skip to main content
Find Insight DIY on
* * *

UK DIY News

General retailers look a better bet than grocers

General retailers provide a better investment opportunity than food retailers in 2011, Oriel analysts believe.

Analyst Jonathan Pritchard said that food retailers are “yielding significantly less than the general retailers in terms of free cash flow” and that their earnings growth is forecast to grow at half the pace of the general retail sector.

He cited the supermarkets’ ambitious space growth programmes as potentially hitting returns. Late last year Evolution analyst Dave McCarthy said the grocery sector is at the centre of a perfect storm with the biggest expansion race in their history, which in the long term could hit returns and like-for-like sales.

Pritchard said worries over returns and “no obvious catalyst for upgrades” mean it is better to allocate funds to non-food retailers at present.

Source : Retail Week

14 January 2011
view more UK DIY News
*

I find the news and articles they publish really useful and enjoy reading their views and commentary on the industry. It's the only source of quality, reliable information on our major customers and it's used regularly by myself and my team.

*
Simon Fleet - Sales & Marketing Director, Thomas Dudley Ltd
Newsletters

Don't miss out on all the latest, breaking news from the DIY industry