Intu SGS/ Intu Debentures - comment

Footfall on the UK high street has reached its highest level since pre-Covid, down only 10% in early May versus comparable week in 2019. The good weather and weak comparison has helped reduce the differential, with high street and shopping centres all-seeing improving data. However, retail sales continue to come under significant pressure, as inflation weighs on consumer confidence. Retail sales figures for the month of April are down versus the previous year, but conclusions are difficult to draw, given the strong post covid boost April 2021 experienced. But overall, retail sales growth has been declining since the start of the year, with big-ticket items such as furniture and electrical hardest hit. INTU numbers are on an upward trajectory and the momentum in the clothing segment, especially occasional wear which is benefitting from improved weather and this year’s wedding season, will continue to benefit their fashion dominated shopping centres.