WM Morrisons To Create 3500 Jobs As Coronavirus Fear Leads To Rise In Delivery Demand

In the era of wide-ranging job cuts, WM Morrisons Supermarkets (LON:MRW) is going to create 3500 new jobs, which will include around 2,500 pickers and drivers as well as around 1,000 people to work in the company’s warehouses and distribution centres. The company announced this after the home delivery demand of the company’s products increased enormously, especially in the last one month, due to the coronavirus outbreak in the United Kingdom. In the last couple of weeks, this demand has expanded even further, while there’s a shortage of supply at some places, as people are stocking over food and other daily essentials in the preparation of a situation when in case the country goes into lockdown in the future phases of the outbreak, such as the neighbours Italy, France and Spain.

The declaration followed the supermarket chain’s statement during the last week, in which it promised to make payments to its small suppliers as soon as possible to support the stresses cash inflow of these small and medium organisations are going through.

Supermarkets chains, especially in the United Kingdom, and around the world, have seen a massive surge in demand for online food and grocery deliveries as many citizens have been asked to isolate and quarantine themselves. This has also led to the closing of shops and general grocery stores because of the advice for social distancing from the British health officials and the administrations.

The sudden surge in the home delivery demand has led to many not being able to secure home delivery slots for up to a time of two weeks, leading to mass hoarding of products, against which, the government has announced certain stringent measures. The company has also made a statement that they will be looking to protect its employees where and whenever possible by asking the consumers to make payments for the products either by card or online by the use of their smartphones or laptops, which could lead to a reduction of transfer of cash by hand. The other measures that the company announced it would be taking include issuing hand sanitiser at checkout counters of their stores. It was also reported that the firm would also ensure that the cleanliness of all its stores remains intact, especially the surfaces and points touched by consumers and the members of the company’s staff.

MRW Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 18-March-20, before the closing of the LSE Market

As on 18^th March 2020, at 01:00 P.M (Greenwich Mean Time), by the time of writing this report, the WM Morrisons Supermarkets Plc stock was trading at a price of GBX 195.05 on the London Stock Exchange market, an increase in the value of 8.15 per cent or GBX 14.70, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 180.35. As of the time of reporting, the stock of WM Morrisons Supermarkets Plc was trading 23.80 per cent above the 52-week low stock price, that was GBX 157.55, and the company set this price on March 17, 2020. By the time of writing, the stock price was reported to have been trading 13.21 per cent lower than the 52-week high price of GBX 224.73, that the company achieved as on April 04, 2019. As of the time of reporting, the market capitalisation of WM Morrisons Supermarkets Plc has been reported to be at a value of GBP 4.337 billion, with respect to the current trading price of the company’s stock.

The WM Morrisons Supermarkets Plc stock had given a negative return of around 13.35 per cent in value, in the previous one year, since March 18, 2019, when the stock was trading at a price of GBX 225.10 at the time of the close of the market. It was also reported that the company’s stock had given a negative return of around 2.52 per cent, in the last six months, in comparison with the stock price of GBX 200.10 at the time of the close of the market as on September 18, 2019. WM Morrisons Supermarkets Plc’s stock has been reported to have given a positive return of approximately 7.52 per cent, in the last one-month time from the stock price of GBX 181.40 that the stock set as on February 18, 2020.

The beta of the stock of the company was reported to be at 0.28 when this report was being written. This points to the fact that the price movement of the company’s stock, is less fickle, in comparison with the movement in the price of the comparative benchmark index.

Digital Services and Deliveries segments receive a boost

In the midst of all this coronavirus led chaos, it had been reported that food delivery companies as well as digital subscription services, such as media and newspaper services and video streaming services such as Netflix and Amazon Prime, are experiencing a huge boost in sales, while at the same time department stores, high street fashion outlets and restaurants & Bars are taking a huge hit. This is primarily due to the government’s advisories on avoiding mass gathering, which is leading to the consumers opting to stay in their houses and demanding food and groceries at their doorsteps. In the current scenario, high street retailers which have been already reeling due to the effects of online shopping, took an additional hit from the Covid-19 epidemic, as more than 25 per cent of the customers have reportedly stated that they have been avoiding to go out and shop at the stores of the high street brands and other busy places as they have been scared of contracting the virus.

Following is a brief look at the recent stock price performances of some of the major retail companies of the United Kingdom, which is an indication of how the companies have been performing operationally and financially as well as has been reeling in the stock market slump.

GRG Stock Price Performance

As on 18^th March 2020, at 01:05 P.M (Greenwich Mean Time), by the time of writing this report, the Greggs Plc stock was trading at a price of GBX 1373.00 on the London Stock Exchange market, an increase in the value of 0.81 per cent or GBX 11.00, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 1362.00. As of the time of reporting, the market capitalisation of Greggs Plc was at a value of GBP 1.377 billion, with respect to the current trading price of the company’s stock.

Greggs Plc’s stock has been reported to have given a negative return of approximately 42.07 per cent, in the last one-month time from the stock price of GBX 2370.00 that the stock set as on February 18, 2020. The beta of the stock of the company was reported to be at 1.29 when this report was being written.

SBRY Stock Price Performance

As on 18^th March 2020, at 01:10 P.M (Greenwich Mean Time), by the time of writing this report, the J Sainsbury Plc stock was trading at a price of GBX 215.20 on the London Stock Exchange market, an increase in the value of 12.08 per cent or GBX 23.20, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 192.00. As of the time of reporting, the market capitalisation of J Sainsbury Plc was at a value of GBP 4.248 billion, with respect to the current trading price of the company’s stock.

J Sainsbury Plc’s stock has been reported to have given a positive return of approximately 4.06 per cent, in the last one-month time from the stock price of GBX 206.80 that the stock set as on February 18, 2020. The beta of the stock of the company was reported to be at 0.58 when this report was being written.

1. Stock Price Performance

As on 18^th March 2020, at 01:15 P.M (Greenwich Mean Time), by the time of writing this report, the JD Sports Fashion Plc stock was trading at a price of GBX 319.20 on the London Stock Exchange market, a decline in the value of 6.75 per cent or GBX 23.10, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 342.30. As of the time of reporting, the market capitalisation of JD Sports Fashion Plc was at a value of GBP 3.331 billion, with respect to the current trading price of the company’s stock.

JD Sports Fashion Plc’s stock has been reported to have given a negative return of approximately 62.45 per cent, in the last one-month time from the stock price of GBX 850.00 that the stock set as on February 18, 2020. The beta of the stock of the company was reported to be at 1.76 when this report was being written.

Comparative one-month share price chart of GRG, SBRY and JD.

(Source: Thomson Reuters) Price Chart as on 18-March-20, before the closing of the LSE Market