||ORD 28 4/7P
||EPS - Basic
||Market Cap (m)
|Food & Drug Retailers
Sainsbury Share Discussion Threads
Showing 20676 to 20696 of 20700 messages
|Deutsche cut its stance on Sainsbury's to 'hold' from 'buy' and lifted the price target to 300p from 280p, given a strong performance over the last quarter and reduced upside to the bank's target price.
DB noted that its lifting of its price target had been premised on having a more favourable view of the Argos deal than the market and believing that the share was attractively valued relative to peers and was essentially pricing in a material margin reset, which we it not think would happen.
It said the fourth quarter trading update was a slight miss on the grocery like-for=like side, but the Argos LFL was a strong beat.
"We continue to believe the Argos acquisition was both financially and strategically attractive. Of all the structural challenges facing UK food retailers, we think property costs are the greatest. Footfall is a valuable and increasingly scarce commodity. We think the Argos business helps Sainsbury's protect and enhance the footfall to its stores."|
|Comments on 4th Quarter trading statement...
Sainsbury’s bought Argos last September for £1.4bn, planning to move some stores off the High Street and into its supermarkets.
It has already opened 41 Argos digital shops in stores – where customers place orders for delivery – and 205 collection points.
This helped sales jump 4.3 per cent. John Ibbotson, director of consultancy Retail Vision, said: ‘Argos is proving a guardian angel rather than an albatross for Sainsbury’s.
‘While the acquisition initially swallowed time and resources, it is now paying dividends.’
Aggressive price cutting by Sainsbury’s rivals was impacting the chain, he also said. “Despite enjoying a better than expected Christmas, Sainsbury’s continues to lose market share – and the brand’s much-vaunted turnaround plan has been slower to show results than those of its rivals.”
Catherine Shuttleworth, chief executive at Savvy, said results from the company’s convenience and online businesses “shine a light on the tough times that the core Sainsbury’s estate – of superstores – are experiencing.
“It looks like a strategy of dogged resilience and focusing on retail basics is going to be the only way forwards for the core food business.”
Danielle Pinnington, managing director of shopper research agency Shoppercentric, said Sainsbury’s needs to make sure its core estate appeals to today’s shoppers, “who may have quite specific missions”.
“SainsburyR17;s results highlight the changing nature of grocery shopping in the UK,” she said.
Simon Johnstone, researcher at Kantar Retail Market Insights, commented: “SainsburyR17;s will have to adapt to a British shopper that is changing rapidly due to disruptive new services such as Amazon Fresh, Aldi’s online special buys, the popularity of M&S simply food and the success of myWaitrose.”|
|Breakouts are relative :)|
|Are we nearing a breakout one wonders?|
|I cannot see why they cannot use the vehicles more productive with the Argos link up. You can't always deliver food early so why not load the vans early with local Argos orders during early hours of the morning. Once done the vans are used for groceries|
|Will this end up !!|
|A conference call will take place at 8:45am. To listen to the audio webcast we recommend that you register in advance. To do so please visit www.j-sainsbury.co.uk prior to the event and follow the on-screen instructions. To view the transcript of the conference call go to www.j-sainsbury.co.uk and follow the on-screen instructions in the fourth quarter trading statement section
|SBRY Q4 Lfl -0.5%
SBRY Q3 Lfl was +0.1%|
|consensus page updated last week
|COuld be quite a cost reduction in the long term doing that|
|They will probably trial it for a while but eventually I think they will integrate them all into Sainsburys,much like Pc World/Currys did.|
|16 Mar 2017 Fourth Quarter Trading Statement 2016-17|
|May as well move the Argos into the Sainsbury store and shut down the ones in the town centre / retail park. Barclays have been moving the banks into Asda and shutting the town branch ...
|I noticed in the flagship Saintsbury in Blackpool today that they were building an Argos . Not sure if it means the Argos in town centre will close or if it's an addition.|
|You having a laugh Smurphy? 350 there's resistance at every 10p to 290 when it closes above that point - then maybe.|
|We're hopefully breaking out and heading towards 350.|
|Share price hovering too close to my strike (270p) for Friday's options expiry; rolled out further (280p strike) for a bit more premium.|
|"people stop eating out and start eating in"
Good point, it happened in past downturns.|
|J Sainsbury Chief Executive Mike Coupe said he is "100% confident" the supermarket will achieve its targeted GBP160 million of cost savings since taking over general retailer Argos last year.
Coupe added that the figure did not include any potential boost from homeware chain Habitat, which it bought along with Argos and which “fits well” with Sainsbury’s customers, or Argos’s financial services arm, which could help it roll out more banking products.
Coupe reportedly said Sainsbury's will, if possible, deliver the cost savings quicker than originally expected, adding that its GBP1.4 billion takeover of Argos is proving "so far so good".
The CEO also said there would be no changes to Sainsbury's strategy following the uncertainty surrounding Brexit.
Britain’s supermarket chains could benefit from Brexit as squeezed consumers tend to eat more at home and less in restaurants, the boss of Sainsbury’s said on Wednesday.
“A small squeeze isn’t necessarily a bad thing for a large grocery chain,” said Sainsbury’s chief executive Mike Coupe.
“If we see customers’ incomes being squeezed — and we are beginning to see a slowdown in that disposable income growth — supermarkets tend to do better, because people stop eating out and start eating in,” Coupe said.
"I don't think Brexit negotiations will change trends we are seeing in customer shopping habits. The basic premise of the business is to adapt to the changing world. Customers have more choice and are exercising that choice digitally and expect to be served whenever and wherever they want," Coupe said.|
|#834 - so far so good.|