General Retail & Luxury Weekly: Retail & Luxury Look of the Week

Research evidence excerpt

General Retail & Luxury Weekly: Retail & Luxury Look of the Week

Deutsche Bank

Research

Europe Industry Date

26 June 2026

Retail General Retail &

Retail - Non Food Industry Update

Luxury Weekly

Retail & Luxury Look of the Week

Adam Cochrane

The week in one page Research Analyst

In our sector the macro debate has moved from the Middle East to UK politics and +44-20-754-17812

conversations on weather. This suggests we are back to a more "business as usual"

Benjamin Yokyong-Zoega

outlook for the retail sector. There is still some inflationary pressures to come in 4Q Research Analyst

and 1Q 2027 but it now likely to be a blip rather than persistent upward pressure +44-20-754-12338

which leaves retailers and brands in the difficult position on pricing. We expect

Do-Hyun Yoo

prices to increase but at a lower level with a bit of margin pressure at the beginning

Research Associate

of 2027 that will be recouped in 2H 2027 as input prices fall back but pricing levels

+44-20-754-19487

remain flat.

Shwetha Ramachandran

The very warm weather will likely be seeing some short term weakness in footfall Research Associate

(less so for online sales) but the seasonal weakness seen in April has likely reversed

with good sell through for summer clothing ranges and outdoor products for

Kingfisher, B&M and Action. The 20% price increase announced by Apple seems

specific to RAM pricing and this may have a short term sticker shock for electricals

retailers but availability seems to be holding up well. In Luxury the pre-close calls

have all largely seen small downgrades rather than upgrades with China not seeing

an improvement, Korea and Japan strong and concern over tourists into Europe the

main drag.

The Luxury sector was down 2-4% this week with the outperformers Pandora