The Week Ahead: Trading updates are due out from the three big listed supermarket

If last week’s retail carnage is anything to go by then it could be a painful update tomorrow from department store group Debenhams

Debenhams in Oxford Street (Getty)

Trading updates are due out from the three big listed supermarkets. Morrisons, recently relegated to the FTSE 250 after a dismal stock market run when it failed to stop the sales rot, kicks off proceedings tomorrow. Broker Jefferies predicts that fourth-quarter like-for-like sales, excluding fuel, will have fallen 2.2 per cent – better than the 2.6 per cent decline in the third quarter. Analyst James Grzinic said: “Investors have failed to appreciate the strong improvements achieved by Morrisons in recent quarters in its customer offering.”

The next day Sainsbury’s, the grocer that has coped best with the rise of German discounters Aldi and Lidl, is set to issue its trading statement. But investors will be more interested in comments about its pursuit of Home Retail Group. Last week, it revealed it had a bid rejected for the Argos owner in November.

Tesco is set to release its festive update on Thursday. However, this could be overshadowed by Home Retail Group’s own trading update, given Sainsbury’s interest in the company.

If last week’s retail carnage is anything to go by – M&S, Next, Sports Direct, the list goes on – then it could be a painful update tomorrow from department store group Debenhams, whose shares have been hit by poor sales.

It could be a similar story tomorrow for online fashion retailer Boohoo.com. Panmure Gordon suggests the mild weather and heavy high-street discounting “makes the prospect of upgrades incredibly unlikely”.

A retail-heavy week also includes updates from beleaguered luxury outfit Burberry, Primark owner Associated British Foods, AO World, the online white goods retailer, and AIM-listed online fashion group Asos, all of which have been hit by the retail sell-off since the start of December.

High-street baker Greggs gets in on the action, while there is a fourth-quarter trading update from Page Group, the recruiter formerly known as Michael Page.

JD Sports could show up Sports Direct in its update on Thursday. Unlike its larger rival, which issued a shock profit warning on Friday, JD upgraded annual profit guidance last month.