Focus On 2 Lesser-Known Retail Stocks as Retail Sales Jump in April

Summary

  • The UK retail sales rose 7.3 per cent in April as compared to the same month two years ago.
  • The short-term trend of pent-up demand in shopping drew consumers back to the retail stores.
  • British high street still has to trudge a long way to fully recover from the impact of the pandemic.

Latest figures from British Retail Consortium (BRC) and KPMG monitor showed that retail sales rose 7.3 per cent in April as compared to the same month two years ago after the lockdown restrictions were eased across England. This was more than 6 per cent, the average growth seen for the past three months in the UK retail sales.

Also Read: UK Retail Footfall in April Picks Up; Next, JD Sports and Kingfisher in Focus

As per the data from British Retail Consortium (BRC) and KPMG monitor, the increase on a like-to-like basis for retail sales was as high as 46 per cent in April 2021 as compared to April 2019. On 12 April, non-essential stores had opened-up across England and Wales. Apart from the re-opening of the retail stores, the continued boost in online sales also contributed to the growth momentum last month.

The short-term trend of pent-up demand in shopping drew consumers back to the retail stores, said Helen Dickinson, chief executive, BRC. She added that it was a welcome trend to see customers feeling confident to visit physical stores as the retailers invested in making the shopping experience Covid-safe and secure.

Also Read: Barclaycard consumer spending survey and retail stocks in focus

Sales uptick

The online non-food sales were higher by a whopping 57 per cent in April this year against the pre-pandemic month of April 2019. Sales for fashion retailers jumped during April, particularly for segments of knitwear and outerwear, as the Brits experienced cold spring weather. Sales for furniture items, footwear, accessories, and jewelry were also up for the month.

On a year-on-year basis, the total UK retail sales had increased by 39.6 per cent in April this year, while the corresponding figure for March 2021 was observed to be much lower at 20.3 per cent.

However, Dickinson pointed out that the British high street still has to trudge a long way to fully recover from the impact of the pandemic, especially as the competition from the online retail segment continues to rise.

Good Read: Penny Stocks: These 2 Retail Shares Gained Over 75% In Last 6 Months

The share prices of some lesser-known retail companies rose at the London Stock Exchange in the early morning trade as the news came in. 

Angling Direct Plc

Releasing its full-year FY 2021 results today, the company stated that the group revenue jumped 27.1 per cent to £67.6 million for the period. The share prices of Angling Direct Plc (LON: ANG) were up 2.35 per cent to GBX 87.00 at 8.17 AM today. 

Joules Group Plc

The company released its business and trading update for the 11-month period to 2 May 2021. The company delivered strong growth driven by the e-commerce segment, with the demand on Joules' own websites increasing by nearly 50 per cent on a year-to-date basis. The shares of Joules Group Plc (LON: JOUL) jumped 4.63 per cent to GBX 271.00 at 8.16 AM on 11 May.

Interesting Read: How Sunak’s Amazon Tax Plan Will Impact the Online Retail Stocks 

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