Climate Adaptation & Water▲
Supermarket bosses call for legally binding targets to boost UK food production
Supermarket bosses are calling for Andy Burnham to set legally binding targets to increase the proportion of fruit and vegetables grown in Britain by 2040. The chief executives of Tesco, Waitrose, Sainsbury's, Aldi and the Co-op have written to the Prime Minister warning that wildfires and extreme weather are putting Britain's food supplies at risk. At least half of the nation's imported fruit and vegetables currently come from countries facing extreme water scarcity, the bosses warned. The letter, drafted by the Food Foundation and signed by more than 100 organisations including Danone and Greencore, urges the introduction of a good food bill that would require local authorities to plan for continued food supplies during extreme weather and mandate consideration of food security across government decisions. It also calls for legally binding targets on reducing childhood obesity and increasing children's fruit and vegetable consumption.
The Telegraph·28dRead more ▾
Tesco considering sale of European business
Tesco is considering the sale of its central and eastern European operations, according to reports. The Financial Times reported that the UK's largest supermarket group is exploring a move to find a buyer for the division and focus further on its core UK and Ireland operation. A Tesco spokesman said the company never comments on rumour or speculation. The European arm, which employs around 22,000 people across 56 stores in Hungary, the Czech Republic and Slovakia, saw sales grow by 0.8% to £1.14 billion in the quarter to the end of May. A potential sale would cement the group's focus on the UK and Ireland, and bring an end to previous ambitions to be a global retail giant.
Financial Times·49dRead more ▾
Sainsbury’s to shed light on consumer sentiment and food prices
Sainsbury’s is set to update investors on consumer sentiment and food prices when it reports first-quarter trading on Tuesday. The supermarket giant previously noted a positive start to its financial year, with grocery volumes growing ahead of the UK market, but rivals like Tesco have seen slowing revenue growth amid cautious consumer activity. Investors will be watching for comments on how the Middle East conflict is affecting prices, with fuel costs cooling and food inflation steady at 2.2% in April, though IGD warns it could peak around 5.5% later this year. Analyst Aarin Chiekrie of Hargreaves Lansdown said Sainsbury’s food-first plan should lift grocery sales, but its ownership of Argos may hold back progress, while cost pressures remain a threat. Shares have fallen to their lowest since last September amid concerns over the consumer backdrop.
Yahoo Finance UK·60dRead more ▾
TSCO.LSE▲
Asda losses spiral to nearly £1bn after sales decline and IT upgrade failure
Asda has posted pre-tax losses of £989m for the latest financial year, up from £599m a year earlier, as sales fell 3.4% to £25.9bn. The results include £284m in losses tied to Project Future, the programme to separate its IT systems from former owner Walmart, and a £384m impairment from property revaluation. Executive chairman Allan Leighton, appointed in November 2024, has launched a price war that contributed to a 33.3% drop in earnings before tax to £761m, but the supermarket’s market share has slipped to 11.5% from 12.3% a year ago. Asda, owned by TDR Capital and the Issa brothers since 2021, said the reported loss does not reflect underlying financial strength and highlighted £1.3bn in cash and £2.1bn in total liquidity.
Yahoo Finance UK·68dRead more ▾
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Tesco Shares Fall 3% After First-Quarter Sales Miss Estimates
Tesco PLC shares fell 3% after its first-quarter trading update showed a sharp slowdown in sales momentum, with UK like-for-like sales rising only 1.8% in the thirteen weeks to May 30, well below the 2.7% consensus forecast. Group like-for-like sales across its international footprint edged up just 1.0% to £16.83 billion, dragged down by a 3.2% revenue drop at its Booker wholesale arm, which the company attributed to the end of a low-margin national contract and tough comparisons. Chief Executive Ken Murphy blamed unseasonably cold and rainy spring weather for suppressing seasonal grocery volumes, overshadowing a boost from the FIFA World Cup that saw late-evening orders for canned cocktails surge 185% and Irn-Bru sales jump 50%. Despite a 9% advance in its premium Tesco Finest range and an 8.9% rise in UK online grocery demand, the overall volume deceleration prompted institutional investors to re-rate the stock, sending shares down to 448 pence in London. Management kept its full-year adjusted operating profit guidance unchanged at £3.0 billion to £3.3 billion, offering no positive catalyst to stem the decline.
Moby·69dRead more ▾
Tesco says Middle East conflict hits shopper sentiment but not prices
Tesco reported that the conflict in the Middle East has impacted consumer sentiment, though it has not yet led to higher prices or a material change in shopper behaviour. Total sales rose 1% to £16.8 billion in the 13 weeks to May 30, with UK and Republic of Ireland like-for-like sales up 1.8%, a slowdown from the prior quarter. Food sales grew 2.6%, driven by a 3.6% increase in fresh food and a 9% jump in the Finest range. The retailer maintained its full-year operating profit guidance of £3 billion to £3.3 billion, while noting that food inflation in the quarter was below the 2.2% reported by the Office for National Statistics.
Yahoo Finance UK·69dRead more ▾
TSCO.LSE▼
Tesco chief warns UK Chancellor against supermarket price caps
Tesco chief executive Ken Murphy has warned UK Chancellor Rachel Reeves against regulating supermarket prices, calling such intervention neither necessary nor desirable in a highly competitive market. The warning follows Reeves's proposal last month to cap prices on staples like bread, eggs, and milk in exchange for relaxed red tape, a move that dismayed retail bosses. Murphy noted that Tesco's own measure of grocery inflation is running at 2.2 percent, below wage growth and official figures, and said inflation has not really materialised as an issue so far. Tesco reported like-for-like UK sales growth of 1.8 percent in the 13 weeks to May 24, down from 4.2 percent in the prior quarter and below analyst expectations of around 2.3 percent, which it attributed to Middle East conflict and poor spring weather. Despite the slowdown, Tesco maintained its full-year guidance and expressed confidence in meeting expectations.
The Telegraph·69dRead more ▾