UPDATE: MRW

RE ITERATE SHORT ON POOR KANTAR PRINT

On an easy comp the Kantar print for MRW comes in at -4.4% which should take some of the wind out of its sales post the Amazon deal and the FTSE inclusion. We continue to think the Amazon deal is an overall negative for the industry and does not preclude the other food retail names from getting involved thus limiting pricing power.

The 50% rally more than prices in the margin stabilisation we are likely to see at results on Thursday which is likely to trigger some profit taking.

 

MRW: SELL
FRESH WAVE OF PRICE CUTS

Monday • 10 August 2015 • 11:47

UK retailers: Retail Week saying Aldi launching fresh wave of price cuts…

UK supermarkets have been very good recently on an unwind predicated on margin improvement. A fresh wave of price cuts would blow this out of the water. Would be selling MRW and TSCO first.