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Stocks yo yo; Supermarket inflation at two year low; Ocado soars

Published 26/03/2024, 12:06
© Reuters.  FTSE 100 Live: Stocks yo yo; Supermarket inflation at two year low; Ocado soars
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Proactive Investors -

  • FTSE 100 in red at 7,917
  • Co-op Bank to cut 400 jobs
  • Flutter goes positive in US

FTSE 100 returns to red

The FTSE 100 yo-yoed between loss and gain-making territory come late morning on Tuesday, coming to rest just in the red at 7,917.

Among the day’s biggest risers were retailers, led by Ocado Group PLC (LON:OCDO) after its food retail partnership with M&S maintained annual guidance following a 10.6% rise in first-quarter revenue.

“This is no mean feat considering their competition ranges from established supermarket giants and heavy discounters alike,” eToro analyst Adam Vettese commented.

“Ocado now needs to stay on this trajectory, keep narrowing their losses and winning more market share on their road to profit.”

Ocado was up 8.2% at 489.80p on the news, while Marks & Spencer Group PLC gained 1.7% to reach 258.53p.

Engineer Smiths Group (LON:SMIN) gained 3.4% in the meantime, after reporting improved interim profits, unveiling a £100 million buyback and announcing insider Roland Carter as chief executive.

Auto Trader PLC (LON:AUTOA) led the fallers meanwhile, dipping 4% on the back of news JP Morgan had placed it on ‘negative catalyst watch’ ahead of May’s full-year results.

Papa Johns to close 43 UK sites

Papa Johns has unveiled plans to shut 43 of its restaurants in the UK, following a review at the start of this year.

“Underperforming” sites will close by mid-May following consultations, with these now having been identified, the pizza chain said on Tuesday.

Papa Johns, which is listed in the US, operates 450 UK restaurants, with the closing sites said to be “no longer financially viable”.

“Our priority is our team members, who will be fully supported throughout this process,” UK managing director Chris Phylactou commented.

“Our goal is to work with impacted team members and attempt to find redeployment opportunities where available.”

Grocery price inflation subsides to two-year low

Supermarket prices increased at their slowest rate in two years over the course of March, at 4.5%.

As reported by Kantar, this was the smallest increase seen since February 2022, while the figure also marked a hefty drop from February’s 5.3%.

Branded goods sales outdid those of own-labelled products, according to the market researcher, while demand for premium own-branded goods rocketed.

“Grocery inflation has come down significantly since hitting an eye-watering peak of 17% in March 2023,” Kantar consumer insight head Fraser McKevitt commented.

“However, despite this continued slowdown, many British households are still feeling the squeeze.”

Read more on Proactive Investors UK

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