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Highlights
- Boohoo Group has inked a collaboration agreement with OOOOO Entertainment Commerce Limited to join its mobile commerce platform.
- For H1 2021/22, Tesco’s board announced an interim dividend of 3.20 pence per share to shareholders.
Non-essential product retailers were deeply impacted by the COVID-19 pandemic as consumers delayed all purchases. On the other hand, supermarket and grocery retail continued to grow even during the pandemic. Additionally, supermarkets registered a strong demand for home delivery and online ordering of products during the pandemic as people refrained from visiting physical stores. General merchandise retailers such as Tesco are pilot testing newer delivery services to offer quick deliveries to customers.
However, the reopening of the economy, rising consumer confidence and relaxation of COVID-19 lockdown restrictions have driven up sales across other retail segments such as fashion and the high street. Here is a detailed review of the investment prospect in two retail stocks – Boohoo and Tesco.
(Data source: Refinitiv)
Boohoo Group Plc (LON: BOO)
Boohoo Group is a UK-based online fashion retailer that specialises in own-brand fashion clothing. Last month, the fashion retailer inked a collaboration agreement with OOOOO Entertainment Commerce Limited to join its mobile commerce platform.
For the half-year ended 31 August 2021, Boohoo Group’s revenues stood at £975.9 million compared to £816.5 million in the same period in 2020, representing an increase of 20% year-on-year. The company’s gross profit was £533.3 million during the period compared to £449.2 million in 2020. During the period, Boohoo also announced the relaunch of Debenhams by adding a digital department store to the Group's portfolio and relaunch of brands such as Wallis, Dorothy Perkins and Burton brands. It announced new distribution centres in Daventry and Wellingborough, as well as a new office in London's West End.
At 9:01 AM BST on Friday at 12 November 2021, Boohoo Group’s shares are trading at GBX 197.95, down by 0.25%. The market capitalisation of the company stands at £2,513.30 million.
Tesco Plc (LON: TSCO)
Tesco is a British grocery and general merchandise retail company. Last month, the retailer announced a pilot program with Gorillas, a rapid-delivery start-up, to test the service on its customers. As per the terms of the partnership, Gorillas will establish micro-fulfilment sites at five large Tesco stores, which will be used to pick, pack and deliver products to customers within ten minutes.
Tesco’s group sales stood at £27,331 million in H1 2021/22 compared to £26,652 million in H1 2020/21. Its profit before tax rose by 107.4% year-on-year to £1,143 million in H1 2021/22 from £551 million in H1 2020/21.
For H1 2021/22, Tesco’s board announced an interim dividend of 3.20 pence per share to shareholders.
At 9:03 AM BST on Friday at 12 November 2021, Tesco’s shares are trading at GBX 284.10, up by 0.14%. The market capitalisation of the company stands at £21,855.73 million.
