Business news in brief
UK manufacturers enjoy boost from direct sales
More than half of all consumers are buying products direct from manufacturers rather than through traditional stores or online retailers, a new report finds. Researchers found the rise in shoppers heading straight to the makers could give a 25 per cent boost to the UK manufacturing sector within three years. The report by Barclays Corporate Banking says direct-to-consumer sales could hit £120bn by 2023 from £96bn, and help create 118,000 new jobs in the growing sector. A survey found 57 per cent shoppers now frequently go direct to manufacturers, with most believing they will get a better price and better service. Around a third added buying direct is a conscious decision to support the manufacturing sector, which has taken an average 26 per cent hit during the pandemic. The most popular items include clothes, electronics and food and drink, followed by household appliances and furniture. PA
PayPal’s £10 reward email deemed misleading
A PayPal email offering customers a reward of £10 for using their account did not make it clear it was only available to a limited number of people, the advertising watchdog has ruled. The Advertising Standards Agency upheld a complaint about the email offer which was limited to only 28,527 customers. PayPal said it had made the “significant conditions” to the offer clear, intentionally placing the terms next to a button for those wishing to claim the offer. The email carried the subject “Long time no see. Here’s a £10 reward for you!”, with text reading: “We’re giving you £10 to use online with PayPal” followed by a clickable “Save Offer” button, the ASA said. PA
‘Reverse decision to axe on-board catering’ at rail firm
Union leaders have attacked a decision to end an on-board catering contract at a train operator, threatening the loss of 130 jobs in the new year. The Rail, Maritime and Transport union has written to the government urging it to intervene to reverse the decision, affecting staff at contractors Elior on South Western Railway. Staff have been told they are due to be made redundant on 17 January, said the union. General secretary Mick Cash said: “South Western Railway’s decision to axe its on-board catering provision is short-sighted and will undoubtedly worsen the passenger experience.” PA
Marshall Motor ups profit outlook despite lockdown
Car dealership Marshall Motor has hiked its profit outlook for the second time in as many months as surging demand for new cars offset the impact of the second lockdown. The group said it now expects 2020 underlying pre-tax profits of no less than £19m, up from the £15m it guided for in October, helping shares lift 3 per cent. The firm had originally only expected to break even this year. It said it does not expect to tap into the government’s furlough support scheme for workers next year as it revealed the better-thanexpected performance. PA
BAT lowers expected pandemic hit
Cigarette giant British American Tobacco believes it will take a smaller hit from the pandemic than previously thought after South Africa ended a ban on cigarette sales early. The Lucky Strike and Camel maker now predicts a 2.5 per cent headwind from Covid-19, down from an earlier estimate of 3 per cent. It said the global industry for cigarettes and tobacco heating products, including BAT’s own range Glo, is only expected to drop 5 per cent, down by two percentage points. PA