Food glorious food: M&S, Tesco lift outlook, fashion chain ASOS downbeat

LONDON, Jan 13 (Reuters) – British shoppers’ desire to celebrate Christmas at home has pushed Tesco (TSCO.L) and Marks & Spencer (MKS.L) to the top of the retail store chart, with demand for premium food and wine and champagne that both help improve profit forecasts.

The rapid spread of the Omicron coronavirus variant in the weeks leading up to Christmas left many pubs and restaurants deserted, as shoppers turned to supermarket aisles instead to entertain smaller groups at home. to know more

While the country’s largest supermarket, Tesco, sold more than 8 million bottles of champagne and sparkling wine, pub group Mitchells & Butlers (MAB.L) said their sales fell 10.2% in the four. Christmas weeks compared to pre-pandemic trade.

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There was also pressure on the fast fashion front, with expensive stock market ASOS (ASOS.L) reporting that its sales, while in line with downward forecasts, had been limited by demand volatility and constraints. of the supply chain.

Tesco boss Ken Murphy said the group has invested more to secure delivery at a time when Omicron-induced labor shortages and rising transportation costs have affected deliveries. to know more

“This has put us in a strong position to meet customer needs as, once again, COVID-19 has led to a greater focus on celebration at home,” he said.

M&S, Britain’s most popular retail group recovering from a decade of decline, said food sales were up 12.4% from the pre-pandemic performance two years ago in the 13 weeks to as of January 1, while clothing and home sales increased by 3.2%. Both were better than expected. to know more

MORE DIFFICULT TIMES AHEAD

British clothing retailer Next (NXT.L) set the tone for the holiday reporting season when it released results last week showing consumer demand was much stronger than expected. to know more

Supermarkets, sportswear groups and furniture sellers have seen strong Christmas sales since then, however nearly all warn that 2022 will be tough when UK consumers are expected to be hit by rising energy costs, taxes and general inflation.

Next and ASOS have warned that they have introduced some price hikes to counter the rise in cost inflation due to rising wages, freight and manufacturing. German discount supermarkets Aldi and Lidl said they will continue to keep prices lower, keeping pressure on the industry high. to know more

Official economic polls show that consumer spending held up well until the end of December, but even though some Brits saved money while working from home, they are expected to curb spending in 2022 as the cost of living rises.

Shares of Tesco and M&S both slipped in early trading as they were expected to improve outlooks. Shares in ASOS were up 6% after it said it would move to main stock market listing, broadening its possible shareholder base.

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Reportage by Kate Holton Editing by Keith Weir

Our Standards: Thomson Reuters Trust Principles.

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