Bradford-based supermarket chain, Morrisons, has warned that full-year profits will be at the bottom of market expectations after reporting a 5.6 per cent drop in like-for-like sales over the crucial Christmas trading period. Chief executive Dalton Phillips, in an unscheduled trading update, conceded that the UK grocery market had been “very tough” and that its Christmas performance had been “disappointing”.
Budget grocers Lidl and Aldi achieved record Christmas sales in the UK as consumers responded well to their low price, high value products.
Premium British grocer Waitrose today posted a 3.1 per cent rise in sales during the Christmas period. The result means that the grocer emerges as one of the top performers during the key trading period, with Sainsbury’s only posting a sales boost of 0.2 per cent. Aldi and Lidl also claim to have had a successful Christmas trading period despite not disclosing any figures.
Sainsbury’s will soon stop selling physical CDs, DVDs and books through its website as customers increasingly opt to download and stream entertainment directly to their phones, tablets and computers.
German discount retailers, Aldi and Lidl, are launching their biggest assault yet on the ‘big four’ supermarkets after recording a bumper Christmas quarter. The pair are thought to have increased their combined sales by around 20 per cent in the festive quarter, according to industry sources.
Asda has invested £50 million in price reductions as part of its January ‘value’ campaign. Staple products such as bread, meat and toiletries are set for reductions along with branded products such as Kingsmill bread and Heinz soup, which will be reduced to just 50p. The Wal-Mart-owned supermarket giant said the £50 million price reductions are part of a £200 million investment in pricing this year.
Tesco’s application to buy a 50 per cent stake in TataGroup’s Trent Hypermarket has been formally approved by India’s foreign investment regulator, meaning that the supermarket group can now officially announce itself to Asia’s third largest economy. The investment plan is thought be worth around USD 110 million (GBP 67 million).
An organic food company owned by Prince Charles’ foundation,Duchy Originals, has managed to generate sales in the midst of a general slowdown in consumer spending.
The managing director of Waitrose has attacked “meaningless” supermarket loyalty cards by insisting that customers prefer immediate rewards. Mark Price, who has hailed the success of the myWaitrose card which offers customers a free cup of coffee or tea, said that the fact that Waitrose is now the second largest provider of coffee in the UK is proof that the card is a success.
Asda’s latest Income Tracker has revealed how family spending power has increased by £2 a week year-on-year in November. The Wal-Mart-owned supermarket firm found that the average UK family had £160 of discretionary income available in November, up £2 a week from November 2012 and the highest since July 2012.
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