Marks and Spendless a post from back in January about the merits of high vs low end retailers, predicted a further collapse in higher end retailers and difficulties for all except the discounters.
Not everyone agreed. There was a minor disagreement with Anon over who would perform best. Anon commented "How does any of that explain Waitrose's success? And although Tesco are yet to announce their figures they are rumoured to be "disappointing". Aldi and Lidl's growth is static in their established branches and their growth is purely fueled by their expansion. I expect we'll find that Morrisons appear to have succesfully overperformed at Christmas for the second year running."
Ending in my comment;
"But lets not get into a war over it. You put your money into M+S and John Lewis group, Debenhams and Next and I'll put mine into New Look, Primark, Poundland and Asda, and whoever has 2 out of 4 showing a profit by 3rd quarter can claim victory."
Well, I call Primark early. Like-for-like sales, which exclude new openings, increased 5% in the six months to 28 February. Half year profits up 10%. That's on top of the 20% they were up the year before. The margin has taken a hit, but they have finished a new distribution centre that will only make a slick organistation even slicker. Peacock's, another discount fashion retailer reported 8.3% up like-for-like sales earlier this month.
Contrast with Next Plc retail like for likes were down - 6.5% to March.
In a downturn, pick the discounters. They retain their existing customers and pull more from above. Primark's gain is Next's loss.
And need we mention Tesco again? Or have their PR people opened enough champagne for all the positive free publicity they have had today.
Ps the Marks and Spendless post is worth a look if for nothing else but the picture of the model in the M+S bridal lingerie. Grrrr.