RETAILERS will take centre stage this week as Primark owner Associated British Foods (ABF) and supermarket chain Morrisons shine a light on the high street’s health.
Morrisons, which issues a third-quarter trading update on Thursday, is battling to maintain sales momentum as rivals wage war through the use of money-off coupons and special offers.
The UK’s fourth-biggest grocery chain saw interim profits drop £9 million to £440m after underlying sales fell 0.9 per cent in the first half of the year and recent market share figures have revealed further pressure since then.
Kate Calvert, an analyst at Seymour Pierce, warned: “Christmas will be extremely aggressive, as Tesco cannot afford to continue underperforming either and consumer spending is expected to remain subdued.”
Full-year results from ABF on Tuesday come after another stellar year for its budget fashion chain, Primark. The group said in September that total Primark sales were expected to rise by 17 per cent over the full-year across the UK and Europe, where it has 242 stores.
It has shrugged off the Eurozone economic woes, saying in September it was seeing “buoyant” trading across continental Europe, even though much of the continent is mired in a debt crisis.
Fashion firm Burberry reports interim figures on Wednesday following a recent roller-coaster ride for its shares after it sparked fears that the bubble in the luxury market had burst.
The firm issued a profit warning in September amid concerns that China’s demand for its luxury goods was in decline. The group lost 20 per cent of its stock market value in one day after the profit alert, but the stock has since been on the mend after a more reassuring update.