UK SUPERMARKETS

• Short a basket of supermarkets for January
• SBRY sales on 8th Jan could well be the trigger
• Some big names are also jumping into this trade according to The Times Marshall Wace in Debenhams and Black Rock took a big short position in Marks & Spencer early in December.
• One or more of the UK supermkts will warn for FY and SBRY could be the start
• Margins will be hit due to price competition
• Price competition is not only there between the big 4 ASDA/SBRY/TSCO/MRW but also from the big discounters Aldi and Lidl where the stigma of shopping there is not like it used to be.