Fragile times continuing in retail sector

RETAILERS Next, Sainsbury and Debenhams are expected to say consumer confidence remains as fragile as it has been in decades when they report this week.

Sainsbury is still expected to post a 2.1 per cent lift in third-quarter like-for-like sales on Wednesday, in contrast to rival Tesco’s recent quarterly sales fall.

The City will also want news on Sainsbury’s rapid UK opening programme of its “Local” convenience stores.

On Thursday, clothing retailer Next is set to reveal it has shrugged off weak shopper sentiment to post a rise in annual pre-tax profits to between £558 million and £572m, from £551m.

Debenhams had a resilient Christmas and the department store is tomorrow expected to say this has continued when it provides its latest trading update, on sales to the end of February. Online sales are expected to have risen 35 per cent. However, Singer Capital predicts interim profits will be 5.5 per cent lower at £122m.