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Summary
- UK shoppers are expected to spend £408.5 billion in 2021, after months of lockdown.
- The retail sales are expected to grow at 3.5% this year as the UK economy is gradually reopening.
With the UK economy gradually reopening after months of lockdown, since it was first imposed in March 2020, British consumers are looking to spend billions this year. According to the new research by VoucherCodes.co.uk, conducted by the Centre of Retail Research (CRR), UK shoppers are expected to spend £408.5 billion, or £6,150 per head, in 2021.
This year, the industry is expected to see its biggest boost in both online and offline retail spending. However, the lockdown hit the retail industry hard in 2020, and it recorded an all-time low growth of 0.3% on a Y-o-Y basis in 2020.
As predicted, the retail sales are expected to see a growth of 3.5% or £13.8 billion in 2021 and a further 5% or £20.4 billion in 2022, delivering a total expected retail spend of £429 billion by the end of 2022.
In 2021, consumers are expected to spend more on non-food category such as fashion, cosmetic and home and garden. Thereby, non-food sales are expected to report a growth of 8.8% to £238.3 billion compared to £218.9 billion in 2020.
Further continuing its trend in 2022, non-food spend is expected to grow at a steadier pace of 6.6% on a Y-o-Y basis, giving a £15.6 billion sales boost.
The capital is also forecasted to record its biggest rise in combined online and offline retail spending, with £76.2 billion or £8,554 per head for 2021.
Along with that, spending is expected to be highest in London in 2022 at £80 billion total sales and £8,982 per head on average.
Copyright © 2021 Kalkine Media
Let us look at the stocks from retail sectors ahead of this expectation.
Marks and Spencer Group PLC (LON: MKS)
With headquarters in London, Marks and Spencer is specialised in selling its own labelled clothes, food, and home products. The company is an FTSE250 index constituent and owns more than 900 stores across the UK.
As per the company’s full-year results for 53 Weeks Ended 3 April 2021
- The group’s Profit Before Tax & adjusting items of £41.6 million compared to £50.3 million, 53 weeks ago.
- Marks and Spencer’s net debt excluding lease liabilities reduced by £278.6 million to £1.11 billion.
The company’s stocks were trading at GBX 159.05, up by 0.25% as of 14 June 2021 at 09:54 GMT+1.
The company holds a market capitalisation of £3,104 million and has delivered a 50% return in the last one year.
JD Sports Fashion PLC (LSE: JD.)
Founded in 1981, an FTSE-100 Constituent is a sports-fashion retail company. It operates in the countries such as the UK, US, Europe, Asia, and Australia.
As per the results for the 52-weeks ended 30 January 2021:
- Total revenue for the Group increased by 0.9% to £6,167.3 million compared to £6,110.8 million a year ago.
- Total gross margin in the year saw an increase of 1% compared to 2020 stood 48%, mainly driven by a stronger margin in the United States.
The company’s stocks were trading at GBX 915.20, down by 0.22% as of 14 June 2021 at 08:50 GMT+1.
Also Read: JD Sports Expects 2022 Profit to Exceed Pre-Covid Levels
The company holds a market capitalisation of £9,462 million and has delivered 46% return in the last one year.
