Inflation Surge Triggers Reassessments of Top UK Consumer Stocks

UK inflation has surged to 2.9% due to higher household energy tariffs and softer wage growth, causing investors to reassess their portfolio.

Three UK consumer stocks that may be worth watching are Greggs (LSE:GRG), Vertu Motors (AIM:VTU), and Wickes Group (LSE:WIX).

Greggs, a pure UK food on the go chain with £1.95b in revenue from company-managed shops, has seen its sales and earnings rise despite higher inflation. However, its business is concentrated in the UK and relies heavily on physical locations.

Vertu Motors, a UK-focused auto retailer with £4.83b in revenue from retail gasoline and auto dealer activity, is tightly linked to UK consumer spending and credit conditions. While it has worked hard on cost control, it carries thin profit margins and relies on external funding.