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High streets hit by more than bad weather

Next was one of the high-profile losers in the Christmas high street battle.
Next was one of the high-profile losers in the Christmas high street battle.

Has anyone noticed it has been a bit dreich out these past few weeks?

Well if the first wheen of festive retail results is anything to go by, the answer must surely be no.

High street darling Next certainly didn’t see the demand it expected for its woolly jumpers and cosy coats in the run up to the Big Day as it moved to lower its full-year profits forecast following a “disappointing” Christmas.

While that gave stock watchers a jolt, the news emerging from Sports Direct sent investors running.

In fact, almost half-a-billion pounds was wiped off the retailer’s market value after it complained about the impact on sales of mild weather.

M&S also suffered. A dire festive performance from its key womenswear category heralded the beginning of the end for CEO Marc Bolland, who has spent six years trying to turn the retail juggernaut around.

High street bellwether John Lewis managed to capture more hearts and wallets and Debenhams reported record Christmas week sales, but I still sense a nervousness on the high street.

By the end of this week a truer picture will have emerged Primark owner ABF, Ted Baker and Burberry will all have reported and I fear there may be more glum than happy faces.

If that proves true, the mix of a mild festive run-up followed by atrocious conditions as the sales got under way may take the brunt of the blame.

But is the weather just an all-too-easy easy get-out for shops that have failed at first principles by not delivering what customers want?

Tens of millions are spent by the majors researching the market, but are they missing the mark?

The results so far suggest that at least something important is amiss.

It may just be a matter of time before the chill winds that have left shoppers cold start whipping into boardrooms.