The FTSE 100 ticked higher on Friday as nervousness around a potential all-out conflict in Ukraine persists
AJ Bell financial analyst Danni Hewson said: “Better-than-expected retail sales suggest that, for now, the increased cost of living is not preventing Britons from hitting the shops.
“Expect that to be tested through the course of the year with retailers likely to face an increasingly difficult quandary about how much of their increased costs they can pass on to customers and how much pain to endure themselves.
“The latest numbers from the world’s largest retailer Walmart suggested that chains with the right qualities can thrive despite the difficult backdrop. It has massive buying power which can use to mitigate the impact of rising prices and its value-based proposition has proved resilient in previous uncertain periods and could even help it take market share as people trade down.
“Warehouses might seem like a pretty boring place to invest but, with this type of asset heavily in demand thanks to the explosion in e-commerce accelerated by the pandemic, the returns from it have been anything but.
“The latest results from warehouse investor Segro reflect that with an eye-catching increase in the levels of rent it charges tenants helping to boost the valuation of its assets.”