Ocado sales could top £2bn thanks to M&S tie-up

Ocado sales could exceed £2 billion for the first time this year thanks to its partnership with M&S.

Credit Suisse forecasts that the grocery tech specialist has increased sales by two thirds in the past three months, to reach more than £600 million, according to a report by This is Money.

If Ocado sales stay at that rate, it will achieve sales of £2,400 billion across twelve months.

The Swiss investment bank added that this could come as a surprise to those in the City who had concerns about Ocado coping with high levels of demand following its launch with M&S at the start of the month.

During the first days of the partnership going live, Ocado was forced to apologise to customers after a “surge in demand” meant it had no choice but to cancel orders just hours before they were due.

The retailer also paused all deliveries to employees as it attempted to clear the backlog of customer orders.

Credit Suisse added that Ocado’s shares could now be overvalued due to investors are ‘overestimating’ the number of future partners for its global solutions business, and underestimating ‘execution risk’.

 

ScS creates 300 new jobs to cope with 92% surge in orders

ScS has created 300 new jobs around the UK to cope with a huge increase in orders since the easing of lockdown.  The sofa and carpet specialist retailer hired 150 new employees in August and currently has 150 live vacancies for roles in various areas of the business.  The recruitment drive is in response to a recent surge in sales, with the company reporting a 92 per cent increase in order intake for the period from May to July this year.  ScS said this trend has continued in August and September, with sales up by 51 per cent over the last six weeks.  The retailer added it was looking to fill a range of both permanent and fixed-term positions, with vacancies in its retail stores, distribution and contact centres.  Jobs available include sales professionals, delivery drivers, meet and greet roles, contact centre advisors and online sales team members.  In August, ScS withdrew from the government’s furlough scheme and successfully returned all of its staff to work, having topped up their wages to 100 per cent throughout the period.  The retailer said those who continued to work over lockdown have been rewarded with an extra seven days of holiday entitlement.  Meanwhile, the retailer recently relocated its distribution team from Warrington to a new warehouse in Knowsley, near Liverpool, which is 40 per cent larger than the previous location.  “Due to a sharp rise in orders, we are in the fortunate position of being able to add to our existing workforce,” ScS chief executive David Knight said.  “In the six weeks leading up to September, our like-for-like order intake grew by 51 per cent, equivalent to £19 million of additional revenue.  “We’re delighted to be able to invest some of this into new staff members, as we continue to navigate our way through these unprecedented times.”

 

Walmart announces it is trialing 1 hour drone delivery

Walmart on Monday revealed it will be trialing one hour autonomous drone deliveries in 2021.

The retail giant said it had established a partnership with Zipline, a medical supply drone delivery company.

Walmart will now experiment with sending out medical, health and wellness products in a pilot programme in Northwest Arkansas in early 2021, next to Walmart’s headquarters in Bentonville.

Zipline’s launch and release system allows for on-demand delivery in less than an hour, covering a 50 mile radius.

The drones can carry up to four pounds of cargo and fly up to 80 mph.

Once the trial has launched, customers will be able to order items online or through the Walmart app.

A nearby store will fill a Zipline delivery box with the products, which attaches to the drone.

The order then flies a preprogrammed route to the customer’s door where the box parachutes down. The drone returns back to a hub or base.

Zipline said it delivered more than 200,000 critical medical products to health facilities in multiple countries.

The partnership with Walmart is the first step toward potential national-scale operations across the US, although it is not Walmart’s first in-road to drone delivery.

In October last year Walmart filed two separate drone delivery patents as it looked to push ahead of both Amazon and Google’s current drone programmes.

The patents looked specifically at how to drop packages from a drone to their desired location without having to drop them on the ground.

 

Retail leaders brand loss of tax refunds for tourists a disaster

Retail leaders across UK have expressed shock at the Treasury’s decision to remove the right of tourists to reclaim tax, and are now seeking legal advice in response to the move.  The Treasury’s announcement means the UK will now be the only country in Europe not to offer tax-free shopping to international visitors, who each year contribute billions to the UK economy through tourism.  The withdrawal of the VAT Retail Export Scheme was made by the Treasury late on Friday last week.  According to New West End Company and UKinBound, the move changes a potential £2.1 billion tax free shopping bonus into a £3.5 billion loss of tax-free sales.  They also warn that far from securing an extra £500 million in tax from the £3.5 billion spent each year by international visitors, the move risks those sales moving overseas to Paris, Rome or other nearby European destinations.  “This decision is a disaster for the UK; not only to the West End but to the UK in its entirety,” New West End Company chief executive Jace Tyrrell said.  “Retail and tourism across the UK are already reeling from the impact of Covid-19 and are in need of a boost, not self-inflicted wounds.  “We’re astonished that this decision appears to have slipped through as a footnote on a wider consultation on the expansion of duty-free shopping.  “In seeking to secure millions in tax revenues, the UK is throwing away billions in overseas spending at a time when we need to welcome the world and its wallets to our towns and cities across the UK.”  The New West End Company, along with industry colleagues from across the UK, said it was now considering legal advice on how to best to proceed on the government’s decision to scrap VAT relief for overseas visitors to the UK.  “Another nail in the coffin of Global Britain, scrapping the VAT Retail Export Scheme is a short-sighted action that will negatively impact the UK economy and reduce our global competitiveness,” UKinBound chief executive Joss Croft said.  “Instead of putting up barriers to trade, the government needs to urgently consult with businesses, so it fully understands the ramifications of this policy and adapt it before irreparable damage is done.”

 

Klarna valued at a whopping $10.65bn after latest funding round

‘Buy now, pay later’ specialist Klarna has been valued at $10.65 billion after its latest equity funding round.

An announcement from the Swedish firm on Tuesday morning said the funding means Klarna is now the highest-valued private fintech in Europe, and the fourth highest worldwide.

The global payments and shopping service, which works across the retail sector with the likes of ASOS, JD Sports, Superdry, Joules, Space NK, Nike, Samsung, said it raised $650m in its latest funding round.

This was led by Silver Lake Partners, alongside Singapore’s sovereign wealth fund GIC, BlackRock and HMI Capital.

Merian Chrysalis, TCV, Northzone and Bonnier also acquired shares from existing shareholders. They will join current investors such as Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group.

Klarna said the funding will help it further expand its global presence, especially in the US where the company is growing particularly rapidly and now has more than nine million consumers.

The business has seen a surge in demand for retailers wishing to sign up to its ‘buy now, pay later’ scheme, adding more than 35,000 new retailers in the first half of 2020 to its network of now more than 200,000 retail partners.Klarna also noted that on the back of the coronavirus crisis it had experienced a 36 per cent rise in year-on-year revenue for the first half of 2020, up to $466 million.

“The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers who are now actively seeking services which offer convenience, flexibility and control in how they pay and an overall superior shopping experience,” said Klarna co-founder and chief executive Sebastian Siemiatkowski.

“Klarna’s unique proposition, consumer preference and global retailer network will prove an excellent platform for further growth. The Klarna team is honoured to welcome such world class investors to support our mission to become the world’s favourite way to shop,” Siemiatkowski added.

“Klarna is one of the most disruptive and promising fintech companies in the world, redefining the ecommerce experience for millions of consumers and global retailers, just as ecommerce growth is accelerating worldwide and rapidly shifting to mobile,” said Silver Lake co-chief executive and managing partner Egon Durban and managing director Jonathan Durham.

“Klarna’s retail partners benefit from incremental traffic and dramatically improved customer conversion. Consumers love Klarna for its differentiated app-based shopping experience and for their flexible and transparent payment options. We are excited to invest in the company and partner with Sebastian and his talented team at this dynamic time to help accelerate Klarna’s remarkable growth and success worldwide,” Durban and Durham added.

Earlier this year Klarna was forced to launch a new campaign encouraging its users to “think thrice” before making a purchase as it aims to quash criticism that it encourages customers to buy goods they can’t afford.

The Swedish ‘buy now, pay later’ giant launched KlarnaSense, an initiative aimed at preventing its users from impulse buying, after it came under fire for promoting irresponsible spending.

 

Tesco relaunches Clubcard sale with 500 items included in Aldi Price Match

Tesco has relaunched its Clubcard sale in an effort to offer its customers lower prices through its Aldi Price Match campaign.  The grocer said on Tuesday it would offer “hundreds of exclusive deals on familiar branded and own-brand products” for Clubcard members, as well as extending Aldi Price Match on a further 500 items.  “With value for money becoming more important” to Brits, Tesco said it is seeking to “help those customers who want to spend less time shopping around for offers”.  The new “Clubcard Prices” means customers can “save up to 50 per cent on some of the nation’s favourite brands”.  Clubcard Prices were first introduced as part of Tesco’s Centenary celebrations in May 2019.  The latest discount scheme will be rolled out online and in all stores excluding Express stores.  Tesco said the extension of its Aldi Price Match comes after “significant investment that has been made in the price and quality of the great-value Exclusively at Tesco brands”.  Tesco chief customer officer Alessandra Bellini said: “We know that great value matters to customers more than ever before – that’s why, to reward our loyal customers, we’re offering everyone with a Tesco Clubcard access to hundreds of exclusive deals.  “We’re also offering everyday low prices on hundreds of products, so that customers can get clear and consistent prices on the products they buy regularly.”  In an effort to persuade consumers to shop amid the pandemic, fellow Big 4 grocer Morrisons also revealed price cuts to 400 items across its range, with chief executive David Potts promising more price reductions in the second half of the year.  Meanwhile, Asda reintroduced its Asda Price and “pocket tap jingle” as part of a £100 million investment.

 

Next closes deal with Victoria's Secret, saving 500 jobs

Next has signed a joint venture deal for Victoria’s Secret’s UK business after months of speculation, saving over 500 jobs.  The lingerie retailer’s US parent company L Brands said it has formed a joint venture with British chain Next, which will acquire the majority of the assets of Victoria’s Secret’s UK business.  The UK division of the lingerie giant fell into administration on June 5 and placed over 800 jobs at risk.  Next will own 51 per cent of the venture, while Victoria’s Secret will have 49 per cent. Financial terms were not released.  The partnership means Next will operate all of the firm’s stores in the UK and Ireland, subject to agreeing to terms with landlords.  Victoria’s Secret UK has 25 leasehold sites and employed over 800 people.  When the business collapsed, the majority of colleagues were on furlough and no redundancies were announced.  Next chief executive Lord Simon Wolfson said Next is “very pleased at the prospect of working in partnership to expand Victoria’s Secret”.  L Brands International chief executive Martin Waters said: “We are pleased to take this next step in our profit improvement plan for Victoria’s Secret.  “Next’s capabilities and experience in the UK market are substantial, and our partnership will provide meaningful growth opportunities for the business.”  The UK online arm, currently operated by Victoria’s Secret in the US, will be folded into the joint venture in Spring 2021.  Deloitte administrator Rob Harding said the deal has secured the future of more than 500 employees in the UK.  Earlier this year, Next had gone head to head with fellow British retailer Marks and Spencer in the race to acquiring the UK division of Victoria’s Secret.

 

Children's letters prompt Lego to remove plastic packaging

Lego will reportedly begin removing plastic packaging from next year in an effort to keep up with consumers’ sustainable shopping habits.  The toy retailer said it would begin shifting to recyclable paper packaging for its products after receiving letters from children requesting it to remove single use plastics, BBC News reported.  Over £310 million will be invested in its packaging over the next three years as it seeks to improve its sustainability offering.  Lego will begin to phase out single-use plastic bags in its boxes from next year, when it will trial recyclable paper bags.  This is part of Lego’s goal to make all its packaging sustainable by the end of 2025.  In 2015, the retailer also pledged to make all of its products from sustainable materials by 2030.  Lego Group chief executive Niels B Christiansen said Lego looks to children as “role models” and has been “inspired” to call for more urgent action on climate change.  He added that Lego received many letters from children about the environment asking it to remove single-use plastic packaging.  Separately, Lego reported a rise in sales during the first half of the year after an increased number of children were gifted its toy sets during the UK lockdown.  The retailer said the number of visitors to its website doubled during the period, and now plans to open 120 new shops this year.

 

Eat Out To Help Out pushes inflation down to lowest level since 2015

The Eat Out To Help Out scheme has pushed down prices as inflation fell to 0.2 per cent last month, according to new research.  It marked the lowest level of Consumer Price Index (CPI) inflation since December 2015, as well as a sharp drop from the one per cent rate recorded in July.  Muted clothing price rises also added to the decline after the Covid-19 lockdown shifted the usual seasonal fashion sales patterns, the ONS said.  ONS figures showed a 2.8 per cent year-on-year fall in prices in the restaurant and hotels sector, the first negative reading for this category since 1989.  Eat Out To Help Out, which offered 50 per cent discounts on meals – was the main reason for the decline.  More than 100 million meals were claimed under the scheme, according to government figures.  “The usual clothing price rises seen at this time of year, as autumn ranges hit the shops, failed to materialise,” ONS deputy national statistician for economic statistics, Jonathan Athow said.

 

Co-op first half profit doubles as consumers shop locally

The Co-op has seen profits rise amid the Covid-19 pandemic as customers increasingly shopped in stores.  The convenience and grocery chain reported a sales rise of 7.6 per cent in its first half, thanks to “exceptional food and wholesale performances”.  The retailer’s underlying operating profit doubled to £121 million, while costs rose as the retailer adopted measures to trade through the pandemic.  Co-op has reported that its food retail business saw sales increase by 5.2 per cent to £3.9 billion in the first half of the financial year.  The uplift came after like-for-like sales rose by 9.9 per cent in the retailer’s second quarter.  Meanwhile, underlying profit increased by 46 per cent to £175 million in the six month period which ended on July 4.  The Co-op said it benefited from more people shopping locally closer to home during the Covid-19 crisis.  At least 1.7 million new households shopped at Co-op in the period with the average basket size doubling as customers reduced visits.  “We are living in unprecedented times, but the response of our Co-op has been exceptional and I’m immensely proud of my 60,000 colleagues who’ve helped to feed and care for the nation during this difficult period,” Co-op chief executive Steve Murrells said.  “We’ve shown how our co-operative approach to doing business provides enhanced value for our customer-members and the communities in which they live.  “At a time of crisis, our country needs a strong and progressive Co-op and these results evidence that we are ready to deliver even more for our key stakeholders.  “We have already resumed our store opening programme and have made a commitment to invest £130 million in opening 50 stores, giving 15 stores significant extensions, and giving 100 further outlets major makeovers, creating 1,000 jobs before the end of the year.  Earlier this month, Co-op made plans to launch more than three stores a week until December to serve new neighbourhoods as part of major expansion scheme.  The plans will create up to 1000 jobs, which is in addition to the 1000 permanent roles that came from temporary jobs created during lockdown.

 

Next "remains resilient" despite 97% drop in half year profits

Next has seen its pre-tax profits drop by a colossal 97 per cent during the first half to just £9 million, but has increased its full-year profit guidance as demand recovered.  The fashion retailer fell to a half-year loss of £16.5 million but has raised its full-year outlook from £195 million expected in July to £300 million.  In the six months to July 25, the retailer’s full price sales dropped by 33 per cent, but in the last seven weeks they rose by four per cent – thanks to cooler weather and less travelling.  Meanwhile, Next’s online sales dropped by 14 per cent to £862.6 million in the period, while store sales were down 61 per cent to £344.6 million.  “The sales performance through the pandemic has been more resilient than we expected,” Next chief executive Lord Wolfson said.  “The scale of our online business, in the UK and overseas, the breadth of our product offer, and the fact that much of our store portfolio is located out of town, have served to mitigate the worst effects of the pandemic on trade.”  During the period, Next said it continued to develop new business areas, such as launching its Total Platform service, covering everything from website systems to distribution for other businesses.  The first site was launched for Childsplay Clothing.  Separately, Next signed a joint venture deal for Victoria’s Secret’s UK business this week after months of speculation, saving over 500 jobs at the lingerie retailer.  Next will own 51 per cent of Victoria’s Secret, and the partnership means Next will operate all of the firm’s stores in the UK and Ireland, subject to agreeing to terms with landlords.

 

John Lewis Partnership swings to £635m half-year loss & axes bonus

John Lewis Partnership has swung to a half-year loss and confirmed that staff bonuses will not be paid this financial year, as it pushes on with efforts to turnaround the business in the wake of the Covid-19 pandemic.  For the interim period ending July 25, the parent company of John Lewis and Waitrose made a pre-tax loss of £635 million – a dramatic plunge compared to the £192 half-year profit it recorded this time last year.  However, on an EBIDTA basis, it made a loss of £55 million – a similar figure to what it recorded in the half-year period last year.  The partnership said this still was a “creditable performance” given the circumstances of the pandemic and the lockdown it prompted, and was ahead of expectations set out in its April trading update.  Meanwhile, sales for the half-year period were a touch higher than last year – up 1.1 per cent to £5.56 billion.  The John Lewis Partnership benefited from government support through the furlough scheme, which it exited at the end of July, and the one-year business rates holiday, which helped to offset £50 million of additional pandemic-related costs like safety equipment.  Nonetheless, due to the interim performance the retail giant informed staff that they would not be paid their annual bonus this financial year.  This marks the first time the bonus has not been paid out to employees since 1953.  “I said to partners in April that I could not see the circumstances in which we would be able to pay a bonus next March,” John Lewis Partnership chair Dame Sharon White said.  “The Partnership Board has now confirmed that there will not be a bonus next year given our profit outlook.  “I know this will come as a blow to Partners who have worked so hard this year. The decision in no way detracts from the commitment and dedication that you have shown.   “Outside of exceptional circumstances, we would now expect to begin paying a bonus again once our profits exceed £150 million and our debt ratio falls below four times.  “Once our profits rise above £300 million and a debt ratio below three times, we would expect to pay a bonus of at least 10 per cent”.  The partnership is also mulling the possibility of downsizing its flagship John Lewis store on London’s Oxford Street by 40 per cent, according to the Evening Standard.  The firm has reportedly applied for planning permission to transform up to three floors of the Oxford Street store – where it has traded since 1864 – into office space for rent.  While no indication of the plans were revealed in its interim results, White has previously said she would look at downsizing stores as part of plans to reshape the business for the future.  She also expressed interest in transforming some of the partnership’s stores into housing for rent.  Meanwhile, White said trading at both John Lewis and Waitrose on their own had been “encouraging”.  In John Lewis, online sales growth was strong at 73 per cent, helping to offset the impact of shop closures, with overall sales down 10 per cent year-on-year.  The partnership said sales momentum was starting to build in reopened John Lewis stores, with sales down around 30 per cent on last year – although this was ahead of expectations.  Online now accounts for more than 60 per cent of John Lewis’ total sales, compared to 40 per cent before the pandemic.  At Waitrose, like-for-like sales were up almost 10 per cent on last year as the grocer benefited from a surge in demand in the lead-up to and being able to remain open during lockdown.  Demand for online shopping remains strong and Waitrose is now delivering around 170,000 weekly orders, up from around 60,000 before the pandemic.  The average basket size is also four times bigger for home deliveries than in store.  Moreover, Waitrose said it has seen a strong pick-up in demand since the termination of its relationship with online grocer Ocado on September 1.  Ocado has since entered a joint venture with embattled retailer Marks & Spencer.  Waitrose.com orders were up nine per cent in the first week. It is now a £1 billion annualised business and plans to further expand capacity by around 50 per cent to 250,000 orders a week.  Finally, the John Lewis Partnership said its cash and bank facilities position was “strong” and they were pushing to ahead to achieve the previously-announced £100 million in head office savings as soon as possible.  “At the half year, we had £2.1 billion compared to £1.5 billion at the start of the crisis, mainly as a result of new borrowings,” White said in the interim update.  “We are expecting our debt ratio – our total net debts as a proportion of our cash flow – to worsen from 3.9 times – the position in January this year.  “We expect it to return to under four times in two to three years and we continue to target a level of around three times in the medium term.”  She added: “The outlook for the second half is clearly uncertain given the broader macroeconomy.  “Christmas trade is also particularly important to profits in John Lewis and I would ask partners to do everything we can to serve customers brilliantly both in John Lewis and Waitrose.  “In April, we set out a worst case scenario for the full year of a sales fall of five per cent in Waitrose and 35 per cent in John Lewis. That remains our worst case view.  “We now believe the most likely outcome will be a small loss or a small profit for the year.”

 

BooHoo expands to the Middle East

Boohoo has announced the launch of a dedicated ecommerce platform for the Middle East, whereby it will serve seven countries mostly focused around the Gulf region.  Boohoo said its expansion into the Arab world aims to further tap into its regional audience with an exclusive website that caters to Saudi Arabia, the UAE, Qatar, Kuwait, Oman, Bahrain and Jordan.  The website is set to launch next week on September 23, and will feature Boohoo’s range of womenswear, menswear, activewear, footwear, accessories and beauty.

 

Ocado's market value tops £20b for the first time, just £1bn less than Tesco

Ocado’s market capitalisation topped £20 billion this week as its share price continued to rally to record levels.

Thursday afternoon saw Ocado’s share price rise to a record high of 2756p per share on Friday morning, seeing its market capitalisation surpass £20 billion for the first time.

Its £20.2 billion value is now just below Tesco’s £21.3 billion and nearly five times Sainsbury’s market capitalisation of £4.36 billion.

The sharp rise comes after Ocado posted better than expected third-quarter figures earlier this week, seeing revenues rise 52 per cent to £587.3 million.

It also coincides with the launch of Ocado’s new joint venture with Marks & Spencer, launched on September 1, which has introduced M&S’s food to the online market for the first time.

According to Ocado the changeover has proved popular and customers were favouring M&S’ goods over that of Waitrose which it replaced on the platform.

This has encouraged the retailer to forecast a full year EBITDA of at least £40 million for its retail arm, rising from £35 million a year earlier.

Looking ahead Ocado said it remained “on track to increase capacity by 40 per cent through 2021” and that while uncertainties remained over the ongoing impact of the virus it expected full year EBITDA for Ocado Group to top “at least £40 million”.

 

Harrods launches beauty concept store at intu Lakeside

Harrods has opened the doors to its new standalone beauty store concept at the Intu Lakeside shopping centre.  The concept, known as H Beauty, offers a range of premium and luxury brands under one roof and includes onsite treatments, consultations and demonstrations.  Brands such as Chanel, La Prairie, Creed, Huda Beauty, 111Skin, Uoma and Iconic London can be found in the 23,000sq ft of space.  The store also features a champagne bar and “magic mirrors” where customers can virtually try on products.  A click-and-collect service will be introduced later this month for customers making purchases from Harrods’ website.  Intu Lakeside said the centre is “incredibly excited” to welcome H Beauty after centres across the UK posted declining footfalls due to the impact of Covid-19.  “Harrods is an iconic name, and the beauty sector is going from strength to strength at present,” Intu Lakeside said.  “We therefore believe the new concept will thrive at a high footfall location like Intu Lakeside.  “This announcement sits amongst a host of other leasing deals recently completed or in the pipeline, as the retail sector continues to recover, and confidence grows.  “Physical retail remains key to brands’ success and experiential stores like H Beauty are proving a particular draw for customers.”

 

Amazon reveals that over 90% of listings in most categories are now 3rd party sellers

Amazon says that more than 90 per cent of products listed on its site in most categories now come from third-party sellers.

In a letter to the House Antitrust Subcommittee, which is currently investigating the practices of US tech giants Amazon, Google, Facebook and Apple, Amazon laid bare rarely seen details about how it works with third-party sellers.

According to the 55-page report, over 90 per cent of listed items in six of Amazon’s top seven categories came from third party sellers last year, Business Insider reported.

Amazon’s key electronics category is reportedly made up of 96 per cent third-party products, alongside its beauty category, while its home and kitchen category was made up of a whopping 99 per cent.

Only its books category was made up of less than 90 per cent third-party listings, with 34 per cent coming from Amazon itself.

Despite this dramatic shift towards third-party products on its marketplace, these products reportedly accounted for just 60 per cent of total revenues.

Products that Amazon purchased wholesale then resold to customers itself accounted for more than 40 per cent of sales in its electronics, consumables and toys category.

According to Amazon its own label sales also accounted for “only about one per cent” of its total revenues.

This discrepancy is thought to be due to Amazon favouring its own, higher-margin sales in listings on its platform, leaving third party sellers to make their way to the top of listings organically.

The ecommerce giant also revealed that it had spent $500 million last year and employed 8000 people to tackle fraud and abuse on its platform.

 

Sainsbury's shares rise after Czech billionaire snaps up major stake

Sainsbury’s has seen a Czech investor snap up a major stake in the business, making him the fourth largest shareholder.  Billionaire businessman Daniel Kretinsky now holds a 3.05 per cent stake worth £125 million in the Big 4 grocer.  He is also a major shareholder in the Royal Mail.  Sainsbury’s shares rose by more than three per cent after Kretinsky’s investment vehicle VESA Equity Investment disclosed its stake on Thursday.  Kretinsky is seeking to bolster his portfolio of investments in supermarkets across Europe.  He currently has a stake in French giant Casino and German wholesaler Metro, while also snapping up stakes in Foot Locker and US-based retailer Macy’s.  ”We view Sainsbury’s as an attractive investment opportunity for the long-run even against the backdrop of the highly competitive UK grocery market,” VESA investment director Branislav Miskovic said.  “Sainsbury’s is a strong traditional brand with good locations concentrated in the South East of England, including London and an attractive convenience as well as online food delivery proposition for its customers.  Separately, Kantar found that grocery sales growth slowed in August as shoppers spent £155 million less in supermarkets amid the Eat Out to Help Out scheme.  The latest grocery market share figures revealed that grocery sales increased by 10.8 per cent over the past 12 weeks to September 6, but saw growth slow to eight per cent in August.  Sainsbury’s reported a growth of eight per cent during the period.  Moreover, total online grocery sales skyrocketed by 77 per cent year-on-year for August.

 

Article of the week - Eat Out To Help Out pushes inflation down to lowest level since 2015

 

Question of the week - The government support is coming to an end, infections are starting to go up, what will the next few months bring for the UK already battered retail sector?


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