Sector News

A clear commitment to the in-store pick model with 10,000 new in-store pickers and 3,000 new delivery drivers

It was very interesting to read Bain & Company’s research in the Financial Times, The article is exactly on message but some context around the Bain numbers is needed.

Morrisons online delivery slots more than doubled – with demand being fulfilled through in store pick

“There has been a fundamental reassessment of the importance of grocery retailers,” this is the view of Justin King, the former Chief Executive of Sainsbury’s and special adviser to Supermarket Income REIT, on the current state of the grocery sector during the current Coronavirus lock-down.

Sales up 0.4% on a like for like basis

A record 385,000 customers ordered groceries online in the week before Christmas whilst Argos click and collect services grew nearly 16%.

Much of this growth is likely to have been driven by new store openings, with like for like sales figures not provided by the grocer.

Updated: Jan 7, 2019 KF anticipate yields of 4.25% on index linked grocery stores ​ SUPR average yield is 4.9%, therefore prediction suggests 13% upside to current valuations That could be supported by Tesco returning to investment grade (Fitch up-graded Tesco to BBB- in October) and Sainsbury’s move to investment grade post merger with ASDA. Tesco’s strong … Read more

Sainbury’s interim results revealed that the failed Asda merger had been a distraction to the core business with profits significantly down (albeit appearing worse due to one off costs). Despite this it was positive to see a renewed focus on improving margins and investment in core supermarkets. Key takeways: Sainsbury’s profits down but heavily impacted … Read more