This week’s developments feature significant movements in the business strategies and operations of Shein, Marks & Spencer, and LVMH.
- Shein is at risk of missing out on inclusion in the UK’s FTSE 100 index due to insufficient share sales.
- Shein’s business practices, particularly concerning labor rights, face increasing scrutiny from various organizations.
- Marks & Spencer’s flagship project in London encounters delays due to political and bureaucratic hurdles.
- LVMH welcomes Cécile Cabanis as the deputy finance director with plans for succession.
Shein’s potential exclusion from the FTSE 100 index has been a topic of discussion. Reports indicate that the Singapore-based fashion giant’s share sales fall short of the minimum free float required. UK stock exchange rules stipulate a 25% free float for foreign companies to be included in the indices. Consequently, index tracker funds managing substantial pension investments would not be obligated to purchase Shein shares if the company fails to meet these criteria.
The ethical practices of Shein continue to attract attention. Recent investigations revealed questionable labor conditions, with allegations of workers enduring over 70-hour work weeks. Prominent groups like Labour Behind The Label and UNI Global Union urge the UK government to oppose Shein’s index inclusion due to these concerns. Though the company’s spokesperson asserted a zero-tolerance policy for forced labor, doubts linger about its supply chain transparency.
Marks & Spencer’s ambitions to transform its iconic London store face setbacks as ongoing planning disputes persist. The retailer seeks permission to replace its 1929 art deco site with a ten-storey retail and office block, but government interventions have stalled progress. The Department for Levelling Up, Housing and Communities has already invested significantly in the planning dispute, reflecting the complexity of urban redevelopment projects amid political influences.
LVMH’s strategic leadership transition sees Cécile Cabanis taking on the role of deputy finance director, effective immediately. Her eventual succession of longstanding CFO Jean-Jacques Guiony highlights LVMH’s commitment to strengthening its financial leadership. Cabanis joins from Tikehau Capital, where her experience as deputy CEO is expected to bring valuable financial expertise and strategic acumen to the luxury giant.
These developments underscore the dynamic nature of the fashion industry, revealing both challenges and strategic shifts among key players.
