MKS, TSCO, SBRY: Stocks to watch as grocery bills surge by £454

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MKS, TSCO, SBRY: Stocks to watch as grocery bills surge by £454

 MKS, TSCO, SBRY: Stocks to watch as grocery bills surge by £454
Image source: OlegGeo, Shutterstock.com

Highlights

  • Brits are facing a £454 increase in average annual grocery bills as prices surged by 9.9% over the four weeks to 10 July.
  • Almost half of UK households are changing their shopping habits and shifting towards cheaper products and discounters to offset the worsening cost-of-living crisis.

The average annual supermarket bills are expected to hit the highest level next month since at least 2008 amid a cost-of-living squeeze. According to research firm Kantar, families are facing a £454 increase in average annual grocery bills as prices surged to 9.9% over the four weeks to 10 July, from 8.3% in the previous month.

 

With the sharp increase in costs for businesses and households, consumer price inflation (CPI) is expected to soar from 9.1% in May to 9.3% in June. Meanwhile, according to the Office for National Statistics, regular pay growth excluding bonuses was 4.3% between March and May.  

 

Image credit: non c, Shutterstock.com

 

According to independent research from the food assurance scheme Red Tractor and polling firm YouGov, almost half of UK households are changing their shopping habits in a bid to tackle the cost-of-living crisis. 

 

The shopping habits are now shifting towards cheaper products and discounters as they try to offset the worsening cost-of-living crisis. Around 46% of families are changing their buying habits, with 13% cutting their spending on fruits and vegetables and 30% buying less meat.

 

 

Amid the rocketing shopping bills, let's look at 3 FTSE-listed supermarket stocks.

 

Mark and Spencer Group Plc (LON: MKS)

 

One of the leading multinational retailers in the UK, Mark and Spencer Group Plc, on 20 July, was trading at GBX 144.15 at 8:20 AM (GMT+1). Marks and Spencer's shares were up by 0.91%, with a market cap of £2,805.60 million. 

 

MKS had offered its investors a one-year return of 7.64% and a YTD return of -37.62%. The leading retailer's earnings per share (EPS) stood at 0.16. 

 

Tesco Plc (LON: TSCO)

Another leading supermarket chain, Tesco Plc, was the only one amongst the big four grocers in the UK to report growth for the quarter. 

 

The FTSE 100 listed retailer's market cap stood at £19,671.52 million as of 20 July, with one year return of 14.19%. However, it has provided its shareholders with a negative YTD return of -9.07%. TSCO, at 8:05 AM (GMT+1), was trading at GBX 262.50 and was up by 0.46% on Wednesday. 

 

J Sainsbury Plc (LON: SBRY

 

The UK's second-largest supermarket chain, J Sainsbury Plc, enjoyed a market cap of £5,076.61 million as of 20 July. At 8:05 AM (GMT+1), J Sainsbury's shares were trading at GBX 219.10% and were up by 1.15% on Wednesday. However, its performance wasn't as expected, with one-year and YTD returns being in the negative territory of -22.25% and -20.60%, respectively. 

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.

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