Greggs, EasyJet, B&M Demand Strong Despite Consumer Spending Slowdown — 3 Stocks to Watch

The market uncertainty continued this week, and, as expected, Persimmon and Savills came under pressure.

However, this week, we are watching EasyJet (EZJ), Greggs (GRG), and B&M (BME) — 3 stocks still experiencing healthy demand, despite the disappointing UK retail sales data, which fell by more than expected in July


EasyJet Worldwide Google Search Interest – Source: Google Trends
  • After trading in a range for most of the year, EZJ shares broke to the downside in late July.
  • However, EasyJet demand trends remain strong, given strong travel demand, and the company said in its recent trading update that it “continues to see good momentum as we move into Q4.”
  • The move lower may provide a more attractive entry point for many investors.


  • While up (around 2%) this year, Greggs has pulled back recently — down 12.6% in the last 3 months. 
  • However, the company has experienced continued demand in an elevated inflationary environment due to its “value position.” 
  • In addition, its menu development, which includes hot food and snacks such as chicken goujons and wedges, is proving popular with consumers.
  • With Greggs aiming to expand and the company targeting more supermarket and airport openings, the pullback has caught our attention, and we remain bullish on its prospects. 


Source: McKinsey
  • While many other stocks fell this week, B&M was an outlier.
  • The discount retailer benefits from consumer trade down during inflationary periods, as demonstrated in the graph above (from October 2022).
  • A Global Data analyst recently stated that B&M will benefit from “homeowners’ finances continuing to be stretched by mortgage rate rises.”
  • Meanwhile, the demise of fellow discount retailer Wilko may also benefit B&M — a view also held by Deutsche Bank. The firm’s analysts believe B&M’s “current valuation is too cheap for the asset.”
  • B&M demand has remained robust, and it is a stock we remain bullish on. 

By Sam Boughedda