British Business Investments (BBI) has extended a significant financial boost to UK smaller enterprises through a £25 million facility agreement with Shire, encompassing both Shire Leasing and Shire Securities. This strategic move aims to enhance asset finance solutions for businesses in agriculture, business services, manufacturing, and construction. The initiative underscores BBI's commitment to supporting independent operators in the asset finance sector, fostering broader access to essential financial resources. With a decade-long successful partnership between BBI and Shire Leasing, this new investment is expected to further strengthen Shire’s capabilities and expand its lending portfolio, which has grown from £50 million ten years ago to over £225 million today. Additionally, Shire's recent acquisition of Shire Securities in March 2024 will bolster its ability to provide comprehensive financial support to UK small and medium-sized enterprises (SMEs).
The collaboration between British Business Investments and Shire represents a pivotal step in advancing the financial landscape for UK SMEs. Over the past decade, Shire Leasing has established itself as a leading independent finance provider, significantly expanding its portfolio. The company's growth trajectory exemplifies its dedication to serving smaller businesses effectively. By offering tailored asset finance solutions, Shire has enabled numerous enterprises to acquire necessary assets and scale their operations. The newly announced £25 million facility not only underscores BBI's confidence in Shire's capabilities but also highlights the importance of diversifying finance options for SMEs. Jonathan Marriott, senior director at British Business Bank Structured Financial Institutions Solutions, expressed satisfaction with this investment, emphasizing its role in supporting independent operators on a national scale.
Helen Lumb, managing director of Shire, highlighted the significance of this continued partnership. She noted that the new funding commitment reflects a shared vision of making finance more accessible across various sectors. The acquisition of Shire Securities marks a crucial development phase, poised to enhance Shire's lending capabilities and provide even greater support to smaller businesses. This expansion aims to help these enterprises secure the necessary funds to thrive in today's competitive market. The block discounting model, proven effective in widening finance choices, plays a vital role in achieving this goal. As Shire moves forward, it remains committed to empowering UK SMEs with robust financial solutions.
In addition to this milestone, BBI recently announced a £20 million funding facility for Sprk Capital, focusing on advanced funding for R&D tax credits and innovation grants. This broader approach demonstrates BBI's ongoing efforts to stimulate innovation and economic growth within the UK. The cumulative impact of these initiatives is set to create a more resilient and dynamic business environment, where SMEs can flourish with enhanced access to diverse financial resources. Through strategic partnerships and targeted investments, BBI continues to pave the way for sustainable business growth and development across various industries.
The Kroger Co. has announced a significant change in its leadership structure, with the appointment of David Kennerley as the new Senior Vice President and Chief Financial Officer (CFO). Effective April 3, Kennerley will take over from Todd Foley, who has been serving as interim CFO. This transition is part of Kroger's strategic succession planning, ensuring continuity and stability within the company’s financial leadership. Foley will remain involved until the end of the fiscal year to support the transition. The move underscores Kroger's commitment to maintaining its market strategy and delivering value to shareholders while continuing to provide fresh, affordable food to families across America.
Kennerley brings extensive experience in finance leadership, having spent nearly two and a half decades at PepsiCo, where he held various senior roles. His most recent position was as the CFO for PepsiCo Europe. He will join Kroger on March 10, initially assuming the role of Senior Vice President before officially becoming CFO. Kennerley’s background includes managing treasury activities, business development, and commercial finance across multiple regions, contributing significantly to PepsiCo’s success. His expertise will be invaluable as Kroger navigates its ongoing initiatives and strategic goals.
Rodney McMullen, Kroger’s Chairman and CEO, expressed confidence in the seamless transition between Kennerley and Foley. He highlighted the importance of thoughtful succession planning, which has been a hallmark of Kroger’s leadership approach. Kennerley’s arrival marks a pivotal moment for the company, bringing fresh perspectives and proven capabilities to enhance financial operations and drive long-term shareholder value.
Todd Foley, who has been instrumental in Kroger’s financial department since joining in 2001, will retire after serving as interim CFO. Throughout his tenure, Foley held several key positions, including Controller of the Cincinnati-Dayton Division, Assistant Corporate Controller, and Vice President and Treasurer. His contributions have been vital to Kroger’s success, and his dedication to the company and its associates has been widely recognized. Foley’s retirement signifies the end of an era but also sets the stage for a new chapter under Kennerley’s leadership.
Kennerley’s career trajectory at PepsiCo reflects a deep understanding of international finance and operational excellence. After joining PepsiCo in 2001, he rapidly advanced through various roles, including managing treasury activities in Western Europe, directing business development in the UK, and leading finance teams across global beverage operations. His appointment as CFO for PepsiCo Europe in 2020 further solidified his reputation as a seasoned finance leader. With this wealth of experience, Kennerley is poised to make a significant impact at Kroger, building on the strong foundation laid by Foley and his team.
Kroger remains dedicated to its mission of feeding the human spirit through its extensive network of retail food stores and digital platforms. As the company continues to innovate and expand, the leadership transition ensures that Kroger stays on track to achieve its strategic objectives. The incoming CFO will play a crucial role in driving initiatives aimed at creating sustainable communities and fostering growth, all while maintaining the high standards of service and quality that Kroger is known for.
In the rapidly evolving world of retail, the buy now, pay later (BNPL) model has emerged as a significant trend, reshaping consumer spending habits and challenging traditional financial institutions. Justin Grooms, CEO of Bolt, recently shared insights on this phenomenon at the National Retail Federation Big Show. With over 80 million U.S. shoppers using Bolt's marketplace, Grooms highlighted a 25% year-over-year increase in BNPL usage, contrasting with a 3% decline in credit card transactions. Mobile shopping also saw an 18% surge. These trends underscore a shift in consumer behavior, prompting retailers and banks to adapt their strategies.
Redefining Payment Preferences and Retail Dynamics
In the heart of New York City, during the vibrant National Retail Federation Big Show earlier this year, industry leaders gathered to discuss the latest shifts in consumer behavior. Among them was Justin Grooms, whose observations revealed a pivotal moment for the financial sector. According to Grooms, traditional banks are recognizing that BNPL services are gaining traction organically, not just as a temporary trend but as an integral part of consumers' financial management.
Data from Bolt’s extensive network showed a notable rise in BNPL usage without a corresponding increase in deployments, indicating that consumers are increasingly integrating BNPL into their regular spending patterns. Interestingly, there is a growing overlap between BNPL users and premium credit card holders, traditionally associated with higher credit scores. This suggests that BNPL is no longer seen as a gimmick but as a practical tool for managing expenses.
Grooms noted that BNPL is influencing how consumers view high-ticket items. Instead of seeing a $2,000 TV as a single large purchase, they perceive it as manageable installments spread over time, aligning with their paycheck cycles. This shift in perception is making BNPL more appealing, especially for larger purchases. The range of average order values (AOVs) is expanding, moving beyond the traditional $500 anchor point. Consumers are now layering multiple BNPL transactions to smooth out expenses over time, reflecting a broader acceptance of this payment method.
For banks like Capital One and Chase, the challenge lies in effectively communicating the value of their products at the point of purchase. With numerous payment options available, including various credit cards and BNPL services, retailers must carefully curate the checkout experience to highlight the most relevant choices. Overloading consumers with too many options can lead to decision paralysis or abandoned purchases. Personalizing the payment process based on customer preferences and behaviors is becoming crucial for enhancing satisfaction and retention.
The retail landscape is undergoing a significant transformation, driven by the need to understand and cater to evolving consumer expectations. As BNPL continues to gain momentum, it presents both opportunities and challenges for traditional financial institutions and retailers alike. By embracing these changes and leveraging data-driven insights, businesses can better meet the needs of today’s discerning shoppers.
From a journalist's perspective, the rise of BNPL underscores the importance of staying adaptable in an ever-changing market. Retailers and banks must remain agile, continuously refining their strategies to align with shifting consumer behaviors. The success of BNPL highlights the power of innovative solutions in addressing real-world financial challenges, offering valuable lessons for all players in the retail ecosystem.