Jan 4, 2017
Christmas sales prove no gift for UK high street
More than £2bn was wiped from the value of British retailers on Wednesday as dismal Christmas trading at Next, the mid-market clothing chain, raised fears for the fortunes this year of some of the best known names on the UK high street. Clothing and footwear prices were 5.7 per cent lower in December than a year earlier, according to the British Retail Consortium's shop price index - a sign of the fierce competition that has erupted as stores fight for a share of dwindling high street spending. "Downward pressure on demand is negative for a retail sector already facing cost pressures from minimum wages and business rates," says Paul Rossington, an analyst at HSBC. High street stores are also facing intense competition from e-commerce companies such as Asos, Boohooand Missguided, which are generally posting strong results. Lord Wolfson says that other high street retailers will adapt, pointing out that rental costs are falling as shops become less valuable. The FTSE 250 retailer pointed to strong trading in the Christmas period as it posted a 7.2 per cent rise in like-for-like revenues in the UK in the three months to December 24, compared to flat growth in the same period last year.
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