Wednesday, 19th September: somewhere between Peterborough and Cambridge, in a town called Chatteris, Tesco geared up to introduce their first discount store Jack’s, named after Jack Cohen who introduced Tesco to the world 99 years ago. Over the next six months the group intend to open between 10-15 of these discount stores, roughly half of which will be previous Tesco stores. The move is in retaliation to Aldi and Lidl gathering market share from the larger supermarkets in the UK in recent years. Locals in Chatteris will be able to shop in the first Jack’s store on Thursday morning.
Fresh data on Wednesday revealed an unanticipated jump in inflation to 2.7% in August, going in the opposite direction to what was expected in comparison to the 2.5% in July. The jump was encouraged by increased in sea and air fares, new-season autumn collections at high street retailers, as well as one-off factors such as increases in theatre ticket prices. Following the news, sterling was encouraged past $1.32 for the first time since mid-July.
Kingfisher, after announcing their results for the first half of the fiscal year, were at the bottom of the index at the end of the day, following a 30% decline in pre-tax profit due to weaker sales in the French business. Although the group were able to maintain their dividend, they confessed that outlook by country is mixed, as performance in the UK seems to be marginally higher, but any gains that have been made in the region have been offset by heavy declines in France. The group ended the day 6.30% lower and at the bottom of the index.
The FTSE 100 had a decent day in comparison to the two previous sessions which caused them to close almost flat. At the end of the day the blue-chip index was up 0.42% at 7331.