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FTSE 100 Live: Stocks fall as UK retail sales climb but fail to impress

Published 16/08/2024, 09:01
FTSE 100 Live: Stocks fall as UK retail sales climb but fail to impress
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Dr Martens slips as UK clothing and footwear sales drop

Dr Martens PLC (LON:DOCS) was the FTSE 250’s biggest loser on Friday morning, after UK retail data showed sales of clothing and footwear declined in July.

According to the ONS, sales across UK clothing and footwear stores fell 0.6% during the month, as wider retail volumes increased.

Online clothing and footwear sales also dropped, by 0.1%, marking the only category to see a decline.

Boot maker Dr Marten’s sat as the FTSE 250’s biggest faller on the back of the data, dipping 4.3%, as the wider index fell by 19 points to 21,074.

Retail sales boost not 'broad-based' enough - analyst

Though retail sales ticked up in July, a lack of growth across different categories has prompted analysts to play down the figures.

ONS data on Friday showed sales climbed by 0.5% in July, against June’s 0.9% decline.

However, this is as department store and sports retail sales largely dragged up the figures, with motor fuel, household and textile goods volumes falling.

“The rebound in sales volumes wasn’t particularly broad-based, with sales rising in three of the seven main sub-sectors,” Capital Economics economist Alex Kerr commented.

He added that while the Euros and Olympics aided sales of sports goods, these “didn’t appear to bolster food sales volumes by much as they were unchanged in July”.

“Ultimately, while it is good news that the retail sector has returned to growth at the start of the third quarter, it is perhaps not as good as the 0.5% rise suggests,” he said.

FTSE 100 falls early on

The FTSE 100 appeared off the mark to rack up its third successive daily gain on Friday.

London’s blue chips opened 14 points lower at 8,333, as data showing an uptick in retail sales last month failed to buoy stocks.

Sports Direct (LON:FRAS) owner Frasers Group PLC led risers early on following the data, climbing just under 2%.

Housebuilders Persimmon PLC (LON:PSN) and Barratt Developments PLC (LON:BDEV) were among those weighing on the FTSE 100 though, after warnings emerged that government housing targets may prove challenging to meet.

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