UK RETAIL ROUNDUP: Tesco Xmas Comp Sales +2.5%, As Expected
13 Janvier 2009 - 8:52AM
Dow Jones News
Tesco PLC (TSCO.LN), the U.K.'s biggest retailer, reported a
modest rise in underlying sales Tuesday, held back compared to some
of its supermarket rivals by a greater exposure to non-food lines
like clothing and electricals.
Tesco said U.K. same-store-sales, excluding fuel, rose 2.5% for
the seven weeks to Jan. 10 from a year earlier, bang in line with
market expectations. The retailer booked a 33% jump in
International sales, helped by favorable exchange rate movements in
Europe, and a particularly strong performance in Asia. Group sales
rose 12%.
Tesco's U.K. performance is weak compared to rival J Sainsbury
PLC (SBRY.LN), which last week reported a better-than-expected 4.5%
rise in same-store-sales, excluding fuel, for the fiscal-third
quarter ended Jan. 3, underpinned by its best Christmas results to
date.
William Morrison Supermarkets PLC (MRW.LN) is expected to
outperform the local grocery sector when it reports on Jan. 22,
with analysts forecasting a 8.5% rise in same-store-sales,
excluding fuel.
The GAME Group Tuesday unveiled a strong Christmas performance,
with sales for the six week period ended Jan. 10 up 16.6% and
like-for-like sales up by 5.4%. The company expects that Group
gross margin for the 53 weeks to Jan. 31 will be around 140 basis
points ahead of last year at 26.2% and slightly ahead of previous
guidance.
Christmas updates so far from U.K. retailers indicate the Yule
Tide period wasn't as bad as many had expected.
Still, U.K. retail sales posted their worst Christmas
performance on record in December, as broad-based weakness sent
sales plunging, according to the British Retail Consortium.
The question in the months to come is whether spending will dry
up now that Christmas is over and the sales are coming to an
end.
The overall picture for Christmas 2008 so far is that food and
discount retailers did better than sellers of big-ticket electrical
goods, home furnishings and satellite navigation systems.
On Thursday, news of big falls in same-store sales are expected
from DSG International PLC (DSGI.LN), the country's biggest
electrical goods retailer, and from Home Retail Group PLC
(HOME.LN), which operates do-it-yourself chain Homebase and
general-merchandise chain Argos.
Last Friday, sportswear retailer JD Sports Fashion PLC (JD.LN)
pleased investors by saying it expects full-year profit to beat
market forecasts after it had a lucrative Christmas. Meanwhile
shares in Jessops PLC (JSP.LN) soared Friday after the nation's
biggest photographic retailer posted higher seasonal period
sales.
Good holiday sales were also reported by department store House
of Fraser and fashion retailer Peacocks. Upmarket fashion group Ted
Baker however said heavy discounting over Christmas hit its margins
and it now expects full-year profit to be at the lower end of
market expectations.
Sainsbury's strong showing also contrasted with last Wednesday's
poor Christmas trading update from Marks & Spencer Group PLC
(MKS.LN), which had its worst quarterly sales performance for a
decade and responded by closing 27 stores and cutting 1,230
jobs.
The U.K. retail holiday trading season kicked-off on Jan. 5 when
both U.K. department store chain John Lewis and London department
store Liberty PLC (LBE.LN) presented encouraging sales reports.
The following day, Next PLC (NXT.LN), Debenhams PLC (DEB.LN),
New Look and The Co-operative reported better-than-expected
Christmas sales performances.
The sector's downturn has nonetheless claimed a number of
victims.
U.K. sofa retailer Land of Leather PLC (LAN.LN) became the
latest high-profile retail casualty of the U.K.'s struggling
economy Monday, when it was placed in administration. Others forced
into administration include china and glass group Waterford
Wedgwood PLC (WTFU.DB), Passion for Perfume Ltd., Adams
Childrenswear Ltd., clothing chain USC, CD, DVD and video game
retailer zavvi, coffee-and-tea purveyor Whittards of Chelsea,
clothing chain the Officers Club, Woolworths Group PLC (WLW.LN) and
furniture retailer MFI.
Other U.K. retailers that are scheduled to report trading
performances in coming days include:
Thu, Jan. 15: DSG International PLC (DSGI.LN) update
Home Retail Group PLC (HOME.LN) 3Q
HMV Group PLC (HMV.LN) trading update
JJB Sports PLC (JJB.LN) trading update
Carphone Warehouse Group PLC (CPW.LN) 3Q
Associated British Foods PLC update
Halfords Group PLC (HFD.LN) trading update
Mothercare PLC (MTC.LN) trading update
Galiform PLC (GFRM.LN) trading update
Mon, Jan. 19 ASOS PLC (ASC.LN) trading update
Tue, Jan. 20: Kesa Electricals PLC (KESA.LN) trading update
Thu, Jan. 22: William Morrison Supermarkets PLC (MRW.LN)
Mon, Jan. 26: WH Smith PLC (SMWH.LN) AGM trading update
Tue, Feb. 3: Carpetright PLC trading update
-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290;
lilly.vitorovich@dowjones.com
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