UK retail property yields have compressed materially from the distressed levels reached in 2024, reflecting a recovery in investor appetite for
Read MoreTesco’s latest results point to a better margin environment across UK grocery. Productivity, mix and cost savings are increasingly
Read More
Please find our updated analysis, post-Q3 results, on Morrisons here.
We have not meaningfully changed our operating assumptions for Morrisons and have extended our projections by a further year. However, we have spent significant time assessing the potential for property monetisation to accelerate deleveraging. Recent management commentary has increased our confidence that sale-and-leaseback transactions could become a meaningful source of liquidity, with a c.£500m transaction reducing leverage by around 0.5x in our analysis. This provides an additional catalyst for the Senior Unsecured Bonds alongside the ongoing operational recovery.
Read MoreMorrisons is in discussions with Realty for a £600m-£1bn sale-and-leaseback of store properties to fund competitive reinvestment against the
Read More
The impact on the bonds will be a small positive; avoiding a strike will be a relief to the Morrisons branches in the
Read More
Bonds will be a little higher on the back of what were decent operational Q3 results in a very tough UK market. Management reiterated its full-year
Read MoreOn the latest investor call, management mentioned that some smaller convenience stores were unprofitable. The smaller outlets were much
Read MoreMorrisons' bonds may be marked fractionally lower as Lidl supplants Morrisons as the #4 UK Supermarket. However, this is a
Read MoreThe agreement with staff is positive for the bonds as it avoids short but disruptive labour disputes. Additionally, with the
Read More
The incremental impact of the Morrisons price cuts to creditors is small, but it underlines the low consumer confidence and the
Read MoreThe produce business has a value of c£600m to an external buyer, but the level of integration with its supermarkets may make this a strategic asset for
Read MoreThe new tills are designed to draw more customers to use the self-checkout. Fewer till staff will reduce costs, and in an increasingly
Read MoreContinued cost-cutting at Morrisons has been well trailed by management. When the convenience buying team is merged with
Read MoreIn October 2025, we estimated the value of the full Morrisons Pharmacy business to be £170m. Press reports now suggest only a partial sale of
Read MoreAldi's investment in its stores is a response to investment programs by the rest of the industry. Aldi/Lidl are already cheaper, but run on fewer
Read MoreThe main question we have about raising debt against property assets is, why? With no medium-term maturities, it is unlikely to be a matter of
Read MoreUSDAW is understandably angry that its members working for Morrisons are receiving lower pay rises, but the government's additional
Read More