General retailers took a knock-out blow over the week when their shares slid almost 6 per cent as worries persisted about the health and direction of the consumer economy.

Over the period, only three main market retailers achieved a share price uplift, so Retail Week’s risers column (left) is two companies shorter than usual.

A swathe of announcements scheduled for after Retail Week went to press – from Mothercare, Kesa, Morrisons and Halfords – were expected to provide a key reading of the sector’s health.

Kaupthing feared that the data protection scandal afflicting HM Customs & Excise would further frighten consumers. “Unless the situation is quickly resolved, we expect this problem, coupled with other factors, to weigh on spending patterns in the key trading period,” the broker warned.

But KBC Peel Hunt welcomed the 7 per cent sales rise at John Lewis last week as evidence that Christmas momentum was starting to build.

The broker put Game and Marks & Spencer on its list of likely seasonal winners, but losers may include “any retailer exposed to household-related spend, particularly those with key January sales periods”.

Panmure Gordon was bullish on Home Retail and argued: “Home Retail is far better placed to cope with the challenges of a tougher market than competitors, given upside from supply chain improvements, value credentials and growing range authority.”

DIY group Kingfisher’s shares hit their lowest point in more than a decade. The DIY giant reports third-quarter figures next Thursday and the numbers are feared to be bad. Joint house broker UBS downgraded dividend expectations, but JP Morgan said: “Operationally and in view of likely management and structural changes, Kingfisher should re-rate back towards underlying asset value in the coming months.” JP Morgan believes B&Q’s Chinese business may be partially floated and the stake in Hornbach sold.

WHSmith disclosed a 1 per cent fall in group sales in the 10 weeks to November 1, although like-for-likes at the travel arm were positive.

The retailer also detailed proposals for a new management incentive plan designed to lock in boss Kate Swann. Pali International said the scheme was “very stretching” and implied the need to deliver high street like-for-like growth. Pali reiterated its buy advice.

Ted Baker managed to ride out the fashion sector storm and report a 13.4 per cent retail sales increase for the 13 weeks to November 10 and was confident about prospects.

Buy, urged Numis, saying: “Ted Baker’s focus on its brand and emerging growth from the Middle East and Asia justifies a premium rating.”

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