NICK BUBB | ARDEN
Sainsbury's was very pleased with itself for delivering 3.6 per cent like-for-like growth in its third-quarter, but once higher VAT and the benefit of store extensions were stripped out the performance wasn’t so impressive. We maintain a ‘weak Hold’ view. We would switch to Morrisons.
CLIVE BLACK | SHORE CAPITAL
The figures are indicative of how markedly and rapidly the UK consumer economy has declined in the first quarter of 2011. The read-through to the other food retailers is cautionary. It is not good. To my mind the clamp on consumer expenditure is creeping its way up the income scale.
DAVE MCCARTHY | EVOLUTION SECURITIES
Consumers under pressure, rising inflation and excess capacity are resulting in poor like-for-like sales. With the consumer facing falling disposable income, sales are being spread more thinly – hence the underlying negative like-for-like sales.