UK Retail Sector Experiences Significant Stock Selloff
The major UK retailers Tesco Plc and Marks & Spencer Group Plc witnessed a significant drop in their stock prices, leading to a general slump in the UK retail sector. This comes as concerns over Britain's economic health overshadowed otherwise robust holiday season sales for these prominent chains. For more detailed insights, refer to the Bloomberg report.
Tesco, the predominant supermarket group in the UK, saw its shares dip by 4%, while Marks & Spencer experienced a steeper decline of 8.4% during early London trading. Both companies cited amplified economic challenges, exacerbated by increased costs due to recent tax changes imposed by the Labour government.
The retail sector as a whole was affected as well: Greggs Plc, renowned for its sausage rolls, saw shares plummet by 11% after expressing concerns over dwindling consumer confidence. J Sainsbury Plc, set to disclose its Christmas sales figures soon, encountered a 4.5% slump, while B&M European Value Retail's shares tumbled by 12% in light of reduced top-end prospects.
This downturn is closely linked to mounting worries about the UK economy and fiscal measures by Chancellor Rachel Reeves. The nation's financial landscape has been notably impacted by a global bond market downturn, highlighting anxieties over public debt levels. An unexpected hike in gilt yields is poised to absorb the slender £9.9 billion ($12 billion) buffer left by Reeves post the October budget unveiling.
Retailers particularly feel the pressure from Reeves' budget due to anticipated wage increases. Tesco, as the largest private employer in the UK, foresees a £250 million rise in its wage bill for the year, while Marks & Spencer predicts a £120 million increase.
This financial strain comes despite Tesco achieving its highest market share since 2016 and M&S witnessing a record-breaking one-day sales performance for their food segment this Christmas. However, these achievements weren't enough to dispel broader market apprehensions.
Additionally, IndexBox data reveals a decline in consumer sentiment, impacting retail growth prospects. M&S CEO Stuart Machin acknowledged this shift, noting a transition from pre-Christmas optimism to post-holiday consumer anxiety, which has contributed to a "flat" overall customer sentiment profile.
According to Bloomberg Intelligence analyst Charles Allen, while M&S's Food sector continues to outperform with an 8.7% rise in fiscal Q3, the modest 1% growth in Clothing & Home revenues underscores the rationale for M&S's conservative profit forecasts for fiscal 2025. Labor cost hikes set for April 2025 are anticipated to challenge further profit advancements, despite improvements in supply chain efficiency.
Earlier this week, Next Plc indicated a slowdown in sales and profit growth, attributing this trend to evolving tax regulations. Additionally, rising employment costs prompted caution from Greggs, with Associated British Foods Plc and Kingfisher Plc also experiencing declines, underscoring the challenging environment for UK retailers.
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1. INTRODUCTION
Making Data-Driven Decisions to Grow Your Business
- REPORT DESCRIPTION
- RESEARCH METHODOLOGY AND AI PLATFORM
- DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
- GLOSSARY AND SPECIFIC TERMS
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2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
- KEY FINDINGS
- MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO
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3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
- MARKET SIZE
- CONSUMPTION BY COUNTRY
- MARKET FORECAST TO 2030
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4. MOST PROMISING PRODUCT
Finding New Products to Diversify Your Business
This Chapter is Available Only for the Professional Edition PRO- TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
- BEST-SELLING PRODUCTS
- MOST CONSUMED PRODUCT
- MOST TRADED PRODUCT
- MOST PROFITABLE PRODUCT FOR EXPORT
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5. MOST PROMISING SUPPLYING COUNTRIES
Choosing the Best Countries to Establish Your Sustainable Supply Chain
This Chapter is Available Only for the Professional Edition PRO- TOP COUNTRIES TO SOURCE YOUR PRODUCT
- TOP PRODUCING COUNTRIES
- TOP EXPORTING COUNTRIES
- LOW-COST EXPORTING COUNTRIES
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6. MOST PROMISING OVERSEAS MARKETS
Choosing the Best Countries to Boost Your Exports
This Chapter is Available Only for the Professional Edition PRO- TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
- TOP CONSUMING MARKETS
- UNSATURATED MARKETS
- TOP IMPORTING MARKETS
- MOST PROFITABLE MARKETS
7. GLOBAL PRODUCTION
The Latest Trends and Insights into The Industry
- PRODUCTION VOLUME AND VALUE
- PRODUCTION BY COUNTRY
8. GLOBAL IMPORTS
The Largest Importers on The Market and How They Succeed
- IMPORTS FROM 2012–2024
- IMPORTS BY COUNTRY
- IMPORT PRICES BY COUNTRY
9. GLOBAL EXPORTS
The Largest Exporters on The Market and How They Succeed
- EXPORTS FROM 2012–2024
- EXPORTS BY COUNTRY
- EXPORT PRICES BY COUNTRY
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10. PROFILES OF MAJOR PRODUCERS
The Largest Producers on The Market and Their Profiles
This Chapter is Available Only for the Professional Edition PRO -
11. COUNTRY PROFILES
The Largest Markets And Their Profiles
This Chapter is Available Only for the Professional Edition PRO- United States
- China
- Japan
- Germany
- United Kingdom
- France
- Brazil
- Italy
- Russian Federation
- India
- Canada
- Australia
- Republic of Korea
- Spain
- Mexico
- Indonesia
- Netherlands
- Turkey
- Saudi Arabia
- Switzerland
- Sweden
- Nigeria
- Poland
- Belgium
- Argentina
- Norway
- Austria
- Thailand
- United Arab Emirates
- Colombia
- Denmark
- South Africa
- Malaysia
- Israel
- Singapore
- Egypt
- Philippines
- Finland
- Chile
- Ireland
- Pakistan
- Greece
- Portugal
- Kazakhstan
- Algeria
- Czech Republic
- Qatar
- Peru
- Romania
- Vietnam
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LIST OF TABLES
- Key Findings In 2024
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Per Capita Consumption, By Country, 2018–2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country Of Destination, 2012–2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, By Country Of Origin, 2012–2024
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LIST OF FIGURES
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Consumption, By Country, 2024
- Market Volume Forecast to 2030
- Market Value Forecast to 2030
- Products: Market Size And Growth, By Type
- Products: Average Per Capita Consumption, By Type
- Products: Exports And Growth, By Type
- Products: Export Prices And Growth, By Type
- Production Volume And Growth
- Exports And Growth
- Export Prices And Growth
- Market Size And Growth
- Per Capita Consumption
- Imports And Growth
- Import Prices
- Production, In Physical Terms, 2012–2024
- Production, In Value Terms, 2012–2024
- Production, By Country, 2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, 2012–2024
- Imports, In Value Terms, 2012–2024
- Imports, In Physical Terms, By Country, 2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country, 2012–2024
- Exports, In Physical Terms, 2012–2024
- Exports, In Value Terms, 2012–2024
- Exports, In Physical Terms, By Country, 2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, 2012–2024
