0746 GMT - AB Foods' Primark and B&M are likely to offer the highest earnings visibility in the sector in 2024, along with the prospect of further strong cash returns, as sales volumes are expected to do much more of the heavy lifting given disinflation and price stabilization, RBC Capital Markets analysts say in a note. The sector, which has seen steady growth over the past 20 years, is benefiting from a change in consumer behavior as spending switches toward value-for-money offers, they highlight. "Customers remain value conscious, and discounters have been helped by improved merchandising standards, an increasing appeal to entry middle shoppers," they say. Both groups have room for space growth, enabling them to boost volume and secure better terms with suppliers, they highlight. (michael.susin@wsj.com)
(END) Dow Jones Newswires
February 12, 2024 02:46 ET (07:46 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments