The supermarkets reported their Christmas sales figures this week. Wm Morrison produced a positive surprise for a change, reporting like-for-like sales growth of 0.2% in the nine weeks to January, the first rise in four years. Online revenue almost doubled. J Sainsbury underlined its position as one of the more resilient mid-market players, with underlying sales falling by a better-than-expected 0.2% over the holidays.
What the commentators said
In addition, according to Mike Watkins of research group Nielsen, Tesco and Sainsbury's are both doing better than a year ago. "With deflation now likely to have reached its low point, and the intensity of promotions continuing to fall, the industry has a good chance of returning to positive growth." As for Morrisons, new CEO David Potts apparently has "a better feel" for his customers than his predecessor, said Alistair Osborne in The Times. He cut prices by another 3.2% over Christmas, narrowing the value gap with the discounters, and "also pinched some of [their] volume selling tricks", boosting the size of the vegetable bags.
Still, there's a long way to go, said James Moore in The Independent. The figures compare with a lousy holiday season in 2014/2015. The online division, meanwhile, comes from a deal with Ocado by the previous management "desperate to catch up with rivals". "The current team is stuck with it for another 23 years and it's fair to say they're not exactly happy about it."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Ofgem proposes new energy tariffs with low or no standing changesStanding charges have invited public backlash as households battle high energy bills
-
Google shares bounce on Gemini 2.0 launchGoogle has launched the latest version of its Gemini AI platform, and markets have responded positively. Is it time to buy Google shares?
-
Morrisons takeover bid: supermarket is an attractive target for private-equity buyersNews A private-equity group has made an offer for Morrisons, Britain’s fourth-largest supermarket. Other bids are likely to emerge. Matthew Partridge reports.
-
Morrisons is just the start – get ready for a private equity feeding frenzyAnalysis The bid to buy the Morrisons supermarket chain is the latest example of UK listed companies being snapped up by private equity groups. It won’t be the last, says John Stepek – we could well see a feeding frenzy before this is all over.
-
Morrisons back from the brinkFeatures The supermarket chain has made a strong recovery from a near-death experience. How did CEO David Potts do it? Alice Gråhns reports.
-
Amazon chews up the grocery marketFeatures If you hold supermarket shares, watch out, says Alex Williams. Amazon plans to shake up the grocery sector.
-
The ten most-hated shares in the FTSEFeatures These are London’s ten most-hated shares, judged by the percentage of stock being shorted.
-
Shares in focus: How our tips have fared this year
Features It's been a tough year for stocks. Phil Oakley looks back over the share tips he made in 2014 to see how they have fared, and what investors should do next.
-
It’s time for an orderly retreat in the supermarket wars
Features The big four supermarkets could spend billions taking on the discounters. But the City should not allow them to, says Matthew Lynn.
-
Shares in focus: Who to back in the supermarket wars
Tutorials Morrisons has declared a price war on its supermarket rivals. Will there be any winners, and who should you back? Phil Oakley investigates.
