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Highlights:
- Shopkeepers are anticipating a slower-than-usual demand this Christmas due to the cost-of-living crisis.
- A survey by Barclaycard has also confirmed the same, with two out of three respondents claiming they are planning to cut back on expenses.
Retailers are usually excited about the Christmas season as, for many, it is the busiest week of the year. However, the cost-of-living crisis has changed things, and British shopkeepers are bracing themselves for a tough Christmas this year. This is largely due to the inflationary pressures, which have forced people to cut back on spending.
In its monthly snapshot of spending, Barclaycard said that half of its customers were planning to cut back this Christmas, which includes spending less on presents, food and drink, and socialising. It added that two-thirds of its customers were exploring ways to save on their energy bills, such as wearing more layers of clothing indoors and avoiding central heating unless required.
Image source: non c, Shutterstock.com
With the festive season around the corner, the latest numbers indicate the squeeze that households are facing. Amid the Bank of England's warning that inflation will peak at around 11% by the end of this year, we may see further cutbacks by Brits next month. Several retailers have warned that they expect less than usual business this Christmas due to the cost-of-living crisis.
In other news, five major supermarkets in the UK have pledged to join hands to hasten their work on dealing with climate change with their suppliers next year. The supermarkets have announced that they would assist the suppliers in transitioning to science-based targets to achieve the net-zero goals by the middle of the century.
Let’s deep dive into a few London-listed supermarket stocks and understand how they are faring amid current economic conditions.
Tesco Plc (LON: TSCO)
Tesco is an FTSE 100-listed supermarket chain with a market cap of £16,889.32 million. It is among the five supermarkets taking the pledge on net-zero targets. The stock price has fallen by more than 17% in the past 12 months, and the EPS (earnings per share) currently is at 0.19. On the book, the company has a turnover of £3,655,418.51. Tesco's share price stood at GBX 228.50, up 0.35% as of 8:11 am GMT+1 on Tuesday.
J Sainsbury Plc (LON: SBRY)
The company trades as Sainsbury's and belongs to the benchmark index FTSE 100. With more than 600 supermarkets and 800 convenience stores, Sainsbury's is one of the UK's biggest supermarket chains. It is also among the supermarkets that took the pledge on climate change. Sainsbury's stock price has depreciated by nearly a quarter in the past 12 months. Its EPS stands at 0.30, and the turnover (on book) is £1,788,905.42. SBRY stocks traded 0.09% lower at GBX 217.80 as of 8:11 am GMT+1 on Tuesday.
Marks and Spencer (LON: MKS)
Another prominent British supermarket chain is Marks and Spencer, and it too was among the supermarkets taking the pledge to assist suppliers with net-zero goals. The retailer enjoys a market cap of £2,259.05 million. Its stock price has tumbled by more than 39% as of 8 November. The MKS shares on Tuesday were trading at GBX 116.95, up 1.70% as of 8:11 am GMT+1.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
