Asos confirms what most already knew: online > in-store
There has been barrage of retail updates out this week, with Next Plc (LON:NXT), J Sainsbury plc (LON:SBRY) and everyone in between seemingly putting out a statement and Thursday was no different.
Tesco PLC (LON:TSCO), Marks and Spencer Group Plc (LON:MKS),John Lewis, ASOS plc (LON:ASC), Associated British Foods PLC (LON:ABF) and JD Sports Fashion PLC (LON:JD. all updated the markets this morning.
M&S posted the first set of positive like-for-like sales in its clothing division for almost two years, while there was also some festive cheers over at high street rival Debenhams, with like-for-like sales up 7% over the key Christmas trading period.
Given the decent numbers put out by WM Morrisons PLC (LON:MRW) and Sainsbury’s earlier this week, it seemed the markets were expecting a little more from Tesco, and the same can be said for Primark owner AB Foods.
It was more of a mixed bag at John Lewis which cut some of its staff bonuses, but Asos confirmed what most had known for a long time: people are spending and shopping more online.
The online fashion retailer saw 30% sales growth over the holiday season although it will have to invest a further £30mln just to keep up with demand. Not the worst problem in the world.
‘A serious complaint’
One analyst was really not happy with the amount of trading updates being put out by UK retailers today, though.
In fact, they were so annoyed that, along with their notes this morning, they sent round a “serious complaint” which reads:
“The British retail trade has decided to make many market updates today (12th January 2016). Such discoordination, to put it politely, does not serve shareholders and investors well.
“Investor relations executives should hold their respective heads in shame at the chaotic volume of information coming out today whilst seeking for a more balanced information flow in 2018.”
Somebody else was unhappy with today's retail updates, but for a different reason...
Wouldn't it be great if broadcast media didn't look so depressed when they read positive retail figs in UK for Christmas #skynews
— Maria Hutchings (@MariaHutchings) January 12, 2017
Prepare for a wave of tidal power
A review into the potential of tidal lagoons has concluded that the technology could play a vital role in ensuring future UK power supplies.
Charles Hendry, the former energy minister who led the review, reckons tidal lagoons can help the UK achieve its decarbonisation goals, as well as helping local communities where the plants are based to thrive.
He adds that it is “significant economic opportunity” for Wales and England.
Support for the renewable energy tech will come as good news to Tidal Lagoon Power which is trying to convince the government to help fund its “world first” lagoon power plant in Swansea bay.
Sticking with energy…
Shares in National Grid PLC (LON:NG.) edged higher after the government that the utility company won’t have to be broken up.
There had been calls for the group to be split up to prevent conflicts between its dual role of owning and operating key parts of the energy infrastructure.
But the government has ruled that a legally separate electricity system operator will be established within the current business.
National Grid welcomed the decision and said it was the “best placed” firm to carry out the role of system operator.