The shockwaves from Thursday’s election, questions over Theresa May’s leadership of the government, a potential deal with the DUP and a cabinet reshuffle dominate the papers this weekend as expected. But there is still plenty of retail news to dig into. Nisa Retail has hired bankers to explore a shock sale, Sky Newsreports on Sunday. The store group is working with Lazard on options that could include a sale, according to the broadcaster. The project is at an early stage, and may conclude without any radical changes to Nisa Retail’s ownership structure, according to insiders. The Telegraph follows up the Sky scoop today. The paper writes that the talks come two months after Nisa boss Nick Read warned that Tesco’s £3.7bn takeover of rival Booker would cause “enormous pain” for the sector.
The Sunday Times writes that Poundstretcher’s reclusive owners have held informal sale talks with the turnaround firm Endless, as inflation and rising competition pile pressure on the discount chain. Brothers Aziz and Rashid Tayub, whose Crown Crest group controls the budget retailer, are understood to have given Endless a tour of the business last month.
Morrisons boss David Potts is facing questions over pay as the annual report recently revealed he could take home £10m over the next three years. The Mail on Sunday writes that the supermarket’s board set bonus targets described in the City as ‘inexplicably low’.
Tesco is set to report a strong first-quarter this week as its recovery continues, according to analysts at Jefferies. The Sunday Expresswrites that the supermarket looks set to report like-for-like UK sales growth of 1.9% in the first quarter. The Mail this morning follows up, writing Tesco’s growth spurt is to continue, with the grocer expected to report bumper first quarter sales. Analysts at Bernstein have tipped Tesco to report a 2.2% rise in like-for-like sales, up from 0.7% in the previous quarter.
Pip & Nut founder Pippa Murray expects her three-year-old business to turn over £6m this year thanks to the wellness trend, The Mail on Sunday reports in a mini-profile of the company.
Midas, The Mail on Sunday’s share tip column, looks at Unilever, Reckitt Benckiser and Diageo as safe havens in uncertain times.
Mars has recalled some Galaxy chocolate bars, packets of Minstrels and Maltesers Teasers across the UK and Ireland after warning that the products might contain salmonella (The Guardian).
A merger between DX Group and the distribution division of John Menzies could be at risk after an investigation was launched by City of London police (The Sunday Times).
Walgreens Boots Alliance is facing a lawsuit over its Rite Aid takeover (The Sunday Times).
The fallout from the election in terms of its effects on business is also explored in the papers.
Inflation expected to stay at near four-year high of 2.7% after shock election result as energy and food costs continue to climb (The Mail on Sunday). The Bank of England is also forecast to keep interest rates on hold at 0.25 per cent when it holds its meeting on Thursday.
Households are facing a fresh squeeze on real income, as economists predict new falls in the pound following the general election result (The Mail on Sunday). Figures out this week are set to show that Britons continued to see wages outstripped by inflation in May, with the Consumer Prices Index rising 2.7% and average weekly earnings 2.4%.
Leading bosses have called on the new government to steer clear of a hard Brexit, get maximum access to single market and to negotiate a transitional arrangement with the European Union while making an urgent priority of granting full rights to EU citizens in the UK (The Mail on Sunday).
The Times this morning reports that business confidence has crashed amid post‑election uncertainty, with evidence mounting of a sharp slowdown in the economy. Company bosses blame uncertainty over the make-up of the government, according to a poll by the Institute of Directors.
Outside of grocery and retail, The Mail on Sunday picks up the latest export stats from the ONS. Exports of British goods have soared to a record high as fall in the pound sparks “booming demand” from around the world, the paper says. The UK shipped £84.8bn of goods to overseas buyers from February to April – up 18% on the same period last year.