- UK households were £160 worse off on average in July this year as compared to the previous year, as per Asda.
- Asda said it would try to help shoppers struggling with rising prices by keeping a check on grocery bills.
The financial situation of UK households has been deteriorating over the year. According to a recent study by the supermarket Asda, UK households were £160 worse off on average in July this year as compared to the previous year. Given this figure, Asda said it would increase its efforts to support the shoppers struggling with rising bills amid the spiralling food and energy costs.
As Asda is observing the number of money consumers is spending with the help of their income tracker, the supermarket said that it would help shoppers during these rough times by keeping a check on the rising grocery bills.
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This came as the results released by the supermarket exhibited that its sales declined at a slower pace from April to June than in the earlier quarter. Nevertheless, compared with the previous year, its sales slid by 1.9% in the April to June quarter.
Asda, which was taken over by Mohsin and Zuber Issa and TDR Capital last year, unveiled that it had gained from the robust sales of its novel "just essentials" collection, intended to help the shoppers dealing with the rising burden on their household finances. Launched in May, this new range comprises 220 items now, which include fresh meat, fruits, and vegetables.
Amid the rising cost pressures, Brits can keep an eye on supermarket stocks. Kalkine Media® explores the following supermarket stocks that UK investors can consider.
Tesco plc (LON: TSCO)
Tesco plc's shares were trading at GBX 256.50 as the market opened at around 8:00 AM (GMT+1) on Friday. The FTSE 100 constituent holds a market capitalisation of £19,202.73 million as of 26 August, and its current dividend yield stood at 4.2% annually. With a P/E ratio of 13.21, the company's EPS (earnings per share) stood at 0.19. While it has given its shareholders a return of 1.97% annually, its YTD (year-to-date) return lies in the negative zone, at -11.53%.
J Sainsbury plc (LON: SBRY)
The shares of the country's second-greatest group of supermarkets, J Sainsbury plc, were trading at GBX 209.50, surging by 0.48%, as the market opened at around 8:00 AM (GMT+1) on Friday. SBRY holds a market capitalisation of £4,887.51 million as of 26 August, and its current dividend yield stood at 6.2% annually. Enjoying a low P/E ratio of 7.28, the company's EPS stood at 0.30. The company's returns, on both an annual and YTD basis, are currently in the negative zone, at -35.47% and -24.40%, respectively.
Marks and Spencer Group plc (LON: MKS)
The shares of the leading UK-based globally operating retailer, Marks and Spencer Group plc, were trading at GBX 122.05, soaring by 0.37%, as the market opened at around 8:00 AM (GMT+1) on Friday. MKS boasted of a market cap of £2,338.26m as of 26 August and was enjoying a low P/E ratio of 8.16. The company's returns, on both an annual and YTD basis, are currently in the negative zone, at -31.93% and -47.21%, respectively.