The catalogue mail order business

Retail shares have performed fairly creditably against the market. Best of all are food retailing shares. While the FT index at the beginning of October was some 11% from its peak this year, food retail shares, according to the actuaries index, were registering only a fractional fall, from 149, their peak of 143. Stores fared only marginally better than the FT index—falling by around 10%, but within that, the mail order companies which we discuss below have been notably bad performers. Grattan, Empire and Frecmans together show a fall of nearly 18% from their 1975 peak. But there are wide variations in the sector—Marks & Spencer were down by around 15% at the beginning of October, while British Home Stores for instance had dropped by only 8%—showing some strength against the market. No clear picture has emerged of spending patterns this year. The pre‐VAT boom appeared to continue on past the Chancellor's deadline, with only a hiccup, but sales of textile‐oriented goods understandably did badly in the hot summer. But although volume is certain, most retailers, and particularly the badly hit food operators, will be able to restore their margins this year.