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£1 billion spent more than last year during Christmas period

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Kantar Worldpanel says that £1,054 was the average spend by households over the 12-week Christmas period to the 31 December.

The figures show supermarket sales increased in value by 3.8%. £1 billion pounds more than 2016 was spent during this period with a staggering £747 million being spent on the 22 December alone.

In terms of being the UK’s fastest-growing retailers, there is nothing to separate Aldi and Lidl, both growing sales by 16.8% year-on-year. Tesco was the fastest-growing of the big four supermarkets with an increase in sales of 3.1%.

Asda and Morrisons grew 2.2% and 2.1% in sales, respectively.

Online supermarket sales enjoyed their best Christmas yet (up 4.9% year-on-year).

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The price of your next MacBook just went up

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Brexit Bad Apple bites back at consumers

British consumers got bitten by Brexit as Apple quietly raised the cost of some of its products in the U.K. by 20 percent.

The computer-maker overnight began charging £2,999 ($3,650) for its “Mac Pro” desktop machine, the latest blow to shoppers after the decision to leave the European Union sent the pound sliding to a three-decade low.

The price hikes came days after supermarket giant Tesco battled with supplier Unilever over the cost of goods in “Marmitegate” and Microsoft also yanked prices. With inflation already accelerating at the fastest in two years, price pressures are likely to mount.

Separately, Electrolux Chief Executive Officer  Jonas Samuelson said he needs to “compensate by raising prices” by up to 10 percent. British Airways owner IAG also cut its earnings outlook for the second time since the Brexit vote in part because of sterling.

Highlighting the concerns for the economy, separate reports from Gfk, YouGov and Asda all showed consumer confidence falling and household spending power weakening as inflation accelerates. That’s a test for the Bank of England as its officials prepare to meet next week with traders not expecting an interest-rate cut.

(Bloomberg)

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Tesco pulls Unilever products in pricing row

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Unilever products have been removed from Tesco website after Brexit symptom pricing row

Tesco has pulled dozens of Unilever products from sale on its website after a disagreement on pricing. The consumer goods supplier wanted to raise prices to counteract the effect of the sterling slump and a standoff had developed with retailer Tesco.

The Guardian reported Unilever wanted to raise prices by about 10%. Unilever wanted to implement the price change across a wide range of goods stocked in the big four supermarkets – Tesco, Sainsbury’s, Asda and Morrisons – in order to offset the higher cost of imported commodities, two people with knowledge of the situation told Reuters.

As of last night Unilever products including Marmite spread, Ben & Jerry’s ice cream, Lynx body spray and PG Tips tea were no longer available on Tesco’s website, but the shortage had not yet affected stores, a Tesco spokesman said.

Shares in Tesco were down 1.6% while Unilever was down 1.4%.