Skip Ribbon Commands
Skip to main content

Market Commentary

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Weekly Retail & Leisure News - 25​​​​​​​​​​​​​​​​​ January, 2016​​​​

Christmas Trading Special: LFL growth for over 80% of UK retailers

​​

JLL's annual Christmas Trading Update reveals that over 80% of UK retailers and leisure operators that have disclosed performance figures for the key Christmas trading period have registered positive like for like (LFL) annual growth, with 50% delivering LFL growth in excess of 4% year on year.

Conditions remain challenging, however, and there were clear winners and losers within each sector. In the grocery sector the discounters were the frontrunners, with Lidl and Aldi growing market share; Tesco, Morrisons and Sainsbury’s are fighting back, however, and all revealed results ahead of expectations. In the department and variety store sector, Debenhams, House of Fraser, Fortnum & Mason and John Lewis reported strong sales growth after recent investment in their physical and e-commerce platforms; by comparison, M&S GM division performed poorly due in part to a failure to compete against the tide of Black Friday promotional activity. And in fashion, a number of premium brands benefitted from growing consumer demand for ‘affordable luxury’, including Jigsaw, White Stuff, Joules, Ted Baker and Superdry, which all registered strong growth, while Next and Primark struggled due to a variety of factors, including issues around stock selection and availability during the warm weather.​​​​​​​​​

Overall, online sales were the clear winner, and retailers that provide customers with an integrated, seamless offer continue to benefit from real competitive advantage. In particular, the growing influence of m-commerce was evident from the trading updates of Jigsaw (mobile sales up +115%), John Lewis (+31%), Very.co.uk (+32%) and Made.com (+122%), while White Stuff, N Brown and Debenhams also reported strong sales growth through mobile devices. By contrast, a number of discount retailers such as Poundland, Primark, Sports Direct, B&M and Bonmarché announced disappointing results; all have limited online operations, in addition to being susceptible to discounting elsewhere, and also declining footfall across UK high streets.​​​​​​​​​

One sector which is relatively immune to discounting is the foodservice sector. Christmas trade was generally strong for foodservice operators, with five of the top 11 performers coming from this sub-sector, due to growing consumer confidence and a firming of selling prices as consumers continue to move from a ‘price based’ to an ‘experience based’ decision.​​​​​​​​​

Looking forward, despite an unpredictable Christmas, and a couple of New Year casualties, the consumer recovery appears to have taken hold. Consumers have money to spend, as a result of cheaper fuel, deflation and rising employment and wages, and 2016 should see strong sales growth for UK Retail. The key for retailers is to continue to invest in providing consumers with seamless retailing experiences, while adroitly managing costs at the same time.​​​​​​​​​

If you are reading this table from a mobile device click here to view the PDF.

Retailer Trading Period LFL
Sales Growth
Total
Sales Growth
Online Sales Growth
Mamas & Papas 6 weeks to Jan 3 18.0%    
Fortnum & Mason 5 weeks to Jan 3 15.0%   38.0%
Mountain Warehouse 6 weeks to Jan 3 14.7% 28.6% 49.2%
Jigsaw 5 weeks to Jan 2 13.0% 19.0% 31.0%
White Stuff 5 weeks to Jan 2 11.0% 20.1% 40.7%
JD Sports Fashion (Europe) 5 weeks to Jan 2 10.6%    
ScS Group 25 weeks to Jan 16 8.8%    
Boux Avenue 6 weeks to Dec 24 8.3%    
The Fragrance Shop 5 weeks to Dec 26 7.7% 11.6%  
Majestic Wine (Retail)1 10 weeks to Jan 4 7.3% 7.5%  
Ernest Jones 8 weeks to Dec 26 6.9% 9.0%  
Superdrug 5 weeks to Jan 2 6.8%   47.0%
House of Fraser2 7 days to Dec 25 6.0% 5.3% 61.8%
Paperchase 5 weeks to Dec 27 5.9% 11.2% 32.9%
John Lewis 6 weeks to Jan 2 5.1% 6.9% 21.4%
Homebase 18 weeks to Jan 2 5.0% -4.0%  
The Entertainer 5 weeks to Jan 2 4.9% 15.7%  
Foyles December 4.7%    
Topps Tiles 13 weeks to Jan 2 4.4%    
Moss Bros3 23 weeks to Jan 9 4.2% 4.8% 32.7%
Mothercare 13 weeks to Jan 9 4.2% -0.1% 11.8%
N Brown 18 weeks to Jan 2 4.1% 4.1% 13.0%
Debenhams 7 weeks to Jan 9 3.7%   15.4%
FatFace4 5 weeks to Jan 2 3.0% 8.0% 43.0%
Blue Inc 4 weeks to Jan 3 3.0%   52.0%
Dunelm5 13 weeks to Jan 2 2.6% 8.8% 23.4%
The Original Factory Store 5 weeks to Jan 3 2.5% 7.5% 226.0%
Greggs 13 weeks to Jan 2 2.3%    
Maplin From Nov 27 to Jan 2 2.3%   33.3%
Pets At Home (Group) 12 weeks to Dec 31 2.2%    
WH Smith 20 weeks to Jan 2 2.0% 4.0%  
H Samuel 8 weeks to Dec 26 1.6% 1.8%  
Tesco (exc. Fuel) 6 weeks to Jan 9 1.3% 0.8%  
SuperDry (Group) 11 weeks to Jan 9 1.2% 14.6%  
Ryman 6 weeks to Dec 24 0.7%    
M&S (Food) 13 weeks to Dec 26 0.4% 3.7%  
Morrisons (exc. Fuel) 9 weeks to Jan 3 0.2% -1.2% 0.9%
Burberry (International) 3 months to Dec 31 0.0% 1.0%  
Halfords (Retail) 15 weeks to Jan 15 0.0% -0.3%  
Sainsbury's (exc. Fuel) 15 weeks to Jan 9 -0.4% 0.8% c.10%
B&M Bargains6 13 weeks to Dec 26 -0.7% 23.5%  
McColl's 6 weeks to Jan 10 -0.7% 3.3%  
Booths From Dec 13 to Jan 2 -1.4% 5.9%  
Waitrose (exc. Fuel) 6 weeks to Jan 2 -1.4% 1.2% 7.9%
Argos 18 weeks to Jan 2 -2.2% 0.9%  
Robert Dyas 6 weeks to Dec 24 -2.5%    
Bonmarché 5 weeks to Dec 26 -2.7% 1.7% -2.4%
M&S (GM) 13 weeks to Dec 26 -5.8% -5.0% 20.9%
BooHoo.com 4 months to Dec 31   45.0%  
Made.com 5 weeks to Dec 31   43.0%  
Poundland (Group) 13 weeks to Dec 27   30.1%  
ASOS 4 months to Dec 31   25.0%  
Lidl 12 weeks to Jan 3   18.4%  
Joules 6 weeks to Jan 3   11.3% 18.8%
Ted Baker (International) 8 weeks to Jan 9   10.1% 39.1%
Primark (International) 16 weeks to Jan 2   7.0%  
Nisa 10 weeks to Jan 3   6.3%  
Shop Direct 7 weeks to Dec 25   6.0%  
Lloyds Pharmacy December   4.4% 26.0%
Next7 60 days to Dec 24   -0.5% 2.0%
GAME (Group) 3 weeks to Jan 9   -5.9%  
Matalan 5 weeks to Jan 2   -6.4% -50.9%
         
1 - Total sales include Naked Wines        
2 - Total sales for 6 weeks to Jan 2        
3 - Online sales 49 weeks to Jan 9        
4 - Online sales for "December"        
5 - Total sales for 6 weeks to Jan 2        
6 - Online sales are "Home Delivery"        
7 - Online sales are "Directory"        
Leisure operator Trading Period LFL
Sales Growth
Total
Sales Growth
Online Sales Growth
Camino December 19.1%    
Be at One 5 weeks to Dec 27 16.0%    
Urban Leisure Group December 15.8%    
Chop'd December 10.0%    
Le Bistrot Pierre December 10.0%    
Brasserie Blanc December 6.0%    
Loungers 4 weeks to Jan 3 4.1% 44.9%  
Revolution Bars1 26 weeks to Dec 26 2.7% 7.0%  
         
1 - Total sales include Europe        

Sign Up

If you would like to read more of our market commentary and gain further insight into the UK retail and leisure market, sign up for our weekly newsletter, delivered to your inbox every Monday afternoon. ​Preview email

​​​

​Contact us​​​​​​​​​​​​​​​