UK retailers report a grim Christmas with weak holiday sales

Three major British retailers issued mixed trading updates after a challenging holiday period, with Associated British Foods warning on profits and Tesco reporting slower-than-expected Christmas sales.

British retailers issued mixed trading updates after the holiday season, highlighting strained consumer demand and heavy price competition. The article reports higher costs, inflation and government tax measures have weighed on household confidence. Three large retailers faced particular pressure over Christmas, prompting a range of responses from profit warnings to accelerated turnaround plans. The updates offer one of the first broad indications that the vital holiday period was tougher than many had expected. Key points: - The article mentions Associated British Foods issued a profit warning after weak Primark sales, with particular weakness in continental Europe and increased markdowns to manage stock. - The article mentions Tesco reported slower-than-expected Christmas sales while nudging its profit forecast to the higher end of its range. - The article mentions Marks & Spencer missed sales expectations in both clothing and food but kept full-year guidance unchanged and said it is accelerating its turnaround plan. - The article reports Claire's Accessories and The Original Factory Shop entered insolvency proceedings, with owner Modella Capital citing wider retail struggles and the effect of tax rises on households. - The article notes Greggs and Next also showed weaker momentum, with Greggs citing subdued food-to-go demand and Next expecting slower growth in the coming year. Summary: The trading updates point to subdued consumer spending and intensified price competition, reflecting pressure from inflation and tax changes. Undetermined at this time.