Breakingviews - Capital Calls: Grocers count cost of pandemic

  • 3/11/2021
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WOBBLY TROLLEY. British supermarkets are looking more like pandemic losers than winners. WM Morrison, the country’s fourth largest grocer, said on Thursday that even though like-for-like sales were up almost 9% in the year to January, pre-tax profit before exceptional items halved to 201 million pounds. Covid-19-related costs like extra payroll and bonuses soared to 290 million pounds. Meanwhile, the grocer declined to take government tax relief worth 274 million pounds. The 4.3 billion pound group is not alone. Larger rivals Tesco and J Sainsbury have booked similarly heavy costs over the past year. Although they have grown their market share and boosted revenue, Morrison and Tesco shares are still below pre-Covid-19 levels. The recovery won’t make things easier. Reopening restaurants could mean people buy less food, denting supermarkets’ revenue. Meanwhile the extra costs required to keep staff safe will persist. Grocers’ losing streak may endure. (By Aimee Donnellan)

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