0741 GMT - U.K. retail stocks face a tougher second half as the underlying drivers of retail spending--such as wage growth and consumer spending-- are weakening, Deutsche Bank analysts say in a research note. While late 2024 and early 2025 were a period of strong wage growth, this is expected to slow, the analysts say. Meanwhile, worries about unemployment and job security are set to increase. On top of that, spending on non essentials is growing more slowly than consumers' spending power, they say as they downgrade AB Foods and Wickes Group to sell from hold. Surveys on consumer confidence remain low and things might be getting worse, the analysts add . AB Foods falls 4.1% while Wickes Group is down 6.8%.(maitane.sardon@wsj.com)

(END) Dow Jones Newswires

August 26, 2025 03:42 ET (07:42 GMT)

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