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Highlights
- Amazon has opened its first non-food store called Amazon 4-star in the United Kingdom
- Morrisons announced its takeover by a US-based private equity firm, Clayton, Dubilier & Rice (CD&R), for £7 billion.
- Total sales of Sainsbury (excluding fuel) grew by 1.6% year-on-year in Q1 ended 26 June 2021, compared to Q1 2020.
With the reopening of the economy, rising pent-up demand, and consumers visiting retail outlets once again, the UK high-street market currently offers plenty of opportunities. Amazon is the latest entrant in this space. The company announced the expansion of its presence on the UK high street by opening its first non-food store called Amazon 4-star in the country. The shop will be located in Bluewater shopping mall and will be engaged in the sales of nearly 2,000 products, including consumer electronics, books, homeware, toys and games.
(Data source: EODHD/Others)
As Amazon ventures into the UK non-food retail sales space, the competition is expected to grow in the coming years. Below is a review of 3 competitor retailer stocks to watch out.
Marks and Spencer Plc (LON: MKS)
Marks and Spencer is a major UK retailer engaged in the business of groceries, clothing, homeware and cosmetics. In a recent announcement, the company pledged to reach net-zero carbon emission status by 2040. Last month, the company announced the closure of 11 of its 20 France-based stores due to food shortages caused by Brexit.
At the close of the day’s trade on Tuesday 5 October 2021, the shares of Marks and Spencer closed at GBX 185.70. Its market cap is £3,636.69 million.
For the 19 weeks ended 14 August 2021, Marks and Spencer’s clothing and home business revenues grew by 92.2% year-on-year, primarily driven by online sales. The food business revenue for the period rose by 10.8% year on year. The company expects its adjusted profit before tax to be above £350 million for the full year 2021.
The shares of Marks and Spencer returned 86.03% in the last one year to shareholders.
Wm Morrison Supermarkets Plc (LON: MRW)
Wm Morrison Supermarkets is one of the largest supermarkets in the United Kingdom. Recently, the company announced the takeover by a US-based private equity firm, Clayton, Dubilier & Rice (CD&R), for £7 billion. At the close of the day’s trade on Tuesday 5 October 2021, the shares of Morrisons ended at GBX 285.60. Its market cap is £6,910.18 million.
Morrisons’ revenue, including fuel for H1, ended 1 August 2021, increased by 3.7% to £9.05 billion compared to £8.73 billion in the same period in 2020. The company’s statutory profit before tax was down by 43.4% to £82 million in H1 2021 compared to £145 million in H1 2020.
The shares of Morrisons returned 66.24% in the last one year to shareholders.
J Sainsbury Plc (LON: SBRY)
J Sainsbury is a leading chain of supermarkets in the United Kingdom. In the quarter ended 26 June 2021, total sales of Sainsbury (excluding fuel) grew by 1.6% compared to Q1 2020.
At the close of the day’s trade on Tuesday, 5 October 2021, the shares of Sainsbury ended at GBX 299.40. Its market cap is £6,983.22 million.
Sainsbury recorded a growth of 0.8% and 29%, respectively the grocery and online grocery sales during the quarter. The company’s clothing sales were up by 57.6% year-on-year in Q1 2021.
The shares of Sainsbury returned 50.79% in the last one year to shareholders.
