After a decade of ever-widening gross margins, the leading supermarket chains face a prolonged period of pressure, but that hardly spells disaster. At Sainsbury, the average gross margin is still higher than last year, despite the recent price-cutting initiative.
Last week, a big line of Tesco shares went through the market to be picked up by Phillips & Drew Fund Management. Investors hope its show of faith will mark the bottom. Unexpectedly bullish news from Kwik Save when it announces final profits this week may further bolster sentiment.Reuse content