General retailers had another good week as they outperformed the All Share index, although they still lagged behind on the year. Stronger than expected BRC’s sales data lifted the mood, although the organisation noted that widespread price-cutting contributed to the rise.

The Chancellor’s pre-Budget report brought the prospect of higher costs for retailers, but will make little impact on shoppers, said Kaupthing analyst Matthew McEachran. He observed: “From a consumer standpoint, this report is unlikely to change much in the short term, with the overriding area of uncertainty and caution relating to the interest-rate cycle and house prices.”

Sainsbury’s second quarter numbers were “bang in line” with Citi’s expectations. The retailer, a bid target of Qatari fund Delta Two, is ahead of its three year sales growth target noted the broker, which rates Sainsbury’s a high-risk hold. Citi was pleased by the grocer’s decision to move to cheaper headquarters and said: “We view this as a first step towards undoing some of the strategic mistakes in the Davis years.”

Clinton Cards was the week’s biggest riser, as full-year results impressed. Adjusted operating profit almost doubled to£20.9 million and losses were slashed at the Birthdays chain. The retailer was bullish on the outlook for Christmas. House broker Numis said Clintons had made a great start to the financial year, but that it was too early to alter forecasts.

Carpetright is a buy, said Panmure Gordon. Although sales have slowed in the UK, Europe performance is strong and gross margin has improved. Founder Lord Harris wants to take the retailer private for 1,250p a share. The broker thought a “small increase” in the offer price to be possible and retained its 1,350p price target.

A strong performance from fashion retailer Ted Baker helped push the share price up. Interim profits were flat at£7 million on sales up 8.3 per cent to£66.2 million, having been affected by a decline in wholesale.

Seymour Pierce rated Ted Baker an outperform and said: “The rating does not do any justice to the growth potential of the brand and the reward that continual focus on development should bring.”

Brokers Pali International and Kaupthing noted positive comments by Ted Baker management about Debenhams, with which it recently struck a licensing deal, and speculated that the department store group’s performance might be improving.

Mosaic chief executive Derek Lovelock will stand down as chairman of Jacques Vert next month. He will be replaced by Steve Bodger, who is also a director of private equity group Alchemy.

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