THE festive trading updates continued apace today, and speculation heightened that J Sainsbury will be the worst Christmas performer among the UK’s big four grocers.
Shares in Sainsbury’s dipped more than two per cent this morning after the supermarket chain reported a 0.4 per cent fall in total retail sales over the festive period - lower than City forecasts. That reflected a 2.3 per cent decline in general merchandise sales, which included activity in its Argos stores, in the 15 weeks to January 5.
Grocery sales scraped into positive territory, however, having edged up by 0.4% over the period.
Chief executive Mike Coupe warned: “Retail markets are highly competitive and very promotional and the consumer outlook continues to be uncertain.”
Grim trading was reported by troubled retailer Mothercare, which is in the midst of a radical store closuring programme to slash costs. The group said UK like-for-like sales dropped 11.4% during the third quarter, impacted by lower levels of discounting compared to last year, with total group sales down by 18%.
Shares were up more than three per cent early in the session.
Chief executive Mark Newton-Jones said: "Our UK store closure programme continues apace and is ahead of schedule, with 36 stores currently transitioning for closure, meaning we will have a total UK estate of 79 stores by the end of March 2019.
"The UK business will now operate with the discipline of a franchise, allowing the wider group to focus on the Mothercare brand and making it stronger globally."
Fashion retailer Ted Baker was boosted by a surge in online sales over Christmas. The chain said retail sales were up 12.2% over the five weeks to January 5, with e-commerce sales 18.7% higher.
The firm said an investigation into the conduct of its founder Ray Kelvin is "progressing" and a further update will be made in due course.
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