It’s hard to declare an absolute winner – though I’ve given it a go in my leader.
In truth all the listed grocers enjoyed strong food sales, but these were offset by issues with non-food and clothing/home for Sainsbury’s and M&S respectively, while Tesco’s share price was hit by disappointing sales from its Booker wholesale arm.
And the big picture provided by the likes of Worldpanel and NIQ is that volumes are down – which was partly a hangover from the late timing of the Rachel Reeves budget that meant shoppers took ages to start shopping.
It is certainly noteworthy that Brits spent 4.1% less on alcohol in the four weeks to 28 December than last year. This was the biggest drop since Covid restrictions ending prompted a mass return to the pub in 2021. Worldpanel hinted it believed cost of living pressures and the trend toward moderation were behind the decline.
And there’s also speculation in the market that food volume declines might be the result of GLP-1, fuelled by an admission from Greggs CEO Roisin Currie that sales are being impacted by growing use of the weight-loss drug. Doubtless it will be working on changes to its menu.
In the meantime many supermarkets have launched GLP-1 ranges in time for the new year: first out the blocks was Morrisons, followed by Co-op, M&S, Iceland and Asda.
This morning Sainsbury’s defended its offer and its decision not to launch a range, while Tesco CEO Ken Murphy focused on strong sales of fresh produce as proof of its satisfactory response.
It’s a world away from previous January diet stories isn’t it? Stories about Veganuary have been few and far between, though here at The Grocer we’ve explored the battle between tofu and tempeh to reignite sales. And we’ve interview Quorn CEO David Flochel about his turnaround plans.
Talking of diets, this week saw the introduction of historic new marketing regulations for LHFs or ‘less healthy foods’. With so much confusion, not helped by the last-minute pre-Christmas updated guidance, The Grocer has published an unofficial guide to the new rules.
Another piece well worth reading is our analysis of the stock market’s best and worst-performing food and drink players.
And with US president Donald Trump causing geopolitical carnage we’ve looked at the prospects for key commodities in the new year, as well as reporting on the decision by a number of agrifood giants to abandon the soy moratorium agreement. Understandably environmental lobby groups are up in arms, but I don’t imagine supermarket bosses will be best pleased either.
Anyway, there’s loads more brilliant stories in this week’s issue. And even more on thegrocer.co.uk. But those are some of my faves. And we would love to know your thoughts on our coverage. Or is there anything we’ve missed? We’re all ears! Get in touch via LinkedIn or adam.leyland@thegrocer.co.uk.
Happy new year!
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