First-quarter results from J Sainsbury plc (LON:SBRY), due on Tuesday, will be the first time the retailer has not released separate data for its supermarkets and for last year’s Argos acquisition, instead it will combine the two numbers.
Back at the start of May, Sainsbury posted full-year results showing the takeover of the catalogue-based high street retailer boosted sales by over 12%, although its core supermarket operations saw sales continue to decline.
For the 52 weeks to 11 March 2017, Sainsbury’s group sales rose by 12.7% to £29.112bn, up from £25.829bn a year earlier, with like-for-like sales, excluding fuel, at the supermarkets business falling by 0.6%, against a 0.9% decline in the previous year, while Argos sales were up 4.1%.
READ: Sainsbury's weak as supermarkets sales continue to decline, although Argos provides an overall boost
This time out, Barclays Capital is forecasting a 1.5% rise in group like-for-like sales as the challenges of the food retail business in the face of increased competition and cost price pressures continue to be cushioned by a resilient performance from Argos.
But given the worries over the impact of rising inflation and Brexit uncertainties on consumer sentiment, investors will be looking closely at any outlook comment from Sainsbury’s boss, Mike Coupe for any signs of cracks starting to appear in the retailer’s veneer.
Online grocery interest for Ocado
Aside from Britain’s number two food retailer, there will also be an update from online grocer Ocado PLC (LON:OCDO) on Wednesday, with the firm’s first-half numbers expected to show a similar pattern to March’s first-quarter update.
For the 13 weeks to February 26, the FTSE 250-listed firm saw its gross retail sales rise to £352.4mln, unchanged on the same stage in the previous year, as average order volumes rose but order amounts fell reflecting pricing pressures.
Since then Ocado has finally unveiled a long awaited international deal for its online shopping platform, although there was a lack of detail about the actual partner.
READ: Ocado shares jump as it signs a long-awaited international deal
Meanwhile Amazon.com Inc’s (NASDAQ:AMZN) surprise US$13.7bn takeover of Whole Foods Market Inc (NASDAQ:WFM) earlier this month also excited Ocado amid vague hopes the UK firm might be the US internet giant’s next target, or at least a potential beneficiary from the move.
Booker update of interest for Tesco
Supermarket leader Tesco PLC (LON:TSCO) will be a focus as well as its current bid target, wholesaler and convenience stores group Booker PLC (LON:BOK) will issue a trading update on Thursday too.
Yesterday Tesco asked competition regulators to speed up their investigation into its proposed £3.7bn takeover of the wholesaler.
READ: Tesco asks competition regulators to speed up investigation into its £3.7bn Booker acquisition
Should the Competition & Markets Authority go ahead and approve the fast-track request, the phase two process would be expected to last for around 24 weeks, meaning there would still be no decision until early next year.
In an update in March, Booker reported a 0.5% increase in total sales for the 12 weeks to 24 March, as a 7.9% decline in tobacco sales was mitigated by a 4.5% rise in non-tobacco sales.
The group’s Budgens, Premier and Londis convenience-store brands performed well but tobacco sales were hurt by the tobacco display ban and new plain packaging restrictions.
Little left for the Imagination
Good news may be in short supply when graphics chip designer Imagination Technologies PLC (LON:IMG) reports on Tuesday.
A torrid six months has seen it dumped by key customer Apple and now effectively put up for sale.
A number of parties have made approaches it told the market a couple of week ago and brokers say it would not be too surprising if one of those was the iPhone maker itself.
The group’s MIPS and Ensigma divisions have been on the block since May.
Non-farms for June
Economic events will be dominated by Friday's US non-farm payroll data for June, especially as the talk now both here and in the US is about interest rate rises.
Consensus forecasts are for about 175,000 jobs created compared to 138,000 in May though these days most economists look almost as hard at the underlying unemployment rate and changes in average hourly earnings.
Significant events expected next week:
Monday July 3
Finals: 600 Group PLC (LON:SIXH); Mercia Technologies PLC (LON:MERC), Plastics Capital Plc (LON:PLA), Trakm8 Holdings PLC (LON:TRAK) ; Supergroup PLC (LON:SGP)
Trading updates: SQS Software Quality Systems AG (LON:SQS)
Economic data: UK Markit PMI index for June
Tuesday July 4
Trading updates: J Sainsbury plc (LON:SBRY), Costain Group PLC (LON:COST), Staffline Group PLC (LON:STAF)
Finals: Imagination Technologies PLC (LON:IMG), Solid State PLC (LON:SOLI)
Interims: RM Plc (LON:RM), St Modwen Properties PLC (LON:SMP)
US Independence Day holiday
Economic data: UK BRC shop price index
Wednesday July 5
Trading updates: Booker Group PLC (LON:BOK), International Consolidated Airlines PLC (LON:IAG), McCarthy & Stone PLC (LON:MCS), Mattioli Woods plc (LON:MTW), Persimmon PLC (LON:PSN), SIG PLC (LON:SHI), Topps Tiles Plc (LON:TPT)
Interims: Ocado PLC (LON:OCDO)
Finals: Great Eastern Energy Corp Ltd (LON:GEEC)
Economic data: UK Markit/CIPS Services PMI
Thursday July 6
Trading updates: Associated British Foods plc (LON:ABF), Bovis Homes Group PLC (LON:BVS), Great Portland Estates PLC (LON:GPOR)
Interims: Ferrexpo PLC (LON:FXPO)
Economic data: US ADP payrolls
Friday July 7
Trading updates: Dunelm Group PLC (LON:DNLM)
Economic data: US non-farm payrolls for June