Top story

Convenience store owners have invested £162m in the past three months as they prepare to fend off big supermarkets in the war to win over shoppers.

Small food shop owners have dipped into their own reserves to help improve their stores and better serve the changing demands of consumers, according to research by the Association of Convenience Stores.

Much of the cash injection is to help shops cash in on the exploding food-to-go trend, with more meal deals, coffee, sandwiches, in-store bakeries and wider ranges of ready meals, the Mail on Sunday reported.

The study also found that some shop owners were planning to set up branded areas in partnership with the likes of Subway and Greggs.

“The fact that the majority of the investment is being funded through reserves is a testament to the resilience of the retailers running convenience stores,” an ACS spokesman added. “Now that economic conditions are improving, retailers are able to use the reserves to improve their stores, increase sales and future-proof their businesses.”

Morning update

Shares have plunged in almost all listed grocery and fmcg operators upon the market opening this morning as the grim situation in Greece takes its toll. European stock markets are set for big sell-offs today with the FTSE 100 of London’s leading shares forecast to fall 200 points after Greece closed its banks and imposed capital controls ahead of an expected debt default.

The FTSE 100 slumped by more than 2% (140 points) on opening to 6,611.2, with Germany’s Dax and France’s Cac also down.

French supermarket giant Carrefour (CA) has been one of the hardest hit stocks so far, falling 3.4% to €29.2. Coke bottle Coca-Cola HBC (CCH), which has a dual listing in Athens and London, slumped 2.9% to 1,388p, while SABMiller (SAB) also fell 2.7% to 3,331p. Most other stocks in the world of food and drink are also down more than 1%.

AIM-listed Produce Investments, an operator in the fresh potato and daffodil sectors, has appointed Neil Davidson to the board as a non-executive director with immediate effect. Davidson has more than 30 years’ experience in the agri-food sector having started his career at Northern Foods where he held various roles, including managing director of the milk division. He became chief executive of Express Dairies when it demerged from Northern Foods in 1998. Davidson subsequently became CEO of Arla Foods following its merger with Express Dairies before retiring in 2005. In 2006, he was awarded a CBE for his services to the dairy industry.

Last week in the City

Tesco (TSCO) was one of the big movers on Friday following a trading update when it reported a 1.3% fall in like-for-like sales – the best performance in the last quarter by any of the leading grocers. It shares climbed 2.7% to 223.7p and also pulled up rival listed grocers Morrisons (MRW), which rose 1.1% to 185.1p, and Sainsbury’s (SBRY), up 0.7% to 276.3p.

Online rival Ocado (OCDO) also saw its stock rise 1.8% to 425.7p ahead of its half-year results this week. Majestic Wine (MJW) was one of the day’s big losers, falling 2.8% to 397.2p.

City diary

Ocado is expected to report a rise in sales and profits in its interim results tomorrow. The consensus among analysts is for a 15% uplift rise in first-half revenues and a 5% hike in earnings to £36m.

Irish drinks company C&C Group is also due to put out a trading update ahead of its AGM on Thursday. The Magners and Gaymers owner is only expected to release limited financial information but the tone of the statement is expected by analysts to be subdued.

Topics