Tesco, Sainsbury and Ocado all at risk from on-demand grocery startups, warns Credit Suisse
Tesco’s has the highest exposure to the convenience format of the UK supermarkets, which is seen as being most at risk from the new startups Gorillas Grocery started in Berlin but is now in London and Amsterdam
With the pandemic driving growth in online grocery, a “new disruptive channel has emerged”, the Swiss investment bank, with on-demand or ‘i-grocery’ services characterized by delivery times of 10-15 minutes from a network of small fulfilment centres in densely populated cities.
The handful of
UK on-demand grocery startups include London-based Weezy, calling itself ‘the 15-minute supermarket’, and Dija, which was founded by former Deliveroo executives Alberto Menolascina and Yusuf Saban and is expanding from a few postcodes in London.
14 April 2021 | 08:18am
StockMarketWire.com - UK stocks eked out modest gains in early trading on Wednesday after a reasonably tame US inflation reading eased concerns about rising bond yields, offsetting a disappointing earnings release from Tesco.
At 0816, the benchmark FTSE 100 index was up 8.28 points, or 0.1%, at 6,898.77.
Supermarket group Tesco fell 3.6% to 223.75 as it reported a 20% drop in annual profit after rising grocery sales were offset by lower fuel sales, costs associated with adapting to the pandemic and a writedown at its banking operation.
Tesco held its annual dividend steady at 9.15p per share, while forecasting a strong improvement in profitability in the current financial year.
14 April 2021 | 07:12am
StockMarketWire.com - Supermarket group Tesco reported a 20% drop in annual profit after a rise in grocery sales was offset by lower fuel sales, costs associated with adapting to the pandemic and a writedown on its banking operation.
Pre-tax profit for the year through March fell to £825 million, down from £1.03 billion year-on-year, as revenue edged back 0.4% to £57.89 billion.
Sales excluding fuel, on a continuing operations basis, rose 7.1% to £53.4b billion.
Operating profit, before exceptional items and amortisation of acquired intangibles, fell 28% to £1.82 billion.
Tesco held its annual dividend steady at 9.15p per share.
The company said it expected a strong improvement in profitability in the current financial year, albeit with trading conditions likely to remain volatile.