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Debenhams, the multi fashion retail company based out the United Kingdom, on 17th April 2020, announced that it had agreed on a series of agreements to keep around 120 of its 142 stores open in the country. The company also reported that they are in advanced talks for making agreements with the landlords on some other stores as well, but the biggest shock came from the announcement that it will not reopen 7 of its stores after the coronavirus lockdown gets lifted. The company also hinted that there could be more stores that may not open after the lifting of lockdown restrictions. This news came after the last week’s announcement when it was reported that the company went into administration. Some reports suggested that this could lead to job losses of around 400 people.
The company believes that going under administration could be a blessing in disguise as the appointment of new administrators, especially during such a tough phase, could protect the business, the company’s staffers and employees, as well as could potentially improve the operations of the company and could lead to a jump in the revenue.
The business, which has been on British high streets for the 242 years, placed many of its 22,000 employees on furlough earlier this month following the implementation of the government's lockdown measures, calling for the closure of non-essential shops. Many of its UK workers are already being paid under the furlough programme of the government.
With the High Street struggling to cope up with the national coronavirus lockdown, a few have started filing for administration. These include, Debenhams putting a total of 22,000 jobs at risk, Carluccio's closure will lead to 2,000 jobs losses, Brighthouse with 2,400 jobs at risk, Chiquito with 1,500 jobs at risk, Laura Ashley causing a potential threat of around 2,700 jobs and Flybe putting 2,000 jobs at risk.
The following is a list of store closures and companies going under administration in 2020, till up to 31st March 2020 as reported by various media agencies in the United Kingdom.
Note - Data as per media reports
All data Up to – 31st March 2020
Similar stories have occurred in a lot of other retail companies, which shows the dark reality of the sector in the prevailing circumstances. The performance of the listed retail companies on the London Stock Exchange has also been under watch, as all investors seem bearish on stocks from the retail sector. As an overview, below, we present the comparative stock price performance of five such companies that have been under astute investors’ watchlist recently.
SMWH Stock Price Performance
At the time of the close of markets on 17th April 2020, the WH Smith Plc stock was at a price of GBX 1136.00 per stock on the London Stock Exchange market, an increase in the value of 5.77 per cent or GBX 62.00 per stock, compared to the previous trading day which was reported to be at GBX 1074.00. The company’s market capitalisation was estimated to be GBP 1.405 billion, with regards to the current market price of the company's stock. The company has yielded a positive return of approximately 25.46 per cent, in the last one month, since the price of the stock was at GBX 905.50 per share on March 17, 2020. In the last three months also, the stock had yielded a negative return of around 55.76 per cent, since January 17, 2020, when the price was recorded at GBX 2568.00.
At the time of writing, the beta of the firm's stock was recorded at a value of 1.48, pointing towards the fact that the company’s share price movement is more volatile relative to the change in the value of the comparative benchmark index.
MKS Stock Price Performance
At the time of the close of markets on 17th April 2020, the Marks & Spencer Group Plc stock was at a price of GBX 98.10 per stock on the London Stock Exchange market, an increase in the value of 5.03 per cent or GBX 4.70 per stock, compared to the previous trading day which was reported to be at GBX 93.40. The company’s market capitalisation was estimated to be GBP 1.821 billion, with regards to the current market price of the company's stock. The company has yielded a positive return of approximately 6.26 per cent, in the last one month, since the price of the stock was at GBX 92.32 per share on March 17, 2020. In the last three months also, the stock had yielded a negative return of around 47.55 per cent, since January 17, 2020, when the price was recorded at GBX 187.05.
At the time of writing, the beta of the firm's stock was recorded at a value of 1.48, pointing towards the fact that the company’s share price movement is more volatile relative to the change in the value of the comparative benchmark index.
JD. Stock Price Performance
At the time of the close of markets on 17th April 2020, the JD Sports Fashion Plc stock was at a price of GBX 504.20 per stock on the London Stock Exchange market, an increase in the value of 2.90 per cent or GBX 14.20 per stock, compared to the previous trading day which was reported to be at GBX 490.00. The company’s market capitalisation was estimated to be GBP 4.768 billion, with regards to the current market price of the company's stock. The company has yielded a positive return of approximately 47.30 per cent, in the last one month, since the price of the stock was at GBX 342.30 per share on March 17, 2020. In the last three months also, the stock had yielded a negative return of around 42.31 per cent, since January 17, 2020, when the price was recorded at GBX 874.00.
At the time of writing, the beta of the firm's stock was recorded at a value of 1.48, pointing towards the fact that the company’s share price movement is more volatile relative to the change in the value of the comparative benchmark index.
FRAS Stock Price Performance
At the time of the close of markets on 17th April 2020, the Frasers Group Plc stock was at a price of GBX 230.00 per stock on the London Stock Exchange market, an increase in the value of 4.07 per cent or GBX 9.00 per stock, compared to the previous trading day which was reported to be at GBX 221.00. The company’s market capitalisation was estimated to be GBP 1.147 billion, with regards to the current market price of the company's stock. The company has yielded a positive return of approximately 5.89 per cent, in the last one month, since the price of the stock was at GBX 217.20 per share on March 17, 2020. In the last three months also, the stock had yielded a negative return of around 55.30 per cent, since January 17, 2020, when the price was recorded at GBX 514.50.
At the time of writing, the beta of the firm's stock was recorded at a value of 1.68, pointing towards the fact that the company’s share price movement is more volatile relative to the change in the value of the comparative benchmark index.
PETS Stock Price Performance
At the time of the close of markets on 17th April 2020, the Pets At Home Group Plc stock was at a price of GBX 251.40 per stock on the London Stock Exchange market, a decline in the value of 0.63 per cent or GBX 1.60 per stock, compared to the previous trading day which was reported to be at GBX 253.00. The company’s market capitalisation was estimated to be GBP 1.265 billion, with regards to the current market price of the company's stock. The company has yielded a positive return of approximately 20.40 per cent, in the last one month, since the price of the stock was at GBX 208.80 per share on March 17, 2020. In the last three months also, the stock had yielded a negative return of around 11.42 per cent, since January 17, 2020, when the price was recorded at GBX 283.80.
At the time of writing, the beta of the firm's stock was recorded at a value of 0,03, pointing towards the fact that the company’s share price movement is less volatile relative to the change in the value of the comparative benchmark index.
Comparative Stock Price Performance of SMWH, MKS, JD., FRAS and PETS
(Source: Thomson Reuters) Daily Chart as on 17-April-2020, after the closing of the London Stock Exchange Market
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The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.
