TESCO and Sainsbury’s will square up this week as the two retail giants produce first quarter trading updates.
First up is Tesco tomorrow as the UK’s biggest supermarket chain is expected to unveil like-for-like sales growth excluding fuel of between 5% and 5.5%.
But Shore Capital analyst Clive Black is expecting Sainsbury’s to outshine its larger rival a day later, with like-for-like sales touching 6%.
He said: “Tesco has been shooting the lights consistently in recent years but Sainsbury’s and Asda have been regrouping, and this has to have an impact on how Tesco can grow.”
The latest figures from research firm TNS Worldpanel bear this out, with Sainsbury’s showing year on year growth of 8% in the 12 weeks to May 20 compared with a marginally lower 7% increase at Tesco.
Both companies are expected to comfortably outperform Morrisons, which presented unspectacular like-for-like sales growth of 4% in the 15 weeks to May 20 three weeks ago.
Other companies reporting this week include: tomorrow - trading update: Cadbury Schweppes; Wednesday - finals: DSG International.