Three major retailers struck an optimistic tone yesterday as the economic recovery continues.
Inditex, owner of Zara, discount chain B&M and WH Smith said they were optimistic about the coming months as they recorded a rise in sales.
It comes amid hopes of interest rate cuts this summer, which would bring relief to both homeowners and businesses.
“These retailers are proof that the economy doesn’t need to be rocketing ahead to come out on top,” said Dan Coatsworth, an analyst at AJ Bell.
«B&M, WH Smith and Inditex are good representatives, as they target different parts of the market. Their achievements show that the industry is not just doing well in one or a few areas, but that the success is broader based.’
Optimistic: Inditex, owner of the Zara fashion chain, modeled by Nyawurh Chuol (pictured), said sales rose 12% during the period from May 1 to June 3.
The updates came as the British Chambers of Commerce raised its economic growth forecasts in a boost for Rishi Sunak.
The business lobby group said Britain is on track to achieve 0.4 percent growth in the second quarter of the year, following a 0.6 percent expansion in the first quarter.
And it raised its forecast for all of 2024 from 0.5 per cent to 0.8 per cent as the UK recovers from the mild recession in late 2023.
Vicky Pryce, chair of its economic advisory council, said: “There is life in the UK economy, but for it to gain momentum it needs to be nurtured.”
B&M boss Alex Russo said his business was “well prepared for the coming years” as it hopes to expand from 714 stores to 1,200.
Sales hit a record £5.5 billion in the year to March 30, up 10.1 per cent on the previous year.
WH Smith predicted airport and train station shops would do well this summer thanks to tourists.
Although sales fell in High Street stores during the three months to June 1, this was offset by upbeat trading in its transport hubs. Sales increased 8 percent overall.
It said it was seeing “strong results” from its transformation into a “one-stop shop for travel essentials.”
Zara owner Inditex echoed the positive sentiment as it eliminated competition from budget rival Shein and posted higher sales.
The world’s largest fashion retailer said sales rose 12 percent during the period from May 1 to June 3 compared to the same period last year.
The company, which also owns Pull&Bear and Massimo Dutti, plans to expand its shopping channel-style streaming shows to the UK. Webcasts featuring models showing off their new clothes have done well in China.
Shares in Madrid-listed Inditex and London-based WH Smith rose 3.7 percent and 0.4 percent respectively. But B&M fell 7.3 percent.