Tuesday, 20th August: Fresh data this morning showed a mellow performance in the latest 12-week period by the group of dominant grocers in the UK. Sales were flat during the period and the big four continued to lose market share to Aldi and Lidl, as well as online grocer Ocado.
One of the reasons the most recent 12-week period looks weak is due to the tough comparatives from a stronger summer which took place in 2018 due to the heatwave and the World Cup.
Although the big four started the day with this gloomy news, Sainsbury still managed to top the blue-chip index in the afternoon as they were revealed as the best performer out of the bunch, reporting a 0.6% decline over the 12-week period, which sounds decent compared to a 1.6% decline in Tesco’s sales, 1.5% decline in Asda and 2.7% decline in Morrisons.
Also at the top end of the FTSE 100 was online grocer Ocado after its sales went in the opposite direction to the big four within the same 12-week period as they experienced a 12.5% increase, as well as a 1.4% increase in market share.
Sainsbury and Ocado couldn’t do enough to keep the FTSE 100 afloat though, as the index gradually sunk deeper after lunch time and after opening 0.07% higher in the morning.
It was the political tension across the globe which released its pressure onto the index, with Brexit-related issues occurring in the UK and the resignation of prime minister Giuseppe Conte in Italy causing the pound to rally and thus causing the FTSE to fall.
After being as low as $1.2067 during the first half of the trading day against the dollar, sterling flipped in the second half as it was 0.2% higher at $1.2152 at around 16:17 (BST).
The FTSE 100 didn’t manage to reverse any damage and closed 0.90% lower at 7125..