Market is Bleak for Retail Stocks

THE WEEK: Morningstar columnist Rodney Hobson says inflation, lack of consumer demand and property rents have hit retail stocks in recent months

Rodney Hobson 23 March, 2018 | 1:46PM

Screwfix Kingfisher DIY retail stocks retailers stock market UK FTSE 100

Few months in the history of the stock market have been quite so bleak for retailers as March has proved to be. Inflationary input prices, weaker consumer demand, business rates and rising property rents have taken their toll.

Inflation is finally slowing at least, with CPI down to 2.7% after threatening to bust the 3% ceiling that the Bank of England is charged with maintaining. Average pay rises have nudged up to 2.5%, but this does mean wages are still being squeezed.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Carpetright PLC  
Kingfisher PLC135.20 GBX1.39
Moss Bros Group PLC18.60 GBX-0.80
Mothercare PLC5.03 GBX-0.79
Next PLC3,390.00 GBX-6.09
Ted Baker PLC105.00 GBX-3.40

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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