A bout of wet weather in the early stages of autumn has left the door open for some retailers to benefit after a tough summer, analysts say.
Marks and Spencer Group PLC (LSE:MKS), Next PLC (LSE:NXT) and Associated British Foods PLC (LSE:ABF)’s Primark are all in line for a boost heading into the colder months as a result, according to Shore Capital.
Citing demand for boots, caps, hats and overcoats ahead, analysts from the investment group said the start of autumn had been surrounded by a decent weather context “for once”.
This comes after a wet start to the summer had left the industry grappling with tough comparables earlier in the year.
Following a warm spell last September, the UK’s recent autumnal spell may well see fortunes for the industry improve as retailers roll out winter lines, Shore Cap said.
“Through 2023 and 2024, the weather patterns in the UK have undoubtedly been relevant to apparel business performance,” analysts said.
This meant those taking market share recently, such as M&S, alongside “robust players” like Next and Primark, should emerge as winners.
Online retailers could also be on course to benefit alongside the omnichannel firms, Shore Cap added, highlighting “beleaguered operators” such as ASOS PLC (LSE:ASC) and Boohoo Group PLC (AIM:BOO).