Focus On 2 FTSE Food Stocks as UK Consumer Confidence Soars To 5 Year High

Summary

  • IDG Shopper confidence index reported a five year high of -1 in April 2021, from 2016, with fine food retailers expected to have a bumper season as lockdown restrictions continue to ease further.
  • Fine food retailers’ stocks are expected to witness a boost in consumer demand following the development.

The Food retailer and wholesaler sector in the UK has increasingly gained a shift towards customers favouring online shopping driven by the covid-19 crisis. On 14 May, the IDG shopper confidence index reported that consumer confidence soared to its highest level in five years to -1 in April 2021, ahead of further easing of lockdown restrictions for the hospitality and retail sector in the UK. The index had reported a confidence level of -11 in April 2020.

Fine food retailers’ stocks are expected to witness a boost in consumer demand following the development. Here are two FTSE listed stocks in the Food retail and wholesalers’ sector:

  1. Greggs PLC (LON: GRG) 

FTSE 250 listed Greggs PLC is a UK-based bakery chain. The chain announced FY 2021 profits could be higher than FY 2019 owing to easing restrictions, improving sales and less competition from cafes and restaurants. The chain opened 34 new shops in the first 18 weeks of 2021.

(Source: Refinitiv, Thomson Reuters)

Greggs PLC’s shares were trading at GBX 2,516.00, up by 0.04 per cent as of 14 May at 13:24 hrs GMT+1, while the broader index FTSE 250 stood at 22,246.28, up by 0.80 per cent. Its year to date return stood at 68.68 per cent, and market cap stood at £2.55 billion.

Also Watch: Greggs, the famous bakery in UK to reopen it's stores for seating | UK Market Update

  1. MORRISON (WM) SUPERMARKETS PLC (LON: MRW) 

Another FTSE 250 listed company Morrisons PLC’s is a UK based supermarket giant. The company announced on 14 May that it had invested over £16 million for in-store cafe upgrade ahead of its reopening on Monday when the lockdown restrictions get further eased.

(Source: Refinitiv, Thomson Reuters)

Morrisons Supermarkets PLC’s shares were trading at GBX 184.85, up by 1.23 per cent as of 14 May at 14:48 hrs GMT+1, while the Retailer sector index stood at 2,792.00, up by 1.02 per cent. Its year to date return of 4 per cent and market cap stood at £4.40 billion.

Also Read: UK supermarket stocks to explore after online grocery market share touches 17%

Comment


Disclaimer