There are a number of
investment opportunities available within the
retail sector, but conditions may be challenging,
one expert has claimed.
Peter McLoughlin,
fund manager at Santander
Asset Management UK, said that consumers have yet to reduce
their spending in light of higher
interest rates .
However, the retail sector generally underperforms
during the
Christmas period and
investors are urged to take this into consideration, Mr
McLoughlin stated.
As the outlook for the sector continues to be
challenging, he said that he remained
bearish on the market's prospects for the first
quarter of the new year, despite a reduced
valuation risk.
This is driven by my view that consumers are likely to
tighten their belts leading to forecast downgrades and a further
de-rating of the sector despite the recent sell off since May
2007, he remarked.
However, there remain sections within the retail market that offer
opportunities to some investors, he added.
In related
news, Richard Dodd, head of
media and campaigns at the British Retail Consortium, recently
said that some
retailers do 60 per cent of their
business between November and January.
