British consumers appear to be turning to sausage rolls rather than chocolate as the comfort food to see them through the economic downturn.
British consumers appear to be turning to sausage rolls rather than chocolate as the comfort food to see them through the economic downturn.
High street baker Greggs yesterday reported a bumper Christmas for cheese-and-onion pasties and steak bakes as it reported a 5.3% rise in underlying sales in the four weeks to January 3.
The rise marks an increase from the 3.8% rise in like-for-like sales the company, which specialises in low-price savouries and cakes, reported for the 15-week period to December 6.
The 1400-strong chain, which has 170 outlets in Scotland, said that its financial results for 2008 should be in line with expectations, prompting a 79p (2.4%) rise in its shares to £34.
Its performance contrasted with chocolate maker and retailer Thorntons, which posted a 6.6% decline in Christmas sales.
Total sales slumped 2.3% in the 12 weeks to December 27.
The company, which has 378 wholly-owned stores and 252 franchises, blamed quiet shopping streets but the news still sparked a sell-off in its shares which fell 5.5p, or 6.2%, to 83.5p.
"The retail environment has been very challenging in recent months with weak high street footfall and consumer demand," chief executive Mike Davies said.
Better news came from fashion retailer Alexon Group, whose shares soared a third in early trading after December sales at its outlets, which include the Ann Harvey and Bay Trading chains, prompted it to increase its profit outlook.
These gains were later trimmed to a 2p, or 12.1%, rise to 18.5p, still considerably less than its 110.5p 12-month high before it issued a profit warning in September.
The company reported a 10.5% decline in like-for-like sales in the 23 weeks ended January 3, with a 1% fall in gross margins.
But it said trading in December improved on the previous nine weeks.
Analysts were previously expecting a pre-tax profit of £4.7m.
Blacks Leisure's shares plummeted 5.5p, or 17.2%, yesterday to 26.5p after the outdoor goods retailer warned that like-for-like sales fell 3.9% in the six weeks to January 3 and it was set to miss operating profit expectations.
It has seen particularly poor sales from its Boardwear business, whose FreeSpirit, O'Neill, Mambo and Animal stores kit out surfers and snowboarders. There, like-for like sales fell 14.9% compared to a 1.3% fall at its outdoor unit.
But the Entertainment Retailers Association (ERA) revealed its members sold more DVDs, games and music in 2008 than before despite the poor economic backdrop.
Combined sales reached 485.8 million units in 2008, 4% up on 2007.
Console games sales were up 28% to 74.3 million units thanks to the success of the Nintendo Wii.
