WHSmith and Inchcape lead fall in retail stocks
UK retail stocks have dropped in value this morning, led by a sell-off of WHSmith, Inchcape and AO World.
Earlier today, tax body RSM said that price rises at UK retailers as a result of the tariffs were “inevitable”.
“The tariffs announced by President Trump this week would in themselves be a blow to the retail industry, but the timing couldn’t be worse,” said Jacqui Baker, partner and head of retail at RSM UK.
Inchcape, an international automotive vehicle distribution company, saw its stock price fall more than five per cent.
AO World stock, which sells phones and electronics – but does not operate in America – dropped by 5.4 per cent.
Halfords, Currys and Kingfisher saw stock prices drop by 4.3 per cent, 4.6 per cent and 3.5 per cent respectively.
WHSmith, which sources around 90 per cent of its goods from China and operates stores in 29 American states as 43 airports, has been particularly badly affected.
Its stock price fell more than seven per cent on the morning of April 4, wiping around £100m off its market cap.
The retailer sold off its UK high street arm to Modella Capital for around £76m, instead planning to focus on its travel stores.
Around 50 per cent of WHSmith’s operation is now international. It called North America its “most exciting growth opportunity” in the retailer’s 2024 annual report.
JD Sports, which has been pushing a rapid expansion into the US and which relies on shoes produced in tariff-stricken South East Asia, saw its share price drop seven per cent on Thursday.