Retail stocks across the board edged down over the week as the City suffered a case of nerves that Christmas trading has not fully taken off as hoped for.

Retail stocks across the board edged down over the week as the City suffered a case of nerves that Christmas trading has not fully taken off as hoped for.

A surprise imposition of supplier discounts by Debenhams was taken as a signal that life on the high street remains hard and the department store group’s share price was punished.

Peel Hunt slashed its profit forecast for Debs by 9% following news of the supplier squeeze and observed: “To us, the timing does not seem to be part of a planned supplier contribution, but rather a reaction to poor autumn/winter trading.”

Oriel fears “Christmas is unlikely to impress” as far as fashion retail is concerned and downgraded a raft of big names. The broker took the red pen to Marks & Spencer, Mothercare and Next.

Life is not easy for the big grocers either. That latest Kantar data showed all lost market share over a 12-week period while Aldi and Lidl continued to win custom, indicating that austerity shopping habits look here to stay.

On a four-week basis to December 8, Morrisons’ performance was weaker than Barclays had expected. The broker noted: “Morrison saw its total sales decline for the first month since August, which may be disappointing given the relatively easy comps from the same period last year. Worryingly, Morrison faces tougher comps in the next four-week period.”

Hold Sports Direct recommended Cantor Fitzgerald following interim results (see column). The broker said the performance was “a little light of expectations” and concluded: “The stock, which has almost doubled over the last year, is, we believe, due a period of consolidation.”

Supergroup, which also posted first-half figures, is on N+1 Singer’s hold list. The broker said: “A significant amount of infrastructure change is under way which should create a firmer and more efficient platform from which to exploit international and multichannel growth opportunities. However, there are risks associated with major process changes, with even the best operators hard-pressed not to encounter some operational disruption.”

Primark’s debut in France impressed analysts who travelled over for the occasion.

Shore Capital, a holder of parent ABF, said of the Marseille opening: “It is another statement of the self-confident and potent mix of a retail phenomenon that is sweeping across the continent of Europe, from its roots in Dublin to Oxford Street on to Düsseldorf.”