Retail footfall in December may stay below 2019 levels: Stocks to eye

Image Source: © BCritchley | Megapixl.com

Highlights:

  • Amid the rising prices, the footfall at retail stores in December could be 20% lower than pre-pandemic levels.
  • Even though the footfall has been approaching pre-pandemic numbers, it has been projected to fall in autumn.

Last week, the Bank of England warned that the UK might well be in recession, adding that it may raise the interest rates further to curb inflation. Households are bracing for a steep increase in their energy bills, even though the government has imposed a lower cap than energy regulator Ofgem. As a result of the high prices, people are cutting down on non-essential spending, and the situation is unlikely to change in the coming months.

According to retail data firm Springboard, the footfall at UK shops could stay almost 20% below the pre-pandemic levels during Christmas this year due to the cost-of-living crisis. In the run-up to Christmas, the company said a shift in Brits' spending pattern could be witnessed.

Image source: © BCritchley | Megapixl.com

In December, the number of people visiting retail stores is projected to remain 18% lower than in the same month in 2019, with high-street stores affected more than retail parks. Springboard added that retail parks tend to have big supermarkets that sell essentials, so they'd be less impacted than high-street stores.

Data from the company also suggests that even as the footfall across the stores has moved closer to the pre-pandemic numbers, the trend would reverse through the autumn as the new energy price cap comes into effect from October. Notably, the average energy bills are expected to rise from the current £1,971 a year, although they'll be capped at a maximum of £2,500.

Amid these predictions, let us explore the stocks of a few high-street retailers and see how they have been faring.

Next Plc (LON: NXT)

The clothing, footwear, and home products retailer is listed on the FTSE 100 index and presently holds a market cap of £7,091.39 million. Over the past 52 weeks, its share price has depreciated by over 35%, and the YTD return at -35.14%. It has a positive EPS of 5.31. Shares of the company were down 3.76% at GBX 5,280.00 as of 10:55 am GMT+1 on Monday.

JD Sports Fashion Plc (LON: JD.)

The branded sports fashionwear, footwear, and sports apparel retailer enjoy a market cap of £5,462.47 million, a constituent of the FTSE 100 index. Over the past 52 weeks, the stock price has tumbled by more than half, and the year-to-date return stands at -53.08%. The EPS is 0.07 at present. At 11:12 am GMT+1 on Monday, shares of the company were trading 3.49% lower at GBX 102.20.

Dr. Martens PLC (LON: DOCS)

Dr. Martens designs, markets, and sells footwear, a constituent of FTSE 250. With a market cap of £2,499.39 million, the company's stock price has slipped by more than 36% in the past 12 months, while the year-to-date return is even lower at -41.93%. Shares of Dr. Martens traded at GBX 249.20, down 0.24%, as of 11:59 am GMT+1 on Monday.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


 

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