Shares in Hammerson plunged after inflation warnings sparked fresh fears over a slump in footfall.
The owner of the Bullring shopping centre in Birmingham and Brent Cross in London took a hit during the pandemic as shoppers were forced to stay indoors.
Now its post-pandemic recovery could be under threat as the cost of living crisis sees consumers pull back on spending.
Shares in Hammerson plunged after inflation warnings sparked fresh fears over a slump in footfall
Hammerson, which also owns shopping centres in Reading and Southampton, has faced downbeat forecasts from analysts concerned as to whether the economic turmoil will hinder its restructuring progress.
The share price fall comes only days after it was disclosed that Amigo Loans founder James Benamor had taken his stake in Hammerson, through his Richmond Group, to 3.03 per cent.
But after a forecast said inflation could peak at over 18 per cent, Hargreaves Lansdown analyst Susannah Streeter warned more empty outlets could surface in British and European shopping centres.
She said: ‘Already shoppers are struggling amid a whirlwind of price increases and anxiety is rising about their resilience in the months to come.
‘With so many consumers tightening their belts, it’s feared that footfall will drop off again at Hammerson-owned retail sites.’
Meanwhile, Liberum analyst Chris Spearing said Hammerson shares are likely to have been affected by the crisis at Cineworld (down 21.4 per cent, or 0.87p, to 3.2p).
There was also a board change at Wizz Air where its chief financial officer stepped down ‘to pursue opportunities outside of the company’
With the world’s second-largest cinema chain mulling over whether to file for bankruptcy in the US, he said: ‘Shopping centres have come under pressure due to consumer slowdown. One of the major concerns will be with trading among cinema and retail operators.’
Hammerson shares tumbled 14.1 per cent, or 3.7p, to 22.53p on its worst day since April 2020.The FTSE100 was down 0.2 per cent, or 16.58 points, to 7533.79 and the FTSE250 dropped 2 per cent, judi online terpercaya or 388.45 points, to 19,499.34. Fears of red-hot inflation continue to weigh on London’s markets.