I can’t be the only person who walks down the aisle of a local convenience-style supermarket and finds their jaw dropping at some of the prices.

For anyone without a car and/or uncomfortable with buying online, and therefore reliant on these outlets for their weekly grocery shop rather than just picking up bits and pieces, the extra cost is significant. Consumer group Which? reckons you’re talking about an extra £800 per year compared with ordering from or shopping in a big supermarket.

So, for people in this situation, news Sainsbury’s (SBRY) is extending its Aldi Price Match scheme to its convenience estate is significant. It could also be significant for the sector. Particularly if it Sainsbury’s sees more people coming through the doors as a result.

In an industry known for cut-throat competition, initiatives which drive sales are often copied. Just look at Tesco’s (TSCO) use of discounted prices for Clubcard members to drive loyalty, most major supermarkets now do the same. The same could be true of offering lower prices in smaller stores.

This demonstrates how genuine competition in a sector can be really beneficial for the consumer. The German discounters Aldi and Lidl have kept the likes of Tesco and Sainsbury’s honest on price but also on quality. The level of choice available to shoppers in the UK when it comes to buying groceries is enviable and they play an important role in feeding the nation.

This is not borne out of pure altruism and these companies are not perfect. However, they are a British success story. This is also a mutually beneficial relationship rather than a zero-sum game. The supermarkets may not generate huge margins but they can still create a lot of value for shareholders while offering decent value to customers. Turn to this week’s Great Ideas section to find out why we think Tesco, in particular, has the capacity to do so – both today and into the future.

The decision to offload its steelmaking coal assets in Australia is a first and meaningful step in Anglo American’s (AAL) streamlining strategy under CEO Duncan Wanblad. A response to the hostile takeover attempt from BHP (BHP) earlier this year, Wanblad is looking to sell off the company’s coal, nickel and platinum businesses as well as its De Beers diamond arm.

This would leave it with a focus on copper and iron ore. Despite recent suggestions the company has ‘moved on’, there remains speculation about BHP returning with a new bid after the six-month period mandated by UK takeover regulations elapses at the end of November.

The irony of Wanblad’s efforts to make Anglo a more viable standalone business is they also make it an easier to swallow acquisition and it’s not hard to imagine other suitors coming forward given the importance of copper to the energy transition. Watch this space.

‹ Previous2024-11-07Next ›