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Highlights:
- Retail sales in November rose by 4.2%, supported by the sales of winter items.
- In the quarter to November, food sales saw a jump of 5.8% on a total basis and 5.5% on a like-for-like basis.
Even as retailers fear that consumer spending will continue to be impacted by the cost-of-living crisis, businesses have some relief. With winter approaching, Brits are preparing for it by purchasing items like winter warmers, coats, blankets, and hot water bottles, pushing the sales for these items.
The latest data from the British Retail Consortium (BRC) and KPMG shared on Tuesday indicates that retail sales in November rose by 4.2%, supported by the sales of winter items. Additionally, Black Friday discounts also boosted sales as families moved from big night-outs to budget night-ins due to high prices.
This rise is slightly lower compared to the data from a year ago. However, it is higher than the quarterly and annual average growth of 2.6%.
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The retail sales last month rose 4.1% on a like-for-like basis from 12 months before. In the quarter to November, food sales saw a jump of 5.8% on a total basis and 5.5% on a like-for-like basis. The non-food sales, on the other hand, laid flat at 0.0% on a total basis. On a like-for-like basis, they fell 0.4% as consumers cut down on non-essential spending.
With consumers preparing for Christmas, several items like household appliances, furniture, footwear, etc., saw positive growth in sales both online and physical stores. Baby equipment, toys, and computing, however, continued their negative growth.
Let's explore a few London-listed companies in the wake of this information.
Tesco Plc (LON: TSCO)
Tesco is a multinational retailer and operates hundreds of stores across the UK. The stock has a market capitalisation of £17,019.17 million, and its EPS stands at 0.19 as of 6 December. It has given investors a negative return of -17.92% in the past year. Shares of the FTSE 100 constituent were trading at GBX 229.90, down 0.13% as of 9:04 am GMT.
Kingfisher Plc (LON: KGF)
The home improvement company holds a market cap of £4,814.71 million as of 6 December, and its EPS stands at 0.40. It belongs to the FTSE 100 index, and its share price has depreciated by more than a quarter over the past year. The stock traded at GBX 245.40, down 0.49% as of 9:03 am GMT on Tuesday.
WH Smith Plc (LON: SMWH)
The Swindon-headquartered retailer operates a chain of stores at railway stations, ports, airports, hospitals and service stations. With a market cap of £1,902.13 million, the company is listed on the FTSE 250 index. It has a negative EPS of -0.63, and the stock's one-year return is 8.57% as of 6 December. SMWH shares traded at GBX 1,451.00, down 0.14% as of 9:07 am GMT on Tuesday.
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.
