Supermarkets Tesco and Sainsburys to issue trading updates

Both Tesco and Sainsburys supermarkets are due to issue trading updates next week and it will be interesting to see how they are fairing during this credit conscious time.

Tesco

According to the Share Centre, the Tesco trading update is due next Tuesday, 16 June.

Tesco announced in April that its sales topped £1 billion a week and that it was looking to grow its non food offering significantly.

As part of this its rebranding its instore phone shop to Tesco Phone Shop – it already has a joint venture with O2, offering its own brand mobile phone.

It will also be opening instore bank branches offering savings accounts, insurance and credit cards.

You can already get some great Tesco insurance deals online – including a free pressure washer at the moment!

It will be interesting to see how these new, non food areas are developing.

On the food front, Tesco has introduced a new range of discount brands and is working on its customer loyalty scheme, the Tesco Clubcard.

Both Morrison and Sainsbury have been increasing their market share recently, so a key question is how are Tesco fairing.

The Share Centre currently list Tesco as BUY. The Tesco share price is currently around 364p.

Sainsbury

Sainsbury is due to issue its trading update on Wednesday, 17 June.

It will be interesting to see whether their recent growth in market share has continued. They have particularly been benefiting during this credit conscious time from customers migrating away from Marks & Spencer and Waitrose.

The Share Centre currently list Sainsbury as HOLD. The Sainsbury share price is currently around 329.5p.

Investors should of course make their own judgements on buying or selling shares and if in doubt seek independent financial advice.