Supermarkets and Euros games for England and Scotland in focus for Tuesday

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With investor attention already focused on the supermarket sector as Wm Morrison Supermarkets (LON:MRW) bats away a private equity bid, a fresh batch of data from Kantar will keep the sector in the spotlight on Tuesday.

The focus in recent months has been on how big the fall in demand will be for supermarkets as people return to eating and drinking out in restaurants, pubs and cafés.

A month ago, take-home grocery sales fell by 0.4% for the 12 weeks to 16 May.

Online sales fell back from 13.9% in April to 13.4% in the latest month, but are still way higher than 2019 levels.

“We’re seeing take-home grocery sales dip versus 2020 as people are able to eat in restaurants, pubs and cafés and can pick up food on the go again, grabbing a sandwich, for example, while they’re out and about at the weekend,” said Kantar’s Fraser McKevitt.

“While not captured in these take-home figures, on-the-go grocery sales look set to be a significant driver of growth for supermarkets over the next few months.”

Three Lions and millions of pounds

Whether they are interested in football or not, England’s final group ‘Euro 2020’ game, against the Czech Republic at Wembley at 8pm, has some importance for many investors, as does Scotland’s against Croatia in Glasgow.

England’s progress to the last 16 is an important ratings factor for ITV PLC (LON:ITV) and its prime-time ad revenues.

For pub companies the Three Lions games at the Euros are worth millions even though customers are restricted to table service in groups of no more than six.

Topping the group D table with four points, England are likely to go through even if they lose against the Czechs, which will mean more chances for much needed revenue in the hospitality sector.

However the next round could throw up some very different opponents, with winners of the group facing a potential meeting with either Portugal, Germany, France or Hungary, while if England qualify as a runner-up, they would come up against one of Spain, Sweden, Poland or Slovakia.

Scotland, in fourth place with one point, must beat Croatia, who are on the same points with a better goal difference, for them to have any hope of making it through.

DS Smith unpacks results

Packaging maker DS Smith PLC (LON:SMDS) will report its final results on Tuesday, with investor hoping for some bumper figures as the company raked in cash during the year amid a boom in ecommerce sales parked by the pandemic.

Demand for the company’s corrugated cardboard boxes is expected to have risen by 7% year on year, although the rising cost of material needed to make them may put a dent in the firm’s bottom line.

Another potential pitfall is the hospitality sector, which has been subject to extended periods of closure and therefore the firm’s business in this area is likely to take a hit.

With this in mind, investors are likely to be looking for any comments on how the firm expects to deal with rising costs, as well as how it expects demand to shift going forward as lockdown restrictions are eased.

Significant announcements expected on Tuesday June 22:

FinalsDS Smith PLC (LON:SMDS), Gear4music Holdings PLC (LON:G4M), Trackwise Designs PLC (LON:TWD), Trifast PLC (LON:TRI)

Economic data: UK industrial trends, US existing home sales

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