If the consolidation of consolidators mooted for the advice space happens, it will unlikely be a “dramatic shift” in the market, NextWealth consulting director Emma Napier has suggested.

Napier told Money Marketing she believes consolidation of consolidators could happen, but it is not going to be a “great big turn” for the industry.

“It comes down to the process that a consolidator has managed to embed,” she said. “The consolidation of consolidators will only occur if the seller finds the process [of buying small advice firms] too slow and needs to recapitalise, and the buyer can quickly see a clear route to market.

“This is more likely if most of the work is already done, there’s a proven model, it makes sense to proceed, and the buyer still has cash available.

“It’s more about the availability of capital rather than the market shrinking because consolidators are buying other consolidators.”

She pointed out that the same thing happened with platforms about five to 10 years ago.

“While a few consolidated and rebranded, the big consolidation never really occurred,” she added.

Behind the Headlines: FCA consolidation review is a ‘wake-up call’ for buyers and sellers

“I think we’ll see a similar situation with consolidators. From a business perspective, if it makes sense, it shouldn’t be a surprise.”

The Financial Conduct Authority has set its sights on the consolidator model and, earlier this week, said it would launch a review of consolidation in the advice space.

“It’s an area of the market that they should be looking at, not because there are concerns, but there has been a huge shift in the dynamics of the industry itself and how it’s chopped up,” said Napier.

“If those shapes of sections of the industry are changing, then [the FCA] should be aware of it, and also the dynamics and the intentions behind it.”

She said that last year, there was a “definite shift” in the number of firms being acquired by the acquirers.

“If I was a regulator, I’d want to know how those dynamics are working.”

Napier added: “If you’re a consolidator, it doesn’t matter who you’re consolidating and what your proposition is, you’ve got to integrate the tech and the people with a focus on the end customer.

“It can be a minefield in all sorts of businesses. Some people are good at it, some people have nailed it, and some people are still struggling with it.”

A HOST of fashion labels have changed their returns policy so customers subscribing to their premium service must pay for returns.

Debenhams, Dorothy Perkins, Oasis, Coast and Warehouse – which are all part of the same group and share the same “Unlimited” delivery service – used to offer members free returns, but since June charge £1.99 per order.

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Unlimited membership, which costs £14.99 a year, gives customers access to next day deliveries for all the brands named above, plus Burton, Misspap and Wallis .

The change has outraged subscribers, who were taken by surprise when they found out about the fee.

One shopper who took to the Trustpilot site to comment on Dorothy Perkins’ service said: “Since when have you started charging Delivery Pass customers £1.99 to return items?

“If you have started to charge for returns then I certainly will not be renewing my pass with you.”

Another added: “Regular customer for many years now and on unlimited subscription.

“Had to return a size 12 dress more like a size 18 only to be told 1.99 for returns label. 

“Will not be buying again, waste of money.”

Another Warehouse Unlimited customer complained of being charged £1.99, even though this fee was not in place when he had subscribed.

Karen Millen – another brand owned by the Boohoo Group – has similarly changed its Premier service so that members, who pay £14.99 a year, must pay £2 per return.

However, according to the terms and conditions, those who purchased Premier unlimited delivery before June 3 will continue to receive free returns until their subscriptions end. 

Any new Premier customers from June 3 will be charged £2 for returns.

But, for subscribers to Debenhams Unlimited and all of the brands under that label, the fee has come into effect immediately.

Sun Online revealed in September how members of Boohoo Premier – another premium delivery service operated by the Boohoo Group – were also told to pay £1.99 per return, but it has since reneged and made them free again.

Louise Deglise-Favre, retail analyst at GlobalData, said the introduction of returns fees was likely done to boost its profits, leaving some feeling cheated.

She added: “The group has been experiencing major issues in the past couple of years, unable to compete with new competitors such as Shein in terms of agility and breadth of choice.

“Besides, the group bought the majority of the brands mentioned here during the height of its success throughout the pandemic.

“However, these brands were already experiencing difficulties and the boohoo Group likely has not been able to turn their favours around despite a change in branding and product offering.”

The Boohoo Group did not comment.

STORE RETURN CHARGES

PrettyLittleThing recently implemented a charge of £1.99 per item returned.

In February, River Island angered customers by introducing a £2 charge to return items ordered online.

The retailer also said it would ban some customer accounts if they made too many returns.

The charge is deducted from the total amount refunded after the customer has posted back the items.

And H&M brought in a £1.99 fee in September last year.

Before that Boohoo also began the practise in July 2022, but it continues to offer free returns for its “premier” customers.

In May 2022, fashion chain Zara introduced a fee for those looking to bring back parcels, it now charges £1.95 for the service.

Next gives customers 14 days to return their orders, but still charges £2.50 to take them back.

A host of retailers including Mountain Warehouse, THG and Moss Bros have also added a charge for shoppers to return items bought online.

Companies have started to charge for returns as the costs of shipping have risen.

The cost of processing is also higher.

Retailers with stores can make it easier for consumers to return goods for free as they can be dropped off in a store, which saves the shipping charges.

UK business owners have fast-tracked their exit plans over the past 12 months, according to new research from Evelyn Partners.

Nearly one in three (29%) have accelerated business exits in the past year, amid rumours CGT rates could take centre stage in the upcoming Budget.

This is an uplift on the 23% who said 18 months ago that they had brought forward business exits over the previous year.

The research found nearly a quarter (23%) of the 500 business owners with turnovers of upwards of £5m surveyed by Evelyn Partners who had fast-tracked their exits in the last year had done so because of worries about an increase in CGT.

In addition, 20% brought forward business exits over the past 12 months because of fears of potential cuts in IHT reliefs.

The government has ruled out increasing the main rate of corporation tax above 25% and has pledged to freeze headline rates of VAT, income tax and National Insurance in the Budget.

However, the Treasury has remained tight-lipped on the outlook for CGT rates and IHT reliefs, as well as the tax rules around workplace pensions.

Other factors are also at play, with 25% of business owners who had fast-tracked business exits saying they had done so because of personal finance challenges resulting in a need to access the capital tied up in their business.

In addition, 24% brought forward plans due to increased costs of accessing capital as a result of rising interest rates.

Laura Hayward, tax partner at Evelyn Partners, said: “As the countdown to the Budget on 30 October ticks away, we have been contacted by an increasing number of business owners worried about what the chancellor will do to CGT and IHT.

“The prime minister’s statement that the upcoming Budget would be ‘painful’ has put owner-managed businesses on edge and this has prompted many to want to exit as quickly as possible.

“The business environment for many owners has already been tough enough in recent years as they have worked hard to rebuild their businesses after the pandemic, against a backdrop of cost-of-living pressures and high inflation.

“Add to that the potential for unfavourable tax changes in the upcoming Budget and it’s completely understandable that some are hoping to realise the gains of their successes sooner rather than later.

Of those owners who are currently working towards a business exit, family succession (22%) is the most popular strategy followed by establishing an employee ownership trust (16%).

Hayward added: “Whatever strategy is used, exiting a business is a really big decision for business owners and it’s important that they put in place a plan that is appropriate for them and their business.

They need to carefully consider a range of factors, with possible changes to the tax regime being just one aspect.

“Holistic advice considering both the business and personal implications of a sale will help make the exit – which can be fast-tracked if need be – as successful as possible.”