Greggs has partnered up with Just Eat to offer home delivery across the UK following a successful trial run last year. Deliveries will start in Bristol and Birmingham this week with expansion in Manchester, Leeds, Sheffield and Nottingham during the spring. Coverage of the whole of the UK is expected to be reached by the end of the year (The Guardian, The Telegraph).
The deal is further proof of the continued growth in the takeaway market with Just Eat saying the partnership showed expansion “beyond traditional takeaways” (BBC). The latest partnership is on an exclusive basis, preventing rivals Uber Eats and Deliveroo from offering Greggs’ products across the UK (The Financial Times £).
Tesco is facing regulatory threat to the sale of its Asian assets – potentially valued at up to $10bn – from Thailand’s new anti-competition body. Tesco announced in 2019 it was mulling a sale of its Thai and Malaysian business, counting nearly 2,000 stores, and three Thai groups are said to be interested (BBC).
Asda is preparing to turn its Middleton store in Leeds into a sustainability store, where customers will be allowed to fill up their own containers with products ranging from big brands to own-label coffee and pasta. Refill points will stock brands such as Kellogg’s cereals and Unilever’s PG Tips tea, while the store will also offer a “naked” florist and loose produce (The Guardian).
Traders are preparing for the Bank of England to cut interest rates within weeks after official figures showed that inflation has fallen to its lowest level in three years (The Times £). The UK’s inflation rate fell to its lowest for more than three years in December, increasing speculation that interest rates could be cut (The BBC). UK inflation fell to its lowest level in more than three years in December, moving further away from the Bank of England’s target and raising market expectations for a cut in interest rates at the end of the month (The Financial Times £).
Upmarket North-West England grocer Booths reported a strong sales increase over Christmas, up 3.5% and 2.7% on a like-for-like basis over the three weeks to 5 January 5, comfortably ahead of its main rivals (The Financial Times £). A partnership with Amazon and strong sales of English wine and “party food” helped Booths boost its Christmas trading (The Times £).
Under the new agriculture Bill, farmers will be rewarded for protecting the environment, improving access to the countryside and boosting animal welfare. Under EU policy, British farmers get £3.4bn a year in subsidies, with the money distributed based on the farm’s size. The Government pledged to maintain the same level of funding after Brexit, but the money will be distributed from size to environmental effort (Sky News).
Bernstein cut Beyond Meat’s rating to market-perform, the equivalent of hold, warning of limited upside from the current share price and valuation. Beyond Meat shares fell 7.9% in response to the rating downgrade, implying a valuation of $6.6bn (The Financial Times £).
US retail stalwart Target cut its fourth quarter growth forecast after reporting sluggish Christmas sales growth as customers failed to pick up as many toys and electronic goods it had planned for. Like-for-like sales rose 1.4% in over November and December compared to 5.7% a year ago (The Financial Times £).
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