Retailers weighed on the market after Next posted a 6% fall in first-half underlying sales, reflecting the gloomy CBI survey yesterday.
While shares in some retailers were given a boost yesterday by a strong US consumer confidence number, many of the UK's big high street chains tumbled this morning after the Next announcement highlighted that British consumers are pulling back.
Shares in Next were down by 2.9%, at 976p, while J Sainsbury took a 1.5% hit to 320.75p.
Marks & Spencer also took a place in the morning's top losers, shedding 1.4% to 259p.
WM Morrison shares slipped as well.
"Today's statement [from Next] again underlines the retrenchment which UK consumers are suffering, further compounded by the erratic weather," says Keith Bowman at Hargreaves Lansdown Stockbrokers.
"Retailing is an extremely difficult place to be, with the clothing arena looking particularly vulnerable to consumer 'belt tightening'."
