Companies: BOS    MJW   

UK retail sales posted their biggest fall in 22 years – so says a survey from the Confederation of British Industry. Its research showed that 42 per cent of retailers said sales had fallen during June, against a mere 23 per cent who said sales had improved. Rising interest rates, a slowdown in the property market and increasing energy bills have all been blamed.

Nevertheless, several players continue to defy the pervading doom and gloom. Majestic Wine, the country’s biggest wine warehouse chain, steered by chief executive Tim How, racked up another vintage performance, producing its twelfth consecutive year of profits growth. Underlying profits at the AIM-listed concern sparked up by 24 per cent to £13.2 million during a period of sluggish spending.

Elsewhere, Body Shop firmed up by 4.4 per cent to 239p after the high street beauty chain continued to buck the consumer slowdown with a five per cent rise in like-for-like sales and a 23 per cent hike in first quarter turnover. Analysts attribute its success to improved management and a strong position in a niche market.

Internet retail consultancy e-retail joined AIM with a £700,000 placing priced at 3.5p, valuing the company at £2.1 million. Established by former ASOS directors Quentin Griffiths and John Morgan, the company has snared the expertise of one Jessica Luthi, apparently one of the UK’s top online affiliate marketing specialists.

Online retailing is growing ever more important, with some 21 million people thought to shop online, and UK online sales worth £14.5 billion in 2004. Intriguingly, it is estimated half the UK population shopped online last Christmas, spending more than £3 billion.