Market researcher Kantar said Aldi's sales rose 18.7% in the 12 weeks to September 4th, taking its UK grocery market share to 9.3% from 8.1% a year ago as consumers look for value during the cost of living crisis.Īldi trails market leader Tesco (LON: TSCO), Sainsbury's and Asda but Aldi and fellow discounter Lidl now account for 16.4% of the market. German-owned discounter Aldi has overtaken Morrisons to become Britain's fourth-biggest supermarket group, according to industry data published on Tuesday. Hunter concluded “The jury remains out on prospects for the time being with the market consensus still stuck at a hold, albeit a strong one.”
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“Even though it accounts for around 90% of total group revenues, today’s statement relates solely to the joint venture with Marks & Spencer and does not therefore provide an update on the Solutions business” Hunter noted, adding “The high-tech and unique offering driven by robotics and seamless delivery is one where strong growth has been long-anticipated but has yet to materialise meaningfully.”
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Hunter said Ocado Retail, the joint venture with Marks and Spencer (LON: MKS) PLC, remains the major driver of group revenues, but lighter baskets and heavier costs are weighing on progress. Richard Hunter, head of markets at interactive investor said today’s warning from Ocado Group PLC (LSE:OCDO) of lower sales and profits at Ocado Retail has the impact of confining Ocado to becoming a perennial “jam tomorrow” stock. Total pay growth accelerated to 5.5% year-on-year in the three months to July from 5.2% in June and Beck said this “significantly faster growth in pay” will probably carry more weight in the MPC's thinking in advance of next week's monetary policy decision than the weakness of employment growth or the fall in vacancies.īeck said he expects unemployment to rise, but anticipates a softer landing compared to past economic downturns.ĭeutsche Bank (ETR: DBKGn) has taken BT Group PLC LON: BT of its sell list upgrading the company to hold.Īlthough the broker viewed the shares as more expensive than telco peers (especially relative to risk) it said it feels there is now a less skewed balance of potential newsflow.ĭeutsche said BT could benefit from a stay on planned tax rises, ongoing inflation feeding through automatically to prices and perhaps a stronger pound which would benefit 'domestic' stocks within the FTSE.Īgainst this is consumer and B2B weakness and the risk of higher churn in the face of higher prices and a recession, Deutsche cautioned while ultimately alt-net proliferation will increase both business to commerce and business to business competition.ĭeutsche has an unchanged price target of 140p. “However, the decline in joblessness disguised what was only a modest 40,000 rise in employment, the smallest since January to March.” Martin Beck, chief economic advisor to the EY ITEM Club, said: “Against a backdrop of GDP seeing next to no growth over the late spring and summer, a fall in unemployment delivered some positive news.” Ocado warns of lower sales and profits at Ocado RetailĪ fall in UK unemployment over the summer offered some solace in the face of the headwinds facing the economy, according to the EY ITEM Club although it noted the decline was driven mainly by a rise in inactivity, with the number in work increasing only modestly.
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