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Highlights
- Shop price inflation in the UK has gone up from 5.7% in September to 6.6% in October, according to BRC data.
- This is the greatest figure on record since the index began 17 years ago.
- With substantial hikes in milk, tea bags, and sugar prices, food prices also reached a record-high level of 11.6%.
Amid the escalating cost of living pressures, prices in UK shops surged at the greatest rate since at least 2005 in October. According to the latest figures unveiled by the British Retail Consortium (BRC), shop price inflation in the country has gone up from 5.7% in September to 6.6% in October. This is the greatest figure on record since the index began 17 years ago. With substantial hikes in milk, tea bags, and sugar prices, food prices also reached a record-high level of 11.6%.
©2022 Kalkine Media®
UK shoppers are facing immense inflationary pressures amid soaring food and energy costs. Consumers are thus putting in efforts to find ways of saving more on their weekly shopping by trying out different methods to save money, such as going to rival retailers, picking own-label cheap brands, and purchasing additionally frozen and canned food or wonky vegetables.
NielsenIQ's chief of retailer and business insight, Mike Watkins, reportedly said that overall consumer confidence and retail spending are substantially affected by the tough economic circumstances. Consumers are reducing their spendings on non-essential due to rising prices, hampering high-street retailers' profits.
With the holiday season coming up, shoppers are just looking for signs of relief. Amid this news, Kalkine Media® explores three supermarket stocks.
Tesco plc (LON: TSCO)
The YTD (year to date) and one-year returns of the globally operating retailer of groceries and general merchandise, Tesco plc, stand at -24.87% and -19.91%, respectively, as of 2 November. The FTSE100-listed business has an EPS (earning per share) of 0.19 and a P/E ratio of 17.39. As the market opened on Thursday at around 8:00 AM (GMT), TSCO shares were trading at GBX 218.30, rallying by 0.23%, or 50 points. The retailer's market cap at the time of writing stands at £16,174.96 million.
J Sainsbury plc (LON: SBRY)
The YTD and one-year returns of the second greatest group of supermarkets across the country, J Sainsbury plc, stand at -27.63% and -32.27%, respectively, as of 2 November. The FTSE100-listed business has an EPS of 0.30 and a P/E ratio of 6.75. As the market opened on Thursday at around 8:00 AM (GMT), SBRY shares were trading at GBX 199.75, rallying by 0.08%, or 0.15 points. The retailer's market cap at the time of writing stands at £4,680.10 million.
Marks and Spencer Group plc (LON: MKS)
The YTD and one-year returns of the British retail firm operating worldwide, Marks and Spencer Group plc, stand at -52.12% and -41.25%, respectively, as of 2 November. The FTSE250-listed business has an EPS of 0.16along with a P/E ratio of 6.99. As the market opened on Thursday at around 8:00 AM (GMT), MKS shares were trading at GBX 111.00, rallying by 0.18%, or 0.20 points. The retailer's market cap at the time of writing stands at £2,176.51 million.
