Lookers, Pendragon, Vivo: Should you buy these specialty retail stocks?

Highlights

• In March, there was a rise of 2.1% in the shop prices which is the highest yearly price growth in nearly 11 years, as per BRC.
• Shop price inflation has been rising relentlessly over the last five months.
• Brits are facing a cost-of-living crisis, with the February inflation level hitting a 30-year high of 5.6%.

The trade association for UK retailers, British Retail Consortium (BRC), has released the results of a survey, which states that the highest increase in prices by the major UK retailers has been witnessed this month in over a decade. In March, there was a rise of 2.1% in the shop prices, up from the 1.8% price increase in February, representing the highest yearly price growth since September 2011. This highest increase in prices in nearly 11 years is in sync with the predictions of UK inflation levels going up further.

Though the shop price inflation was falling over most of the past year, which resulted in high competition among retailers in the market, the prices have been soaring relentlessly over the last five months. As per a Reuters report, BRC’s chief executive Helen Dickinson has said that the inflationary situation has been aggravated further because of the impact of the Russia-Ukraine war, which has disrupted the global markets.

Brits are facing a cost-of-living crisis, with the February inflation level hitting a 30-year high of 5.6%, which may soon touch 8%. To counter the effect of rocketing inflation, the BoE has been raising.

Let’s look at 3 UK-listed specialty retail stocks that investors can keep an eye on despite soaring prices.

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Lookers plc (LON: LOOK)

Lookers plc is a leading UK-based car dealership chain. With a market cap of £374.26 million, Lookers plc’s shares were trading at GBX 95.50 at 8:07 AM (GMT +1) on 30 March 2022. The company has given its shareholders a return of 81.90% over the last one year as of 30 March 2022, while its return stands at 43.61% on a year-to-date basis.

Pendragon PLC (LON: PDG)

Pendragon plc is one of the top motor retailers in the UK. With a market cap of £392.54 million, Pendragon plc’s shares were trading at GBX 28.70, up by 2.14%, at 8:09 AM (GMT +1) on 30 March 2022. The company has given its shareholders a return of 66.67% over the last one year as of 30 March 2022, while its return stands at 23.88% on a year-to-date basis.

Vivo Energy plc (LON: VVO)

Vivo Energy plc is a UK-based downstream petroleum business. With a market cap of £1,733.18 million, Vivo Energy plc’s shares were trading at GBX 136.80 at 8:09 AM (GMT +1) on 30 March 2022. The FTSE250 company has given its shareholders a return of 42.14% over the last one year as of 30 March 2022, while its return stands at 3.55% on a year-to-date basis.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.