David Wright [CC BY-SA 2.0] via Wikimedia Commons
This morning, the shares in two of the largest companies in the United Kingdom dropped by over 40 percent, after they announced disappointing trading updates.
Carpetright dropped by 44.1 percent to 90p in early trading, while shares of Dignity lost 51.3 percent, dropping to 933.5p.
Meanwhile, retailer Bonmarche also plunged by 24 percent to 96.1p in early trading.
The drops came after profit warnings were issued by all three companies. While figures out from Bonmarche and Carpetright suggested that trading over the Christmas period and just afterwards had been quite disappointing, Dignity, a funeral services provider, warned that a price war in its sector would require it to reduce the price of the most basic package of the company in order to maintain its market share.
Nick Bubb, a retail analyst, stated: “Well, it seems a bit late in the month for shocks and profit warnings, but Dignity and that serial offender Carpetright have stepped up to the plate today and Bonmarche hasn’t exactly calmed investor nerves with its dismal trading update.”
All eyes were on the Office for National Statistics later this morning, whose figures for retail sales for December are anticipated to be down by one percent.
However, Michael Van Dulken of Accendo Markets suggested that the figure may be increased by strong trading on cold weather and Black Friday.
“Any major deviation from consensus could impact inflation expectations and thus GBP, with a knock-on for the FTSE100,” said Van Dulken.