Retailers' traditional post-Christmas reporting season is in full swing. Fashion group Next was one of the big winners, with sales between 1 November and 24 December jumping by 12%. Online sales jumped by a fifth at John Lewis, where internet sales comprised a third of the total. House of Fraser also performed strongly, unlike Debenhams, which issued a profit warning.
In the supermarket sector, J Sainsbury's strong Christmas allowed it to eke out marginal sales growth in the fourth quarter. The best-performing supermarkets were the premium and the discount chains. Aldi, Lidl and Waitrose have gained market share.
What the commentators said
This is counterproductive, as customers used to discounts early in the season become reluctant to pay full price for anything, while a track record of pre-Christmas discounting "appears to have started to erode shoppers' broader confidence" in a brand.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Having a strong online business was the other driver of healthy sales, said Graham Ruddick in The Sunday Telegraph. Next offered a free next-day delivery service to stores, so customers could order online the weekend before Christmas Day and collect it in time. As a result, internet sales did not fall off after a good start as they have in previous years.
John Lewis is also notable for its click-and-collect service. Sales of this kind rose by 60% year-on-year. The lessons, then, are simple, concluded Iain Dey in The Sunday Times. "Don't cut prices too far and find a way to make the internet work" for customers. Keep that in mind in the next few weeks as the "endless excuses" start to come out of retailers' mouths.
-
Are you one of 15 million people at risk of retirement poverty?Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you
-
Next’s results stand out against a tough retail backdropAnalysis FTSE 100 retailer Next is dealing well with the tough conditions on the high street, with rising profits and a plan that's working. Rupert Hargreaves looks at the numbers.
-
Why Next is the only retailer I’d want to own in my portfolioNews The retail sector is brutally competitive. But high street stalwart Next is exploiting and building on its significant competitive advantages, says Rupert Hargreaves.
-
Next shares soar as sales smash expectations – is the stock a buy?News High street and online retailer Next has reported a big rise in sales and profits. John Stepek looks at its performance and asks if it's worth buying Next shares.
-
Little cheer on the high streetFeatures Profit warnings from Debenhams and Mothercare are more evidence that traditional retailers are fighting a losing battle against nimbler online competitors, says Ben Judge.
-
Next: Out of fashionFeatures Clothing retailer Next has released gloomy results, yet the firm’s shares rallied strongly. Why? Ben Judge reports.
-
The end of an era for hedge fundsFeatures More than 1,000 hedge funds shut down last year – the most since the financial crisis. There are now fewer funds around than at any time since 2013. What’s going on?
-
If you’d invested in: Indivior and NextFeatures Drugmaker Indivior is on the up, while retailer Next, once a favourite with investors, has lost its way.
-
Next faces its toughest year since 2008
Features The clothing retailer has long been a favourite of long-term investors, but now Next is facing tough times.
