Retail stocks rose yesterday on the back of good figures from electrical chain Curry’s, despite new figures showing footfall down for a fourth consecutive month.
High streets saw a 1.1% increase in shoppers, but the figure for all destinations across the UK fell by 0.4%.
Helen Dickinson, chief executive of the British Retail Consortium, said: “The last Budget imposed £7 billion in new costs which has limited retailers’ ability to invest in local communities.”
Andy Sumpter, retail consultant at sensormatic, said: “Retailers continue to be asked to do more with less.
“But shoppers are out there, and they’re shopping around – which means opportunity is on the table. Growth is possible, but it demands boldness: investment, innovation, and a willingness to take calculated risks.
David Lonsdale, director of the Scottish Retail Consortium, said: “Visits to Scotland’s retail destinations fell for a fourth successive month in August. That said, the year-on-year decline was small and was the least-worst monthly footfall figure since April. The disruption early on in the month caused by Storm Floris didn’t help.”
Footfall, however, does not directly translate into sales and Currys pleased investors with its latest update.
Maxine Mackie, director at Label Sessions, said: “Currys continues to be a much-needed good news story for UK retail. But there are some things a UK retailer cannot change right now.
“Wage growth seems to be slowing in the UK, as a whole, which leaves customers with less money to spend. Costs in the retail sector itself are rising at the same time. It’s no wonder that Currys’ CEO has been demanding the government take action on rates.
“That said, Currys has positioned itself for success. The company’s proposition, the customer service it offers, even its genuinely innovative social media marketing, demonstrate this is a business with a clear vision for success and a plan to execute.
“Premium mobiles and AI laptops have been areas where Currys is a market leader, and this is a good space to be in right now – albeit, there are questions over the longevity of these segments.
“Nevertheless, this is a business that is looking to the future with confidence – a fact underlined by Currys’ reintroduction of the dividend and a new £50 million share buyback programme.”
Danni Hewson, financial analyst at AJ Bell, said: “It’s been a bright day for UK retailers who might not like the date of the budget being so close to hugely important Black Friday weekend but they found plenty to cheer about in Curry’s uplifting update.
“High street bellwether Next was top of the FTSE 100 risers, with Primark owner Associated British Foods, supermarkets Tesco and Sainsburys and comeback kid Marks & Spencer all dragged along by Curry’s forward momentum.
“The electrical retailer was the day’s big gainer on the FTSE 250 and current stablemate ASOS also got a boost as fashionistas salivated over the impending return of Topshop to the high street.
“After a long period of time when people were prioritising experiences over stuff, things may be shifting back a bit as products break down, get older or the unusually great British summer sends them running for cooling systems.
“Iconic British brand Burberry might not have enjoyed today’s retail renaissance but it’s celebrating the long game, heading back into the blue chip index as investors are won over by turnaround plans.”
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