The Week Ahead: High street to find out whether it is a happy new year or not

With heavy rainfall and  price cuts, the picture is bleak for fashion retailers

Jamie Nimmo
Monday 04 January 2016 00:46
Comments
The big retailers are set to report the numbers for the crucial Christmas shopping period
The big retailers are set to report the numbers for the crucial Christmas shopping period

Britain’s high street will find out whether it is a happy new year or not this week as some of the big retailers report the crucial Christmas shopping period.

Marks & Spencer is set to release a trading statement on Thursday, while Next, its clothing rival, updates investors tomorrow. Shares in both companies have slumped since the start of December as the cold weather failed to arrive in the UK, which is expected to hurt sales of winter clothing ranges.

Throw in heavy rainfall, the heavy price-slashing on Black Friday and the Paris terrorist attacks and the picture is bleak for fashion retailers.

According to Ipsos Retail, sales fell 1.8 per cent in the run-up to Christmas compared with 2014, even after what was described by the retail consultant as an “extraordinary” late rush.

Analysts expect the same old story from M&S – strong food sales but poor figures for clothing. Broker Nomura expects like-for-like sales in the division to have crashed 5.5 per cent.

Next, which refuses to drop prices until Boxing Day, is expected to have proved more robust.

The statements will be closely watched by backers of Debenhams, the struggling department store group that has been hit hard by the fears about festive trading, as has Mike Ashley’s Sports Direct.

A trading statement is due on Thursday from Poundland. It is the first time the retailer, which sells everything for £1, will report to investors since its profit warning in November.

Elsewhere, there is an update scheduled on Wednesday from Topps Tiles, which is expected to have benefited from the mild weather, with the DIY season longer than normal.

That has been reflected in the share price, which is close to eight-year highs.

Housebuilder Persimmon is set to issue a trading statement on Thursday, while airlines easyJet and British Airways owner IAG unveil the latest passenger numbers for December on Thursday and Friday respectively.

On the economic front, the focus is back on China, with manufacturing and services data shining a light on the pace of growth in the world’s second-biggest economy.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in