Carburton Street, London -- Those investors with the foresight to invest in the general retail sector this time last year should be smiling. Four of the top seven FTSE 350 performers of the year come this particular sector. Furthermore, only five of the FTSE 350's twenty retailers failed to make any share price headway over the past twelve months.
Arcadia (LSE: AG.) was the biggest winner amongst the sector, and indeed, amongst all the FTSE 350 companies during the year. The clothing group's shares have soared 220% since New Year's Day. Fresh management and the disposal of certain stores have helped stir a recovery at the once financially troubled group. The return to underlying profitability and ongoing bids talks capped off a great year for Arcadia shareholders.
Reporting like-for-like sales growth of 15% in January and 31% in April set Electronics Boutique (LSE: EBQ) up for solid year. The computer games specialist capitalised on the Playstation 2 console during 2001, with increasing shareholder excitement also revolving around other new platforms. After giving shareholders a 166% return in 2001, a dreadful profit warning in late 1999 (causing the shares to lose about 80% of their value in a matter of weeks) now looks a distant memory.
There was nothing flat about MFI (LSE: MFI) this year either. New manufacturing processes, new store formats and new kitchens all helped the furniture group to report rising profits for the first time in three years. With the shares registering a 97% gain on the year, those old jokes about wobbly wardrobes are thin on the ground these days.
And what about Marks & Spencer (LSE: MKS)? Stock market pariah a year ago, M&S is the best performing share in the FTSE 100 in these past twelve months. Up 90% since the start of the year, hiring George Davies, the closure of overseas outlets, the sale and leaseback of the group's properties and the promise of a special dividend nest year have all warmed shareholders' hearts.
What does this tell investors about 2002? Well, as those four retailers show, the biggest winners of next year will probably be corporate basket cases recovering from past woes. And importantly, next year's biggest winners, as those four retailers were last year, will be largely written off as lost causes at the moment. For fans of the much unloved and troubled IT and telecom sectors, the share price gains of those former High Street no-hopers offers some cheer for 2002.
More: Investing Lessons From M&S | General Retail discussion board
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