Morrisons briefly overtook J Sainsbury yesterday to become Britain’s second-biggest supermarket chain by stock market value.

Its higher ranking, albeit temporary, marks a rapid reversal in fortunes for the Bradford-based grocer, which had been demoted from the FTSE 100 index in December. Morrisons was soon propelled back to the premier division of British public companies, however, and it has continued to advance under David Potts, its chief executive. (The Times £)

Sainsbury’s has missed out on the rally enjoyed by Tesco and Morrisons this year as investors bet on a turnaround for the pair, but remain sceptical about Sainsbury’s £1.4 billion swoop for Argos owner Home Retail amid a price war with discounters Aldi and Lidl. (The Evening Standard)

UK retail sales returned to growth in September due to higher spending on food, more purchases of big-ticket items and a back-to-school rush (The Financial Times £). The Times (£) writes: “It may not feel like it, amid the relentless price-cutting and scrapping for market share, but Britain’s under-pressure supermarkets have just enjoyed their best three months since 2013”.

However, the BRC said it was too soon to say June’s vote to leave the EU was not affecting household spending. “While this month’s sales figures may add to the impression that Brexit impacts have been brushed off, it is still too early to judge as we have not yet navigated the roughest waters,” said Rachel Lund, head of retail insight and analytics at BRC. (The Guardian)

Fears that Britons would react to the decision to quit the European Union with a bout of post-Brexit belt-tightening appear to have been unfounded, with two of the world’s biggest credit card companies – Barclaycard and Visa – reporting a boom in eating out and going to the cinema. (The Times £) Consumer confidence in the British economy has climbed to its highest level for over two years, as Brexit fears look to be shrugged aside. Some 48% of Britons felt upbeat about the economy last month, compared to 47% who did not, according to Barclaycard. (The Daily Mail)

The slump in sterling is a blessing in disguise after years of overvaluation and helps to break the corrosive stranglehold of the financial elites over the British economy, according to a former bail-out chief for the International Monetary Fund, Ashoka Mody. (The Telegraph)

Motorists are being warned that fuel prices could rise by 5p a litre by the end of the month. The fall of sterling combined with Brent crude oil hitting a 52-week high makes it a double whammy for petrol and diesel prices. (Sky News)

Sir Philip Green paid out £2m to top staff at BHS as the retailer went into administration, it emerged last night. The money – dubbed a ’Philip bonus’– was shared among around 200 key employees at BHS headquarters, who were told about the payment on the same day as 11,000 staff were informed they would lose their jobs (The Daily Mail). Arcadia was not required to make the payments, which Mr Topp said were intended to reward “key people” who stayed at the business while administrators tried to find a buyer. (The Financial Times £)

Anheuser-Busch InBev’s £79bn takeover of SABMiller, which completed on Monday, will give the Belgian brewer more bargaining power when it comes to buying malting barley. Rabobank estimates that AB InBev’s malting barley needs will increase by roughly a quarter as a result of the takeover. (The Financial Times £)

Gourmet Burger Kitchen is to double in size and create more than 2,500 jobs as part of expansion plans under its South African owner. (The Daily Mail)

 

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