Q1 sales figures not as bad as analysts expectations, with clothing sales improving by nearly 5%, boosted by the supermarkets football inspired range ahead of the European Championship due to start this week. Concerns remain over the acquisition of the Home Retail Group and the integration of 2 challenged businesses in very competitive markets. Further ongoing concerns surrounding the penetration of the cheaper European retailers into the UK discounter market.
Market consensus was that the trading statement was solid news so market bought in first thing.
We believe the selloff was due to the market being weak in general. We believe the rally was due to
Bernstein Ltd adding Sainsbury’s to a convicted BUY. Also Jefferies kept as a hold with a price target