Sector News

Since the collapse of the Sainsbury’s Asda merger, investors have been cautiously looking at Sainsbury’s for clarity on their new strategy and whether this includes current Chief Executive Mike Coupe, the architect of the proposed merger or a new successor. In September the share price rose 12% as Coupe committed himself to continuing to lead … Read more

Despite the collapse of the proposed merger with Sainsbury’s, investors had much to cheer with profits, sales and like for likes all increasing in the year to December 2018. Operating profit increased 9% (declined by 13% in 2017 Full year revenue increased by 2% Like for like sales were up 1.6% Pre tax profit was … Read more

At a recent capital markets day Tesco gave an insight into one way they are seeking to improve competitiveness against online retailers such as Amazon. The grocer demonstrated technology that would allow customers to pick produce from shelves in stores and walk out without having to scan them or pay at a till. A series … Read more

With the Tesco share price up c20% this year, there was more good news for investors today with Moody’s Investors Service announcing that it has upgraded the Tesco plc credit rating to Baa3; stable outlook. Moody’s senior credit officer David Beadle said, “today’s upgrade reflects the improvement in Tesco’s operating profit over the last few years … Read more

With previous online distribution partner Ocado striking a new £1.5bn deal with rival operator Marks and Spencer, Waitrose has announced its new online strategy. The grocer has partnered with Today Development Partners (TDP), an ecommerce platform founded by ex Google and Ocado alumni Waitrose is intending to develop three new customer fulfilment centres over the … Read more

Despite much of the focus on the failed merger, Sainsbury’s delivers an impressive set of results addressing many of the key concerns that have led to the negative sentiment and exceeding expectations.  Cost efficiencies are finally rewarding investors – 8% per cent hike in profits and dividend whilst strong cash flows is strengthening the balance … Read more

The grocery market enjoyed a record £2.5bn spend over the Easter period as warm weather and the late Easter bank holiday boosted sales. Sainsbury’s retook second place by market share having been surpassed in March but saw sales decrease 1.2%. Tesco maintained its position as market leader with more than three quarter of British households … Read more

CMA block  merger  > Extensive competition concerns Supermarkets: Over 500 stores overlap –  c.50% of the supermarket portfolio Disposals unlikely to address concerns – neither suitable purchaser nor a package of assets could be found Discounters not an effective alternative to one-stop supermarkets Online: Only three operators (Tesco, Sainsbury’s, Asda) has national presence via store pick … Read more

SUPR view – another set of great results for Tesco as life under CEO Dave Lewis continues to bare fruit Cost cutting and improving margins have boosted profitability LFL sales up 2.9% Continued strong performance from Booker (LFL+11%) Online grocery sales grew by 2.8% YOY Profit before tax up 28.8% to £1.6bn Group operating margin … Read more