SBRY, MKS To Discourage Disposable Culture And Promote Refillable Packaging

  • Mar 02, 2020 GMT
  • Team Kalkine
SBRY, MKS To Discourage Disposable Culture And Promote Refillable Packaging

To reduce carbon emissions and plastic usage in packaging, dedicated laundry detergent and dishwashing refill points shall be made available to clean aisles by the end of February as announced by the J Sainsbury’s PLC (LON: SBRY).

After the company took a vow last month to become Net-Zero by 2040 across its operations, the retailer announced a new testing of refillable Ecover stations for laundry detergent and washing up liquid. This is the latest trail and is considered as an initiative aimed to reduce carbon emissions or curb or replace plastic usage across the realm of the business operations.

The company had earlier stated that it would provide the consumers with an option to refill selected Ecover cleaning products in the form of bottles, with the option to be reused multiple times from 26th February 2020 onwards. This move by the company is expected to curb plastic usage by million tonnes every year. This scheme is currently under trial and shall be implemented to other stores of the company during the year.

The company believes that small changes like this can make big differences over a period and the refillable packaging is just one of the initiatives that the company plans to undertake. A company official has reportedly said that it believes that this partnership with Sainsbury shall bring a change to the disposable culture in the United Kingdom and make refills more accessible for everyone. The manufactures should take responsibility in controlling the usage of plastic and its recycling methodology. The Group further stated that it would honour its commitment to become Net Zero by 2040, by implementing controls across its plastic usage, and recycling. The company is also encouraging its suppliers to contribute to the environment for the approaching years.

J Sainsbury’s PLC is not the only company working for the environment, other prominent retailer, Marks and Spencer Group Plc, has also taken initiative and introduced a refill scheme known as “fill your own”, which enables consumers to refill their own food containers in a move to curb the usage of plastic. This scheme was implemented as a trial at Hedge End store (Southampton) and shall be later extended to other stores.

Business overview: J Sainsbury’s PLC

J Sainsbury’s PLC (LON: SBRY) is a London-headquartered chain of supermarkets, operating primarily in the United Kingdom. Its operations also include retail banking with interests in property as well. The company is a multi-channel, multi-brand retailer with a fast-growing online and digital business. Furthermore, the Group has a store estate comprising of more than 1,400 convenience stores and supermarkets. The Group has around 900 Argos stores in supermarkets and standalone locations.

The group’s brands comprise Sainsbury’s groceries, Sainsbury’s Home, Argos, Sainsbury’s Bank, Tu, and Habitat. The company’s operations are differentiated into four operating segments: Retail – Food, General Merchandise and Clothing, Financial Services & Property Investment.

Since 1869, the company has been making affordable offerings to its customers, such as quality clothing, healthy food options, and other stylish technologically advanced products on a sustainable basis. The Group has a representative base of around 178 thousand.

J Sainsbury’s PLC -Stock price performance

Daily Chart as on 02-March-20, before the market closed (Source: Thomson Reuters)

On 02nd March 2020, while writing at 12:21 PM GMT, J Sainsbury’s PLC’s shares were clocking a current market price of GBX 199.60 per share. The company’s market capitalisation was at £4.35 billion at the time of writing.

On 19th March 2019, the shares of J Sainsbury’s PLC had touched a new peak of GBX 243.27 and reached the lowest price level of GBX 177.05 on 15th August 2019, in the last 52 weeks. The company’s shares were trading at 17.95 per cent lower from the 52-week high price mark and 12.74 per cent higher than the 52-week low price mark at the current trading level as can be seen in the price chart.

The company’s 5-day stock's daily average traded volume was 12,844,012.60; 30 days daily average traded volume- 7,061,865.23 - and 90-days daily average traded volume – 7,252,517.52. The volatility of the company’s stock was slightly less as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.98 with a gross dividend yield of 5.05 per cent.

The shares of the company have delivered a negative return of 11.39 per cent in the last quarter. On a Year to date basis, the shares of the Group plunged by 14.85 per cent. Since last year, the shares of the company have given 4.52 per cent of a negative return to investors.

Business overview: Marks and Spencer Group Plc

Marks and Spencer Group Plc (LON: MKS) is the United Kingdom based general retailer, which operates globally through more than 1400 stores across the globe. The Group has two major divisions: the United Kingdom, which consists of both its own retail business as well as its franchise operations, domestically, in the United Kingdom itself, and International division, which includes the M&S brand in the Republic of Ireland, other European countries, Asia Pacific and other countries as well.

The Group sells womenswear, menswear, kids wear, beauty and home products through its 900 plus brick and mortar stores in the United Kingdom and approximately 500 stores outside of United Kingdom, as well as through its virtual presence from its website and application.

The Group specialises in the clothing segment but also engages in home products as well as packed foods. Furthermore, the Group has various brick and mortar stores which are engaged in its food business. The Group has approximately more than 30 million customers across the globe, mainly targeting the “Young Adult segment” and “Women’s Segment” when it comes to clothing.

 Marks and Spencer Group Plc-Stock price performance

Daily Chart as on 02-March-20, before the market closed (Source: Thomson Reuters)

On 02nd March 2020, while writing at 12:28 PM GMT, Marks and Spencer Group’s shares were clocking a current market price of GBX 156.24 per share. The company’s market capitalisation was at £3.09 billion at the time of writing.

On May 01st, 2019, the shares of Marks and Spencer Group have struck a new high of GBX 278.03 and struck a new low of GBX 153.15 on February 28th, 2020, in the last 52 weeks. The company’s shares were trading at 43.80 per cent lower from the 52-week high price mark and 2.02 per cent higher than the 52-week low price mark at the current trading level as can be seen in the price chart.

The company’s 5-day stock's daily average traded volume was 12,832,603.00; 30 days daily average traded volume- 7,533,224.73 - and 90-days daily average traded volume – 8,897,328.13. The volatility of the company’s stock was 13 per cent higher as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 1.13 with a gross dividend yield of 6.94 per cent.

The shares of the company have delivered a negative return of 20.88 per cent in the last quarter. On a year to date basis, the shares of the Group plunged by 25.81 per cent. Since last year, the shares of the company have given 39.33 per cent of a negative return to investors.

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