Supermarkets have relied on hiring more staff, paying out bonuses and reducing ranges to “rise to the challenge” of the coronavirus outbreak, writes The Telegraph as they recovered from stock issues as shoppers entered a panic-buying mode. The big letdown has been online shopping and delivery, where grocers’ limitations “became apparent” (The Telegraph).
Sainsbury’s will stop rationing restrictions on thousands of products, as stock levels across stores were “much better”, said CEO Mike Coupe . One of the reasons for this decision was shoppers complaining the restrictions did not allow them to shop for others, such as vulnerable parents or neighbours. Restrictions remain in place on items such as pasta, long-life milk, antibacterial products and some tinned and frozen goods for the foreseeable future (Sky News).
Investors have urged Tesco to pay out a full dividend despite risking public backlash for paying out hefty sums to shareholders amid the coronavirus crisis. Tesco has benefited not only from a surge in sales spiked by the virus outbreak, but also by saving around £700m in business rates (The Financial Times £).
Ocado meanwhile, is risking financial backlash from investors who have been urged by ISS to vote against its pay report and committee chair Andrew Harrison. The shareholder advisor group argued that, although Ocado is performing well, pay is excessive relative to peer companies. This comes as CEO Tim Steiner received a package worth nearly £59m last year (Sky News).
Dairy farmers are requesting the governmnet’s help as demand for milk fro cafes and restaurants plummeted, with some having to pour away milk from their cows. (Sky News).
A weekly survey by the British Chambers of Commerce on how firms are coping with the coronavirus crisis found an increase in the number planning to furlough workers, while only 1% had been able to secure a CBIL loan under the government’s scheme while 7% had received a grant offered for small business. Meanwhile firms reported serious cashflow shortages with 57% of firms having three months’ cash in reserve or less, and 6% reporting they had already run out of money (The Guardian).
Retail footfall has plunged by 81% last week and 75% in the last week of March as the UK entered a nationwide lockdown (The Telegraph).
Holland & Barrett workers have begged the retailer to shut its shops as they fear for their health. The health chain was allowed to keep its 750 UK stores open as its products cater for people with special dietary needs, hence it is considered an essential retailer (BBC).
Garnier is to stop production of its bestselling Micellar Water product as it switches to making hand gel. Garnier said 300,000 bottles would be given free to essential retail staff, including at supermarkets and pharmacy chains, while another 4m would be sold in shops (The Times).
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