London pre-open: Stocks seen flat as investors mull retail sales

London stocks were set for a flat open on Friday as investors mulled the latest UK retail sales and consumer confidence data.

Figures released by the Office for National Statistics showed that retail sales fell by more than expected in March after the wet weather kept shoppers at home.

Retail sales volumes fell by 0.9% in March, following a downwardly-revised increase of 1.1% in February. Most analysts had been looking for a 0.5% decline.

Within that, food store sales volumes eased 0.7%, reversing February’s 0.6% increase, while non-food stores sales were down 1.3%, compared to a 2.4% rise a month previously.

Retailers reported that poor weather conditions throughout much of the month - the sixth wettest March on record since 1836 - affected sales. Department stores and clothing shops were especially affected, with sales volumes off 3.2% and 1.7% respectively over the month.

Year-on-year, retail sales volumes were down 3.1% on March 2022 and 0.7% below February 2020, pre-pandemic.

In the three months to March, sales volumes rose by 0.6% compared to the previous quarter, the first rise in this series since August 2021.

Meanwhile, a survey out earlier showed that consumer confidence strengthened in April despite soaring food prices and inflation.

GfK’s latest consumer confidence index was -30, a six-point improvement on March and the highest since February 2022, when it was -26.

Within that, all individual measures rose, with expectations for personal finances over the coming year jumping eight points to -13. Expectations for the economic situation rose six points to -34, while the major purchase index was up five points at -28.

The savings index, meanwhile, dipped two points to 19.

Joe Staton, client strategy director at GfK, said there had been "a sudden flow of optimism".

He continued: "As food and energy prices continue to rise and inflation eats into wages, the cost-of-living crisis is a painful day-to-day reality for many. But are all consumers buckling under the pressure? On the evidence of April’s figures, the answer is no.

"The brighter views on what the general economy has in store for us, with April’s six-point rise cementing a 20-point rise since January, could even be seen as the proverbial green shoots of recovery.

"The major purchase index is higher than it has been for a year and will bring much needed cheer to retailers as head into summer."

In corporate news, payments firm Network International confirmed it had received a "highly preliminary" rival 400p a share cash offer from Canada's Brookfield Asset Management.

The latest bid trumps a non-binding takeover proposal from a consortium of CVC and Francisco Partners about a cash offer of 387p a share which Network said it was minded to accept if a firm bid was made.

"The board of Network is currently evaluating the Brookfield Proposal with its financial advisers and a further statement will be made in due course. There can be no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made," the company said.

FTSE 250-listed International Public Partnerships said it had increased the committed size of its existing corporate debt facility by £100m to £350m to support the company's investment pipeline.

In addition, the company will retain a flexible 'accordion' component which would, subject to lender approval, allow for a further increase in the committed size of the facility to £400m. The maturity date of the CDF has also been amended from March 2024 to June 2025.