Investors shopping for British shares might want to check-out Asda and Tesco. Merrill Lynch stockbrokers suggest that both shares are relatively good value at the moment, with both trading at a discount to the market on news of a slowdown in sales.

The brokers believe that economic conditions will underpin further growth at both supermarket chains, stating that investors should view the current weakness of the share price as a buying opportunity.

Regardless of bearish comments by Asda and Tesco, Merrill Lynch, says that it remains confident that they can achieve earnings growth of around 10 per cent. The brokers say the direction of both businesses give it confidence in the longer term.