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☆ Online's share of UK grocery market dips as heat pushes shoppers to stores
▼ + stars: | 2023-06-27 | by ( James Davey | ) www.reuters.com time to read: +2 min

SummarySummary Companies Online was 10.4% of total UK grocery market in JuneStores saw extra 34 mln visits year-on-yearM&S is fastest growing grocer after discountersLONDON, June 27 (Reuters) - Online's share of Britain's grocery market slowed further in June as hot weather encouraged shoppers to visit stores for drinks and refreshments, industry data showed on Tuesday. Online's share of the total grocery market in Britain was about 7% before COVID-19. "It’s no surprise that online grocery sales have taken a bit of a hit as there was less of a need to order in a big grocery shop." Total grocery sales rose 12.4% over the four weeks, with sales in the week to June 17 hitting 2.9 billion pounds - the second strongest week this year behind Easter. Marks & Spencer's (MKS.L) sales rose 15.4%, keeping its spot as the fastest growing after the discounters.

Persons: NIQ, Mike Watkins, NIQ’s, Kantar, James Davey, Aurora Ellis Organizations: LONDON, Aldi, Lidl, British Retail Consortium, Thomson Locations: Britain

☆ Amazon and 2 discount retailers shine this week even as the S&P 500 struggles
▼ + stars: | 2023-06-23 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

Discounters Dollar Tree and Dollar General added nearly 6% and 5%, respectively. Dollar Tree jumped following its investor day on Wednesday, where the company reaffirmed fourth-quarter and full-year guidance. Dollar General had more of a steady ascent over the course of the week. Dollar Tree is up slightly more than 1% since 2023 began, while Dollar General has plummeted more than 30%. DLTR DG YTD mountain Dollar Tree vs. Dollar General, year to date E-commerce giant Amazon also made the list, up 4% on the week.

Persons: CarMax, StreetAccount, DLTR, —, Fred Imbert Organizations: Nasdaq, CNBC Pro, Dollar, Amazon, Investors

☆ Billions of dollars in spending expected to be lost to student loans. These retailers are at risk
▼ + stars: | 2023-06-21 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

With student loan payments set to resume this fall, borrowers are likely going to have to cut back spending — and that's bad news for some retailers. About 40 million Americans have a total of nearly $1.8 trillion in outstanding student loan debt. "We regard the incremental 'essential' nature of the debt payments as likely to reduce discretionary spending by an approximately equal amount." UBS expects the pullback in apparel spending to continue as Americans shift funds to student loan payments. In fact, its analysis of U.S. consumers with student loans shows the trend is even more pronounced among those with student debt.

Persons: Gabriella Carbone, Adrienne Yih, Grant, Christopher Horvers, Jay Sole, KeyBanc, Lots, Bradley Thomas, Horvers, — CNBC's Michael Bloom Organizations: U.S . Department of Education, Deutsche Bank, Barclays, JPMorgan Chase, Biden, JPMorgan, CNBC, UBS, Nike, American Eagle Outfitters, Urban, Sporting Goods Locations: Northeast

☆ UK grocery inflation edges lower for third straight month -Kantar
▼ + stars: | 2023-06-20 | by ( James Davey | ) www.reuters.com time to read: +2 min

Market researcher Kantar said annual grocery inflation was 16.5% in the four weeks to June 11, down from 17.2% in its May data set. Prime Minister Rishi Sunak's key pledge to halve inflation in 2023 has been undermined by persistently high food inflation. "Price rises are now being compared to the increasing rate of grocery inflation seen last summer, which means that it should continue to fall in the coming months," he said. Market leader Tesco (TSCO.L) said on Friday food inflation was starting to ease and it was hopeful it would moderate through the year. The Kantar data for June provides the most up to date snapshot of UK grocery inflation.

Persons: Kantar, Rishi Sunak's, Fraser McKevitt, Price, James Davey, Cynthia Osterman Organizations: Reading, Bank of England, Tesco, Aldi, Lidl, 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

☆ The average shopper with student loans is a 37-year old earning $65,000 whose philosophy is 'Live for Today'
▼ + stars: | 2023-06-05 | by ( Matt Turner | ) www.businessinsider.com time to read: +4 min

The survey results reveal a bunch of fascinating findings, especially when student loan consumers are compared against the average US adult over 18. The average income for student loan consumers was $65,400, slightly less than the $66,200 for the average US consumer. Student loan consumers are more likely to have purchased something from Nike over the past six months than any other brand. UBS argues the end of the student loan payment moratorium will hit a bunch of brands and retailers like American Eagle Outfitters, Nike, and Gap. As my colleague Ayelet Sheffey has reported, the Biden administration remains confident that the Supreme Court will rule in its favor over the legality of its student debt forgiveness.

Persons: —, Jay Sole, They're, Levi's Jeans, Calvin Klein, Armour, Zers, Ayelet Sheffey, Biden Organizations: UBS, Service, Student, Nike, American Eagle Outfitters, TIAA Institute

☆ Student loan payments will resume soon, and that’s bad news for these retailers, UBS says
▼ + stars: | 2023-06-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Consumers will tighten their purse strings as federal student loan payments resume, and a slew of retail stocks could take a hit, UBS found. That lagging performance is expected to continue, especially since the debt ceiling legislation includes a provision that will end a pause on federal student loan payments by September, according to UBS analyst Jay Sole in a Sunday report. "Our new analysis of U.S. consumers with student loans suggests they are likely to disproportionately reduce spending on softgoods vs. other categories as they shift funds to paying down student debt," said Sole. For instance, nearly 37% of student loan consumers bought Nike products, compared with about 29% of all U.S. adults. About 62% of the consumers polled agreed with the statement, "My philosophy of spending is 'Live for today because tomorrow is so uncertain,'" the bank found.

Persons: Jay Sole, — CNBC's Michael Bloom Organizations: UBS, Eagle Outfitters, Nordstrom, Nike Locations: Crocs, Canada, U.S

☆ U.S. consumer outlook dims as upscale retailers, discounters slash forecasts
▼ + stars: | 2023-06-01 | by ( Aishwarya Venugopal | ) www.reuters.com time to read: +3 min

Broadly, U.S. consumer spending trends showed resilience in the face of high inflation, but big-ticket purchases suffered. Upscale retailer Macy's said the U.S. consumer pulled back more than anticipated and slashed its annual sales and profit forecasts for the year. Macy's and lingerie brand Victoria's Secret & Co (VSCO.N) are resorting to more discounts to clear out excess inventory. "Our business in North America became increasingly more challenging," Victoria's Secret CEO Martin Waters said during a post earnings call on Thursday. The pinch from slowing consumer spending was not just limited to high-end retailers.

Persons: Macy's, Hogan, Martin Waters, they're, Nordstrom, Peter Nordstrom, Dr Martens, Arun Sundaram, Aishwarya Venugopal, Savyata Mishra, Shinjini Organizations: U.S, Goods, Riley, Nordstrom Inc, Discount, CFRA Research, Thomson Locations: U.S, North America, United States, Bengaluru

☆ ‘Greedflation’ loosens its grip on food retailers
▼ + stars: | 2023-05-24 | by ( Aimee Donnellan | ) www.reuters.com time to read: +4 min

Big food manufacturers like Kraft Heinz (KHC.O) and Unilever (ULVR.L) are ratcheting down the price rises they have been inflicting onto supermarket chains. If food retailers can convince cash-strapped customers to skimp less and pay more, their profit margins will finally start growing. Last week, the country’s food retailers opened negotiations on prices with manufacturers like Coca-Cola (KO.N) and Unilever as food inflation surged to over 15% in March. Food manufacturers can certainly do more. Meanwhile, food inflation remained high at 19.1% in April versus 19.2% in March.

[1/3] Packaged food for sale is seen on shelves at a Dollar Tree in Islandia, New York, U.S., May 12, 2023. Razor manufacturer Edgewell Personal Care Co (EPC.N) and Kraft Heinz Co (KHC.O) have overhauled or built new teams dedicated to working with the biggest U.S. dollar stores like Dollar Tree Inc (DLTR.O) and Dollar General Corp (DG.N) in the last year. Makers of food and household staples are pushing deeper into dollar stores because the low-cost retailers are opening thousands of locations each year. Griffin added that dollar stores are also introducing more "premium" private label brands, like Dollar General's Nature's Menu for pets. Kraft-Heinz also created a new team of five people late last year to identify and develop products for dollar stores, a spokesman said.

☆ Target wants shoppers to think of it for groceries as retailer braces for leaner spending
▼ + stars: | 2023-05-16 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +6 min

The big-box retailer also hopes by drawing shoppers for essentials like gallons of milk, it can nudge purchases of discretionary items that shoppers otherwise would not have bought. A 'Tarzhay' spin on groceriesOn a recent trip to a Minneapolis area grocery store, Gomez surveyed displays of colorful fruits and vegetables. In each of the past two fiscal years, Target has had double-digit sales growth in the food and beverage category. Target's grocery sales matter more as shoppers pull back in other areas. Grocery competition gets tougherCompetition for grocery shoppers has heated up, especially as consumers stretch their budgets.

☆ Consumer spending trailing consumer sentiment lower. Look at Home Depot
▼ + stars: | 2023-05-16 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

Recent consumer sentiment reports have been poor, so it's reasonable to assume the consumer spending backdrop has softened. The company is cutting guidance due to the weaker lumber prices, weather and is also citing "further softening of demand relative to our expectations, and continued uncertainty regarding consumer demand." If we are on the side of the American consumer (I am), then lower lumber prices are good, right? Running shoes are hot. Second case in point: On Holding (ONON), which makes the trendy ON running shoes, is up 94% YTD.

☆ Jim Cramer expects defensive stocks to be resilient as debt ceiling talks drag on
▼ + stars: | 2023-05-15 | by ( Julie Coleman | ) www.cnbc.com time to read: +2 min

With lawmakers in a stalemate about the debt ceiling, CNBC's Jim Cramer said Monday to put faith in defensive stocks like health care, discount stores, and natural gas. Cramer looked to the 2011 debt ceiling crisis for guidance, noting that even though history seems to be repeating itself, it's not as simple as finding what rallied after that deal was finalized. You want winners that stayed winners right through the worst of the debt ceiling talks," Cramer said. In the way of consumer-focused defensive stocks, Cramer pointed to Chipotle as a safe bet. "I wish I were less skeptical of a theoretical debt ceiling deal falling apart or coming together less than perfectly," Cramer said.

Investors should buy American Airlines as the air carrier's valuation is too good to pass up, according to JPMorgan. Analyst Jamie Baker upgraded the airline's shares to overweight from neutral. Baker said this reflects a long-term shift in which "the Big 3" airlines — American, Delta and United — have seized the high ground from the "discounters." Nonetheless, JPMorgan stated that the "Big 3" airlines have outperformed its index of Discounter carriers due to their international exposure. Baker said that 2022's domestic travel renaissance has now reversed, driving down year-over-year domestic revenue growth to the low single digits.

☆ Bed Bath & Beyond store closures will kick off a land grab for fast-growing retailers
▼ + stars: | 2023-04-28 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +3 min

In strip malls across the country, Bed Bath & Beyond stores have "Closing Soon" signs. Its shuttered stores will kick off a land grab for retailers hungry for additional space. Bed Bath will join a list of other bankrupt companies, such as Kmart and Sears, that vacated spaces and made way for stores. Former Bed Bath stores could turn into a variety of other retail spaces, said Deborah Weinswig, CEO of Coresight Research, a retail advisory group. Weaker retailers' locations thinned out during the fallout of the Great Recession and again during the Covid pandemic, said James Bohnaker, senior economist with Cushman & Wakefield.

☆ 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.

☆ 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.

☆ Macy's CEO Jeff Gennette, who's led the company's turnaround effort, will retire next year
▼ + stars: | 2023-03-29 | by ( Melissa Repko | ) www.cnbc.com time to read: +3 min

Macy's CEO Jeff Gennette will retire early next year after a four-decade career at the company, the department store chain announced Wednesday morning. He will be succeeded by Tony Spring, CEO of the company's higher-end department store banner, Bloomingdale's. In addition to the CEO change, Macy's Chief Financial Officer Adrian Mitchell will take on an expanded role and also serve as the company's chief operating officer. In a news release, Macy's said Spring, 58, was tapped as its next leader after an internal and external search. Gennette called Spring and Mitchell "an ideal team to build on our momentum and propel Macy's, Inc. into the future."

☆ Shrinking food stamp benefits for families mean yet another challenge for retailers
▼ + stars: | 2023-03-26 | by ( Melissa Repko | ) www.cnbc.com time to read: +2 min

This month, pandemic-related emergency funding from the Supplemental Nutrition Assistance Program, formerly known as food stamps, is ending in most states, leaving many low-income families with less to spend on food. More than 41 million Americans receive funding for food through the federal program. For those households, it will amount to at least $95 less per month to spend on groceries. The nonprofit used to provide about 7 million meals per month before the pandemic and now provides between 11 million and 12 millions meals per month. "We knew these [extra SNAP funds] were going away and they were going to be sunsetted," she said.

☆ Discount chains Ross, T.J. Maxx, and Burlington are planning to add more than 300 new stores. Here's why major retailers should be nervous about their growing off-price rivals.
▼ + stars: | 2023-03-08 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +5 min

Off-price chains are likely to get a boost in the months ahead as shoppers seek low prices. Ross Stores is planning to open 100 new locations this year, while T.J. Maxx plans 150 openings, and Burlington as many as 80. 2023 is looking like a strong year for off-price chains like Burlington Stores, Ross Stores and T.J. Maxx, as shoppers look to save money where they can. Off-price chains could benefit from retail closures and bankruptciesAs other retailers close swaths of stores nationwide, discounters are expanding. Paul Weaver/SOPA Images/LightRocket via Getty ImagesAnalysts see a banner year ahead for BurlingtonBurlington may be the smallest of the major off-price retailers, but it's poised to have a big year.

☆ 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%.

☆ 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.

☆ Russia's Magnit opens first 'hard discount' stores
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +1 min

Feb 28 (Reuters) - Russia's Magnit (MGNT.MM) supermarket chain launched its first "hard discount" stores under a new brand on Tuesday, the company said, as falling living standards and rising inflation push Russian consumers to search for lower-ticket items. Magnit said the new "V1" - which stands for "First Choice" in English - brand will focus on basic products, including fruit, vegetables and bakery goods, carrying a narrower range of items than the chain's existing stores. "Discounter stores remain one of the fastest-growing market segments and maintain high potential for future development," Anzhela Ryabova, Magnit's director of hard discounter format, said in a statement. Magnit said it plans to open 15 pilot V1 stores in the Moscow Region "in the nearest future". Magnit already operates another line of discount stores under its "My Price" brand.

☆ British supermarkets confront their German discounting demons
▼ + stars: | 2023-02-22 | by ( James Davey | ) www.reuters.com time to read: +5 min

And the discounters' supermarket sweep still has a long way to run, industry executives say, with Aldi UK CEO Giles Hurley pledging Britain's lowest prices "no matter what". "Over the Christmas period alone shoppers switched 58 million pounds ($70 million)(of purchases) to Lidl from Tesco and Sainsbury's," Lidl GB CEO Ryan McDonnell told Reuters. Tesco and Sainsbury's are now matching Aldi prices on hundreds of key items and using customer loyalty schemes, while they have accepted a profit hit to keep prices down. Sector executives, speaking on condition of anonymity, said the further rise of Aldi and Lidl is inexorable. "Nobody's going to take Tesco out but at some point somebody might take Sainsbury's out," the sector veteran said.

☆ Seven out of ten UK households fear cost-of-living hit -NielsenIQ
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

[1/2] Scales to weigh loose fresh produce are seen in the UK supermarket Asda in Leeds, Britain, October 19, 2020. NielsenIQ said UK grocery sales on a value basis rose 7.6% in the four weeks to Jan. 28, due to an increase in food price inflation to 13.8%. However, volume sales fell 6.9% - the lowest volume growth recorded in over nine months, which reflects the concern shoppers have about cost-of-living increases, it said. It said Lidl overtook Morrisons to become the UK's fifth largest grocer with a market share of 8.9%. NielsenIQ said online's share of all FMCG (fast-moving consumer goods) sales was 11.1% - similar to its share in the latter part of 2022.

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