By bizn_fun 
Introduction: Was it a good Christmas for UK retailers?
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The Christmas leftovers are over, and any ill-fitting clothes or inappropriate gifts could have been returned, but we’re still learning which retailers won, or lost, over the festive season.
This morning, retail heavyweights Tesco and Marks & Spencer are about to release trading results covering the Christmas period, along with baking chain Greggs.
These results may show whether cautious consumers cut back over Christmas, or pushed the boat out, and whether the budget in late November had any impact on spending.
Data earlier this week showed that spending on promotions and deals reached its highest level since before the pandemic in December, which will have squeezed profit margins….
There could also be details on the impact of avian flu on the UK turkey flock, which forced some supermarkets to import birds from elsewhere in Europe. Last month, Marks & Spencer said all its turkey was sourced from Britain or Ireland, while the Co-op, Sainsbury’s and Tesco said their turkey was entirely British-sourced.
City analysts will also be scrutining Greggs’ results, due to concerns that the chain may be over-expanding as its sales growth slows….
The agenda
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7am GMT: Tesco, Greggs, and M&S release financial results
-
7am GMT: Halifax house price index for December
-
10am GMT: Eurozone unemployment data for November
-
12.30pm GMT: Challenger US jobs cut report
-
1.30pm GMT: US weekly jobless claims
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1.30pm GMT: US trade data for October
Key events
Interestingly, M&S blames ‘reduced’ shopper numbers on the high street for the drop in sales at its fashion, home and beauty division, as well as the knock-on impact of last year’s cyber attack.
It tells shareholders:
Fashion, Home & Beauty sales decreased 2.5%, with like-for-like sales down 2.9% as online sales growth was offset by store sales decline.
Performance reflected reduced high street footfall, and the long tail impact on stock data and management following the incident earlier in the year. Stock into Sale during December was higher than last year but sell-through rates have been strong.
M&S reports record customers over Christmas
Marks & Spencer has reported a jump in food sales over the Christmas period, but its clothing, homewear and beauty division continued to be hurt by the cyber-attack last year.
M&S’s food sales rose by 6.6% in the 13 weeks to 27 December, but taking at its fashion, home & beauty operations fell 2.5% in the period.
Stuart Machin, M&S chief executive says:
“A record number of customers shopped M&S this Christmas. From the festive food shop, to picking up party outfits and gifts, millions more trusted M&S to deliver the family Christmas.
Food sales were strong and the business continues to outperform, hitting a new market share milestone in the period. We are the UK’s fastest growing grocer for families, reflecting our investment in value and core family staples, and demonstrating progress in our journey to become a shopping list retailer.
Fashion, Home & Beauty is getting back on track as we work through the tail end of recovery. Sales overall were slightly down but online performance continued to improve as digital sales recovered. We planned a bigger Sale this year, with strong sell-through already making way for our new season lines.
Tesco lifts profit forecast after ‘strong Christmas’
Here we go! Tesco’s Christmas results have just landed in the City, and it has slightly lifted its profit forecast for this year.
Chief executive Ken Murphy declares he is “delighted with the strong Christmas we delivered for our customers”.
Tesco has reported that UK sales rose by 3.2% in the six weeks to 3 January, and by 3.9% in the previous 13 weeks (its third quarter).
Sales of its Finest food range rose by 13.0%, with “particularly strong growth” of 22% in Tesco’s party food range.
Like-for-like Home & Clothing sales rose 2.1%, including clothing growth of +4.4% for the Christmas period.
And in a boost to shareholders, Tesco is now predicting that “following a strong Christmas performance” it expects to post adjusted operating profits at the upper end of the £2.9bn to £3.1bn guidance range issued in October.
Murphy says:
Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade.
UK retail football in ‘biggest annual uplift’ since 2011 in December
Retail tech firm MRI Software has reported that UK retail ended 2025 on a far stronger note than expected.
MRI’s data shows that footfall at retail sites in December rose by 1.3% year on year, the biggest annual uplift for the month since 2011.
MRI explain:
The festive boost was driven by a sharp rise in evening and night-time visits, up +5.3% after 5pm, as shoppers increasingly combined retail with dining, leisure, and socialising. High streets led annual growth (+2.0%), followed by retail parks (+1.2%) and shopping centres (+0.1%), reinforcing the role of experience-led trips in driving footfall.
Boxing Day was the standout trading day, recording its strongest performance in a decade. Footfall rose +4.4% year on year across all retail destinations, with evening visits up almost +10%, underlining how post-Christmas trading is shifting away from purely transactional shopping towards social and experiential activity.
Introduction: Was it a good Christmas for UK retailers?
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The Christmas leftovers are over, and any ill-fitting clothes or inappropriate gifts could have been returned, but we’re still learning which retailers won, or lost, over the festive season.
This morning, retail heavyweights Tesco and Marks & Spencer are about to release trading results covering the Christmas period, along with baking chain Greggs.
These results may show whether cautious consumers cut back over Christmas, or pushed the boat out, and whether the budget in late November had any impact on spending.
Data earlier this week showed that spending on promotions and deals reached its highest level since before the pandemic in December, which will have squeezed profit margins….
There could also be details on the impact of avian flu on the UK turkey flock, which forced some supermarkets to import birds from elsewhere in Europe. Last month, Marks & Spencer said all its turkey was sourced from Britain or Ireland, while the Co-op, Sainsbury’s and Tesco said their turkey was entirely British-sourced.
City analysts will also be scrutining Greggs’ results, due to concerns that the chain may be over-expanding as its sales growth slows….
The agenda
-
7am GMT: Tesco, Greggs, and M&S release financial results
-
7am GMT: Halifax house price index for December
-
10am GMT: Eurozone unemployment data for November
-
12.30pm GMT: Challenger US jobs cut report
-
1.30pm GMT: US weekly jobless claims
-
1.30pm GMT: US trade data for October