E-COMMERCE, FASHION | Staff Reporter, Europe

Weekly News Wrap: Holiday spending hinges on the rich; Polish e-commerce Allegro plans $266m IPO

And H&M reports stronger-than-expected profits.

From CNBC:

The growth rate for retail sales this holiday season is forecast to be less robust than in recent years, according to projections released Tuesday by the consulting firm Deloitte.

But just how muted that growth is going to be will hinge on how much splurging high-income consumers do, and how much belt-tightening takes place throughout lower-income households.

“This year, one of two holiday scenarios will play out,” said Rod Sides, a vice chairman at Deloitte and its retail and distribution sector leader. “History would tell us ... we are going to see groups of consumers recover differently.”

According to Deloitte, holiday retail sales this year are forecast to rise between 1% and 1.5%, amounting to between $1.147t and $1.152t during the November-to-January time frame.

Read more here.

From Bloomberg:

Polish e-commerce platform Allegro plans to raise about $266m (1 billion zloty) in an initial public offering in Warsaw, seeking to take advantage of post-lockdown interest in businesses intersecting technology and retail.

The offering may make Allegro the biggest company on the Warsaw Stock Exchange.

“It’s a perfect moment for the offering, with high interest in e-commerce and technology stocks,” said Lukasz Wachelko, an analyst at Wood&Co. brokerage. “Investors need now to evaluate the pros and cons of Allegro’s presence in only one country, and to assess how much it may grow further.”

Read more here.

From Bloomberg:

H&M reported a return to profit that surged far past analysts’ expectations, a bullish sign for purveyors of fast fashion.

The Swedish clothing retailer estimated pretax earnings reached about $230m (2 billion kroner) in the three months through August, based on preliminary results. That’s eight times the average analyst estimate and almost double the highest forecast.

Low-price fashion retailers such as Primark have been gaining market share as consumers return to shops in search of casual wear for working from home. H&M attributed the earnings to well-received collections and fewer markdowns than it expected.

Read more here.

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