Data protection, Next, Wagamama, Domino’s Pizza, Aston Martin: your commercial news round-up

Your commercial awareness skills will be assessed at each stage of the application process. Not only is it important to be aware of the news and events that are directly impacting the firm you’re applying to, its clients and practice areas; you should also be considering the wider impact on the legal and business worlds. For now, read this week’s commercial news round-up below.

• The UK government could break away from the EU’s General Data Protection Rules (GDPR), as it considers its own post-Brexit data approach. Culture secretary Oliver Dowden explained in a Financial Times article that “too many businesses and organisations are reluctant to use data – either because they don’t understand the rules or are afraid of inadvertently breaking them”. Rather than focusing solely on privacy, Dowden said the next information commissioner must also consider how to use data to “achieve economic and social goals”. He added: “Data has many such wider societal benefits, and as we emerge from the pandemic, the UK has an opportunity to be at the forefront of global, data-driven growth.” The UK’s departure from the EU enables international data partnerships to be forged “with some of the world’s fastest growing economies” and a chance to “capitalise on a multibillion-pound opportunity to boost trade in sectors where physical distance is no object”. 

• Brexit red tape will result in millions of pounds of additional costs for UK food manufacturers next month, the industry has warned. The amount of UK export health certificates required to transport food to the EU will increase by around 36% under new EU rules, which will come into effect on 21 April and will apply to all so-called ‘third countries’. Those set to feel the most impact of these new rules include smaller companies that do not benefit from economies of scale. The trade of chilled products, including ready meals, is also likely to take a hit, according to the Chilled Food Association.

• Next is set to acquire a 25% stake in retail company Reiss, which will also outsource its online operations to Next from 2022, including warehouse and distribution services. On top of the £33 million Next will pay for the stake, the retailer will also loan Reiss £10 million. The deal will not remove Reiss’s creative independence, according to Next. Instead the intention is for Next’s infrastructure to act as a “launch pad for Reiss’s growth plans”. When the deal expires after July next year, Next will have the opportunity to acquire another 26% stake, according to Sky News.  

• Owner of Wagamama The Restaurant Group (TRG) plans to raise £175 million from its shareholders as part of a restructuring plan to settle its debt and offer the restaurant chain some protection should covid-19 cases rise again. Many of the group’s restaurant sites had to close following pandemic pressures, with total sales falling by 57% in 2020.

Meanwhile, delivery giant Domino’s Pizza has set out plans to expand its business, following an increase in online sales during the pandemic’s lockdown and in a bid to improve hostile relationships with franchisees. Included in the company’s growth plans are the opening of 200 new stores and a widespread drive-thru service which will support collection sales, according to Sky News.

• Aston Martin boss Lawrence Stroll has recently confirmed that the luxury car brand’s electric models will be manufactured in the UK from 2025. However, despite the UK’s rules that require every new vehicle being sold in the UK to be electric or hybrid by 2030, Aston Martin will continue to produce cars with traditional engines for its international enthusiasts. According to Stroll, around 5% of the brand’s output will continue to run on solely petrol by 2030. Italian sports car manufacturer Ferrari said it will make battery models by 2030.

Be sure to check the News every Thursday for this weekly commercial news round-up. Follow @LawCareersNetUK on Twitter and like us on Facebook for instant business news updates.