- Sainsbury Plc has decided to cut prices on over 60 products to match its rival supermarket chains.
- John Lewis plans to build 10,000 homes over the next decade on the land parcel owned by it.
- BT Group has introduced new long-term plans for its wholesale customers.
Manufacturing and Service PMI reported in the UK was marginally down in June month as compared to the previous month. Manufacturing PMI was 63.9 in June 2021, down compared to 65.6 for the month of May, which was a record high. Similarly, the Service PMI fell to 61.7 in June 2021. Even though the reported PMI data fall short of expectations but it is not a worrying sign for the UK economy as both the manufacturing and service sectors signalled strong economic expansions, and when the last phase of lockdown restrictions are lifted, customer demand is further likely expected to improve.
The British company operates departmental stores, supermarkets, and banking and financial services. The company is owned by a trust on behalf of its employee, and it is one of the largest UK based companies by sales.
The company has revealed its plan to build over 10,000 homes over the next decade on the land it owns, which includes land ownership next to the company distribution centre and the Waitrose supermarkets. The company plans to build properties like studio flats to four-bedroom houses.
The first property is planned in south-east England, and the company believes the property rental business is expected is perform well given the high properties prices in the UK, which makes buying a new home very expensive and out of reach of the first-time buyer.
The occupants have the option of renting the home fully furnished with departmental store’s products, and the company staff who are also partners in the business could be offered rental properties at discounted rates.
Let us have a look at 2 FTSE listed companies that are buzzing today:
J Sainsbury Plc (LON: SBRY)
It is the London-based supermarket operator and the second largest chain of retail shops in the UK with a 17% market share. The company operates through three segments: food retailing, general merchandise, and clothing and financial services.
Sainsbury Plc will reduce the price on over 60 products which are staples foods like vegetables, fruits, dairy etc. The price cut is a strategy adopted by the company to rival German supermarket chains and gain customers. The product price cut will reflect by this month end.
The UK’s big four supermarket chains are in a battle with the German supermarket chains like Aldi with a price cut and attract customers with discounts.
Sainsbury Plc, in February this year, had cut prices of over 250 products and reported a sales jump of 7.8% for the 12 months ended March, but overall business suffered a loss of £261 million because of Covid related costs.
Sainsbury stock trades at GBX 276, up by 1.47% on 5 July at 08:44 GMT+1 with a market cap of £6.18 billion.
BT Group Plc (LON: BT. A)
The company is a leading network provider in the UK and serves customers from over 180 countries. It provides voice and data services, security and network, and other managed services all over the world.
FTSE 100 listed company has recently announced that it will offer a long-term price certainty to its wholesale communication customers who are using the fiber-to-the-premises (FTTP) technology of the company. The offer will give long-term price certainty to the customers and will be offered via a special discount rate. The offer will be open for participation to all communication providers between 1 October and 30 March 2022.
The BT Group shares trade at GBX 195.95, up by 0.49% on 05 July at 08:42 GMT+1 with a market cap of £19.42 billion.