Should You Buy Supermarket Shares?

The Week: UK supermarkets have had sales bump from the panic buying and shares have been resilient in the sell-off, says Morningstar columnist Rodney Hobson 

Rodney Hobson 20 March, 2020 | 9:27AM

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Don’t get too carried away by short term sales figures from supermarkets. We’ve all seen selfish people buying stuff they don’t need and may never use in ludicrous quantities so sales since the start of this month have been inflated artificially. 

Morrisons (MRW) reported that like-for-like sales jumped 5% in the first six weeks of the financial year that began on February 3 despite a flat first four weeks. So all the sales boost came within a fortnight of frantic buying. That situation will no doubt continue for a little longer but it will peter out eventually. When it does, then people will be buying less as they use up surplus toilet rolls and other non-perishables stored in their garages and spare rooms.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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