Morrisons/ASDA - comment
Morrisons' bonds may be marked fractionally lower as Lidl supplants Morrisons as the #4 UK Supermarket. However, this is a volatile metric, and Lidl has been neck and neck with Morrisons for the last two quarters. Morrisons' sales were up 1.3% YoY.
ASDA may also see some softness, with sales down 3%, dropping market share to 11.5% (-60bp); the company is still struggling to win customers back after the travails of Q3/Q4 2025. Grocery inflation was 3.1%, so both groups are still experiencing volume drops. The UK trading environment remains tough, and both supermarkets will need to keep pricing keen to retain customers before winning more back.