Traditional supermarkets with robust margins, selected luxury brands and discount stores are some areas of the consumer market that LGIM equity analyst Jennifer Wong and senior credit analyst Ilana Elbim believe will best cope with today’s soaring inflationary environment.
Writing for LGIM's Macro Matters blog, the analysts pointed out that food and beverage companies have "so far been spared" from the ravages of inflation, due to long-term contracts with retailers and hedges pre-emptively put in place. As we head through 2022, however, and with Russia's invasion of Ukraine only serving to embed more inflation into the system, they said the focus will now be on whether retailers can afford to increase their prices in stores. "The competitive environment is intense in the UK grocery market, with non-traditional players like hard discounters and private-e...
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