contributions will further strengthen our position in the industry and drive long-term value for shareholders'. Mr Blundy, through his investment vehicle BB Retail Capital, owns 39 per cent of Lovisa's issued capital. Lovisa, along with all retailers, is navigating an increasingly uncertain global trade environment. Year-to-date, shares in the company have traded down 3.5 per cent. Over a five-year time horizon, however, the company's value has boomed 312 per cent, moving from about $7 a share in June 2020 to $29.33 today. The company has 943 stores worldwide as of December, including 180 in Australia. It has recently opened its first franchise stores in the Ivory Coast and Republic of Congo in Africa and Panama in Central America. In its half-year report from February, the company reported $405.9m in revenues and $56.9m in profits. Error in retrieving data Sign in to access your portfolio Error in retrieving data
The Sun
24-05-2025
- Business
- The Sun
Major high street retailer with 106 stores to shut shopping centre branch as two others close this week
A MAJOR high street retailer with 106 UK stores is closing one of its branches in months as two others shut this week. Smiggle, founded in Melbourne, Australia, and selling school, birthday and leisure essentials, is shutting a shop in Wales this summer. The store in the Cwmbran Shopping Centre will pull down its shutters for the final time in August, a store member confirmed to The Sun. It's not clear what exact date the location will close, nor the reason it will shut. Reaction to the closure from shoppers has not been positive, with one local even setting up a petition demanding the branch stay open. The petition, which has been signed by over 70 people, reads: "This petition is a heartfelt plea to prevent the closure of our beloved Smiggle store in Cwmbran. "This store is more than just a retail space – it's a vibrant corner of our community, a place where children light up with excitement and adults find joy in a wide array of unique and colourful products. "The closure of this cherished store would not only be a significant loss to the local shopping landscape, but also to the Cwmbran community which benefits from its presence in innumerable ways." The closure of the Cwmbran branch . A store in the Eastgate Shopping Centre, Inverness, shut its doors on Wednesday (May 21), while a store in the Darwin Centre, Shrewsbury, is closing tomorrow (May 25). Both sites launched closing down sales to clear remaining stock, offering discounts of up to 70%. Shoppers have reacted with sadness after finding out the two stores will permanently shut. Britain's retail apocalypse: why your favourite stores KEEP closing down Commenting on the Shrewsbury store closure, one said: "Another one gone. Will be the whole centre soon." Discussing the Inverness branch shutting, one shopper said: "So sorry for the staff, hope customers will be kind to the staff at this difficult time." The Sun asked Smiggle to comment. RETAIL SECTOR STRUGGLES It's worth bearing in mind, larger retail chains often open and close branches based on customer demand and sales. Sometimes a single store might shut because a lease is ending and the chain has decided it is better to direct cash into other shops or opening new ones. However, the retail sector more broadly has struggled since the 2008 financial crash. The Centre for Retail Research has said the industry has been going through a "permacrisis" during this period. There are a number of reasons the sector is struggling, one being the rise of online shopping. This has seen footfall to high street stores fall seeing large swathes of branches close across the UK. Challenging economic conditions in recent years, including soaring inflation, have dented shoppers' wallets and purses too. While some bigger retailers have struggled to stay afloat, including Wilko, in recent years independent shops have suffered the most. The Centre for Retail Research said more than 13,000 high street shops closed in 2024, with over 11,000 of these independents. This is in addition to almost 7,800 independent stores that closed in 2023. RETAIL PAIN IN 2025 The British Retail Consortium predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce showed that more than half of companies planned to raise prices by early April. A survey of more than 4,800 firms also found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024. Three-quarters of companies cited the cost of employing people as their primary financial pressure. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020."
Daily Mirror
20-05-2025
- Business
- Daily Mirror
Shoppers say it's 'so sad' as beloved retailer to close two stores this week
The first Smiggle store will be closing on Wednesday this week with the second pulling down its shutters for good on Friday - the retailer has not confirmed how many staff members will be affected A beloved high street chain is set to close two branches within days. The children's stationery retailer Smiggle will be closing its Inverness and Shrewsbury store this week. The Scottish store - located in the Eastgate Shopping Centre store - will be pulling down the shutters for good on Wednesday, May 21. After this, the Shrewsbury branch - based at the Darwin Centre - will be closing for good on Sunday, May 25. The retailer has not confirmed how many staff members have been affected by the closures. Both stores have launched closing-down sales and have cut prices by up to 70%. The stationary chain was founded in Australia in 2003 and became incredibly popular for its brightly coloured products and fun and quirky accessories. The retailer opened its first UK in 2014, and there is currently 107 branches across the country. At its peak, the retailer had 130 sites. Smiggle has not officially confirmed the reason behind both closures. However, in a report by the Press and Journal, a Smiggle worker said the Inverness store is closing because it chose not to renew the lease when it expired. A spokesperson for the Darwin Centre in Shrewsbury confirmed the brand had served notice on the property and would stop trading this week. The spokesperson said: "The store's management team has served notice in accordance with the terms of its lease agreement. We would like to thank Smiggle for being a valued part of The Darwin and extend our appreciation to the customers and community who have supported the store during its time with us." Sign up to Mirror Money's newsletter for the latest advice and news From universal credit to furlough, employment rights, travel updates and emergency financial aid - we've got all of the big financial stories you need to know about right now. Sign up to our Mirror Money newsletter here. One Smiggle shopper told the Press and Journal that it was "so sad" that the Inverness store was closing. He told the publication: "It is a shame, isn't it? Because it's been here for a long time, My kids love Smiggle. It's pretty sad. 'I think it's the Eastgate Centre really. I know the rents are quite high for shops." Another parent said the closure was a "shame", added: "There's not another shop with this range of stationery really. When kids go back to school, they can come here and choose something they like rather than everything that's out there online." It is important to note that retailers close stores for a variety of reasons, and it doesn't just mean they are in trouble. Some close because the tenancy has come to an end on the site, or that the branch is not as profitable as others.
