UK consumers are eating out more and making use of growing delivery options as they save on their weekly food shop, new research has found.
The Cardlytics Spending Index found that UK consumer spending in restaurants was up by 2.3% in the third quarter compared to the second quarter and up by almost 12% year-on-year.
The rise in spending in fast food was even more marked as consumers took advantage of growing home delivery options via companies such as Just Eat (JE) and Deliveroo, rising 6% in the third quarter and by 34% year-on-year.
As spending on delivery and food out of the home increased, spending on groceries fell as consumers used their savings at the tills to increase their leisure spending.
Two years ago groceries represented almost 27% of the UK consumers’ total spend, but in the most recent quarter that figures has fallen to below 25%.
“This is an important time of year in the run-up to Christmas, so brands’ ability to engage consumers will be crucial,” Duncan Smith, head of business development at Cardlytics told The Telegraph. “Grocers will need to continue building loyalty among shoppers for reasons other than cost.”
Palm oil producer DekelOil Public Ltd (DKL) has refinanced an existing project development loan at more competitive rates.
A new seven-year €8.4m unsecured loan with interest payable at a rate of 6.85% replaces a €7.6m loan with interest payable at a rate of 10.5% secured with West African Development Bank.
It said the new loan was oversubscribed with the lead participants being Ecobank Asset Management and Sogeburse (and other affiliates of the Société Générale Group), in addition to several other regional financial institutions and utility companies.
DekelOil executive director Lincoln Moore said: “Today’s new loan will directly improve our profitability and will free up additional cash flows either for reinvestment in the business as we look to build DekelOil into a leading West African focused palm oil producer or, when it is appropriate to do so, return capital to our shareholders in the form of dividends.”
On the markets this morning the FTSE has eased back 0.3% to 6,974.1pts.
Premier Foods (PFD) has had a better start to the week, rising 2.5% back up to 46.4p, while Just Eat is up 1.8% to 544.5p.
Early fallers include Marks & Spencer (MKS), falling 1.7% to 340.9p on weekend worries over Next’s trading update this week, Sainsbury’s (SBRY) down 1.6% to 249.9p and WH Smith (SMWH), down 1.3% to 1,489p.
This week in the City
It’s another busy week internationally as third quarter earnings season is in full swing and there is another crucial trading update from Morrisons closer to home.
The major trading updates begin tomorrow with Kellogg’s (K) third quarter figures in the US.
Next on Wednesday are third quarter numbers from Just Eat (JE) in the UK, while Sodastream has its third quarter figures on the same day and Whole Foods Market (WFM) has its fourth quarter trading update.
New owner of Tyrrells Amplify Snack Brands (BETR) will issue its third quarter numbers on Thursday as will Kraft Heinz (KHC), while in the UK Coke bottled Coca-Cola HBC (CCH) issues a third quarter trading update and Tate & Lyle (TATE) will update the market on its half year performance.
The week’s biggest news from a grocery perspective are the third quarter numbers from Morrisons (MRW), with the market wanting to see more evidence the turnaround under David Potts is regaining lost sales.
In economic news,the BRC Shop Price index will be out on 2 November and the Bank of England’s UK interest rate decision, which some predict may see another cut, will be out on Thursday.