Next week on the stock market

Among those currently scheduled to release results next week

Greggs looks to cap off 2023 with a strong final quarter

Matt Britzman

Senior Equity Analyst

2023 was a good year for Greggs by most measures, and next week’s trading update will shed light on how trading fared over the final quarter. As seen in the third quarter, expect to see like-for-like sales growth to slow from earlier in the year, given there won't be as much of a tailwind from price hikes. But it's a win in the long run as less pressure on costs makes it easier to keep prices in check and retain that coveted value offering.

Looking forward, expansion’s set to continue with the number of stores set to rise to 3,000 over the next few years. There’s also a big opportunity to capture and retain demand with momentum across the loyalty programme and new delivery partnerships. All in, the direction looks promising, though there are no guarantees.

Tesco hopes to prove it’s putting up a fight against Aldi and Lidl

Sophie Lund-Yates

Lead Equity Analyst

Aldi and Lidl have had record Christmases. This suggests consumers are more willing to try a new grocer in a bid to save money amid the cost-of-living crisis. This could take an element of shine off Tesco’s trading statement next week – or at the very least prove customers are more focussed on value. But while we’re expecting the supermarket price bunfight to continue, we’re optimistic that Tesco’s had a merry Christmas.

The stiffer competition is worth noting, but the record numbers from the discounters also point to the fact consumers are willing to show up and spend if the proposition’s right. To that end, Tesco has a best-in-class offering, both when it comes to its value positioning thanks to things like Clubcard pricing, alongside its scale and product range. Last we heard from the group, trading was better than expected with retail like-for-like growth of 7.8%. That led to an uplift in full-year profit expectations, which we don’t think will be undone in next week’s statement.

The culture of treating ourselves at home bodes well for the sale of Tesco Finest products too, which have seen robust volume uplifts even before the festive season. As ever, remember no shareholder returns are guaranteed, all investments and any income they produce can go down in value as well as up.