The Body Shop set to appoint administrators in UK; Biden tells snack companies to stop shrinkflation – business live | Business

The cost of living squeeze has made it harder for retailers such as The Body Shop to grow sales.

And new research today shows that one-in-three working age families have not managed to build up a basic “rainy day” savings of at least £1,000.

This highlights how the poorest households are struggling to build up financial resilience amid the cost of living crisis.

The Resolution Foundation said people across Britain faced a “triple savings challenge” of insufficient savings, an inability to cope financially with major life events such as family breakdown, and inadequate retirement incomes.

It said 11.2 million people lived in households that had savings of less than £1,000, accounting for about one in three working-age households. As many as half lived in the poorest third of households in Britain.

More here:

President Joe Biden has launched an attack on food and drink companies who are cutting the size of their products but not the cost.

In a video posted ahead of last night’s nail-biting Super Bowl LVIII, Biden pointed out that sports drinks bottles are smaller, while you get fewer crisps in a packet than you used to, and less ice-cream in a carton too.

As Biden puts it:

I’ve had enough of what they call shrinkflation. It’s a rip-off.

“Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won’t notice.

“Give me a break. The American public is tired of being played for suckers. I’m calling on companies to put a stop to this. Let’s make sure businesses do the right thing now.”

Shrinkflation has helped consumer goods makers to grow profits despite inflationary pressures, and it isn’t only a US phenomenon.

Retailers in the UK have been cutting the size of their products for several years, and also changing their ingredients, as they try to absorb the impact of higher raw material, energy and staff costs….

…while in France, supermarket chain Carrefour has put labels on its shelves this week warning shoppers of “shrinkflation”, to shame retailers who have been cutting product sizes.

Biden also seems happy with the result from Las Vegas:

Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.

Thousands of jobs are at risk at The Body Shop, as the cosmetics retailer’s new owners line up administrators for its British arm.

The Body Shop could go into administration as early as this week, leading to store closures, having suffered disappointing trading over Christmas and in early January.

The retail chain, which has more than 200 shops, was bought by the pan-European private equity investor Aurelius last November.

Administrators at FRP Advisory are likely to be appointed as soon as this week to handle an insolvency process, Sky News reported on Saturday, citing sources who said they expected the closure of a significant number of the stores.

The Body Shop’s international businesses have already been sold to an unknown family office, according to Retail Week.

The Body Shop, known for its ethical trading ethos, dates back almost 50 years, as my colleaue Rob Davies explains:

Roddick, an environmental campaigner, activist and entrepreneur, founded the Body Shop in Brighton in 1976. The company remained under her ownership for three decades, until she sold it in 2006. Roddick died the following year.

By then, The Body Shop had become synonymous with its ethical positions, including a refusal to stock products tested on animals and a sourcing of ingredients from natural products that are traded ethically.

The agenda

• 10am GMT: European Commission winter forecasts

• Noon GMT: India’s industrial production data for December & inflation for January

• 1pm GMT: Russian balance of trade for December

• 6pm GMT: Bank of England governor Andrew Bailey gives lecture at Loughborough University