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Source: PattyPhoto, Shutterstock
Summary
- Retail sale volume online and offline rose 2.1 per cent in the month of February.
- The recovery was driven by robust demand in the household items category, which was up 16%.
- The ONS said the jump was due to consumers spending more time on DIY products to decorate homes through the lockdown.
Lawn furniture and home redesigning slightly pulled up retail sales in February, as consumers spent money on these items. According to the data published by the Office for National Statistics (ONS), the volume of sale online and offline rose 2.1 per cent. Sales volume, not including auto fuel, increased by 2.4 per cent.
Retail sales fell 8.2 per cent in January after the third national lockdown battered business. The February recovery was driven mainly by robust demand seen in the household items category, which increased by 16.1 per cent. The ONS said the jump was due to consumers spending more time on DIY products to decorate homes through the lockdown and prepare for the easing by buying outdoor furniture to host friends.
Also read: Why Retailers Are Seeking A Permanent Rate Cut Despite Another £1.5-Bn Relief Package
However, a low base helped in pulling up February retail sales, but it was still 3.7 per cent lower than pre-pandemic levels and clothing retailers reporting a fall of 50.4 per cent year-on-year.
As February retail sales picks up pace, here is a look at three diversified retail stocks:
ASOS Plc (LON:ASC)
The online cosmetic and fashion retailer reported a 36 per cent increase in UK sales to £554 million for the four months till 31 December 2020 from £408.9 million in the same period a year ago. The company also expects that FY21 profit before tax would likely meet market expectations.
Also read: John Lewis, TUI to Shut Shops as Consumer-Facing Industries Continue to Feel Pressure
The shares of the company, with a market capitalisation of £5,618.83 million, were trading at GBX 5,750.03, up by 1.71 per cent on 26 March at 08:15 GMT+1. The FTSE AIM UK 50 Index was up 0.80% at 6,439.88.
(Source: Refinitiv, Thomson Reuters)
B&M European Value Retail (LON:BME)
The British variety store chain said that for its fourth quarter ending 27 March 2021, despite the uncertainties around lockdown and restrictions, the revenues remained strong through the quarter, especially of its UK B&M fascia business. The company revised its EBITDA forecast for FY21 to the range of £590 million-£620 million, from its earlier projection of a range of £540 million-£570 million.
The company has a market capitalisation of £5,346.38 million. Its shares were trading at GBX 537, up by 0.67 per cent on 26 March at 08:20 GMT+1. The FTSE 100 index was up 0.61 per cent, at 6,715.71.
(Source: Refinitiv, Thomson Reuters)
Studio Retail Group Plc (LON:STU)
The British home shopping company said that for the 39-week period ended December 2020, the unaudited adjusted profit before tax was £16 million, which was more than the same period a year ago. The company also said its sales in the third quarter was up 32 per cent more than the previous year.
The company has a market capitalisation of £230.20 million and its shares were trading at GBX 267.69, up by 2.70 per cent on 26 March at 09:09 GMT+1. The FTSE All-Share index was up 0.65 per cent, at 3,828.83.
(Source: Refinitiv, Thomson Reuters)
