Almost two-thirds of UK workers fear burnout in 2025 as businesses cut back on resources to battle the growing costs of employment. That’s according to the latest data from international recruitment expert, Robert Half. Key Findings: 62% of staff worried about being over-worked this year 60% believe businesses are more concerned about profit and productivity than their people 30% of workers believe that the increase to NICs will put more pressure on them to do more with less The firm’s 2025 Candidate Sentiment Survey – a study of over 1,200 UK workers between 30th December 2024 and 3rd January 2025 – revealed that 62% of staff believe businesses are at risk of over working their employees this year. This has created a growing negative sentiment in the workforce, with 60% of workers stating that companies prioritise profit over people. Almost a third (30%) of workers also indicated that the increase in National Insurance Contributions (NICs) will put more pressure on them to do more with less. This comes at a time when the UK S&P Composite Purchasing Managers' Index (PMI) revealed that employers are cutting staff at the fastest rate in nearly four years, amid reports from the British Chamber of Commerce that business morale has hit a two-year low thanks to planned tax hikes. Younger Workers Hit Hardest According to Robert Half’s data, younger demographics are seemingly at greater risk of burnout in view of the increase in NICs. More than a third (37%) of 18-34-year-olds are worried that this will lead to more pressure on them to do more with less. The majority (65%) of those in this age group also revealed that employers are at risk of over-working them this year. Matt Weston, Senior Managing Director UK & Ireland, at Robert Half, commented: “Our research shows that the majority of the workforce feel that their employers’ priorities are not in the right places, with 60% saying businesses are more concerned about profit and productivity than their people." “Nonetheless, budgets are clearly tight at the moment and businesses are struggling to find ways to balance the books. In fact, according to our latest Hiring Intentions data, 68% of employers are concerned about budget constraints for the year ahead. On top of the high borrowing costs businesses have had to deal with in the past two years, such sentiment is further driven by the hikes in NICs and minimum wage announced in the latter part of last year." "However, the worry from the workforce is that they will have to shoulder the burden and do more work with less resources, likely leading to burnout." “While it’s understandable that employers are concerned with the additional staffing costs that they will incur this year, there’s a significant risk in over-burdening workers." "Aside from protecting staff’s mental well-being, businesses need to be mindful of the potential long-term impact on their employer brand as this could likely have a detrimental impact on staff engagement, morale and hiring in the future.”

Britain’s manufacturers believe the introduction of an industrial strategy will be a game changer for increasing investment and boosting productivity, while helping them secure the skills they need for the future according to a major survey published today. The findings come from the annual Make UK/PwC Senior Executive survey which asks senior manufacturing Executives on the opportunities, risks and challenges for their business in the year ahead, as well as the outlook for the UK and international economies. Key Findings: UK still seen as a competitive place to manufacture with boost to come from industrial strategy Almost six in ten companies will increase investment in response to an industrial strategy Almost half say a strategy will help them secure the skills they need and boost productivity Majority of manufacturers believe opportunities will outweigh risks in 2025 but, as many think UK economy will deteriorate as improve in 2025 More than nine in ten companies expect their employment costs to increase As well as the benefits from an industrial strategy, the survey shows that, despite the current challenges from escalating costs and a potential trade war, a majority of manufacturers believe that overall, the UK remains a competitive place in which to manufacture and the opportunities for their business in 2025 far outweigh the current risks. However, despite this view, as many think the UK economy will deteriorate as grow in 2025. In response, manufacturers are backing their belief in the UK as a place to manufacture with a significant emphasis on developing new products, entering new markets and upskilling and retraining staff. The survey also gives credence to the view of some Economists that companies will counter the impact of increased costs by investing in new technologies and automation to improve their efficiency. Following the recent consultation, Make UK is now urging Government to set out in detail as soon as possible the full proposals of a formal long term industrial strategy. Stephen Phipson, Chief Executive of Make UK, said: “Manufacturers have demonstrated their resilience over and over again in recent years and, despite the numerous challenges they face, those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people will continue to thrive. But, they can only do this if they are operating in the most favourable business environment and there is little doubt that the next twelve months are set to be immensely challenging in a complex international environment." “To help companies navigate a way through these challenges it is now vital that Government sets out as a matter of urgency the immediate and significant priorities as part of its formal industrial strategy given the very clear benefits manufacturers believe this will bring." "By doing this, it will help re-boot business confidence and ensure the year gets off on a positive footing in terms of the relationship between industry and Government.” Cara Haffey, Leader of Industrials and Services at PwC UK, said: "While it's true that UK manufacturers are navigating a complex business landscape - compounded by rising costs - there's a palpable sense of optimism and resilience underpinning the sector's trajectory for 2025." "This optimism is fuelled by hopes of increasing clarity on the proposed UK industrial strategy, as well as a decisive shift towards technology adoption. The sector is moving from viewing technology as a source of incremental improvements towards acknowledging its power to transform operations." “Additionally, there's a strong focus on innovation, with companies investing in new product lines and business development to seize growth opportunities. This approach, alongside efforts in product development, upskilling, cost management, and embracing technology, positions manufacturers well to navigate challenges and contribute significantly to national economic growth." According to the survey, more than half of companies (57%) say they will increase investment in response to a long term industrial strategy. In addition, more than four in ten (43%) companies believe such a strategy will lead to increased productivity and a similar number (42%) say it will help them secure the skills they need for the future. The survey also shows that, despite the challenges companies are facing at home and abroad, almost half of companies (49%) believe the UK remains a competitive place to manufacture compared to a quarter who disagree. In addition, almost two thirds of companies (63%) believe the opportunities for their business in 2025 outweigh the risks compared to just over one in ten (14%) who disagree. Companies are responding to these challenges and opportunities by focusing on growth strategies with more than three quarters of companies (78%) developing new products, almost half deploying new technologies and more than a third (37%) planning to enter new markets. However, despite these positive intentions, as many companies think the UK economy will deteriorate in 2025 (34%) as improve (37%), while the challenges of increased costs are severe. Over nine in ten companies (92%) think their employment costs will increase, more than three quarters (76%) think the costs from other business taxes will increase and a similar number (72%) expect their logistics and transport costs to increase. In response, Make UK is urging Government to look at measures to mitigate these increases by reducing business rates in particular, as well as measures and incentives to aid decarbonisation and energy efficiency.

The Capgemini Research Institute’s report into the future of semiconductors ‘The semiconductor industry in the AI era: innovating for tomorrow’s demands’, published today, shows that rising AI and generative AI (Gen AI) adoption is causing a surge in demand for advanced semiconductor solutions. Despite its lead in innovation, confidence in the semiconductor industry’s ability to meet demand has been hindered by geopolitical tensions, international trade restrictions and the push for sovereignty. According to the report, while the demand for AI chips, custom silicon chips, and memory-intensive chips is expected to increase over the next 12 months, the semiconductor industry needs to capitalize on emerging opportunities. These include design and cutting-edge, sustainable fabrication methods, as well as investment in domestic sourcing and nearshoring to enhance stability. Key Findings: With rising AI and Gen AI adoption, downstream industries estimate a 29% acceleration in the demand for chips by the end of 2026, double the rate of the semiconductor industry’s expectation. One in three downstream organizations are exploring or have actively engaged in in-house chip design, to enable greater customization and gain more control over their supply chain To address the hurdles in their supply chain, the semiconductor industry anticipates that the domestic proportion of its sourcing will increase by 17% over the next two years Gen AI adoption and a wide range of burgeoning technologies, such as 5G, IoT, autonomous vehicles, AR/VR, and edge computing are driving demand for more powerful, efficient, and customized chips: nearly three in five semiconductor organizations say that Gen AI, 5G or other next-generation communication protocols are impacting their strategy. While semiconductor technology breakthroughs have spurred innovation in the downstream industries and enabled the emergence of smarter, more efficient products, fewer than three in ten downstream organizations believe chip supply is sufficient. “We are at a pivotal moment for the semiconductor industry. Gen AI is driving accelerated demand for chips and semiconductor companies face increasing demands from customers who want more personalized and software-centric experiences,” said Brett Bonthron, Global High-tech Industry Leader at Capgemini. “The industry should see this as an opportunity to ramp-up production and adopt a ‘chip-to-industry’ approach that supports a full stack, ’software-first’ set of capabilities. Investment in cutting-edge fabrication methods and design processes powered by AI and Gen AI will be key to meet the specialized needs of emerging applications. Equally, it is crucial that the industry further enhances sustainable manufacturing processes and uses advanced security to safeguard IP.” A Surge In Demand For AI Chips And Custom-Designed Chips According to the report, while 39% of semiconductor organizations anticipate that Gen AI will drive demand for custom chips in the next two years, most downstream organizations (81%) expect their demand to increase by 21% over the next 12 months alone. Consequently, downstream organizations and tech giants are exploring in-house custom chip design which allows them to tailor semiconductors to their unique specifications. This minimizes reliance on external vendors and preserves control over their intellectual property (IP), while boosting speed, efficiency, and compatibility with other hardware and software. In parallel, to meet demand from downstream organizations, the semiconductor industry continues to excel in design and manufacturing innovation and to push the boundaries of physics, advancing notably in chip architectures, extreme ultraviolet (EUV) lithography and smaller process nodes, 3D packaging and use of chiplets. According to the report, the industry is expecting its R&D budget to increase by around 10% over the next two years. Nearly half of manufacturers say they are also relying on AI and Machine Learning (ML) to optimize processes. The Adoption Of AI And Gen AI Is Driving Demand For More Specialized, High-Performance Chips Increased adoption of AI and generative AI is driving the need for specialized neural processing units (NPUs) and high-performance graphics processing units (GPUs), that can handle massive computations and large datasets efficiently. More than half of downstream industries (54%) believe that advancements in GPU computing and AI/machine learning acceleration can bring most value. Chip Sustainability, Supply Chain Resilience, And Security Are Downstream Organizations’ Top Priorities According to the report, more than half of downstream organizations plan to prioritize chip sustainability, supply chain resilience, and cybersecurity features in the next two years. Only two in five semiconductor organizations are confident in the resilience of their supply chains. Over the next two years, the semiconductor industry expects to increase its domestic sourcing from the current 40% to 47% to mitigate the risks associated with international logistics. To enhance stability, the industry also anticipates an increase of 4% in nearshoring. 74% of semiconductor organizations expect to increase their US investments, compared to 59% increasing their investments in Europe. Security of chips remains a critical area in a highly complex and interdependent supply chain, nearly three in five semiconductor design organizations highlight a focus on cryptographic protection. Finally, with nearly 60% of downstream organizations saying that chip sustainability is going to be crucial in their chip selection, the industry is prioritizing core eco-friendly initiatives: energy conservation; implementation of water recycling and reuse systems; using less toxic alternative chemicals; and minimizing waste. Click here to read the full report

During one of the quietest years on record, the London Stock Exchange was buoyed by the listing of Canal+ in the final quarter of 2024. The listing was the largest debut on the London Stock Exchange since 2022. Key Statistics: 18 companies listed on the London stock market in 2024 A robust deals pipeline, improved domestic policy environment and listings reform is expected to drive a rebound in activity in H1 2025 Americas and EMEIA regions led the global IPO recovery whilst Asia-Pacific lags behind There were eight IPOs in Q4 2024 – three on the main market and five listings on AIM, raising £193.1m. This brought the total number of listings on the main market and AIM this year to 18 – the lowest volume of listings since EY started to record this data in 2010. In total, £777.7m of proceeds were raised in 2024, an 18.3% year-on-year (YOY) decrease on the £953.7m raised from 23 issuers in 2023. The London Stock Exchange also saw 88 companies delist or transfer their primary listing from the main market in 2024. A number of these companies cited declining liquidity and lower valuations compared to other markets as reasons for moving away from the London Stock Exchange, particularly the US which offers deeper capital pools and higher trading volumes. Scott McCubbin, EY UKI IPO Leader, comments: “It’s been quiet year for the London Stock Exchange and, while Q4 activity picked up significantly, headwinds facing the UK’s listings market remain. Ongoing geopolitical instability, slow economic growth and a diminished appetite for domestic equities among pension funds have impacted valuations and liquidity." "We also saw the largest outflow of companies from the main market since the global financial crisis as companies sought access a deeper pool of investors and the prospect of improved liquidity on other exchanges." “But as we enter 2025, there are reasons for cautious optimism. A stabilised domestic policy environment post-election, robust pipeline of deals, and listings reform are creating opportunities to restore London’s competitiveness, which could drive a rebound in activity in H1 2025. Businesses eyeing IPOs will be closely watching the market to time their public offerings effectively." "While London faces strong competition from other financial centres, its unique strengths – including a global reputation for financial expertise, strong corporate governance, and a robust legal framework – remain competitive advantages." "By leveraging these strengths and implementing strategic reforms, London can reassert itself as a leading global destination for IPOs.” Global IPO Volumes Fell 10% With Proceeds Down By 4% YOY The global IPO market recorded 1,215 deals, raising US$121.2bn in proceeds in 2024, falling slightly behind 2023 levels. For the first time, India has risen to the top position globally for IPO volume, recording 327 deals in total, whilst the US reclaimed the top spot globally for IPO proceeds for the first time since 2021, raising $27.6bn in 2024. It contributed to a strong recovery for the Americas region which saw 205 IPOs in total raising US$33.1bn. IPO activity in Asia-Pacific saw a 35% decline in deals and 51% decline in proceeds YOY. This was driven by tighter regulations in the Chinese mainland contributing to its weakest IPO performance in a decade, and Australia recording its sharpest decline in IPO volume in more than 20 years. Public listings of private equity (PE) and venture capital (VC) backed portfolio companies generated 46% of total global IPO proceeds in 2024, highlighting their substantial contribution to global IPO activity. When broken down by sector, the technology, media and telecommunications (TMT), industrials and consumer sectors dominated global IPOs, with a combined 60% share across all sectors by both number and proceeds. Grant Humphrey, EY Partner, Strategy and Transactions, said: “Shifts in monetary policies, rising geopolitical tensions, digital transformation, and new ESG priorities are continuing to reshape the IPO market globally." "At the same time, changing dynamics of a connected but increasingly diverse global market mean local economic conditions and regional priorities are playing a greater role in the decision to go public." "Despite these changes, there’s growing optimism for a stronger global IPO performance in 2025, with improving economic conditions, supportive monetary policies, and strong liquidity creating opportunities.”

Deloitte ’s latest survey of UK Chief Financial Officers (CFOs) shows that business optimism fell to a two-year low in the fourth quarter. A net 26% of CFOs reported feeling more pessimistic about the prospects of their business than three months ago, marking the first time sentiment has tipped into negative territory since the second quarter of 2023. Nonetheless, confidence is well above the lows seen in 2020 and 2022. Key Findings: CFOs are responding to the upcoming rise in employer NICs by cutting costs; UK corporates expected to cut capex, discretionary spending and hiring over the next 12 months, reporting the sharpest fall in hiring expectations since the pandemic; Finance leaders expect the Bank of England to reduce interest rates to 4.0% by the end of 2025; Business optimism has fallen but remains well above the lows seen in 2020 and 2022; CFOs rate the UK as a more attractive destination for investment than ‘developed Europe’. CFOs are entering 2025 with a sharp focus on cutting costs. When asked how they plan to respond to the forthcoming rise in National Insurance Contributions (NICs), CFOs chose cutting costs as their top strategy. Raising productivity and prices for customers were rated as lesser, but important, strategies for dealing with the increase. Finance leaders rate cost reduction as the top priority (52% rating it as a strong priority) for their business for the 11th consecutive quarter. They see this as part of a broader corporate sector squeeze on spending, with a net 58% expecting UK corporates to cut discretionary spending, and a net -64% expecting increases in hiring, which is a four year low. Employment expectations have seen the sharpest fall since the start of the pandemic in early 2020. Only 18% of finance leaders on the panel think that now is a good time to take additional risk onto their balance sheets, the weakest appetite for risk in five quarters. Ian Stewart, chief economist at Deloitte, said: “With cost control to the fore in the wake of the Budget, CFOs have trimmed expectations for corporate investment, discretionary spending and hiring in the next 12 months. But despite a fall in business confidence, we expect to see UK growth picking up over the summer on the back of easy fiscal policy and interest rate reductions, with GDP growth likely to exceed the 2024 outturn and the performance of the euro area.”    High Inflation And Interest Rate Worries Fade CFOs see wage pressures easing over the next year and expect the Bank of England to reduce interest rates by 75 basis points to 4.0% by the end of 20254. Although CFOs reported a very modest increase in the cost of credit in the fourth quarter, credit conditions remain much better than in 2023. A net 41% rated credit as available, while a net 49% rated it as costly. Wage increases are slowing, with the CFOs reporting that average wages rose by 4% at their business over the past 12 months, down from 4.6% in the previous edition of the survey. They expect the pace of wage increases to slow further, to 3.2% over the next 12 months. Geopolitics Tops External Risk List Again, As Uncertainty Rises Geopolitics (rated at 655) tops the CFOs’ risk list6 for businesses for the tenth time in the last 12 quarters. Concerns over competitiveness in the UK economy (rated at 55) have edged up, having been running above the long-term average for the past two years. This quarter saw a notable drop in worries over US growth (rated 44, down from 53 last quarter). Finance leaders described an increase in economic uncertainty in the fourth quarter, with the proportion saying their business faced a high or very high level of external uncertainty rising to 40%. Although this is a one-year high, it remains below the post-EU-referendum average (51%). US Most Attractive When It Comes To Investing This quarter’s survey included a special question on the attractiveness of different destinations for business investment. UK CFOs rate the US as by far the best destination for investment, with a net 59% rating it as an attractive investment proposition. While investing in the UK (net -12% attractive) remains more attractive than in other ‘developed European economies’ (net -36% attractive), it has seen the sharpest deterioration in attractiveness of any major region, with a net -63% saying that its attractiveness has improved over the past ten years. Meanwhile, India and major Middle Eastern economies are seen as having become much more attractive over that period, performing strongly in the rankings (net 16% and 7% attractive respectively and improvement over the last 10 years by net 42% and 34% respectively). Ian Stewart added: “The UK ranks as a more attractive location for investment than the euro area, but overall, the US ranks by some margin as the most attractive destination for business investment highlighting the competitive challenge posed by a fast-growing US economy. 2025 seems likely to be a year of continued if modest UK growth." "Looking ahead, a continued emphasis on policies to unlock the UK’s potential remain key to shifting the trajectory of activity.”

The World Economic Forum’s Global Cybersecurity Outlook 2025 Report highlights the increasing complexity in the cyber landscape, which has significant implications for organizations and nations. This complexity arises from the rapid growth of emerging technologies, prevailing geopolitical uncertainty, the evolution of threats, regulatory challenges, vulnerabilities in supply chain interdependencies and the growing cyber skills gap. Growing complexity further exacerbates cyber inequity, deepening the divide between developed and emerging economies, expanding sectoral disparities, and widening the gap between large and small organizations. "Cyberspace is more complex and challenging than ever due to rapid technological advancements, growing cybercriminal sophistication and deeply interconnected supply chains. The Global Cybersecurity Outlook equips leaders with essential insights to navigate these challenges and strengthen cyber resilience," said Jeremy Jurgens, Managing Director, World Economic Forum. “Collaboration between public and private sector stakeholders is paramount to secure the benefits of digitalization for all.” The report identifies key factors driving the accelerating complexity and unpredictability in the cyber landscape, along with insights into their cumulative impact on both organizational and national cybersecurity posture. These include: Supply chain risk interdependencies : Increasing interdependency introduces vulnerabilities within interconnected supply chains, contributing to the growing complexity in cyberspace; 54% of large organizations consider supply chain challenges as the greatest barrier to achieving cyber resilience. Geopolitical tensions : The prevailing turmoil has affected the perception of risks, with one in three CEOs citing cyber espionage and loss of sensitive information/ intellectual property theft as their top concern, while 45% of cyber leaders are concerned about disruption of operations and business processes. Security in the Intelligent Age : There is a paradox between the recognition of AI-driven cybersecurity risks and the rapid implementation of AI without the necessary security safeguards to ensure cyber resilience. While 66% of organizations expect AI to have a major impact on cybersecurity in 2025, only 37% report having processes in place to assess the security of AI tools before deployment. Evolution of the threat landscape : The unprecedented level of sophistication in cyber threats enabled by emerging technologies enhances malicious actors’ ability to operate scams and social engineering attacks, generate disinformation, and execute ransomware at a pace, scope and scale never seen before. Nearly 47% of organizations cite adversarial advancements powered by GenAI as their primary concern. Regulations : While regulations bolster cyber resilience, 76% of CISOs at the 2024 Annual Meeting on Cybersecurity reported that fragmentation of regulations introduces significant compliance challenges. Workforce challenges : Since 2024, the cyber skills gap has increased by 8%, with two in three organizations lacking essential talent and skills to meet their security requirements; only 14% of organizations are confident that they have the people and skills they need today. “Cybersecurity threats are more complex and unpredictable than ever and can directly impact an organization’s financial stability. The disruptive force of AI, coupled with supply chain vulnerabilities and geopolitical tensions, calls for a more proactive and collaborative approach to ensure a strong cyber resilient posture across all industries,” said Paolo Dal Cin, Global Lead, Accenture Security. “C-suite leaders must adopt a security-first mindset from the outset to confidently navigate these challenges with cybersecurity as an enabler that keeps our businesses and organizations resilient." The report calls for a shift in perspective from cybersecurity to enhanced cyber resilience – an organization’s ability to mitigate the impact of significant cyber incidents on its goals and objectives. Additionally, it underscores the importance of evaluating cyber risks from a socioeconomic perspective, which is essential for organizations and nations to effectively allocate resources and strengthen their resilience against cyber threats. “The 2022 cyberattacks on Costa Rica served as a wake-up call, underscoring the need for a fundamental shift in recognizing cybersecurity as a critical investment for the future, rather than a mere expense,” said Paula Bogantes Zamora, Minister of Science, Innovation, Technology and Telecommunications of Costa Rica. “Through this journey, we have recognized the need to strengthen our ecosystems by collaborating with our neighbours to enhance resilience not only in Costa Rica but also across the region.” The Global Cybersecurity Outlook 2025 provides a comprehensive analysis of the escalating complexities in cybersecurity, with actionable insights to help leaders navigate the ever-changing cyberspace. The report emphasizes the need for collaborative efforts across the ecosystem to secure the interconnected networks essential to our digital economy and to effectively address the increasing shortage of cybersecurity skills. It also explores the economic implications of cybersecurity and highlights the critical role of leadership in prioritizing cybersecurity as a core business enabler.

Generative AI (Gen AI) is transforming shopping, with 71% of consumers wanting it to be integrated into their purchasing experiences. The preference of Gen Z and Millennials, for hyper-personalisation and seamless digital experiences is mainly driving this trend. This is according to the fourth edition of Capgemini Research Institute’s annual consumer trends report, ‘ What Matters to Today’s Consumer ’, which finds that technological innovation, shifting financial priorities, and increasing sustainability awareness are fuelling consumer behaviours. Key Findings: Over half (58%) of consumers have replaced traditional search engines with Gen AI tools for product/service recommendations, up significantly from 25% in 2023 Two-thirds of Gen Z and millennials want hyper-personalized content and product recommendations, powered by Gen AI Nearly 70% of consumers notice ads on retailer websites and apps compared to 63% on social media Poor customer experience (CX) and sustainability are the main reasons consumers switch brands or retailers Nearly half (46%) of consumers are enthusiastic about the impact of Gen AI on their online shopping and three quarters are open to Gen AI recommendations, up from 63% in 2023. More than half (58%) have replaced traditional search engines with Gen AI tools as their go-to for product/service recommendations. 68% of consumers want Gen AI tools to aggregate search results from online search engines, social media platforms, and retailers’ websites to provide a one-stop shop for highlighted purchase options. 7 in 10 consumer products and retail companies view Gen AI as a transformative technology, a significant shift from last year. However, the study finds that while investment in the technology is on the rise, Gen AI usage is not meeting expectations. Consumer satisfaction with the technology is down from last year (at 37% in 2024 compared to 41% in 2023). The report highlights that it is important for retailers to understand where and how consumers want the technology implemented. “Consumers today want personalized shopping experiences, enhanced by AI and generative AI. In addition, they expect fast and efficient deliveries and have become more conscious of their purchasing impact,” said Lindsey Mazza, Global Retail Lead at Capgemini. “To remain competitive and build brand loyalty, retailers must adopt strategies that put the consumer at the centre, leveraging AI to deliver seamless yet exceptional customer interactions." "The clear shift towards social commerce is also significant. Retailers need to capitalize on their social and digital advertising platforms to engage consumers early in the purchasing journey.” Consumers May Pay For Fast Delivery Demand for quick commerce is on the rise, with consumers from some geographies increasingly willing to pay for speed and efficiency. For example, willingness to pay more for quick delivery skyrocketed from 41% in 2023 to 70% in 2024, highlighting a strong consumer trend towards easy access to products. With this increase, consumers are now willing to pay 9% of the order value for 2-hour and 10-minute delivery. 65% of consumers consider a 2-hour delivery format a key attribute when they shop, indicating that retailers should consider integrating this into their business models. This trend is prevalent in countries such as India, Germany, France, Sweden, Spain, and the Netherlands, with the US significantly lagging in this regard. Consumers Expect Sustainable Products, But Are Not Prepared To Pay A Premium Sustainability is a critical factor when making purchasing decisions. While 64% of consumers buy from sustainable brands and 67% would switch retailers due to a lack of sustainability, their willingness to pay a premium is decreasing. The proportion of consumers willing to pay between 1-5% more has risen slightly, from 30% to 38%, but those willing to pay more than 5% has dropped consistently over the past two years. The report found that initiatives such as carbon labelling and food-waste reduction also resonate strongly with consumers. The study highlights that consumers are also increasingly seeking more detailed information about the product they are purchasing. Nutritional information comes out as the key consideration, with 67% of consumers saying they would switch products based on this. Consumers Use AI Influencers And Social Media To Discover Products AI influencers, such as avatars created using artificial intelligence, are rising in popularity with one quarter of consumers trusting them and making purchases based on their recommendations. Social media influencers are also becoming popular, with around 7 in 10 Gen Zs learning about new products through them in 2024, up significantly from 45% in 2023. Platforms such as Instagram and TikTok are also reshaping retail, with over half of consumers discovering new products via social media, up from 32% in November 2022. The report found that 40% of all consumers occasionally use social media for customer service interactions, reflecting a growing reliance on social media for resolving issues and seeking support. Advertisements On Retailer Websites/Apps Influence Purchases The report found that 67% of consumers notice ads on retailer website/apps when they search for a product. Over the past 12 months, online adverts influenced nearly one-third of online purchases. In contrast, in-store advertisements lag behind in consumer satisfaction, in terms of content quality and placement. There are several reasons for consumer dissatisfaction. For example, 59% of consumers say the ads shown are very generic and don’t serve their specific needs. While over half (53%) want personalized in-store ads such as a display in a smart shopping cart, smart mirrors, or interactive touchscreens. As a result, retailers are focusing on retail media networks (RMNs)[2] to capture consumer attention. The report also finds that over half (53%) of consumers switch brands/retailers regularly, despite subscribing to their loyalty programs. Experimentation and lack of personalization are major reasons for switching. Report Methodology Capgemini surveyed 12,000 consumers over the age of 18 in 12 countries across North America, Europe, and Asia-Pacific in October and November 2024.

Total retail sales in discretionary spend categories grew by +7.7% in December but failed to boost overall growth in the Golden Quarter, according to BDO’s latest High Street Sales Tracker. Accountancy and business advisory firm BDO’s latest report shows that while Black Friday, Cyber Monday and Christmas Eve drove sales growth both online and in-store in December, like-for-like sales figures for the final three months of 2024 – the critical ‘Golden Quarter’ – saw overall growth of just +2.0%, compared to a base of -1.6% in 2023. Key Findings: Total sales increased by +7.7% in December, compared to a negative base last year Growth driven by online sales, while high street stores continued to struggle High street shops saw flat sales growth of just +0.1% in final three months of 2024 Bricks-and-mortar shops fared particularly poorly in this period, with sales remaining flat at +0.1% compared to 2023’s base of -0.2%. Outside of the first and last weeks of December, which saw the major sales events, high street sales performed very poorly, with sales declining -3.91% compared to a weak base in 2023 of -3.61%. Bad weather and widespread flooding may have driven consumers to shop online, where sales increased by +20.7%. Sophie Michael, Head of Retail and Wholesale at BDO, commented: “While December’s overall sales figures saw a slight uptick thanks to major sales events, this is a continuation of the poor performance we’ve seen throughout the so-called ‘Golden Quarter’. After a challenging year, this low level of growth is a real concern for the retail sector." "The struggling performance of high street stores is particularly notable, with essentially flat growth against last year’s very poor baseline, meaning that volumes were once again negative." “While there was optimism as we entered 2024, the reality proved to be a difficult trading year for the retail sector, with economic uncertainty and supply chain disruptions. The biggest concern however is that 2025 is not expected to improve as businesses are yet to feel the impact of increased wage costs introduced in the Budget which disproportionately impacts consumer-facing sectors. Recent reports note that 170,000 shop workers lost their jobs in 2024, with an expectation that this number will only increase in 2025." "January will be telling once retailers see the level of returns from unwanted Christmas presents; the industry would be forgiven for lacking much New Year optimism." “The sales figures we’ve seen through the Golden Quarter reflect consumer sentiment over the last few months. Consumer spending declined significantly before and after the Budget, and despite a late flurry of spending just before Christmas, that hasn’t been enough to salvage the festive period for retailers." "While the industry will be hoping that consumer confidence returns in 2025, there are few signs of this materialising, given the additional cost impacts of the Budget are set to take effect from April.”

As Formula 1 celebrates its 75th Anniversary and the sport’s 10-year partnership with LVMH begins, the luxury watch brand, TAG Heuer, will return to the sport as its Official Timekeeper. With a rich history in Formula 1 spanning over seven decades, and a shared philosophy between the two iconic brands of precision engineering, cutting edge technology and the latest materials, the partnership embodies luxury, innovation, performance, and speed. TAG Heuer was the first luxury brand to have its logo appear on a Formula 1 car in 1969, the first to sponsor a team in 1971 and, with 230 wins, 595 podiums, 8,882 points, 11 World Constructors’ Championships, 14 World Drivers’ Championships to its name through its associations with teams, it is one of the most successful brands in history to be associated with Formula 1. The brand’s relationship with current Formula 1 teams began in 1971 when Ferrari needed a timing system for their new test track, Fiorano in Italy, for which they chose Heuer, as the company was known at the time. The relationship ran until 1979, before Heuer continued with a partnership with McLaren in 1985, which would go on to be one of the longest in Formula 1 history, during which time Ayrton Senna, Mika Häkkinen, and Lewis Hamilton all raced for the team. The relationship came to an end after 30 years of collaboration and a year later, in 2016, TAG Heuer partnered with Red Bull. In recent years under Liberty Media’s ownership, Formula 1 has become one of the most culturally significant and successful sporting championships in the world, with 750 million fans worldwide, more than 90 million followers across social media and a fanbase that is becoming younger and more diverse with 42% of fans now women and 1 in 3 under 35-years-old. The 2024 season saw 1.5 billion viewers tune into an epic season, where the wheel-to-wheel racing went down to the wire in an incredible battle between McLaren and Ferrari for the Constructors’ Championship in Abu Dhabi. Stefano Domenicali, President and CEO, Formula 1, said: “I am delighted to welcome TAG Heuer as the Official Timekeeper of Formula 1 as they start the next stage of their long history in our sport. With their focus on innovation, accuracy and excellence, they are a natural partner, and I am excited to see how our intertwining heritage can tell new stories for the future as we celebrate our 75th year.” Antoine Pin, CEO of TAG Heuer, said: “In a sport defined by mental resilience, physical strength, strategy, innovation and performance it is only natural for TAG Heuer to be at the very heart of Formula 1 as Official Timekeeper. With decades of history in F1 connecting us to the most successful drivers and teams of all time, we are honoured and privileged to be the name connected to the very thing that defines the winner: time." "As Formula 1 and their exceptional team continue to build on the amazing work that has been done to create one of the greatest properties in sport, we are excited to be part of the journey and create new stories to enrich TAG Heuer.” As the Official Timekeeper of Formula 1, TAG Heuer will have a significant presence both on and off the track, through trackside branding, Fan Zone and Paddock Club activations and new product ranges that encapsulate the drama and excitement of Formula 1.

The new service will be the only direct route between London Heathrow and Cancun, operating on one of Virgin Atlantic's new, fuel efficient aircraft, the Airbus A350-1000 Virgin Atlantic Holidays customers will be able to book premium sunshine, eco and adventure holidays in Cancun, Playa del Carmen and beyond Virgin Atlantic is set to return to Mexico with three weekly flights from London Heathrow to Cancun commencing in Winter 2025. Launching on 19 October 2025, the new service provides easy access to Central America, offering customers premium sunshine holidays to the amazing beaches, history, nightlife and food scene of Mexico. The route will be the only direct service between London Heathrow to Cancun, with seamless onward connections with SkyTeam partner Aeromexico and codeshare partner LATAM to destinations including Mexico City, Santiago, Buenos Aries and Lima. Cancun and the surrounding area boast world-class white sandy beaches, breathtaking Mayan ruins, incredible wildlife and delicious local cuisine. Customers seeking adventure can discover eco-tourism and experiences in Riviera Maya and Tulum, plus an exciting range of new hotels. Virgin Atlantic Holidays offers a variety of accommodation options from luxury boutique properties, adults only resorts and family friendly all-inclusive hotels in Cancun and on the Riviera Maya as well as excursions to Tulum, the parks of Xcaret and Xel-Há and Chichen Itza – a UNESCO World Heritage site and one of the seven wonders of the world. Customers will enjoy one of the airline’s newest, most fuel-efficient aircraft, the Airbus A350-1000 aircraft, which boasts 16 Upper Class, 56 Premium and 325 Economy Delight, Classic and Light seats as well as the airline’s Upper Class social space, The Booth. The Booth extends the airline’s world-renowned Clubhouse experience to the skies, offering a wide range of cocktails, dining option and wine tasting in a social setting. Customers in Upper Class can enjoy luxe comfort and high end finishes, with 44” pitch suites, with a fully flat bed length of up to 82”. Those traveling in the Premium and Economy cabins with generous seating and storage space with luxurious fabrics. Juha Jarvinen, Chief Commercial Offer, Virgin Atlantic, commented, “We’re delighted to be returning to Cancun, offering customers a new destination for some winter sun. Cancun has an amazing nightlife and dining scene, dreamy sandy beaches, plus it’s the perfect gateway to Mayan ruins and adventure travel in the region." "Our new route also offers increased connectivity to the region with our codseshare partner LATAM and SkyTeam partner Aeromexico. We can’t wait for more of our customers to enjoy Virgin Atlantic’s trademark fiesta and flair, on their way to Mexico.” Andres Martinez, Director of the Tourism Promotion Council of Quintana Roo, said: “In this New Era of the Mexican Caribbean, expanding international connectivity has been a top priority as travellers continue to showcase strong interest in exploring our twelve iconic destinations and rich Mayan culture." "The addition of this Virgin Atlantic flight from London Heathrow to Cancun will further strengthen Cancun International Airport’s position as one of the most in-demand airports in the world, and we look forward to welcoming new and returning visitors from the United Kingdom to our paradise.”

JCB has cleared significant hurdles in its development of the world’s first hydrogen combustion engine after securing landmark rulings from licensing authorities allowing it to be used commercially in machines, the company announced. JCB is the first construction equipment company to develop a fully working combustion engine fuelled by hydrogen and a team of 150 engineers has been working on the exciting £100 million development for over three years. JCB confirmed that 11 licensing authorities across Europe have now given permission for JCB’s hydrogen engine to be sold across Europe – with authorities in other countries set to follow suit with certification in 2025. JCB Chairman Anthony Bamford, who has led the company’s hydrogen engine project, said: “This is a very significant moment for JCB. To start the New Year with certification in place in so many European countries bodes very well for the future of hydrogen combustion technology." "JCB has proved in recent years that it is a proper zero emissions solution for construction and agricultural equipment." “This formal type approval/certification paves the way for the sale and use of hydrogen engines right across the UK and Europe. I couldn’t have hoped for a better start to the year. Most of all, I am delighted for our team of British engineers who have worked tirelessly to reach this stage.” JCB confirmed that the Netherlands’ Vehicle Authority RDW was the first licensing authority to issue official certification, giving permission for the engine to sold in The Netherlands. Other licensing bodies across Europe have followed RDW’s lead by issuing the necessary certification, including Great Britain, Northern Ireland, Germany, France, Spain, Belgium, Poland, Finland, Switzerland and Lichtenstein. Licensing authorities in other countries are set to follow with certification during 2025. JCB has already produced more than 130 evaluation engines which are powering backhoe loaders, Loadall telescopic handlers and generator sets. Real-world testing of JCB’s hydrogen equipment on customers’ sites is now at an advanced stage and progressing well.

Consumer card spending growth remained flat in December, at 0.0 per cent year-on-year – significantly lower than the latest CPIH inflation rate of 3.5 per cent. Cutbacks in essential categories were offset by growth in discretionary spending, supported by another “Wicked” performance from entertainment (up 6.0 per cent) and holidaymakers booking trips for 2025, boosting travel 4.7 per cent. Essential spend dropped by -3.0 per cent in December, as lower petrol prices again impacted fuel spending (-11.6 per cent) and Brits made cutbacks owing to the impact of inflation; nine in 10 adults said they were concerned about both rising food prices (86 per cent) and household bills (87 per cent). This chimes with the slowdown in supermarket spending (-2.0 per cent), as two in three (64 per cent) say they are looking for ways to get more value from their weekly shop or reduce how much they spend. Of those seeking savings, 55 per cent are looking out for loyalty scheme discounts and deals, 51 per cent are using vouchers or loyalty points to obtain money off their shopping, and half (50 per cent) are buying more discounted items. Treats Bring Joy To Cost-Conscious Consumers Almost half (48 per cent) of Brits report planning to cut down on discretionary spending, however two in five (40 per cent) said they were treating themselves and their loved ones in December, despite the impact on their household finances. The overall retail sector slipped -0.2 per cent in the month, however, in the wake of Black Friday and Cyber Monday, gift shopping and seasonal discounts spurred growth of 1.6 per cent at general retailers, following a -1.7 per cent decline in November. Pharmacy, health & beauty finished the year on a high, having performed strongly throughout all of 2024, benefitting from a 5.8 per cent uplift. Growth in online shopping outpaced in-person sales, with online retail (excluding groceries) up 2.6 per cent, while face-to-face retail (excluding groceries) declined -1.2 per cent. One in five (17 per cent) shoppers reported buying online more frequently in the month, opting to purchase Christmas gifts from the comfort of their homes. Home Comforts For house-proud Brits gearing up to start the New Year afresh, spending at garden centres (3.1 per cent) blossomed in December, as seasonal discounts encouraged investments in small “tweakments” and decorations for outdoor spaces, while Christmas tree purchases were also a likely contributory factor. Furniture stores also saw an increase (1.7 per cent), the category’s highest level of growth since March 2022, as Brits shopped for gifts and home improvements ahead of Christmas. Wicked continues to defy expectations, as cinema-goers cosy up for the small screen Entertainment spending (6.0 per cent) continued its strong run, with pantomimes, ballets, and Christmas concerts drawing in audiences throughout December as Brits continued to prioritise memorable experiences that bring them joy. Box-office phenomenon Wicked continued to ‘defy’ expectations and coax film fans out of their houses to the silver screen, with cinemas proving ‘popular’, up 52.1 per cent. The colder, stormy weather seen across the country in December helped TV hits Black Doves and The Day of the Jackal deliver strong growth for Digital Content & Subscriptions (7.5 per cent). This comes as a fifth (18 per cent) of Brits reported using their subscriptions more than usual amidst an influx of new content. Trimmed-Down December Impacts Restaurants And Pubs Of those seeking savings, half (49 per cent) said they plan to cut back on eating out in restaurants, while 38 per cent said they were looking to reduce how much they spend on drinks in bars, pubs and clubs. This, combined with “quad-demic” illnesses taking hold, meant both categories saw modest growth in December, with Restaurants, Cafes & Bakeries up just 1.1 per cent, while spending at Pubs, Bars & Clubs grew just 1.3 per cent, down from 2.1 per cent and 3.5 per cent respectively in November. New Year, New Habits Looking ahead, 35 per cent of Brits plan to participate in ‘Dry January’ this year. Of this group, two fifths (40 per cent) are trying to be healthier, while one in five (22 per cent) want to reduce their spending on alcohol. Those taking part anticipate saving £57.70 each on average. One in four (24 per cent) are planning to give ‘Veganuary’ a go in 2025, with health once again emerging as the top motivating factor, chosen by 34 per cent of those participating. A quarter (26 per cent) also say they’re trying to eat fewer processed foods. Health and fitness is high on the agenda for those making New Years resolutions more broadly, chosen by 31 per cent of this group. Financial wellbeing is also a clear priority; over one in four (27 per cent) of those setting goals for 2025 want to save more each month, while 24 per cent plan to cut back on takeaways. Exotic Getaways For 2025 Fed up with the dreary UK weather, the travel sector continued its strong performance in December (4.7 per cent) as holidaymakers booked international trips to sunnier climes and made the most of the early arrival of fresh powder at ski resorts across Europe. Travel agents saw a 7.5 per cent increase, potentially helped by ‘Travel Tuesday’ deals in late November. With three quarters (74 per cent) of Brits stating they plan to travel in 2025, the early indications are that this momentum will continue well into the new year. Karen Johnson, Head of Retail at Barclays, said: “Consumers demonstrated their ability to carefully manage their money once again in December, finding ways to save while still sprinkling in some cheer, setting aside funds to treats themselves and loved ones over the festive period." “Brits are also planning to prioritise memorable moments in 2025, with travel emerging as a clear spending priority. Health is also held in high regard; those making New Year’s resolutions will cut back on pub trips, but spend on healthier alternatives to nights out.” Jack Meaning, Chief UK Economist at Barclays, said: “As 2024 closed, consumers remained cautious, in line with muted confidence, elevated uncertainty and high rates of saving. In 2025, we expect household consumption to grow by less than 1 per cent, ahead of further interest rate cuts from the Bank of England over the course of the year.”