Questions of confidence

Consumer confidence has been one of retail’s big talking points all year - but what about retail confidence?

It’s not just Next boss Lord Wolfson who has been a Cassandra. Store chiefs, asked to crystal ball-gaze, have frequently taken a glass-half-empty perspective. Circumspection is understandable, because trading conditions remain uncertain. Yet the gloom should not be overdone. For a start, retailers’ employees are consumers themselves and the downbeat tone will influence their spending.

Second, auguries of doom can become self-fulfilling. Retail management and staff alike might become inclined to accept that underperformance is likely and therefore make less effort to avert it.

But there was confidence in spades last week from John Lewis, which reported a healthy profits rise. It is not subject to the same dynamics as public companies, but the trading landscape it faces is the same.

What came through strongly last week, despite the obligatory caution, was the extent of change at the business - evidence aplenty of internal confidence that it can ride out turbulence. Investment and innovation have been the watchwords, reflected in everything from store development to online pace-setting to the creation of value brands in tune with the times. Other retailers could usefully adopt a similar approach.

Expect more growth at Asos

Asos shareholders hoping Danish investor Bestseller might bid for the online fashion star will be disappointed. As we reveal this week, a takeover is not planned. But, while the news may prick the bubble of speculation, there is little reason for disappointment. Asos continues to grow fast. The fact that Bestseller,

an accomplished retailer in its own right, has built up a stake of 12% in just a few months is evidence that more growth can be expected.