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The Markets
by Proactive
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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Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Next outperforms as UK apparel sales weaken

Next PLC (LSE:NXT) stood out in a weakening UK clothing market, as overall apparel sales declined in March, according to UBS.

Total UK apparel, footwear and accessories sales fell 3.8% in the 12 weeks to 29 March, according to Kantar data cited by the bank.

This was worse than the 1.0% decline in the prior period. Volumes dropped 5.8%, partly offset by a 2.1% rise in prices.

UBS analysts highlighted broad-based weakness across categories, with menswear down 6.0% and womenswear falling 3.3%. Online sales declined 5.5%, while in-store sales also slipped 2.5%.

Against this backdrop, Next was a clear outlier, with sales up 19.0% and market share rising to 11.2%. The data has historically shown a strong relationship with company reporting for Next, Associated British Foods PLC's (LSE:ABF) Primark and Marks and Spencer Group PLC (LSE:MKS).

Primark recorded modest growth of 0.9%, while M&S saw sales edge down 0.5%, with discounted sales offsetting weaker full-price demand.

Full-price sales across the market remained broadly stable at around 60% of the mix, though the analysts flagged notably weak full-price online demand, down 7.9%.

The data was felt to point to a soft consumer backdrop, with upcoming company updates providing clearer signals on demand, pricing and promotional activity.

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