|Bid||234.40 x 0|
|Ask||234.60 x 0|
|Day's range||233.20 - 237.98|
|52-week range||187.05 - 254.10|
|Beta (3Y monthly)||1.27|
|PE ratio (TTM)||17.25|
|Earnings date||2 Oct 2019|
|Forward dividend & yield||0.06 (2.46%)|
|1y target est||269.93|
The discounter has gained 618,000 more shoppers in the past year, while the biggest supermarket chains are losing customers.
* No evidence consumers building up stocks * Sainsbury's shows smallest sales decline of big four * Discounters Aldi and Lidl win market share from big four (Recasts with Kantar comments) LONDON, Sept 17 (Reuters) - There is no evidence that Britons worried about the possibility of a disorderly departure from the European Union on Oct. 31 are stockpiling essential products, market researcher Kantar said on Tuesday. "As we move closer to 31 October, it seems talk about stockpiling might be just that, because we’re not seeing any evidence of it at the moment," Kantar said. Kantar's data showed Sainsbury's recorded the smallest sales decline of Britain's big four supermarket groups in the latest 12-week period, indicating a tentative recovery after a prolonged period of underperformance.
German discount supermarket group Aldi plans to pump 1 billion pounds ($1.25 billion) into Britain, chasing market share at the expense of profit, which dropped by 26% last year as it pursued sales growth, store openings and new customers. Britain's fifth biggest supermarket, which is privately owned by Germany's Aldi Sud, signalled no let-up for its larger rivals as it reaffirmed a commitment to investing in the UK, despite a low price pledge denting its 2018 profit. Aldi UK, which trades from about 840 stores and has a grocery market share of 8.1%, said sales increased 11% in 2018 and it gained 800,000 new customers.
Britain's second-biggest supermarket, Sainsbury's, vowed on Friday to halve plastic packaging by 2025, promising to switch to alternative materials and refillable options to meet consumer demand for less waste. Having reduced plastic packaging by just 1% in 2018, Sainsbury's said a "transformational leap in thinking" was required to tackle the almost 120,000 tonnes of plastic packaging it uses a year. It said it used the most plastic in milk bottles, packaging for fruit and vegetables, and drinks.
Amazon and Morrisons have agreed to extend a partnership which already allows customers to order their shopping from the smallest of Britain's big four supermarket groups and have it delivered by the U.S. online giant. Periodically mooted as a possible bidder for Morrisons, Amazon has been slowly extending its food service in Britain, but market research firm Kantar Worldpanel estimates its market share is so far less than 1%. The new Amazon agreement was for "a number of years rather than on a rolling basis, and will be exploring new opportunities to innovate and improve the shopping experience," Bradford, northern England, based Morrisons said.
Marks & Spencer's exit from the FTSE 100 underlines how times have changed since the blue-chip index was launched in 1984, when it was dominated by British companies including household names like M&S, Cadbury and House of Fraser. Home-grown talent is increasingly absent from the FTSE, now valued at $2.4 trillion, as failure to grow domestically or make the cut internationally has seen companies disappear via mergers, demotions, de-listing or privatisation. MFI Furniture was among founding members of the index that failed to survive after privately-owned IKEA entered the UK market in the 1980s.
Brands McDonalds (MCD), Nestlé (NESN.SW), and Walmart (WMT) are championing climate action, but a network of investors said the big brand suppliers aren’t aligned with their messaging.
These two FTSE 100 (INDEXFTSE:UKX) shares could offer favourable total return versus a Cash ISA, in my opinion.
Lloyds Banking Group has agreed to buy Tesco Bank's 3.7 billion pounds ($4.54 billion) UK residential mortgage portfolio, in a move likely to consolidate its dominance of Britain's ultra-competitive market for home loans. Lloyds' subsidiary Halifax will pay a purchase price of around 3.8 billion pounds, representing a 2.5% premium on the gross book value and will be funded using existing internal resources, the lender said. Britain's biggest supermarket chain Tesco plc said in May this year its banking unit would cease mortgage lending, citing cut-throat competition that has squeezed profits for lenders across the sector.
(Bloomberg Opinion) -- At a Waitrose grocery store in Oxford, England, shoppers are scooping up frozen fruit from dispensers like pick and mix candy. They are filling old plastic takeaway containers with everything from muesli to risotto rice. Welcome to Unpacked, the new store concept from Waitrose, which has freed more than 200 items from their packaging.Environmental campaigners like Greenpeace have been demanding British supermarkets reduce their plastic footprint. But it’s trickier to strip wrappings from food than other products, such as toys, because it can go off. The packaging conundrum facing grocers only compounds another problem they’re grappling with: food waste.But they are making strides to be green, from eliminating hard-to-recycle materials, such as PVC, to enabling customers to remove and recycle wrappings before products leave the store. Some are even offering reverse vending machines to recycle plastic bottles. Tesco Plc said recently that it could no longer stock items if they had too much packaging and is working with suppliers to help them find ways to use less.It’s easier to design plastic-free packaging for products sold at room temperature. As well as dry goods, consumers can easily refill containers for household and personal care items like cleaning supplies or shampoo. Fresh food is much trickier. Meat, for example, will not last long if it isn’t wrapped to protect it from the air. Fresh fruit and vegetables are another challenge because they can be damaged during transport. Even so, Unpacked sells 160 types of loose fruit and vegetables. Seasonality presents another problem. For example, Wm Morrison Supermarkets Plc sources cucumbers from the U.K. in the summer. With the shorter supply chain, they don’t need any packaging. In cooler months, they come from Spain, so they need a thin recyclable film; Morrison makes it clear to customers that the cucumbers have their winter jackets on.One way to extend shelf lives without plastic is to grow products even nearer to the end customer. Vertical farming, which uses stacked trays under LED lights to grow different kinds of food indoors, is one option. Ocado Group Plc, the online supermarket, recently made two investments in this space, including buying 58% of Jones Food Co., Europe’s largest operating vertical farm, based in Scunthorpe, England.Jones primarily grows herbs, packing them in biodegradable and compostable materials within air that has had some of the elements removed. This tricks the plants into thinking that they haven’t been harvested, keeping them fresher for longer.Vertical farms could be built next to supermarkets or online grocery distribution centers to shorten supply chains, reduce packaging and cut down on transportation and refrigeration.Supermarkets are finding other products more difficult to make environmentally friendly. Surprisingly, one is ready meals. They contain liquids and must be kept fresh, while their packaging needs to be able to withstand cooking in both an oven and a microwave.Waitrose has spent more than five years developing a fiber-based packaging that is compostable. It has also introduced trays made from recycled plastic. These come in different colors, depending on the material they’re made from, and don’t have the uniform look that customers are used to.Indeed, while supermarkets must change their behavior to be more sustainable, so must shoppers: For example, a cucumber wrapped in plastic will last about 14 days. One without keeps for about half that time.Morrison has introduced reusable paper carrier bags, but recently began trialing plastic alternatives costing 30 pence each — a higher price than usually charged — prompting complaints from some customers.Waitrose has made sure it’s possible to do a full shop at its 25,000 square foot Unpacked store to help customers be more sustainable without disrupting their everyday lives. So far it’s working: Products without packaging are outselling those that still have it. Some 50% of customers using the refill stations for dry goods are bringing their own containers on a regular basis. All of the U.K. supermarkets are coming under pressure to be more sustainable. So far, 1.4 million people have signed Greenpeace’s petition calling on them to to ditch throwaway plastic packaging. They have more work to do. But so do Britain’s consumers.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Stephanie Baker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- China has been a graveyard for many foreign retailers, which frequently arrived with grand hopes only to pull back after years of debilitating struggle. Carrefour SA sold 80% of its operations in June after more than two decades in the country, Tesco Plc folded its business into a joint venture in 2013, and Metro AG is seeking a buyer for its Chinese unit. Costco Wholesale Corp. has more reason than most to believe it can buck the trend.It’s an inauspicious time to enter the world’s second-largest economy. Growth has slowed, and the trade war has made the environment less hospitable for overseas companies. China’s plan to set up a corporate social credit system will raise compliance costs and could put some firms out of business, the European Union Chamber of Commerce in China said Wednesday. At the same time, online shopping is increasingly taking market share from bricks-and-mortar retailers. None of that stopped Costco’s first Chinese outlet, in Shanghai, from being mobbed on its opening Tuesday.It’s probably not a flash in the pan, opening-day discounts notwithstanding. China’s consumer markets are fickle and retail is viciously competitive, with razor-thin margins. Still, Costco looks to have picked its niche carefully. The Shanghai outlet is in a suburban district, aiming to cater to car-driving shoppers willing to load up with bulk items such as 30-pack boxes of cookies or 200-fluid-ounce (6-liter) bottles of detergent. Selling in quantity helps enable the discounts that underpin Costco’s appeal.Such a model wouldn’t work in the more built-up central areas of Shanghai, where most people live in cramped apartments and take public transport. That needn’t matter to Costco, though, as long as the U.S. retailer can find enough suitable suburban markets. Costco’s outlet in Shanghai’s Minhang district has parking space for 1,200 cars, more than any other of its locations.Membership is a key element of Costco’s pitch to consumers. Being part of a fee-paying club adds an aura of exclusivity that may play well with Chinese shoppers, particularly when the Shanghai store offers high-end products such as Maine lobsters, bluefin tuna and Birkin bags. Costco was charging an introductory membership fee of 199 yuan ($28) at Tuesday’s opening, which will rise to 299 yuan.Costco has already shown that it can export its warehouse model, building successful operations in Japan, Taiwan and South Korea. Revenue from international operations more than tripled in the past 10 years.Sam’s Club, a warehouse membership chain owned by Walmart Inc. that’s been in China for more than 20 years, gives cause for optimism on Costco’s entry. Sam’s Club has pushed upmarket by adding services such private dental clinics (for a higher membership fee) and aims to increase outlets in the country to 40 in 2020, from 23 at the start of this year, company executives told the China Daily in January. Chinese consumers have become increasingly willing to pay for better services in the past one to two years, Chen Zhiyu, senior vice president of Sam's Club China, was cited as saying.Costco positions itself as a higher-end shopping destination than Sam’s Club, and has built a reputation for quality fresh food. That may be the company’s best bulwark against the encroachment of internet operators. Venture capital money has been pouring into online grocers, as my colleague Shuli Ren observed last month. Even so, most shoppers in China still like to touch or at least see their vegetables with their own eyes. Sam's Club drove a 4.7% surge in Walmart’s China sales in its most recent quarter, thanks largely to fresh-food sales.Costco has had a five-year online partnership with Alibaba Group Holding Ltd. in China to market its flagship private label Kirkland. That’s helped to build the company’s name in China ahead of its entry to physical retail. A strategy that integrates the two may be critical to flourish in China’s demanding retail landscape. “In many parts of China, same-day delivery really means same-hour delivery,” as Walmart observed in its 2019 annual report. The Sam’s Club owner has a partnership with Chinese e-commerce giant JD.com Inc.Shares of Costco rose 5% on Tuesday, the most since March. That may overstate the potential from a Chinese expansion that’s likely to be modest and incremental, at least at first. But if Costco can thrive in China’s current conditions, it should be there to stay. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Royston Wild explains why Lloyds Banking Group plc (LON: LLOY) and Tesco plc (LON: TSCO) are two FTSE 100 (INDEXFTSE: UKX) shares that could cost you a fortune next year.
'We can’t overlook the fact that for too long, packaging on consumer goods has been excessive,' Tesco CEO Dave Lewis said.
I think these two FTSE 100 (INDEXFTSE:UKX) stocks offer appealing risk/reward ratios at the present time.
Asda, the British supermarket arm of U.S. retail giant Walmart, said uncertainty surrounding Brexit was affecting its customers as it eked out a small rise in second-quarter sales, helped by a later Easter this year. Prime Minister Boris Johnson has promised to take Britain out of the European Union by Oct. 31 with or without a deal, setting the scene for a showdown in parliament where lawmakers are opposed to a divorce without a transition agreement. "Our results for the quarter reflect the challenges faced by shoppers in this market as the uncertainty surrounding Brexit continues to loom," Walmart chief executive Doug McMillon said on Thursday.
London's FTSE 100 tumbled to a six-month low as China's warning to counter the latest U.S. tariffs fanned trade tensions, while the more domestically focused midcap index fared better in comparison, amid investors' hopes of averting a no-deal Brexit. The FTSE 100 index shed 1.1%, lagging its European peers, with losses led by oil majors and financial stocks.
UK shares bagged gains for the day, reversing earlier losses, after the United States said it would delay tariffs on some Chinese products, offering respite to investors who had been gripped with fears over the trade dispute. The FTSE 100, which had started off the session in the red amid Hong Kong protests and the U.S.-China trade worries, ended 0.3% higher. The midcap index rose 0.5%.
How long will Tesco plc's (LON: TSCO) share price continue to fall? Quite a while, Royston Wild says, so he reckons this FTSE 100 (INDEXFTSE: UKX) stock's a better buy today.
Britain will experience shortages of some fresh foods for weeks or even months if a disorderly no-deal Brexit leaves perishable produce rotting in lorries at ports, Britain's food and drink lobby warned on Wednesday. Retailers such as Tesco have warned that leaving the European Union on Oct. 31 without a transition deal would be problematic as so much fresh produce is imported and warehouses are stocked full ahead of Christmas.