The papers focus on the strong grocery market share figures for Tesco release yesterday, giving further weight to the view Dave Lewis turnaround plan is well on track.
“Tesco gains ground on rivals with sales boost”, writes The Times (£), which adds: “Tesco’s fightback has gained further ground, with industry figures showing that Britain’s biggest grocer has won market share for the first time in five years.”
The Guardian writes: “Tesco has increased its share of the grocery market for the first time in five years, with a revamp of the supermarket’s own brand range helping drive sales of fresh produce.” While The Daily Mail says Tesco is “fighting back against Aldi and Lidl”, writing: “The figures provided a further boost to chief executive Dave Lewis”.
The Telegraph says the Kantar figures came as Matt Davies, Tesco’s UK managing director, fired a warning shot at the industry not to underestimate the impact of inflation. “Everyone should be clear how damaging inflation is to the economy, retail businesses, manufacturing businesses and how lethal it can be to millions of people struggling to afford to live from week to week”.
Davies, who was speaking at the Big Debate conference organised by grocery industry body IGD, said it was clear there were inflationary forces in the UK after the Brexit vote but would not say whether they would feed through to price rises on supermarket shelves. “Our role is to do everything we can do to prevent food inflation which is not good for business and highly toxic for consumers.” (The Guardian)
Official figures from the Office for National Statistics showed the annual inflation rate rising from 0.6% to 1% in September, its highest for almost two years. The ONS said the cost of living had yet to be much affected by the drop in the value of the pound seen since the EU referendum, but the Bank of England, the International Monetary Fund and City economists believe that inflation will rise above the government’s 2% target in early 2017 and will reach at least 3% by the end of the year. (The Guardian)
The government is considering extending the remit of the supermarket watchdog to cover farmers and other producers amid concerns about unfair practices. Ministers launched a statutory review of the Groceries Code Adjudicator yesterday and also began a consultation on whether the body should cover more of the supply chain. (The Times £)
The takeover of Bernard Matthews by food tycoon Ranjit Boparan is being investigated by the UK’s competition watchdog amid fears that the so-called “Chicken King” will have a monopoly on the market. (The Telegraph)
Two of Britain’s top barristers have heavily criticised the joint parliamentary inquiry into the sale of BHS and deemed its official findings “bizarre” and “insupportable”. (The Times £)
Sir Philip Green has made a last ditch plea to save his knighthood, hinting that he is close to agreeing a rescue deal for the failed retailer BHS’s pension fund and stating he is “very, very, very sorry” for the collapse of the business (The Guardian). The Pensions Regulator has “yet to receive a comprehensive written proposal” from Sir Philip Green about a settlement for the BHS pension hole (Sky News).
Sir Philip Green has launched an audacious defence of his reputation by claiming that he wanted to “correct” Prime Minister Theresa May following her thinly veiled attack on the retail tycoon (The Telegraph). In an interview with ITV News last night, Sir Philip outlined the “horrible, horrible, horrible” summer he had endured after a damning report by MPs castigated his conduct in the sale of BHS last year. (The Times £)
A damning editorial in The Guardian says “The retail tycoon has done nothing to earn his knighthood. MPs should strip him of the title”.
Underlying sales growth at Danone, the world’s biggest yoghurt maker by sales, slowed to 2.1 per cent in the second quarter from 4.1 per cent in the previous three months, as retailers in China reduced stock of baby milk formula ahead of regulatory reforms in the Chinese market. (The Financial Times £)
Rising American sales might have been the highlight for many in Rémy Cointreau’s rising sales yesterday, but the French spirits maker was looking east rather than west as it toasted its latest results. The hangover from China’s crackdown on “gifting” luxury products such as premium cognac to officials, which began in 2014, appears to be easing. (The Times £)
Caterer Peyton and Byrne has gone into administration, after being deserted by high-profile venues including Kew Gardens and the British Library. The business has been split in two, with French catering company Sodexo buying the firm’s remaining catering contracts while the Peyton family will take charge of its bakeries operation. (The Guardian)
Investors are clamouring for a slice of Domino’s Pizza stock on Tuesday. The world’s biggest pizza delivery chain saw its shares jump more than 5% to hit a fresh all time high of $159.90 a share in early trading after the company delivered a scorching set of third quarter results. (The Financial Times £)
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