UNIVEG Katope UK

UK Christmas Trading Analysis

19th January 2009

January 2009 has seen a raft of performance figures released both by grocery and non-food retailers. Together they give the latest insight to the UK economy.

This section provides a summary of the key Christmas trading results for the major multiples, other food retailers and key non-food retailers.


UK Grocers - Like-for-Like Sales

Company Last Year Comparative Declared 
Figure
Period/Reporting Date
Waitrose 4.1% 3.1% 12 days to 3rd January 2009
Co-operative Group 3.4% 6.0% 3 weeks to 3rd January 2009
M&S Food -1.5% -5.2% 13 weeks to 27th December 2008
Sainsbury's 3.7% 4.5% 13 weeks to 3rd January 2009 
Tesco 3.1% 2.5% 7 weeks to 10th January 2009
Morrisons 6.3% released 22/01/09  
Thorntons 1.2% -6.6% 12 weeks to 27th December 2008
Greggs 5.6% 5.3% 4 weeks to 3rd January 2009
Majestic 4.1% -2.9% 10 weeks to 5th January 2009
Superdrug - 3.0% 5 weeks to 3rd January
Poundland - 3.9% 5 weeks to 4th January

Source: IGD
Note: where relevant, all figures are exc. fuel.


The BRC's Retailer Sales Monitor performance figures, issued for December, reveal that the UK food and grocery sector has continued to deliver a robust performance. Although sales across the UK retail sector as a whole fell by 1.4% against the year on a total basis, and 3.3% on a like-for-like basis, food along with footwear, were the only sectors to show sales up on a year ago.


UK Retail - Like-for-Like Sales

Company Last Year Comparative Declared 
Figure
Period/Reporting Date
John Lewis 6.2% 0% 5 weeks to 3rd January 2009
Debenhams 2.2% -3.5% 18 weeks to 3rd January 2009
M&S General Merchandise -3.2% -8.9% 13 weeks to 27th December 2008
Next -3.2% -7.0% 21 weeks to 24th December 2008
Dunelm 4.9% -5.6% 26 weeks to 27th December 2008
New Look -3.4% 2.8% 14 weeks to 3rd January 2009
House of Fraser 2.4% -1.5% 5 weeks to 3rd January 2009
Peacocks - 22.0% 2 weeks to 3rd January 2009

Source: IGD


Waitrose

Waitrose has signalled a surge in sales over the Christmas period, with a +5.4% total sales increase over the 12-day Christmas period, ending 3 January, and a +3.1% like-for-like increase. The period included the retailer's "best-ever single day of trading" on 23 December.

The Co-operative Group

The Co-operative Group has revealed Christmas trading figures for the three weeks ending 3 January. The Group posted a food like-for-like increase of +6.0% (ex-fuel) for the period, part of a Q4 like-for-like increase of +5.2%. Over the 2008 calendar year, the retailer indicated that like-for-like sales had grown by +4.9%, driven by its store refit programme, range investment, and excellent performance from seasonal categories and fresh foods. The Group also noted significant growth in its online electrical business, with a +30% increase in sales in the week prior to Christmas.

M&S

Q3 trading figures at M&S, covering the 13 weeks to 27th December, show sales across the group down by 1.2%. In the UK, sales fell by 3.4% on an overall basis and by 7.1% on a like-for-like basis. Within this, food held up better than general merchandise, though the value of sales nonetheless declined, falling by 1.1% on a total basis and by 5.2% at a like-for-like level. General merchandise sales fell by 5.5% at a total level and by 8.9% on a like-for-like basis.

Sainsburys

Sainsbury's has reported a strong sales performance over the third quarter of 2009/09. Over the 13 weeks to 3rd January 2009, total sales (ex-fuel) increased by 5.3%, with like-for-like sales (ex-fuel) increasing by 4.5%. Describing the results as Sainsbury's "best ever Christmas performance," the retailer also noted a strong performance online, with sales up 27%, while non-food also continued to show "good growth."

Asda

Asda has reported "solid" Christmas trading "ahead of expectations" over the Christmas period. This included its record trading day on December 23rd as Christmas sales came later than ever before. Though no precise figure for trading performance was provided, in the Wal-Mart monthly trading statement, it was announced that the final quarter of the year was one of "strengthening comparable store sales" on an ex-fuel basis at Asda, indicating a further improvement on the already impressive 6.9% like-for-like sales growth achieved in Q3. Sales were strongest in core grocery and George clothing, with the retailer clearly benefiting from the range development in both areas.

Tesco

Tesco has delivered a total uplift of 11.6% in the seven weeks to 10 January 2009, with particularly strong growth being delivered by international operations. UK like-for-like sales grew by 2.5% over the period, while adjusting for the change in VAT rates - which came into effect towards the start of the period - the increase on a comparable basis was 3.5%.


Source: IGD

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