BUSINESS LIVE: Retail sales and  consumer confidence weaken; Telegraph launches formal sale; IHG sales boost

Telegraph Media Group and the Spectator magazine have launched a formal sale process, in a deal that could fetch £600million.

In June, restructuring group AlixPartners said Bank of Scotland had appointed receivers for the shares of the publisher’s owners, who failed to repay loans from the bank.

The receivers said they would look for ways to recover the debts for the bank, which is a member of the Lloyds Banking Group.

In August, London-listed publisher National World had confirmed its interest in the Telegraph group, which owns the newspapers, and the company that runs The Spectator.

National World is sounding out potential investors to help finance a bid for the group, Reuters reported.

Silvia Rindone, EY UK&I retail lead:

‘A combination of supressed and unpredictable demand and higher interest prices are starting to affect the retailers that didn’t use the pandemic period to realign their businesses. Those that continued not to invest in stores, propositions or customers are finding that shoppers are choosing to go elsewhere.

‘Looking further ahead, the EY ITEM Club Autumn Forecast predicts a mixed picture for consumer spending, which is expected to benefit from several supports over the coming months.

‘Falling energy bills and easing food prices and inflation means overall inflation should decline to a predicted average of 7.4% this year, before falling to 2.9% in 2024.

‘As we enter the final ‘golden’ quarter of the year, pricing and inventory will be key priorities for retailers and brands.

‘Last year, many consumers delayed spending as late as possible to help manage their finances leading to heavy discounting much earlier than normal. Retailers will need to consider what impact this may have on cash flow at a critical time of the year.’

Retail sales slumped 0.9 per cent in September as evidence mounts that UK consumer strength is weakening, fresh data from the Office for National Statistics shows.

Separate figures from the GfK consumer confidence index on Friday show British consumer confidence has tumbled, reflecting households’ renewed concerns about the outlook for their personal finances and the broader economy.