The recession is not hitting all sectors equally. It seems to have been good for many retailers within the food sector. Premier Foods, the UK's biggest food manufacturer, has said total group sales rose 3% in the 16 weeks ended April 25th. Greggs has continued to grow sales, total group sales increased by 5.2%. Sainsburys profits are up 11%. Tesco have been taking 1 billion pounds a week. Domino's pizza had a good start to the year too. Morrisons had good figures up 7% as did Asda. So supermarkets, fast foods chains and associated suppliers and services seem to be doing well, not really hit by the downturn. What will they do with their profits? Who is likely to be the rival that an agressive board may like to aquire?Marks and Spencers 34% fall in profits for first quarter must be encouraging some competitors to have a peek.
M+S suffered badly from poor clothing sales, along with many other fashion chains. Clothing has not recovered much yet and will probably continue to pull down the groups profits.
A good summer range and very good summer weather will be needed to help lift M+S.
11 comments:
Well we all gotta eat!
are we comfort eating in these dire straights.
how would a M&S-Dominos tie up look?
Those offering value for money will capture market share as people economise.
Even (especially) benefit dependants get fat in Britain during this very modern recession.
Are more people eating at home more often? Are more people realising that most of the food in eateries is preprocessed and its equivalents are available in the shop?
Demetrius: There is some evidence that people are opting for a takeaway instead of a sit down restaurant meal.
Restaurants and even pub foods generally not doing so well, but a very mixed picture.
Be: We all do. Our family food bill has only risen, but I'm sure we have not bought as many items. That's food price inflation for you. MW thinks Sainsbury's profits may be linked to the VAT cut not being passed along.I'm sure it was passed along but with a certain amount of rounding.
EK. That is exactly what is happening. Blogged for long time on the strength of the discounters and lower to middle supermarkets outperforming the niche. The word 'Organic' has been removed from some products as 'organic' means expensive in the mindset.
We said ages ago that one of the first effects on food habits of rising prices would be a tailing off of guilt. 'How happy was this chicken?' 'Who cares - its only £2.99 a pack.'
ROYM: I confess to having a bargain bucket KFC the other week. First time I have used a drive through. It was massively quicker than going inside and queuing up.
So I'm looking forward to the Waitrose/KFC - M+S/Dominos tie ins.
So take your clothes off and throw an MP on the barbie!
Isn't this just the effect of the 30% devaluation kicking in ?
Food prices are up. People still have to eat. Therefore supermarket sales are up.
BQ buying himself a bargain bucket of KFC?
He has gone down in my estimation.
Idle: It was a family journey, long distance, crying children type of situation.
But I thoroughly enjoyed my share. It was a greasy delight and the extra salt sachets, that I thought long ago outlawed in the UK, were just the icing on the cake.
The Bentley did look a little out of place in the car park. As did the Quango family setting up the picnic table and place settings. I was not aware of the etiquette for a meal served in a bucket. The family in the Kia beside us looked most amused.
If only we had of had room in the car for my butler they would have had a story for their many grandchildren.
At least you had the bucket after you had consumed its contents, Bingo.
Wouldn't want vomit on the Connolly hide, after all.
Idle - That's why driving gloves were invented. Stops getting sticky stuff all over the leather steering wheel.
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