Dunelm, WH Smith, Next: Stocks under watch as retail shop prices rise

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 Dunelm, WH Smith, Next: Stocks under watch as retail shop prices rise
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Highlights

  • The UK’s shop price inflation level has nearly doubled in January, reaching its highest level in almost a decade.
  • The furniture retail prices in the UK went up by a record 12.5% as compared to the previous year in December, as per ONS.

The UK inflation levels have been soaring lately. With the skyrocketing costs of furniture and flooring due to high prices making shipping expensive, the UK’s shop price inflation level has nearly doubled in January 2022, reaching its highest level in almost a decade. According to the recent figures released by the British Retail Consortium (BRC) and NielsenIQ, the annual retail inflation level was at its highest level since December 2012, reaching 1.5% in January from 0.8% in December 2021.

Food prices also went up by the highest rate since October 2013, jumping from 2.4% in December to 2.7% in January, as globally food prices increased, along with problems like shortage of labour, and poor harvests. However, non-food inflation increased much more significantly, increasing from 0.2% in December to 0.9% in January. According to the ONS data, the furniture retail prices in the UK went up by a record 12.5% as compared to the previous year in December. Various manufacturers and retailers have been heavily impacted due to rising labour and material costs along with costly shipping.

Let’s take a look at 5 UK retail stocks which may be impacted by the rising prices.

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UK retail shop prices see the sharpest rise since 2012

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Dunelm Group plc (LON: DNLM)

One of the leading UK home furnishings retailers, Dunelm Group plc produces blinds, curtains, and accessories in its own factories. The market cap of the FTSE250-listed company stood at £2,698.05 million and it has provided a return of 9.12% to its shareholders over the past year as of 1 February 2022. Dunelm Group plc’s shares closed at GBX 1,328.00, down by 0.23%, on 1 February 2022.

WH Smith Plc (LON: SMWH)

Leading UK-based retailer WH Smith plc is famous for providing customers with news, books, and convenience. The market cap of the FTSE250-listed company stood at £2,157.39 million and it has provided a return of 2.75% to its shareholders over the past year as of 1 February 2022. WH Smith plc’s shares closed at GBX 1,691.00, up by 2.61%, on 1 February 2022.

Frasers Group PLC (LON: FRAS)

Frasers Group PLC, which is a UK-based retail and intellectual property group, mainly sells equipment, footwear, and apparel. The market cap of the FTSE250-listed company stood at £3,678.65 million and it has provided a return of 73.85% to its shareholders over the past year as of 1 February 2022. Frasers Group PLC’s shares closed at GBX 746.00, up by 1.91%, on 1 February 2022.

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Next plc (LON: NXT)

UK-based retail business Next plc is engaged in the sale of home products, clothing, and footwear. The market cap of the FTSE100-listed company stood at £9,955.23 million and it has provided a return of -5.21% to its shareholders over the past year as of 1 February 2022. Next plc’s shares closed at GBX 7,500.00, up by 0.03%, on 1 February 2022.

Kingfisher plc (LON: KGF)

UK-based globally operating retail firm Kingfisher plc focuses on home improvement items, which include building materials, decoration items, hardware, and garden products. The market cap of the FTSE100-listed company stood at £6,843.73 million and it has provided a return of 16.19% to its shareholders over the past year as of 1 February 2022. Kingfisher plc’s shares closed at GBX 334.60, up by 1.06%, on 1 February 2022.

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