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Highlights
- Online sales saw a decline in August as more and more people were visiting physical stores according to the latest data from the British Retail Consortium.
- Formalwear was a strong performer as customers started going to office and socialising.
British Retail Consortium (BRC), the trade association for retail businesses in the UK, latest data stated that online sales saw a decline in August as more and more people were visiting physical stores. The monthly sales data by BRC and KPMG found that even non-food online sales fell 4.6% last month, which was around 38.3% of sales as compared to 42% last year in the same month.
Besides, the total retail consumer spends jumped by 3% in August, and the main driver was formalwear as most consumers started going to office and other social events. This was less as compared to the 6.4% rise in sales in July, suggesting that the pent-up demand post lockdown restrictions is coming to an end.
Even though a 3% growth was witnessed in the period, the speed of growth was substantially slower, as there was a 3.9% growth recorded in the same month last year. The growth was also less as compared to the 12-month average growth of 10.3% as well as the three-month average growth of 6.9%. BRC chief executive Helen Dickinson said that after the lockdown, pent-up demand has softened, following which the growth in retail sales we saw in the last few months slowed down in August.
However, he added that more people are returning to the physical stores as compared to pre-pandemic levels. Sales for other non-food items along with formal wear have risen due to the buzz created by reopening of schools and the bank holiday weekend. As compared to the food sales in the same month last year, a 2.9% increase was witnessed in August, as per BRC.
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Let us look at 5 FTSE-listed stocks that will be affected due to these numbers:
JD Sports Fashion PLC (LON: JD)
Headquartered in Bury, JD Sports Fashion is a UK-based company engaged in the retail of branded sports fashionwear, footwear, accessories, outdoor clothing, and equipment for kids, women, and men. With a significant market capitalisation of £10,821.77 million, the company is listed on the London Stock Exchange since 1996 and is also a constituent of the FTSE 100 index. Its Earnings per share is 0.23 and its 1-year return is 46.50%. JD Sports Fashion PLC’s shares were trading at GBX 1,047.50 at 8:25 AM on 7 September 2021.
Frasers Group PLC (LON: FRAS)
Headquartered in Shirebrook, Frasers Group plc is a UK-based company offers retails sports and leisure clothing, footwear, equipment, and apparel via its department stores, shops, and online in the United Kingdom as well as internationally. With a market capitalisation of £3,455.54 million, the company is listed on the London Stock Exchange since 2007 and is also a constituent of the FTSE 250 index. Its Earnings per share is 0.19 and its 1-year return is 86.40%. Frasers Group PLC’s shares were trading at GBX 678.50 at 8:30 AM on 7 September 2021.
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Dunelm Group plc (LON: DNLM)
Headquartered in Syston, Dunelm Group Plc is a British company which is one of the largest home furnishings retailers across the UK. It also has its own Leicester-based factory for curtains, blinds and accessories. With a market capitalisation of £2,610.70 million, the company is listed on the London Stock Exchange since 2006 and is also a constituent of the FTSE 250 index. Its Earnings per share is 0.43 and its 1-year return is -9.67%. Dunelm Group plc’s shares were trading at GBX 1,289.00 at 8:42 AM on 7 September 2021.
Pets at Home Group PLC (LON:PETS)
Headquartered in Handforth, Pets at Home Group PLC is a UK-based leading pet supplies retailer which sells pet products including food, toys, bedding, medication, accessories and pets. With a market capitalisation of £2,485.00 million, the company is listed on the London Stock Exchange since 2014 and is also a constituent of the FTSE 250 index. Its Earnings per share is 0.20 and its 1-year return is 77.75%. Pets at Home Group PLC’s shares were trading at GBX 497.00 at 8:47 AM on 7 September 2021.
WH Smith Plc (LON: SMWH)
Headquartered in Swindon, WH Smith plc is a UK-based retailer operating via two segments, which are Travel and High Street. The Travel segment offers books, news, and convenience for travelling customers, while the high street segment mainly offers stationery and gifting products. With a market capitalisation of £1,963.63 million, the company is listed on the London Stock Exchange since 2006 and is also a constituent of the FTSE 250 index. Its Earnings per share is -1.99 and its 1-year return is 22.37%. WH Smith Plc’s shares were trading at GBX 1498.50.00 at 8:54 AM on 7 September 2021.
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