Breakfast briefing: Retail news on Sainsbury's, The Consumer Rights Act, Lidl and Toys R Us

Sainsbury’s to halt sales of physical entertainment products online

Sainsbury’s will cease online sales of physical entertainment products including video games and consoles, in addition to CDs, DVDs, Blu-rays and books, across its Sainsbury’s Entertainment website from March 2014.

This comes in favour of an entirely on-demand model, The Market for Computer and Video Games reported. The grocer said it will continue fulfilling pre-orders for products due to launch before March 15, 2014, but no further orders will be accepted from the end of February 2014.

Toys R Us names Wolfgang Link as European president

Wolfgang Link has been appointed as Toys R Us’ new European president and member of the firm’s global executive committee, Toy News Online reported. Link succeeds Antonio Urcelay, who was named chief executive in October this year.

In his new position, Link will be responsible for the company’s stores across Europe, providing leadership for business operations in nine countries - Austria, France, Germany, Poland, Portugal, Spain, Switzerland, the Netherlands and the UK. Reporting to Urcelay, Link will also oversee marketing, merchandising, store operations, e-commerce and customer service excellence. Previously, he served as managing director for the firm.

New Consumer Rights Act to launch in December

A new Consumer Rights Act (CRA) will is to come into force next monthThe CRA, a piece of legislation, aims to modernise and simplify consumer protection law. A draft Bill has been published and may be subject to some change but most expect the legislation to remain largely intact. Consumers will gain some new rights. Eight separate regulations and pieces of legislation are being paired in one act. It will be easier for businesses to ensure that their staff is fully aware of the rules, The Telegraph reported..

There will now be ‘statutory guarantees’ instead of implied contract terms, and sellers must guarantee that goods are of reasonable quality, fit for their purpose and match any descriptions. One of the more important changes is that customers can rely on descriptions of goods or services provided by businesses on their websites, brochures and also will be able to return faulty goods within 30 days from purchase or delivery.

For both goods and services, there are rules which allow customers to require price reductions if replacement goods or services are not appropriate. The Act will also clarify that digital content will be subject to consumer law and buyers of content and should pass in December.

Union Jack removed by Lidl from internet beef product images

The Union Jack has been removed by German discount retailer Lidl from internet product pictures of some of its ‘Deluxe’ range of items in Ireland, The Irish Independent reported. Two items being sold in outlets in Ireland and Northern Ireland in the run-up to Christmas – Beef Wellington and Beef Bourguignon – bear the recognisable Union Jack flag, identifying the goods as using British beef.

But on Lidl’s websites north and south, as well as a glossy magazine, the flag has disappeared from the packaging pictures. This flag plays an important part in marketing the beef in the wake of the horse meat scandal earlier this year where the meat’s source came into question.

In the same product images on the retailer’s UK website, the flag remains in place. And while the flag remains on the two products, its removal in the magazine and in online images has raised eyebrows. While the British flag is nowhere to be seen, Lidl has retained a French flag on photos of guinea fowl it is selling, and a Scottish flag on images of pheasant.