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Dec. 10, 2020, 12:30 p.m. EST

Retail survivors surge on the FTSE 100 after stores meltdown

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By Jack Denton

The likely collapse of two of Britain’s major retailers, devastated by the economic impact of coronavirus, is boosting the companies that could find themselves on the list of high street survivors when the pandemic is over.

A number of FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.59% retailers marched higher in London trading on Tuesday after news of the demise of Debenhams and Arcadia Group. Marks & Spencer /zigman2/quotes/206225481/delayed UK:MKS +0.85% climbed 5.5%, JD Sports /zigman2/quotes/207007202/delayed UK:JD +1.78% rose 4.2%, and Next /zigman2/quotes/200704121/delayed UK:NXT +1.54% ticked up 2.9%. Frasers Group /zigman2/quotes/208345235/delayed UK:FRAS +2.44% , listed on the FTSE 250, rose 4.3%.

Thousands of employees’ jobs are on the line and more than 500 shops are set to close if Debenhams and Arcadia both fail . Debenhams has been in administration since April, but as Arcadia also went into administration late on Monday, a potential buyer pulled out of deal talks.

Arcadia, the retail empire owned by Philip Green that includes brands Topshop and Topman, last week failed to secure £30 million ($40 million) in funding it needed to cover debts.

“The retail house of cards on the high street is in danger of collapse with both Debenhams and Arcadia group now looking increasingly likely to face liquidation,” said Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown.

“A nightmare before Christmas is unfolding for 25,000 employees who will lose their jobs if buyers are not found for parts of both businesses,” Streeter said. “Arcadia Group’s collapse has set off a domino effect, with JD Sports pulling out of talks to buy Debenhams. Arcadia is the biggest concession operator in Debenhams and so its collapse into administration clearly put the frighteners on management.”

The FTSE 100, the index of London’s top stocks by market capitalization, rose 1.89%, with 88 of its 100 constituent companies gaining in Tuesday trading.

News from China also boosted London stocks. A private-sector survey showed that Chinese factory activity accelerated at the fastest pace in a decade in November, boosting FTSE 100 miners, which are sensitive to global trade and China’s economy. Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +1.01% was 1.53% higher while Anglo American /zigman2/quotes/201381512/delayed UK:AAL +2.30% climbed 5.2%.

The London-listed oil supermajors, BP /zigman2/quotes/202286639/delayed UK:BP +1.68% and Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA +0.86% , were also among the gainers, as oil prices rose after the OPEC+ group of petroleum-producing countries postponed talks on output until later in the week, according to reports. BP was 2.24% higher while Shell rose 2.6%.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,340.43
+43.28 +0.59%
Volume: 85,693
Jan. 25, 2022 8:49a
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/zigman2/quotes/206225481/delayed
UK : U.K.: London
214.60 p
+1.80 +0.85%
Volume: 420,443
Jan. 25, 2022 8:48a
P/E Ratio
168.98
Dividend Yield
0.00%
Market Cap
£4.29 billion
Rev. per Employee
£146,170
loading...
/zigman2/quotes/207007202/delayed
UK : U.K.: London
186.15 p
+3.25 +1.78%
Volume: 568,386
Jan. 25, 2022 8:48a
P/E Ratio
22.48
Dividend Yield
0.15%
Market Cap
£9.94 billion
Rev. per Employee
£122,978
loading...
/zigman2/quotes/200704121/delayed
UK : U.K.: London
7,374.00 p
+112.00 +1.54%
Volume: 20,125
Jan. 25, 2022 8:48a
P/E Ratio
16.22
Dividend Yield
0.00%
Market Cap
£9.58 billion
Rev. per Employee
£171,190
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/zigman2/quotes/208345235/delayed
UK : U.K.: London
£ 735.50
+17.50 +2.44%
Volume: 62,730
Jan. 25, 2022 8:48a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£3.52 billion
Rev. per Employee
N/A
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
5,317.00 p
+53.00 +1.01%
Volume: 177,153
Jan. 25, 2022 8:48a
P/E Ratio
6.27
Dividend Yield
11.77%
Market Cap
£89.48 billion
Rev. per Employee
£909,114
loading...
/zigman2/quotes/201381512/delayed
UK : U.K.: London
3,295.00 p
+74.00 +2.30%
Volume: 239,153
Jan. 25, 2022 8:48a
P/E Ratio
8.31
Dividend Yield
5.33%
Market Cap
£45.96 billion
Rev. per Employee
£313,449
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
370.20 p
+6.10 +1.68%
Volume: 6.72M
Jan. 25, 2022 8:49a
P/E Ratio
15.80
Dividend Yield
3.12%
Market Cap
£74.96 billion
Rev. per Employee
£1.75M
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,762.20
+15.00 +0.86%
Volume: 655,044
Jan. 25, 2022 8:49a
P/E Ratio
43.55
Dividend Yield
0.04%
Market Cap
£138.12 billion
Rev. per Employee
£1.88M
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