China’s Byton suspends production of electric vehicles to get its act together, Primark’s owner gets a fast-fashion fillip and Ikea takes its cheap-and-cheerful furniture brand to the posh Rue de Rivoli. Catch up with Corona Capital here:
from July 1 to reorganise itself, and is raising funds to address unpaid salaries. That will cramp its IPO plans, and is another sign of trouble in the world’s biggest EV market, which was struggling before the pandemic hit. Sales of new energy vehicles fell 23.5% year-on-year to 82,000 units in May, according to an industry association, even while overall auto sales rose 14.5%.
Byton, which has yet to sell a single car, is hardly the only cash-strapped EV maker, but its peers are faring better. New York-listed Niothis week it had substantially completed cash injections into its China operation, while Alibaba-backed Xpeng has started deliveries of its P7 electric sedan, which will challenge Tesla’s Model 3. But barring a startling demand revival, the coronavirus looks set to accelerate consolidation. The death of the high street is greatly exaggerated.
Lockdown was a boon to the grocery business. Long-life goods like Ryvita and Dorset Cereals were in high demand from housebound consumers. This delivered a 9% sales boost from March to June. A rush of sugar sales from higher prices in Europe also delivered a 3% bump since the beginning of the year. This took the edge off the lockdown hit to Primark. But with fast-fashion enthusiasts back, the retail recovery may be faster than expected.
The shift could put Ikea in good stead for a prolonged recession. Unemployment in America topped 13% in May while in Europe it was near 7% in April. With reduced cash flow, consumers may prefer to redecorate their homes rather than move altogether. Ingka’s Parisian splurge is unlikely to be a one-off. The Swedish furniture group is alsoA shopper walks past a branch of clothing retailer Primark in London, Britain April 27, 2013.
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