Fashion retailers launch early Christmas discounts
Sarah Butler
Fashion retailers have launched early discounts after a mild autumn and winter for much of the country held back sales of knitwear and coats.
New Look, Boohoo and Sports Direct are all offering up to 70% on Christmas Eve while Next was set to launch its sale online at 4pm today with offerings of up to 50% – a level of discount matched by Hobbs, Topshop and Primark as well as John Lewis. While Marks & Spencer has held off discounting fashion, it has discounts of up to 40% on homeware and fragrance.
Despite hopes of a last minute rush, footfall on high streets has been down year-on-year matching a gradual trend as sales have shifted online. Visitor numbers were down 4.5% on Tuesday compared to the 23 December last year according to analysts MRI as a bounce back in cities including London offset by poor numbers in towns and shopping malls.
The latest sales tracker from advisory firm BDO found that overall sales were 1% for its set of mid-sized chains, which are led by fashion specialists, as a surge in late online orders offset poor sales in shops.
However, retail insiders say the mild wet season has not been good for the retail sector as it has combined with lacklustre consumer sentiment and fears about the economy to depress sales.
Key events
Calm trading on Wall Street
Over in New York, Wall Street trading has begun rather gently.
The Dow Jones Industrial Average, of 30 large US companies, has gained 20 points or 0.04% in early trading to 48,462 points.
The broader S&P 500 index is very marginally higher….
Back in the UK, the shops have reportedly been a little busier than last Christmas Eve.
MRI Software data shows that footfall across retailers up to 1pm today was 2.4% higher than a year ago.
That includes a 6.6% rise at retail parks, and a 1.1% increase on the high streets.
The number of Americans filing new applications for jobless benefits unexpectedly fell last week, new data shows.
Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 214,000 for the week ending on 20 December, the Labor Department says.
That’s below the 224,000 expected by economists, and suggests the US employment market remains solid, as the initial claims total is seen as a proxy for company layoffs.
SolGold agrees to £867m takeover by top investor Jiangxi Copper
Shortly after the London stock market closed, a takeover deal for gold and copper miner SolGold was announced.
SolGold has agreed to be taken over by its top shareholder, Jiangxi Copper, in a deal valuing it at £867m
The London-listed miner said earlier this month it was inclined to recommend the offer, which was Jiangxi’s third proposal to acquire the company amid a global race for copper assets.
SolGold says the takeover should help it develop its Cascabel project – a South American copper and gold mine.
Dan Vujcic, CEO of SolGold, says:
“SolGold believes we have made substantial progress in the last year in developing the Cascabel Project and achieving key milestones, which has been reflected in SolGold’s strong share price performance.
Following extensive shareholder consultation following the receipt of the proposals from JCC, the Board believes all shareholders should have the opportunity to consider the Acquisition.
Having carefully considered the terms of the Acquisition, the SolGold Board believes it is in the best interests of shareholders and the company, and the SolGold Board have unanimously recommended the transaction to shareholders.”
More retail and hospitality firms in critical financial distress
There’s been a worrying increase in the number of retail and hospitality firms in financial distress.
The latest Christmas “Red Flag Alert” from Begbies Traynor shows that 1,947 general retail businesses and 1,034 bars and restaurants are in ‘critical’ distress – an increase of 16.7% against the same period last year.
Julie Palmer, regional managing partner at Begbies Traynor, explains:
“Even after the ‘golden quarter’ started better than expected, reduced consumer confidence and economic uncertainty in the run up to the Budget meant that spending from consumers took a real hit.
“Combined with this has been the delayed effect of Black Friday on retailers, with consumers holding back purchases until late November, which has led to a price war which has further reduced retailer margins.
“If anything, the situation with the hospitality sector is even more precarious – especially for bars and restaurants. Typically, this sector operates on narrow margins and even small changes to the cost base can have a devastating impact. This year the sector has dealt with a tidal wave of challenges including increases to both employers NI and the national minimum wage, as well as a cost of living squeeze reducing consumers disposable income. In addition, changes to the business rates regime will negatively impact this sector with more than 3,000 small pubs having to pay business rates for the first time.
The last-minute Christmas gift-buying frenzy may have reached its peak, but a quarter (25%) of festive shoppers will not be buying some of the presents they intend to give until after Christmas Day, a survey indicates.
Two-fifths (41%) of people surveyed for cashback website Rakuten said snapping up presents in the post-Christmas sales is a good way to save money, amid the squeeze on living costs.
And a third (32%) believe that the money saved by delaying Christmas shopping makes the tradition of opening gifts on Christmas Day worth changing.
Men are more likely to leave buying gifts until after Christmas Day than women, according to the research.
The survey indicated that shoppers expect to spend £163 on average in the Boxing Day sales, PA Media reports.
FTSE 100 closes in the red as Santa fails to show
The London stock market has just closed for the Christmas break, with no sign of the hoped-for Santa rally.
The blue-chip FTSE 100 index has ended today’s session down 18.5 points, or 0.2%, at 9,879 points, away from yesterday’s near-record closing high.
Fantasy gaming retailer Games Workshop (-1.46%) were the top faller, followed by precious metals producer Fresnillo (-1.4%) – both have had very strong years though.
The FTSE 250 share index, which is a better measure of the UK economy, dipped by 0.16% today.
Fashion retailers launch early Christmas discounts
Sarah Butler
Fashion retailers have launched early discounts after a mild autumn and winter for much of the country held back sales of knitwear and coats.
New Look, Boohoo and Sports Direct are all offering up to 70% on Christmas Eve while Next was set to launch its sale online at 4pm today with offerings of up to 50% – a level of discount matched by Hobbs, Topshop and Primark as well as John Lewis. While Marks & Spencer has held off discounting fashion, it has discounts of up to 40% on homeware and fragrance.
Despite hopes of a last minute rush, footfall on high streets has been down year-on-year matching a gradual trend as sales have shifted online. Visitor numbers were down 4.5% on Tuesday compared to the 23 December last year according to analysts MRI as a bounce back in cities including London offset by poor numbers in towns and shopping malls.
The latest sales tracker from advisory firm BDO found that overall sales were 1% for its set of mid-sized chains, which are led by fashion specialists, as a surge in late online orders offset poor sales in shops.
However, retail insiders say the mild wet season has not been good for the retail sector as it has combined with lacklustre consumer sentiment and fears about the economy to depress sales.
The copper price is enjoying a bit of a Santa rally.
Copper has hit a new all-time high near to $12,300 per tonne today, helped by supply worries, upbeat demand prospects and the weaker dollar.
TUC: More than a million workers will be at work this Christmas Day
Once the London stock market shuts at lunchtime, City workers will have a few days off before trading resumes on Monday 29th December.
But 1.2 million workers will be working this Christmas Day, reports the TUC, who are calling on everyone to spare a thought for these festive workers.
Many of them are carers, nurses and retail staff – and the clergy, of course! – says the TUC, with many in low-paid and insecure work.
TUC General Secretary Paul Nowak explains:
“For many of us, Christmas Day is a special time to spend with our nearest and dearest.
“So, we should all spare a thought for the people who will be hard at work, while we’re opening our presents, tucking into the turkey and relaxing with our families.
“Let’s stop and pay thanks to all those who keep the services we rely upon running during the Christmas break.”
He adds:
Many working on Christmas Day will be on zero-hours contracts – especially in sectors like social care and hospitality.
“But when the Employment Rights Act comes into force, exploitative zero-hours contracts should be consigned to history.
“Banning exploitative zero-hours contracts, sick pay for all, expanding parental and bereavement leave – these are just some of the watershed measures the legislation will now deliver.
As this chart shows, the oil price has been rising since Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela on the evening of Tuesday 16 December:
Charalampos Pissouros, senior market analyst at Trading Point, says:
Gold and silver extended their rallies to fresh record highs, while oil recovered more ground, supported by the risk of supply disruptions from Venezuela and Russia. The metals may be attracting safe-haven flows as the latest escalation in the war between Russia and Ukraine dented chances of an imminent truce.
We have another Christmas Eve deal, also in the oil sector.
Petrofac has sold its North Sea business, called Asset Solutions, to Texas-based CB&I, saving thousands of UK jobs.
Asset Solutions operates, mainains and decommissions onshore and offshore energy assets. Its 3,000 employees are expected to join CB&I when the transaction closes, likely in the first quarter of 2026.
“Not much seemed to be stirring on Christmas Eve on the UK stock market as the FTSE 100 drifted a little lower,” says AJ Bell investment director Russ Mould.
“Weakness in the dollar, expectations for further US rate cuts, concerns about government deficits and debt in the developed world and geopolitical tensions have all been combining to put precious metals on a pedestal.
“However, having hit record levels overnight there were signs of a modest pullback this morning after stronger-than-anticipated data on the US economy. GDP coming in materially ahead of forecasts also helped to propel the S&P 500 to its own all-time highs but has reduced expectations for a near-term cut to US interest rates, which in turn led to mixed trading in Asia.”
