Morrisons, Boparan - comment
Price support funded by sales & leasebacks is working for Morrisons. The company had the cheapest basket in a recent test shop by The Grocer. The lower prices were driven by straight discounting on targeted items. Morrisons is investing in price through cash raised from sales and leasebacks, we had noted from conference calls that the yields were generous, something echoed by The Grocer. As any trader will test, the price paid is going to be guided by the amount of paper the seller might want to sell later. Excluding targeted discounting, inflation remains significant, for example, Morrisons' 1.8kg Chicken Breast Fillets are up 48% year on year. The rise in chicken prices is a good read-through for Boparan, the pricing ratchets with the supermarkets are holding.
https://www.thegrocer.co.uk/property-and-planning/morrisons-sale-and-leaseback-stores-cheaper-than-other-grocers/678064.article (Subscription)
https://www.independent.co.uk/news/uk/home-news/supermarket-prices-uk-which-cheese-b2321206.html
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