UK retail stocks rally behind government’s household support package


LONDON, May 26 (Reuters) – Shares of British retailers rallied on Thursday on hopes that a new 15 billion pound ($19 billion) support package for households struggling to cope with rising energy bills will encourage them to keep spending.

Britain has announced a one-off 25% tax on the profits of oil and gas producers alongside the household support package. Read more

This sparked a rally in retail stocks which have been battered in recent months by the feared fallout from the cost of living crisis.

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Shares of Ocado (OCDO.L) rose 11.2% at 1339 GMT, while Marks & Spencer (MKS.L) rose 8.5%, B&M (BMEB.L) added 7.4 %, Next (NXT.L) rose 6.6. % and the owner of Primark Associated British Foods (ABF.L) had risen 3.9%.

UK consumers still face the greatest pressure on disposable income since at least the 1950s, with inflation at 9% and set to rise further.

On Wednesday, M&S said Britons would not feel the full force of the cost of living crisis until the fall. Despite Thursday’s rally, M&S shares are still down 35% this year.

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Reporting by James Davey; Editing by Hugh Lawson

Our standards: The Thomson Reuters Trust Principles.


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