The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksNext Share News (NXT)

Share Price Information for Next (NXT)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 9,098.00
Bid: 9,110.00
Ask: 9,114.00
Change: 0.00 (0.00%)
Spread: 4.00 (0.044%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 9,098.00
NXT Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UK RETAIL ROUNDUP: Grocers Survive Holiday Season But Others Mixed

Wed, 14th Jan 2015 13:27

LONDON (Alliance News) - The key Christmas trading season was not as bad as expected for UK food retailers, while for general and clothing retailers, there have been more mixed fortunes.

With holiday sales reporting nearly complete, the FTSE 350 Food and Drug Retailers index is the best-performing sector index so far in 2015, up 8.1%, but the General Retailers index is down 2.4%.

Some clothing retailers struggled to make up lost ground from weak autumn sales as unusually warm weather in the UK and northern Europe kept consumers away from shops full of winter clothes, while others delivered record sales over the Christmas trading period which started on "Black Friday". Price discounting on "Black Friday", the day after the US Thanksgiving Day holiday, was introduced into the UK by US retailing giants such as Wal-Mart Stores Inc's Asda and has forced domestic retailers to follow suit, particularly for electronics.

It's another marked change in shopping trends for UK consumers.

Superdry clothing brand owner SuperGroup PLC surprised investors with an upbeat Christmas trading update Wednesday, a few weeks ahead of schedule, reporting like-for-like sales growth of more than 12% for the 11 weeks to January 10, and a rise in total retail sales just short of 18%.

The retailer, which has had a tough few months, and went into December with a lot of excess stock following a weaker sales performance during the "extremely mild" autumn months, said it saw a "strong performance" over the peak Christmas trading period. It also announced that it is comfortable with delivering a profit for the full year in the region of GBP60 million to GBP65 million.

On Tuesday, Wm Morrison Supermarkets PLC was the last of the "big four" to update the market on trading over Christmas, revealing a 3.1% fall in like-for-like sales excluding fuel over the six weeks to January 4, a performance that was better than recent quarters. However, it still meant that Morrisons was the weakest of the UK's big-four grocers.

The supermarket chain also announced that Morrisons Chief Executive Dalton Philips will step down in March after five years at the helm, as the struggling grocer continues to try to return to growth.

"A business like this needs trading momentum to perform, and we think it is time to restore that...time for a fresh pair of eyes," said Chairman Elect Andrew Higginson, former finance director of supermarket rival Tesco PLC.

Meanwhile the latest data from Kantar Worldpanel on Tuesday suggested the UK's big listed grocers have slowed the rate at which shoppers are defecting to German discounters Aldi and Lidl. The big four grocers - Tesco, Asda, J Sainsbury PLC and Morrisons - again saw a decline in till roll over the 12 weeks to January 4, but the decline was slower than in previous months, while the gains being made by Aldi and Lidl also slowed, the Kantar data showed.

Tesco's plans to turnaround its ailing business were well-received last week, after new Chief Executive Dave Lewis announced plans to cut UK central overheads by around 30%, reduce capital expenditure to GBP1 billion, and shut 43 unprofitable stores, alongside halting the development of 49 planned store openings. It also said it will not pay a final dividend for the current financial year.

Tesco, the UK's biggest retailer, revealed that its UK like-for-like sales were down 0.3% in the six weeks to January 3, and down 2.9% excluding fuel for the 19-week period ending on the same date. Sainsbury's, the third-biggest grocer by market share, also last week said like-for-like sales were down 1.7% excluding fuel for the 14 weeks to January 3.

Ocado Group PLC saw its shares dip Wednesday even though the online-only grocer announced growth of 14.8% for gross retail sales in December. It said its "solid" growth performance from the fourth quarter continued into the run up to Christmas, with sales on its biggest day leading up to Christmas of nearly GBP6 million, up 15% year-on-year.

Also on Wednesday, British luxury fashion retailer Burberry Group PLC revealed trading figures for its third quarter to end-December, posting a 14% rise year-on-year in retail sales, with the Americas one of its main growth drivers. However it said weaker sales in Hong Kong held back growth in the period.

Comparable sales, which takes out the effect of new store openings, were up 8% in the quarter on the year before, which is a slowdown from growth of 12% in the first half of the year, but slightly better than analysts were expecting, which was for growth of around 7% for the quarter.

Burberry said it saw double-digit growth in the Americas and Europe, Middle East, India and Africa and India regions, yet only low-single digit growth in Asia due to weaker sales in Hong Kong, a high-margin market for the company. It said sales were hit by "disruptions in Hong Kong" caused by the so-called "Umbrella Revolution" political protests in the former British colony now part of China.

Amongst the general retailers, Debenhams PLC reported on Tuesday good sales growth for the key Christmas trading period, but its shares fell sharply as its like-for-like sales figures for the longer 19-week period missed analyst expectations, closing as one of the worst performing stock on the FTSE 250 on Tuesday.

Debenhams said it had been less reliant on discounting to pull shoppers into its stores over Christmas, although it warned that margin growth had been capped as sales of low-margin products were particularly strong. It said like-for-like sales in the four weeks to January 10 rose 4.9% on the year, driven by online. However the retailer performed less well in the 19 weeks to January 10, as, like its peers, it said clothing sales were hit by the warm autumn weather. Like-for-like sales actually declined 0.8%, far below analyst expectations, which were expecting just short of 1% growth.

Going in the opposite direction on Tuesday, shares of ASOS PLC rose after the online fashion retailer said sales growth accelerated over Christmas reporting a 15% rise in retail sales for the six-weeks to January 9, as UK sales held up strongly, rising 27%. International sales were up only 5%, but that was a return to growth.

The figures suggest that sales growth accelerated in the six-week period, after ASOS revealed last month that total retail sales grew by 8% for the three months to end-November, driven by a 24% increase in UK retail sales but offset by a 2% decline in international sales.

As previously guided, ASOS said its retail gross margin continues to take a hit from price investments, down around 200 basis points on the prior year.

Shares in video game retailer GAME Digital PLC were still suffering Wednesday from its profit warning late Tuesday, after it said its full-year earnings will be flat, and highlighted a "highly competitive" Christmas trading period.

GAME Digital said that whilst it saw hardware volume sales up 25% over the Christmas trading period, the eleven weeks to January 10, group sales fell 5.4% at constant currency due to lower selling prices and margins.

Last week, department store operators House of Fraser and John Lewis, and clothing retailer Ted Baker PLC, also emerged as clear winners of the key UK Christmas trading season, joining Next PLC, which had gotten the holiday trading updates underway with a positive statement before New Year's Eve. Marks and Spencer Group PLC sat firmly on the losers list, having revealed a disappointing trading performance right across the board, and online fashion retailer Boohoo.com PLC issued a profit warning due to weaker sales and heavy discounting during the warm autumn.

Echoing John Lewis, unlisted House of Fraser said it delivered "record" sales over the Christmas trading period, driven by strong sales growth online and a stellar Black Friday. John Lewis said Black Friday was larger than the Christmas week as sales pulled forward. It said sales fell off for several weeks before picking up again in the immediate run-up to Christmas.

"This year confirmed the new shape of trade for Christmas, with an early peak at the end of November driven by Black Friday and last minute gift buying," said John Lewis Managing Director Andy Street, urging clothing and general merchandise retailers to avoid the early discounting.

On Thursday, mother and baby products retailer Mothercare PLC, Home Retail Group PLC and Associated British Foods PLC's Primark clothing chain will be on the watch list for their holiday updates.

Next week electronics retailer Dixons Carphone PLC, consumer goods giant Unilever PLC, and brewer SABMiller PLC will provide their trading statements.

By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty

Copyright 2015 Alliance News Limited. All Rights Reserved.

More News
11 Oct 2023 15:01

London close: Stocks weaker amid Gaza tensions, hot US producer prices

(Sharecast News) - Stocks in London ended in the red on Wednesday, impacted by heightened concerns regarding global inflation and ongoing situations in the Middle East.

Read more
11 Oct 2023 12:50

Next close to snapping up FatFace in £100m deal - report

(Sharecast News) - Next is reportedly close to snapping up FatFace in a deal worth more than £100m.

Read more
9 Oct 2023 15:40

London close: Stocks slip into red on growing Middle East concerns

(Sharecast News) - London's financial markets closed in the red on Monday, relinquishing earlier gains as geopolitical tensions emanating from the Israel-Gaza conflict hit global sentiment.

Read more
9 Oct 2023 10:33

JPMorgan places Next, AB Foods on 'negative catalyst watch'

(Sharecast News) - JPMorgan Cazenove placed the shares of Next and Primark owner Associated British Foods on 'negative catalyst watch' on Monday as it took a look at the European general retail sector.

Read more
9 Oct 2023 08:54

LONDON BROKER RATINGS: Numis raises Rotork and cuts Bodycote

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning:

Read more
9 Oct 2023 07:42

LONDON BRIEFING: Metro Bank secures deal to shore up finances

(Alliance News) - Stocks in London are set to open higher on Monday as interest rate expectations held steady despite Friday's bumper US nonfarm payrolls report.

Read more
2 Oct 2023 17:17

TOP NEWS: Next CFO to step down next year; announces successor

(Alliance News) - Next PLC on Monday announced that Chief Financial Officer Amanda James has decided to retire from full-time work and will step down from its board on July 26, 2024.

Read more
2 Oct 2023 15:00

Next CFO Amanda James to step down next year

(Sharecast News) - Clothing and homeware retailer Next said on Monday that chief financial officer Amanda James plans to step down from the board in July 2024 after 28 years with the company.

Read more
26 Sep 2023 09:23

LONDON BROKER RATINGS: RBC likes Bellway, Redrow among housebuilders

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning:

Read more
22 Sep 2023 09:33

LONDON BROKER RATINGS: BoA likes Dowlais; JPMorgan cuts Phoenix Group

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning:

Read more
22 Sep 2023 08:42

LONDON MARKET OPEN: Stocks slip after central bank rate calls

(Alliance News) - Stock prices in London opened lower on Friday, but managed to avoid the steep declines seen in New York, as investors mulled over an eventful week dominated by central bank decisions.

Read more
21 Sep 2023 16:56

LONDON MARKET CLOSE: Hawkish Fed hits risk appetite as BoE hurts pound

(Alliance News) - Stock prices in Europe closed lower on Thursday as hawkish words from the Federal Reserve hit equities, while the FTSE 100 ended off morning lows but failed to cling onto the gains it made after the Bank of England stood pat on interest rates.

Read more
21 Sep 2023 12:20

LONDON MARKET MIDDAY: Sterling slumps as BoE ends hiking streak

(Alliance News) - Stocks in London perked up heading into Thursday afternoon after the Bank of England, like the Federal Reserve, decided against a hike, hurting the pound.

Read more
21 Sep 2023 09:47

TOP NEWS: Next raises annual guidance on sales and profit boost

(Alliance News) - Next PLC on Wednesday said profit and sales both increased around 5% in its latest half year and raised its full year guidance, adding that it expects inflationary pressures to ease in financial 2025.

Read more
21 Sep 2023 09:02

LONDON MARKET OPEN: Oil majors, miners fall but retailers outperform

(Alliance News) - Stock prices in London opened in the red on Thursday, as sentiment took a hit from the prospect of another interest rate hike from the Federal Reserve, as investors awaited news from the Bank of England at midday.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.