J Sainsbury’s (LON:SBRY) chief executive has warned that a no-deal Brexit would ‘inevitably disrupt’ fresh food supplies in Britain, Reuters has reported. The news comes ahead of the current Brexit date of October 31.
Sainsbury’s share price has surged in London in today’s session, having gained 1.86 percent to 219.40p as of 10:35 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.26 percent lower at 7,325.72 points. The group’s shares have given up more than 31 percent of their value over the past year, as compared with less than a one-percent gain in the Footsie.
CEO warns on no-deal Brexit
Reuters quoted Sainsbury’s CEO Mike Coupe as commenting today that the October 31 Brexit date could not come at a worst time for supermarkets with warehouses already full with Christmas produce and more of the supply of fresh salad having switched to southern Europe. When asked if plans were in place that meant disruption to food supplies could be ruled out, Coupe told BBC radio that he disagreed “with that wholeheartedly, the reality is there will inevitably be disruption, simply because we’ve never done this before”.
The comments come after in July, FTSE 100 peer Tesco (LON:TSCO) warned that its planning for the new Brexit deadline is ‘more difficult’ because the supply network will be full of Christmas stock. The supermarket’s chief executive Dave Lewis commented at the time that while Britain’s biggest supermarket had bought extra stock of long-life items in preparation for the previous deadline of 29 March, it would be harder to make similar preparations this time round.
Analyst ratings update
According to MarketBeat, the FTSE 100 supermarket currently has a consensus ‘hold’ rating, while the average target on the Sainsbury’s share price stands at 232.36p. The blue-chip grocer is scheduled to update investors on its interim performance on November 7.