Weekly Retail & Leisure News - 30 May, 2016
has been a positive first quarter for out of town retailers, with many
reporting positive results in the DIY sector. Topps Tiles reported a LFLs
increase of 4.7% in Q1 to April 2. The DIY retailer also reported a 13.2% jump
in half-year pre-tax profit. B&M reported a 19.5% rise in total sales in
the year to March 26, while LFLs were up 0.3% for the year. B&M opened 79
new stores over the year, which helped boost total sales by 23.6%. B&Q
owner Kingfisher reported a 3.6% rise in LFLs for Q1 to April 30, with 6.2%
uplift in LFLs for its UK and Ireland division. Kingfisher’s sales were boosted
by the closure of 10 B&Q stores over the period, and the performance of
Screwfix, which saw a 16.2% spike in LFLs.
Pets at Home and Dixons Carphone also reported positive results. “The pet
market has proved over time to be more resilient than general retail”, says
Pets at Home chief executive Ian Kellett, as LFLs grew 2.1% for the year to
March 31. Statutory pre-tax profits rose 3.7% and total sales were up 6.7% for
the year. Dixons Carphone reports a LFL increase of 4% in UK and Ireland and 6%
increase across the full year. The electrical and telecommunications retailer
said full year profits will come in the upper end of previous guidance between
£445m and £450m.
In other news, spending power for UK families hit the highest levels on record
in April. For the first time since 2008 when the tracker began, disposable
income hit £200 per week, bringing spending power up 6.3% YoY. Consumer price
inflation dropped to 0.3% and essential item inflation fell 0.2% during April,
according to Asda Income Tracker. The cost of transport dropped 1.3% YoY while
vehicle fuels jumped 7.5%. However, leisure activities such as cinema or eating
out became more costly as prices increased 3.8% in April.
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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