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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Retail

Sainsbury’s, M&S, Diageo among those cheering rebounding retail sales

A modest spending boom in the food sector detected in January's retail sales figures buoyed the sector.

Given the grocery bias seen in the numbers, there was zero surprise that the biggest beneficiary was FTSE 250-listed Ocado Group PLC, which ticked up 3.1%. Tesco PLC, Marks and Spencer Group PLC and J Sainsbury were also well bid.

Pets at Home Group PLC, JD Sports Fashion PLC, Primark owner Associated British Foods PLC and B&Q parent Kingfisher PLC were on investors' buy lists too.

According to the Office for National Statistics, retail sales picked up by 1.7% in January, against a downwardly revised 0.6% drop in December.

Renewed growth at food stores, where sales jumped by 5.6%, offset declines for the likes of household, clothing and textile goods, alongside automotive fuel.

This meant food shops had enjoyed their strongest since March 2020, with ONS senior statistician Hannah Finselbach flagging supermarkets, alcohol and tobacco stores.

Guinness maker Diageo PLC joined peers in rising as a result, ticking up 2.7% on Friday.

Panmure Liberum analysts noted the wider uptick followed a soft few months for retailers, offering relief despite potentially clouded figures due to seasonal adjustments.

“Either way it is an encouraging start to [2025] and, given fears of a soft quarter in the run-up to the [employer] national insurance contributions increase, this perhaps draws a line under some of the most bearish fears.”

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