FTSE 100 Live: Retail sales post surprise decline, confidence dips

Christmas shoppers leave it late at The Works while postal strikes hit online sales

Discount books, toys and crafts retailer The Works said Christmas shoppers left it late last year, but turned up the week before the big day to help sales across its 500 stores rise by almost 10% in the 11 weeks to January 15.

But online sales dropped 14% in the period and it said they have continued to be “disappointing” . It said customers were “losing confidence in retailers’ delivery promises in light of the widely reported postal strikes, and the potential for knock-on effects on other carriers.

 The mainstay of London high streets from Camden to Woolwich also said in-store sales stayed strong in January, with the level of marked down stock expected to rise after low levels last year.

The Birmingham-based firm’s range of games, stationery and novelties make it a family favourite for stocking-fillers and present buying. It warned in August that inflation and the rising cost of living meant Christmas trading would mean sales growth in the period would be uncertain.

Today, its CEO Gavin Peck said: “Whilst the trading environment remains uncertain, we are encouraged by the strength of our performance during and after the key Christmas period.”

Retail sales fall, confidence near record low

Retail sales volumes fell by 1% in December, having been forecast to reverse November’s 0.5% decline.

Food sales were hit hard as shoppers cut back in the face of rising prices, while online retailers suffered due to the impact of Royal Mail industrial action.

The amount spent rose 3.8% in December from the year before, but an inflation rate above 10% meant shoppers got much less for their money as volumes declined by 5.8% on a year earlier.

With soaring energy bills and inflation continuing to swallow up pay rises, GfK said its measure of consumer confidence fell to minus 45 in January. That’s near a record low and defied expectations for a slight improvement.

4imprint smashes profits estimates as sales soar 45%

Promotional product maker 4imprint seems to be going from strength to strength with its profits smashing previous estimates.

The maker of branded mugs, wristbands and keyring hailed a “particularly strong finish to the year,” with revenue up 45% to $1.14 billion (£0.92 billion).

Pre-tax profits at the firm are set to come in above the top end of estimates, topping $100 million.

4imprint said: “The Board is delighted with the Group’s progress in 2022, which reflects clarity of strategy, the flexibility and resilience of the business model and the outstanding dedication of the team. The Group enters 2023 with optimism.”