LOOK, HSW, SMWH: Retail stocks investors may want to explore now - Kalkine Media

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 LOOK, HSW, SMWH: Retail stocks investors may want to explore now
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Highlights

  • As per the latest BRC-KPMG retail sales monitor, there was a decline of 1.1% in May total sales this year as compared to the last year.
  • Consumer footfall in the UK high street has gone up over the four-day long weekend to celebrate the Platinum Jubilee. 

Amid the escalating cost-of-living crisis, retail sales in the UK have slumped last month. As per the latest BRC-KPMG retail sales monitor, there was a decline of 1.1% in May total sales this year as compared to the last year. In May 2021, the total sales were up by 28%, but this was in comparison with May 2020, which was a period of lockdown and other restrictions.

Investors keeping an eye on retail stocks amid rising inflation

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The sales in May 2022 didn’t even reach the quarterly average growth of 0.7% and the yearly average growth of 4.1%. Moreover, the retail sales monitor emphasized that the sales numbers weren’t inflation-adjusted. Inflation levels have been hitting the roof over the past months, reaching 9% in April, and thus even a slight decline in sales is bound to conceal a considerably greater dip in volumes taking inflation into account.

Since the beginning of 2022, sales figures have been plunging. This is happening as the consumer demand is going down due to the cost-of-living crunch. Higher value products, like electronics and furniture, were hit the worst. However, the consumer footfall in the UK high street has gone up over the four-day long weekend to celebrate the Platinum Jubilee. As per the latest BRC-Sensormatic IQ data, retail sales surged across the UK over the long weekend.

As compared to May 2022 average, there was an increase of 45.6% in the footfall on 2 June, which was the first bank holiday of the long weekend. With more consumers hitting the shops, figures for this month may improve.

Let’s look at 3 UK retail stocks that investors may look at closely before investing.

RELATED READ: FTSE 100 rallies after a long weekend

Lookers plc (LON: LOOK)

The shares of the leading UK-based motor retail group, Lookers plc, were trading at GBX 73.70 as the market opened at 8:00 AM (GMT+1) on 7 June 2022. On a year-to-date basis, the company has provided its shareholders with a return of 10.83% as of 7 June 2022, while its one-year return stands at 6.97%. The company’s current market cap stands at £289.08 million.

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WH Smith plc (LON: SMWH)

The shares of the globally leading travel retailer, WH Smith plc, were down by 0.54% as the market opened at 8:00 AM (GMT+1) on 7 June 2022, at GBX 1,569.50. On a year-to-date basis, the FTSE 250 company has provided its shareholders with a return of 6.62% as of 7 June 2022, but it hasn’t performed well in the last one year and its annual return is negative, at -9.46%. The company’s current market cap stands at £2,065.77 million.

Investors keeping an eye on retail stocks amid rising inflation

© 2022 Kalkine Media®

Hostelworld Group plc (LON: HSW)

The shares of the internet & direct marketing retail company, Hostelworld Group plc, were up by 1.17% at around 11:00 AM (GMT+1) on 7 June 2022, at GBX 104.20. On a year-to-date basis, the company has provided its shareholders with a return of 52.12% as of 7 June 2022, while its one-year return stands at 7.42%. The company’s current market cap stands at £121.03 million.

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