H&M tests clothing rentals
H&M is testing a clothing rental service in a bid to face up to mounting criticism of the fashion industry over waste and pollution.
The trial, which is running in H&M’s flagship store in Stockholm, Sweden, will offer clothes for 350 kroner (£29) a week. The service is currently limited to 50 garments and only available to members of its loyalty scheme.
The test will run for three months, with H&M monitoring how it runs before it considers expanding it. The Stockholm store is also testing a range of other services, including clothing repairs, a coffee shop and beauty bar.
“We have a huge belief in rental, but we still want to test and learn quite a lot and do tweaks and changes,” H&M’s head of business development, Daniel Claesson, said in a presentation at the flagship reported by Business of Fashion.
H&M joins retailers including Banana Republic and Urban Outfitters in offering rental services. The market is thought to me worth around $1bn globally, with websites such as Vinted and Hurr Collective gaining in popularity.
UK ad spend to be among fastest in the world, says GroupM
Ad spend in the UK is expected to be among the fastest in the world with growth of 6.7% in 2020, according to GroupM.
The media agency owned by WPP forecasts spend to be 7.8% this year, the same as in 2018 as strong growth since the 2008/09 recession continues. That marks the sixth consecutive year of mid- to high-single-digit growth, with the UK’s ad sector expanding by 55% since 2013 making it “unambiguously” the world’s fourth largest.
“UK advertising has been so resilient in the face of so many challenges,” says the report.
Growth has been boosted spend from digital-first brands such as Facebook, Netflix and Google, all of which have spent hundreds of millions promoting their services. There is also a longtail of advertisers spending on digital media.
David Pemsel steps down as Premier League CEO before starting
David Pemsel has resigned as the new CEO of the Premier League two months before he was due to start the job.
The decision means the Premier League will now have to start its hunt for a new boss all over again. It is the second time an incoming CEO has stepped down before starting after broadcasting exec Susanna Dinnage also took up the role only to change her mind.
“Following media disclosures earlier this week and discussions with David Pemsel, the Premier League has today accepted David’s resignation and he will no longer be joining as chief executive,” says the Premier League in a statement.
Richard Masters will continue as interim CEO while the Premier League finds a new CEO.
Pemsel has agreed to take up the role only last month. He was previously CEO of Guardian Media Group and has worked in various marketing jobs.
Anna Bateson, chief customer officer and the Guardian’s top marketer, has taken on the job of interim CEO.
“Since joining the Guardian in 2016 and taking responsibility for our brand and reader revenues in 2017, Anna has helped us achieve impressive revenue growth, while also working closely with editorial colleagues on marketing and brand activities,” says the company.
“As previously announced David Pemsel has resigned as chief executive of GMG. We would like to express our gratitude to David for his leadership during an extremely important period for the organisation.”
Ted Baker warns about stock over-valuation
Ted Baker has warned that it may have overstated the value of its stock by up to £25m, another blow to the fashion business following the departure of its founder and boss Ray Kelvin last year over misconduct allegations.
A review will be carried out by law firm Freshfields Bruckhaus Deringer, while independent accountants have been brought in to investigate. Ted Baker says it does not expect any cash impact.
“Ted Baker is committed to ensuring the independent review is completed in an efficient and transparent manner and will update the market as appropriate. While the review is ongoing, the company will not comment further,” it says in a statement.
The news is the latest problem to hit Ted Baker. Kelvin was forced to resign after claims he presided over a culture of “forced hugging”. Since then, its sales, profits and share price have all tumbled, with the retailer reporting a loss of £23m in the six months to 10 August, compared to profit of £24.5m in the same period in 2018.
TV advertising to experience biggest price rises next year
The price of TV advertising is forecast to increase by 6.6% globally next year and online video by 6%, according to the World Federation of Advertisers (WFA).
Smaller price rises are expected for other traditional channels, while online display is forecast to experience a 4.4% rise. The numbers were compiled by analysing data from 17 companies covering 50 markets.
In total, ‘offline’ media is forecast to see prices rise by 5%, while ‘online’ media (which includes only online video and online display) will experience a 5.2% rise.
In the UK, prices are expected to be less volatile. TV, for example, will see prices rise by an average of 2.7%, online video by 3.7% and online display will be flat.