Why did B&M cut its profit forecast?

B&M cut its profit forecast due to a 0.6% drop in UK like-for-like sales during its third quarter.

What challenges did The Works face during Christmas?

The Works experienced a 4.2% sales fall, with online sales dropping significantly due to delivery provider issues and overall subdued consumer confidence.

Were all UK retailers affected by the sales slowdown?

While many retailers struggled, some like Wickes reported revenue increases, though most warned of the impact of higher unemployment and rising prices on consumers.

Home / Business and Economy / Festive Sales Fizzle: UK Retailers See Slowdown

Festive Sales Fizzle: UK Retailers See Slowdown

22 Jan

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Summary

B&M reduced profit forecast due to a 0.6% sales drop.
The Works saw a 4.2% sales decline, with online sales halving.
Retailers faced subdued consumer confidence and rising prices.

Festive Sales Fizzle: UK Retailers See Slowdown

British retailers encountered significant challenges during the recent festive period, a crucial time for sales. B&M reported a 0.6% decrease in like-for-like UK sales for its third quarter, although sales improved in December following price reductions. The value chain The Works experienced a 4.2% fall in sales over the Christmas quarter, exacerbated by a 50% slump in online sales attributed to new delivery provider issues.

Despite these setbacks, The Works noted positive customer responses to its value offerings. However, the company acknowledged the impact of a challenging consumer environment, citing subdued confidence due to higher unemployment and rising prices. B&M's overall full-year earnings are expected to be between £440m and £475m, a reduction from previous guidance.

Other major retailers also saw mixed results. Fashion retailer Primark reported a fall in like-for-like sales, though overall revenues increased due to price inflation. Associated British Foods, Primark's parent company, issued a profit warning, affected by declines in its sugar and agriculture businesses. In contrast, DIY retailer Wickes reported revenue growth of 6.3% for the six months ending December 27.