The unloved UK sector with strong long-term prospects

Retail companies could exceed expectations

Several years ago, a fellow fund manager once told me: "The retail sector makes up less than 5% of the UK stockmarket but more than 20% of the noise."

Today this phrase still rings true, especially at the start of the year as investors digest results from the peak trading period over Christmas.  Activity in the sector is high, with embattled retailer Debenhams currently undergoing a restructuring while rival Sport Direct considers a takeover bid, to the provisional findings of the Competition and Markets Authority's investigation into the proposed Sainsbury and Asda merger, suggesting the deal is unlikely without a meaningful divestiture programme.  Premier's Hudson: Which companies will benefit from the hard-up consumer? Elsewhe...