Food retailers

Article Abstract:

Food retailers' stock prices have been affected by a Competition Commission inquiry, and the preliminary findings are that pricing pressures affect retailers. Retailers are under pressure from Wal-Mart's acquisition of Asda, since Wal-Mart competes on price, and from a campaign by farmers over low meat prices, which they claim that consumers do not benefit from. Supermarkets are affected by pressure on operating margins, market saturation, and low growth prospects. There are good reasons for investors to be wary of this sector, though some companies, such as Tesco, are strong performers.

Industry Overview, Portfolio management

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UK food manufacturing: better times

Article Abstract:

UK food manufacturers were affected in the 1990s recession by rises in raw materials costs and a price war among retailers which made them put pressure on their suppliers. Raw material prices rose by only 0.9% from Jun 1995 to Jun 1996 and supermarkets are raising prices. This has helped food manufacturers. US companies are more profitable because US supermarkets have less strength and consumers tend to place more importance on brands.

Food & Kindred Products, Food Manufacturing, FOOD AND KINDRED PRODUCTS, Food industry

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Peps, pensions and peanut butter

Article Abstract:

United Kingdom supermarkets are moving into financial services and this move is likely to benefit consumers. Deposit account interest rates rose in 1996 in response to pressure from supermarkets, which have move into other areas such as loans. Tesco and the Royal Bank of Scotland have set up a JV, and Tesco plans a credit card for Jul 1997. Sainsbury's Bank is 55% owned by Sainsbury's, with 45% held by Bank of Scotland. Marks and Spencer played a key role in opening up the financial services market, and other retailers are following.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banking industry, Personal finance, Banks (Finance)

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