Supermarkets investors fret over potential Christmas supply shortage

J Sainsbury PLC (LON:SBRY) and Tesco PLC (LON:TSCO) investors were sparked into a mild panic on Thursday after a warning that a key supplier of dips and ready meals was going to be hit by a strike at one of its factories ahead of the peak Christmas season.

On Thursday, workers at Bakkavor Group PLCs (LON:BAKK) factory in Lincolnshire voted to go on strike over low pay, a move which the Unite trade union said could leave shelves at several major grocers empty of many popular meals including salad meals, wraps, soups and dips such as taramasalata and hummus.

Marks & Spencer PLC (LON:MKS) shares were the worst hit, down more than 1% to 174.2p, while J Sainsbury PLCs (LON:SBRY) and Tesco PLC (LON:TSCO) were both down 0.6%.

The ballot for the strike saw support for the strike from 83% of Unite members who voted, although out of the thousand-strong workforce at Bakkavor's factory in Spalding, this represented 27% of the total.

The workers union is calling for a “substantial increaseRead More – Source