TSCO, SBRY, MKS: Stocks to watch as shoppers seek cheaper grocery options

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TSCO, SBRY, MKS: Stocks to watch as shoppers seek cheaper grocery options

 TSCO, SBRY, MKS: Stocks to watch as shoppers seek cheaper grocery options
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Highlights

  • According to new data published by NielsenIQ, the UK's supermarket shoppers are now switching to cheaper food alternatives.
  • The market researcher revealed that sales volume across all supermarket categories fell by 5.5% in the last four weeks to June 18.

Blame it on the spiralling cost-of-living crisis, according to new data published by NielsenIQ, the UK's supermarket shoppers are now switching to cheaper food alternatives such as organic and healthy food in a bid to tackle the difficult times.

Sales volume across all categories at supermarket fell by 5.5% over the past four weeks to June 18.

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The NielsenIQ report highlighted that the sales volume across all categories at supermarkets fell by 5.5% over the past four weeks to June 18, with frozen poultry sales has risen by 12% year-on-year, along with the likes of rice and grains (11%), canned meat and Gravy/stock (9%), canned beans and pasta (10%).
However, the sales of wines, beers, and spirits fell by 9.7% due to the closure of the hospitality sector during the pandemic along with the sales of general merchandise, which fell by 6.1%, as shoppers reduced their discretionary spending.
Over the four weeks, store visits grew by 7%, and the total grocery sales jumped by 1.5%, and in contrast, online sales plunged by 12% compared to last year, leading to a 0.4% drop in online grocery sales to 11.3% in June from May and 13.1% a year ago.

Keeping the prospects of the retail sector in mind, let’s look at stocks that investors can keep an eye on.  

Tesco Plc (LON: TSCO)

Tesco Plc is one of the UK's largest supermarket chains, operating across 3,400 stores. Tesco on 28 June had a live market cap of £19,107.53 million. Tesco’s sales stood at £9,879 million over the 13 weeks period, ending on 28 May, with one-year Like-for-Like (LFL) sales falling by 1.5%. The YTD return of FTSE 100 constituent stands at -11.84% and its shares were up by 0.39% to GBX 255.40 at 10:05 AM (GMT+1) as of 28 June 2022.  

J Sainsbury Plc (LON: SBRY)

The UK’s second-largest supermarket chain operates over 1,400 stores along with a digital presence, and its two segments include Retail and Financial Services. With investors mounting pressure on Sainsbury to sign up for the Living Wage Foundation’s pay commitments, the SBRY's market cap of £4,958.96 million, the YTD return of the FTSE 100 listed company stands at -22.48% as of 28 June 2022. Its shares were up by 0.99% to GBX 213.70 at 10:21 AM (GMT+1) on Tuesday.   

Marks & Spencer Group Plc (LON: MKS)  

The multinational retail company Marks & Spenser offers food, beauty, clothing, accessories, and home products through over 1,500 stores and over 100 websites globally. With a market cap of £2,839.52 million, MKS had a YTD return of -37.69% as of 28 June 2022. Its shares were down by 0.66% to GBX 144.00 at 10:27 AM (GMT+1) as of 28 June 2022.  

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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