Vivo Energy, Fraser: Stocks to eye amid falling consumer confidence

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Vivo Energy, Fraser: Stocks to eye amid falling consumer confidence

 Vivo Energy, Fraser: Stocks to eye amid falling consumer confidence
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Highlights

  • The retail sector is headed for a slowdown as the pessimism regarding the economic slump is increasing in Brits.
  • GfK’s headline consumer confidence index has plummeted from -15 last year to -38 in April.
  • The market sentiment has become even more gloomy than what prevailed at the time of the global financial crisis in 2008. 

The retail sector is headed for a slowdown as the pessimism regarding the economic slump is increasing in Brits. According to the polling firm GfK, all the five-consumer confidence measures it records have declined in the month of April, amid the rising contributions towards National Insurance accompanied by the soaring energy price cap.

Combining the five separate measures gives the headline consumer confidence index, which has plummeted from -15 last year to -38 in April. The market sentiment has become even more gloomy than what prevailed at the time of the global financial crisis in 2008 when the entire banking system was about to fail. Over the next one year, the confidence score for the overall economy may slip down to -55, which is worse than the 2008 level.

Consumer confidence falls amid rising inflation

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As energy prices have been soaring lately due to the escalation of the Russia-Ukraine crisis, inflation levels are skyrocketing and hitting record highs, and taxes have been going up amid falling real wages, the overall consumer confidence has been shattering. A full-fledged cost-of-living crisis has been unfolding in the UK, impacting millions. This has led to a fall in discretionary spending as the crisis has affected the personal finances of Britons.

Let’s look at 3 UK retail stocks that investors can keep an eye on.

Watches of Switzerland Group plc (LON: WOSG)

The shares of the British retailer of Swiss watches, Watches of Switzerland Group plc, were down by 1.55% as the market opened at 8:00 AM (GMT+1) on 22 April 2022, at GBX 1,141.00. The company, which is a constituent of the FTSE 250 index, has given its shareholders a return of 63.38% over the last one year as of 22 April 2022. The current market cap of the company stands at £2,776.62 million.

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Vivo Energy plc (LON: VVO)

The shares of the UK-based downstream petroleum company, Vivo Energy plc opened at GBX 138.80 as the market opened on 22 April 2022. The company, which is a constituent of the FTSE 250 index, has given its shareholders a return of 38.63% over the last one year as of 22 April 2022. The current market cap of the company stands at £1,758.53 million.

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Frasers Group plc (LON: FRAS)

The shares of the UK-based retail and intellectual property group, Frasers Group plc, were down by 0.71% when the market opened at around 8:00 AM (GMT+1) on 22 April 2022, at GBX 695.50. The company, which is a constituent of the FTSE 250 index, has given its shareholders a return of 38.02% over the last one year as of 22 April 2022. The current market cap of the company stands at £3,430.74 million.

Retail stocks selected from TR based and highest yearly return

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