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Highlights:
- While retail sales in September rose by 2.2% due to rising prices, the sales volumes have continued to shrink.
- Another data showed that consumer card spending rose 1.8% during the month, the weakest rate since February 2021.
Reeling under the cost-of-living crisis, millions of Brits are forced to cut their spending. While non-essential spending is the primary focus, many low-income groups are forced to reduce spending on essentials. With inflation almost double digits, retail sales saw growth in September due to price rises. However, the sales volumes continued to shrink.
Data from the latest BRC-KPMG retail sales monitor revealed that the high prices managed to offset the fall in transactions by customers over the last month. Total sales rose by 2.2% during the period, marginally more than the 1% in August. Food sales increased 4.6% over the quarter to September against the same period in 2021. On the other hand, non-food sales fell by 0.4% over the quarter but increased in September due to an improvement in fashion sales.
Image source: © Dudau | Megapixl.com
The numbers indicate that people have preferred to shop judiciously over the month. This has resulted in another month with low sales volumes, said chief executive of the British Retail Consortium (BRC) Helen Dickinson.
Meanwhile, another data from credit card operator Barclaycard highlighted a rise in sales but slowing growth due to restricted consumer spending. The data revealed that consumer card spending rose 1.8% last month, the weakest growth rate since February 2021. Moreover, essential spending increased by 3.3%, the lowest uplift this year.
In the wake of the above data, Kalkine Media® sheds light on the performance of some London-listed retail stocks.
Frasers Group Plc (LON: FRAS)
The market cap of the FTSE 100 listed retail group currently stands at £3,084.51 million, and its share price has increased by 1.37% over the past 12 months. The stock has provided a return of -18.35% on a YTD basis. FRAS' EPS, too, stands in the negative zone at -0.17. FRAS shares were trading 2.63% lower at GBX 629.00 as of 12:09 pm GMT+1 on Tuesday.
Marks And Spencer Group Plc (LON: MKS)
The leading British retailer sells groceries, apparel, and home improvement products. The company recently completed the acquisition of logistics provider Gist. With a market cap of £1,895.61 million, the FTSE 250 listed company has provided returns of -43.36% and -57.31% on a 12-month and year-to-date basis, respectively. Its EPS currently stands at 0.16, and the shares were trading at GBX 98.72, up 2.30% as of 12:11 am GMT+1 on Tuesday.
Ted Baker Plc (LON: TED)
Ted Baker is primarily an FTSE All-Share index with a market cap of £202.34 million. Shares of this high-street clothing retailer have depreciated by nearly 18% over the past year. However, on a YTD basis, they have surged by 6.50%. Its EPS currently is in the negative at -0.19. TED's shares traded at GBX 109.80, up 0.18% as of 12:11 pm GMT+1 on 11 October.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
