Marks & Spencer rebounds as JP Morgan sees Primark hit by heatwave footfall drop

Marks and Spencer Group PLC (LSE:MKS) and Primark, owned by Associated British Foods PLC (LSE:ABF) , sit on opposite sides of a shifting UK retail divide created by recent heatwave trading, according to JP Morgan. At the heart of the research, is a clear net benefit from recent UK high temperatures, with online clothing growth expanding strongly even as physical store footfall declined. That channel split left Primark's performance soft due to its lack of a meaningful online channel, whereas Next PLC (LSE:NXT) reported strong trading and emerged as a clear beneficiary . Domestic momentum was further helped by Marks and Spencer returning to business as usual following the operational disruption caused by last year’s corporate cyber-attack. Elsewhere in Europe, solid demand for Spanish clothing contrasted with softer markets in France and Germany, where the digital platform Zalando SE missed forecasts slightly despite warm-weather channel support. On the same note, the investment bank updated apparel input costs, recording cotton prices up 32% year-on-year and polyester prices up 23% over the same timeframe. Transport costs also escalated, with sea freight rising 46% year-on-year and 110% since the Middle East conflict began, alongside a 19% increase in air freight. Complicating the broader sector outlook is softening sneaker demand, highlighted in the German update and now a key topic of debate for the sporting goods market.