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☆ Britain's M&S the latest supermarket to cut prices
▼ + stars: | 2023-06-19 | by ( James Davey | ) www.reuters.com time to read: +2 min

SummarySummary Companies M&S cuts prices of 70 products, holds prices of 150Morrisons cuts prices of 47 productsMoves follow other reductions across sectorBank of England keeping close eye on food inflationLONDON, June 19 (Reuters) - Marks & Spencer (MKS.L) on Monday became the latest supermarket group in Britain to cut food prices, adding to signs that a surge in inflation is set to abate. M&S cut the price of 70 staple products, such as beef mince, Greek style yoghurt, salmon fillets, chickpeas and tortilla wraps, by between 3% and 25%. Also on Monday, Morrisons, Britain's fifth largest supermarket group, said it was cutting the prices of 47 products by an average of over 25%. On Friday, market leader Tesco (TSCO.L), said Britain's food inflation has peaked. EXPLAINER-Why is UK food inflation so stubbornly high?

Persons: Spencer, Rishi Sunak's, Kantar, James Davey, Kylie MacLellan, Susan Fenton Organizations: Bank of England, Morrisons, Tesco, Asda, Waitrose, Thomson Locations: Britain

☆ British supermarket Morrisons cuts prices of nearly 50 products
▼ + stars: | 2023-06-18 | by ( ) www.reuters.com time to read: +1 min

LONDON, June 19 (Reuters) - British supermarket Morrisons said on Monday it was cutting the prices of 47 products by an average of over 25%, in another sign that a surge in inflation might be set to abate. Morrisons, Britain's fifth largest supermarket group, said products subject to the latest price cuts included beef mince, ham, tomatoes, spinach and wholemeal pittas. On Friday, market leader Tesco (TSCO.L), said Britain's food inflation has peaked. 2 Sainsbury's (SBRY.L) reduced the price of toilet paper, and upmarket grocer Waitrose reduced the price of over 200 products. EXPLAINER-Why is UK food inflation so stubbornly high?

Persons: Rishi Sunak's, Kantar, James Davey, Alistair Bell Organizations: British, Morrisons, Bank of England, Tesco, Asda, Waitrose, Thomson

"We do believe that we're past the peak inflation," CEO Ken Murphy told reporters. Prime Minister Rishi Sunak's key economic pledge to halve inflation in 2023 has been undermined by persistent high food inflation, which was running at over 19% in April, according to the most recent official data. Murphy warned though that while some commodity prices were coming down, higher labour costs which are feeding into inflation are likely to stick. Tesco has said it expects prices to rise in 2023 but with the rate of inflation declining through the year. Reporting by James Davey and Sarah Young; editing by Kate Holton and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

Persons: Ken Murphy, Rishi Sunak's, Murphy, James Davey, Sarah Young, Kate Holton, Jason Neely Organizations: Tesco, Britain's, Aldi, Thomson

☆ Explainer: Why is UK food inflation so stubbornly high?
▼ + stars: | 2023-06-16 | by ( James Davey | ) www.reuters.com time to read: +4 min

While market leader Tesco (TSCO.L) said on Friday there were "encouraging early signs" that food inflation was starting to ease across the market, it remains stubbornly high, running at over 19% in April, according to the most recent official data. Below are possible reasons why:NOT ALL COMMODITY PRICES ARE FALLINGSome global commodity prices have fallen enabling supermarkets to pass on reductions in areas such as milk, bread, butter, pasta and oils. Generally speaking, food retailers and their suppliers operate with long-term contracts. Having eventually secured better prices, suppliers are reluctant to give up those hard won gains. Some politicians and trade unions have raised concerns about profiteering by food retailers, saying they have kept prices high despite falls in commodity, energy and shipping costs.

Persons: Andrew Bailey, reassurances, Ken Murphy, Andrew Opie, Tesco's Murphy, James Davey, David Evans Organizations: Bank of England, Tesco, Food and Agriculture Organization, United Nations, British Retail Consortium, THE, Reuters, Brexit, London School of Economics, Supermarkets, Markets Authority, Thomson Locations: Britain, China, Japan, BREXIT, London, Brussels

☆ Morning Bid: The UK consumer is feeling the heat
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Vidya RanganathanIt's not just the heatwave. UK consumers are paying through their noses for fish and chips too, and Friday brings the next quarterly survey of their views on inflation and rates. As Britain contends with one of the highest inflation rates among major advanced economies, the BOE seems set to hike rates a lot more. The stock has soared 17% this year, but pared some gains as grocers across Europe cap some prices. St. Louis Federal Reserve Bank President Bullard speaks in Oslo, NorwayEarnings/updates: Tesco (TSCO.L)Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

Persons: Vidya Ranganathan It's, BOE, Bullard, Sam Holmes Organizations: Bank of England, Reuters, Tesco, Asda, June University of Michigan, Louis Federal Reserve Bank, Thomson Locations: Vidya, gilts, Europe, Brussels, Italy, Oslo, Norway

☆ UK supermarket Asda freezes prices of 500 products
▼ + stars: | 2023-06-13 | by ( James Davey | ) www.reuters.com time to read: +2 min

Prime Minister Rishi Sunak has set a 2023 target to halve overall inflation but the goal has been undermined as inflation has remained stubbornly high, particularly food inflation. Overall UK consumer price inflation ran at 8.7% in April, the most recent official data showed, while food and drink inflation was 19.1%, just below a 46-year high. Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year. Last week the French government secured a pledge from 75 top food companies to cut prices on hundreds of products. Last month, British finance minister Jeremy Hunt met food manufacturers to raise concerns about the surge in food prices, but no formal price controls were proposed.

Persons: cornflakes, Rishi Sunak, Clive Black, Jeremy Hunt, Kantar, James Davey, Sarah Young, Mark Potter Organizations: Grocers, Asda, Tesco, Foods, Waitrose, Shore Capital, Thomson

☆ Tesco chair Allan to step down after inappropriate behaviour claims
▼ + stars: | 2023-05-19 | by ( James Davey | ) www.reuters.com time to read: +2 min

However, prior to Friday's update from Tesco, Allan was due to seek re-election at the June 16 annual general meeting (AGM). Tesco said that pending the appointment of a new chairman, senior independent director Byron Grote will become interim chair and will chair the AGM. Earlier this month, the Guardian newspaper reported that Allan was facing claims of inappropriate behaviour from four women. Three of these allegations are vigorously denied by Allan, and for the other Allan unreservedly apologised for a comment he made, Tesco said. "While we have received no complaints about John's conduct and made no findings of wrongdoing, these allegations risk becoming a distraction to Tesco," Grote said.

"Because of higher prices, people are buying smaller amounts of groceries overall and may have become more careful not to waste food." "Despite all of that, (there are) 8% to 12% missing items on shelves," he said. "This has created a major, major issue around out-of-stock" in most of the 16 Middle Eastern countries where the company operates, he said. Laurent Thoumine, Accenture's Europe lead for retail, said supermarkets in Britain, France, Germany, Italy and Spain have had the worst stock issues. Products that are scarce in some stores include ketchup, pasta, chocolate, tea, potato chips, toothpaste and pet food, according to Nielsen IQ's Data Impact.

☆ Britain's Sainsbury's expects to beat market forecasts this year
▼ + stars: | 2023-04-27 | by ( James Davey | ) www.reuters.com time to read: +2 min

It said on Thursday underlying pretax profit was 690 million pounds ($861 million) in the year to March 4, at the top end of guidance but down from the 730 million pounds made in 2021-22. For the 2023-24 year Sainsbury's forecast profit between 640 and 700 million pounds, ahead of analysts' average forecast of 631 million pounds. Earlier this month, market leader Tesco (TSCO.L) reported a 6.3% fall in annual profit and forecast a flat outcome for 2023-24. Sainsbury's spent over 560 million pounds over the two years to March 2023, funded by cost savings, to keep a lid on prices, taking a hit to profit. Its 2022-23 statutory pretax profit fell to 327 million pounds from 854 million pounds, impacted by non-cash asset impairments.

☆ Big Tech earnings, crucial inflation call — here comes the biggest week of earnings season
▼ + stars: | 2023-04-22 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

Stocks stuck to a holding pattern this week as investors brace for an incoming wave of Big Tech earnings and the Fed's favorite inflation reading. Earnings reports have generally been better than expected so far this first quarter. Humana (HUM) reports before the bell Wednesday; Meta Platforms and Pioneer Natural Resources (PXD) report after the bell Wednesday. ET: Personal Spending & Income (includes PCE Price Index) Club trades this week Just one trade: We added 150 shares of Coterra Energy (CTRA) on Wednesday. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

[1/2] A Confederation of British Industry (CBI) logo is seen during their annual conference in London, Britain November 9, 2015. "While the CBI was not previously aware of the most serious allegations, it is vital that they are thoroughly investigated now and we are liaising closely with the police," CBI President Brian McBride said. Virgin Media O2 criticised how the CBI had dealt with the allegations. Aviva (AV.L) and two other insurers, Phoenix Group and Zurich Insurance Group (ZURN.S), also quit on Friday along with asset manager Schroders. Accountancy firm PWC suspended activity with the CBI, as has telecoms company BT Group, while bank Santander said it was reviewing its membership.

☆ Lidl wins trademark lawsuit against Tesco over discount scheme logo
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Molly DarlingtonLONDON, April 19 (Reuters) - German discount supermarket Lidl on Wednesday won a trademark lawsuit against Britain's biggest retailer Tesco (TSCO.L) at London's High Court over the use of a yellow circle on a square blue background. Lidl sued Tesco in 2020 shortly after Tesco adopted a yellow circle against a blue background to promote its "Clubcard Prices" discount scheme. However, the judge rejected Lidl's argument that Tesco had "the deliberate subjective intention of riding on Lidl's coat tails". A Lidl spokesperson said in a statement: "We are pleased that the court has agreed with us and that it will now order Tesco to stop using the Clubcard logo." Tesco said it intends to appeal against the ruling, which a spokesperson described as being "just about the colour and shape of the Clubcard Prices logo".

☆ Take Five: How bad is it?
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +5 min

China and Britain release key economic data and officials from the Group of Seven nations talk climate goals. 1/ EARNINGS RECESSIONU.S. earnings season goes up a gear and the outlook is gloomy due to the regional banking crisis and the most aggressive monetary policy tightening in decades. Analysts expect Q1 S&P 500 earnings to fall 5.2% from the year-ago period, Refinitiv I/B/E/S data as of April 7 showed. In a sign of which way the authorities want lending rates to head, smaller regional banks have already cut deposit rates. China GDP vs 1-year MLF rate4/ NO ALARMS, NO SURPRISESIt's a big week for UK data, with February jobs figures on Tuesday and March inflation numbers Wednesday.

☆ Morning Bid: Euro(pe) is on a roll
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Tom WestbrookThe euro emerged as the clearest winner of slowing U.S. inflation and a watchful Fed. The common currency climbed 0.7% on Wednesday and was still going at $1.10 in the Asian morning. It is up seven weeks in a row - the longest winning streak since the latter stages of 2020 when the dollar was falling and global markets were in a stimulus-soaked euphoria. The thinking goes that inflation will keep Europe's central bankers more hawkish than their U.S. counterparts, although perhaps not by much. Earnings this week could test the dollar's downtrend as markets look for signals on consumer behaviour and signs of tightening credit.

The commodity-heavy FTSE 100 (.FTSE) edged 0.1% lower, while the mid-cap FTSE 250 (.FTMC) was flat as of 0814 GMT. "Gains in homebuilders is being counteracted by ex-dividend moves today," said Chris Beauchamp, chief market analyst at IG Group. Even as concerns over a potential U.S. recession have weighed on investor sentiment, defensive stocks such as pharmaceuticals as well as commodity-linked stocks have kept FTSE 100 afloat recently. Shares of Lloyds Group (LLOY.L), Unite Group (UTG.L) and Persimmon (PSN.L) among others were down between 1.7%-3% as the stocks traded ex-dividend. Reporting by Shristi Achar A in Bengaluru; Editing by Sohini Goswami and Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

☆ Britain's Sainsbury's offers lower prices to loyalty card holders
▼ + stars: | 2023-04-11 | by ( James Davey | ) www.reuters.com time to read: +2 min

[1/2] Illuminated signage is seen at a branch of the Sainsbury's supermarket in London, Britain, January 7, 2022. Sainsbury's' "Nectar Prices" scheme offers discounts on items including household products, pet food and confectionary when members scan their Nectar app or swipe their card at the supermarket checkout, or if shopping online link their Nectar and Sainsbury's accounts. "We will keep refreshing Nectar Prices and increasing the variety of products on offer," said Sainsbury's CEO Simon Roberts. Nectar members will continue to earn points for purchases which can be spent either at Sainsbury's or with partners. The new initiative builds on a scheme launched in 2021 that saw Sainsbury's offer lower prices to Nectar members using its "SmartShop" self-scanner service.

☆ In the 'Garden of England', loss-making orchards are cut down
▼ + stars: | 2023-04-05 | by ( Sarah Young | ) www.reuters.com time to read: +5 min

The fruit that helped give the "Garden of England" its name hundreds of years ago no longer makes money so farmer James Smith is tearing down his orchards. Turning a profit from selling red apples to supermarkets has been a struggle for years, he said. In Kent, Smith is removing 80% of his orchards. Last year growing apples lost him 150,000 pounds ($186,000), a loss which would have been higher had it not been cushioned by other income streams from his land. He's also planting a vineyard and is growing small amounts of cherries, the fruit which legend has it prompted King Henry VIII to first call Kent the "Garden of England".

☆ Profit at UK supermarket Asda slumps on inflation hit
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

LONDON, March 29 (Reuters) - British supermarket group Asda on Wednesday reported a 24% fall in annual earnings after it decided not to pass the full impact of cost inflation onto consumers, taking a hit to profits instead. Asda, owned by brothers Zuber and Mohsin Issa and private equity firm TDR Capital, said core earnings, or adjusted EBITDA, were 886 million pounds ($1.1 billion) in 2022, down from 1.17 billion pounds in 2021, on flat sales of 20.45 billion pounds. Grocery inflation in March hit a record high of 17.5%, according to market researcher Kantar. The group said it was making progress towards achieving its long-term goal of becoming the number two supermarket in UK grocery. In January, the Times reported that the Issas and TDR were exploring a merger of EG and Asda.

☆ UK's Ocado Retail keeps profit guidance after quarterly sales rise
▼ + stars: | 2023-03-28 | by ( James Davey | ) www.reuters.com time to read: +2 min

The jv said retail revenue in the 13 weeks to Feb. 26 reached 584 million pounds ($719 million), up from 565 million in the same period last year. Average orders per week rose 3.6% to 381,000, with active customers reaching 951,000 at the end of the quarter, up 13.8% year-on-year. It said average basket value was flat, with a 7.5% fall in the average number of items bought to 45, offset by an 8.3% rise in average selling prices. Last month Ocado Group, whose shares have fallen 58% over the last year, said annual losses had ballooned to 501 million pounds after it took a big accounting charge. ($1 = 0.8120 pounds)Reporting by James Davey; Editing by Kate Holton and David HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ Walmart will derive more profit from services, ad sales in next 5 years -CFO
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +3 min

"Today, the vast majority of our overall profits are attributable to in-store brick-and-mortar in the U.S.," John David Rainey, Walmart's CFO, said at a Raymond James Conference. Services, such as fees Walmart collects from third-party sellers on Walmart.com, the cut it gets if Walmart fulfills those orders to shoppers and the dollars that advertisers spend through Walmart's growing retail media business, are the higher-margin, faster-growing parts of Walmart's business, Rainey said. Most recently, Amazon disclosed $11.6 billion in revenue from its ad business in the fourth quarter. The business has grown rapidly since then, with sales rising nearly 30% to $2.7 billion in its fiscal year ended Jan. 31. In the fourth quarter, ad sales rose 41% year-over-year, the company said last month.

☆ UK salad shortage weighs on supermarket sales -NIQ
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +2 min

Britons have been grappling with a shortage of key salad staples, particularly tomatoes, cucumbers and peppers. Market researcher NIQ, previously known as NielsenIQ, said total value sales in the fresh produce category grew just 1.1% over the four weeks, with a unit or volume decline of 5.4%. It said supermarkets struggled to meet demand for tomatoes, where unit sales fell 17.6% and for peppers, with unit sales down 16.8%. However, value sales for lettuce and cucumbers increased 13.7% and 31.8% respectively despite limited availability. It said sales growth at Tesco was 8.7%, ahead of Sainsbury's (SBRY.L) at 8.1%, Asda at 7.8% and Morrisons at 0.5%.

☆ Costa Coffee raises UK staff pay for third time in a year
▼ + stars: | 2023-03-06 | by ( ) www.reuters.com time to read: +1 min

LONDON, March 6 (Reuters) - Costa Coffee has followed rival Pret A Manger in raising pay for its British store staff for the third time in a year. The UK government-mandated National Living Wage will rise to 10.42 pounds an hour from April, an increase of 9.7%. Costa Coffee said its latest rise takes the increase over the last 12 months to over 14%. Rival Pret announced another pay rise for its staff last week, while food retailers Tesco (TSCO.L), Asda and Marks & Spencer (MKS.L) have also all recently announced increases. Costa Coffee said it also provides workers with a store performance related bonus, free drinks while on shift and a 50% staff discount.

LONDON, March 1 (Reuters) - Reckitt Benckiser (RKT.L), maker of Dettol and Lysol cleaning products, on Wednesday marginally beat full-year like-for-like net revenue expectations, helped by higher prices and its nutrition and health businesses. The company said it would target like-for-like net revenue growth of mid-single digits for 2023, excluding the substantial boost its 2022 sales received from the recall of a rival's infant formula. Abbott Laboratories (ABT.N) early last year recalled dozens of infant nutrition products in the United States after customers complained of infants contracting bacterial infections. Reckitt, its biggest rival at the time, ramped up production to fill the supply gap left by Abbott, helping to drive full-year like-for-like net sales growth of about 23% in its nutrition business. The company said full-year like-for-like net revenue increased by 7.6%, edging ahead of analysts' expectations of a 7.5% rise, according to a company-provided consensus.

☆ UK grocery price inflation hits record 17.1%
▼ + stars: | 2023-02-28 | by ( James Davey | ) www.reuters.com time to read: +2 min

SummarySummary Companies Grocery inflation in Feb at highest level ever recordedMilk, eggs, margarine show fastest price risesShoppers face 811 pounds rise in annual grocery billLONDON, Feb 28 (Reuters) - British grocery inflation hit 17.1% in the four weeks to Feb. 19, another record high, dealing the latest blow to consumers struggling with a cost-of-living crisis, industry data showed on Tuesday. "This February marks a full year since monthly grocery inflation climbed above 4%. He said its research found that rising grocery prices are the second most important financial issue for the public behind energy costs. Kantar said UK grocery sales increased 8.1% over the 12 weeks to Feb. 19, masking a drop in volumes when accounting for inflation. UK grocers' market share and sales growth (%)Source: Kantar($1 = 0.8295 pounds)Reporting by James Davey; editing by Grant McCoolOur Standards: The Thomson Reuters Trust Principles.

☆ UK government calls in supermarket bosses for salad crisis talks
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] An employee checks stock levels at the tomatoes section of a partially empty fruit and vegetable aisle at a Sainsbury's supermarket in London, Britain, February 26, 2023. Food and farming minister Mark Spencer will meet the bosses of Britain's major grocers later on Monday. Spencer said the crisis had shown how dependent Britain can be on certain trade routes for some types of food. Last week, Therese Coffey, minister for the environment, food and rural affairs, warned shortages could last up to another month. She has been widely mocked for saying Britons who can't get hold of salad vegetables might want to consider turnips instead.

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