BUSINESS LIVE: Cost of living crisis drives record sales at Aldi UK

Ladbrokes owner Entain expects online net gaming revenue to decline by a “high single-digit percentage” in the third quarter on a pro forma basis, citing regulatory headwinds and slower-than-expected growth in Australia and Italy.

Entain, which also owns the Coral betting shops, added that on a pro forma basis it expects the group’s full-year online gaming revenue to decline by a low single-digit percentage.

The company had previously forecast annual online gaming revenue growth in the mid-teens, including the acquisitions of STS Holdings and Angstrom Sports, which are expected to close in the second half of 2023.

“We continue to see good underlying growth in our online business and reiterate our EBITDA guidance for the year, although revenue growth in the third quarter was weaker than expected and the rollout of industry-leading safer gambling measures continues,” said CEO Jette Nygaard-Andersen in a statement.

Aviva has agreed to acquire AIG’s UK insurance business for £460m.

Aviva said on Monday it would buy the unit – known as AIG Life UK – from Corebridge Financial, a New York-listed subsidiary of AIG.

Aviva CEO Amanda Blanc said the deal would strengthen the FTSE 100 company’s position in an attractive market and help position it for “capital-friendly growth”.

The deal will add 1.3 million individual protection customers and 1.4 million group protection members, Aviva said. The transaction is expected to close in the first half of 2024, subject to regulatory approvals.

The deal would mean a cut to Aviva’s group Solvency II coverage ratio by around 5 percentage points, the company said.

Marks & Spencer has teamed up with Adidas and Sweaty Betty to expand its “brand” strategy.

More than 150 products from the two sportswear brands will launch on M&S’s dedicated Sports Edit platform in early October.

M&S hopes to drive online growth through sales of third-party brands, which will soon be joined by Columbia, Regatta and Sorel.

Aldi UK posted record sales of 15.5 billion pounds last year, up 17.1 percent, as the German discounter benefited from the ongoing cost of living crisis.

The company said it would invest £1.4 billion in the two years to the end of 2024.

Giles Hurley, managing director of Aldi UK and Ireland, said:

“Although inflation is easing, households are still under real pressure due to the higher cost of living.” As a result, Britain is shopping very differently to 18 months ago – less travel, more own-label products and switching supermarkets in search of better value for money .

“What we are seeing is a new generation of smart shoppers who have turned their backs on traditional full-price supermarkets and are instead favoring the transparent, low prices that we are known for.” That’s why we’re welcoming more and more customers – people who come because of our Come to us at affordable prices, but stay because of the award-winning quality of our exclusive brands.

“Shoppers know that they always get more for their money at Aldi. That’s a promise we’ve kept for more than 30 years.”