Sainsbury (j) Share Discussion Threads

[nw99] 25/9/2019 07:13

Argos not doing well then after these numbers

[loganair] 17/9/2019 14:07

Supermarket market share - note Kantar excludes M&S who have around 3.3% of the grocery market share so in reality the market share of the supermarkets is lower then that given by Kantar:


...........June 2018..June 2019..Sept 2019

Tesco........27.7%......27.3%......26.9%
Sainsburys...15.6%......15.3%......15.3%
Asda.........15.1%......14.9%......15.1%
Morrison.....10.6%......10.4%.......9.9%
Aldi..........7.4%.......7.9%.......8.1%
Co-op.........6.1%.......6.2%.......6.6%
Lidl..........5.4%.......5.7%.......6.0%
Waitrose......5.1%.......5.0%.......5.0%
Iceland.......2.2%.......2.1%.......2.1%
Ocado.........1.2%.......1.4%.......1.4%

Out of the so called big 4, Asda seems to be holding up the best. Pound for pound turnover they are 50% plus more profitable than Sainsbury's.

15 months ago Morrison had 3.2% more market share than Aldi, this is not down to 1.8%. If the shrinking differential carries on at the same rate then in less then 2 years Aldi with over take Morrison in market share.

[poikka] 17/9/2019 13:54

In August the 12 week period stated - "Overall Sainsbury's sales fell by 0.6%"; so is "broadly flat" now showing a trend?

[poikka] 17/9/2019 13:50

"The UK grocery market returned to growth in the 12 weeks to September 8 but consumers are not stockpiling items ahead of Brexit, Kantar said. Total grocery sales for the 12 week period rose to GBP26.77 billion from GBP26.62 billion in the same period in 2018. The "big four" grocers, Tesco, J Sainsbury, Wm Morrison Supermarkets, and Walmart Inc-owned Asda Stores all lost market share in the 12 week period, however. Tesco's sales fell by 1.4% to GBP7.19 billion from GBP7.29 billion, with market share slipping to 26.9% from 27.4%. Sainsbury's sales stayed broadly flat at GBP4.10 billion though its market share fell to 15.3% to 15.4%. Asda had a 1.0% year-on-year sales fall to GBP4.04 billion from GBP4.08 billion and market share slipped to 15.1% from 15.3%. Meanwhile, Morrison sales were down 2.0% during the period at GBP2.66 billion versus GBP2.72 billion and market share fell to 9.9% from 10.2%. The strongest sales rise of all grocers was by Ocado, which had a market share increase to 1.4% from 1.2%."

[neilyb675] 17/9/2019 12:13

Sharesave to be announced in October I reckon. Wonder what the price after the 20% discount applied.

[s34icknote] 17/9/2019 10:58

I took profits yesterday at 220pTen times earnings .It's had a good run , think the market will struggle and lose momentum with the Saudi crisis.Will be back after October / November out the way .Sicknote

[poikka] 17/9/2019 09:22

FWIW

UBS RAISES SAINSBURYS TO 'BUY' (NEUTRAL) - PRICE TARGET 240 (245) PENCE

[loganair] 16/9/2019 21:00

Asda continues to follow a three point strategy focused on the following areas:

1. Strengthening the customer proposition:

Price - Asda has stepped up activity and communication of its prices through 'low price every day' and 'famously low prices' messaging, supported by longer running promotions. Asda places particular emphasis on The Grocer magazine's G33 Price Award which it won for the 21st consecutive year in 2018.

Own brand quality and range - In its accounts, Asda highlighted the 26 awards it won at the 2018 Quality Food Awards. The focus on quality is something Asda is keen to build further through its current advertising campaign to support the big screen debut of Downton Abbey, which uses the strapline "Dine like Downton without paying a king's ransom". Asda has also stepped up its investment in new product development. In May for instance Asda extended its vegan offering with new barbecue lines.

Availability - Fresh food availability has improved i 2018 following changes to the supply chain and store processes.

Customer service - Asda's customer promoter score, the equivalent of the industry's net promoter score, increased by two points in 2018, due to its focus on easy, fast and friendly shopping

2. Developing a trusted online offer: Asda continues to prioritise e-commerce development. It reports that online sales have grown ahead of the market due to improvements to its customer service offer and investments to its platforms that have made it easier and faster to shop. Rapid online delivery is a focus for Asda in 2019 with the launch a trial 30 minute delivery service at two stores.

3. Delivering a low cost operating model: Improving operating efficiencies and productivity savings across store, home shopping, distribution centres and offices helped to offset cost pressures during the year. Asda also benefited from cost savings at its IPL, its global produce sourcing business.

[loganair] 16/9/2019 20:48

Asda revealed a 3.2% rise in sales to £22.9bn and near 13% rise in pre-tax profits to £804.9m for the year to 31 December 2018. The company said sales at established stores were up 1.6% for the year as it had cut prices and improved availability of fresh foods.


It seems Asda are 50% plus more profitable per pound of turn over then Sainsbury's are.


Under Chief Executive Roger Burnley, Asda is following a strategy focused on lower prices to narrow the gap with the discounters, a step-up in innovation in own-brand products, and better store environments and product availability, along with improvements in its e-commerce operations and use of technology.

[loganair] 16/9/2019 20:47

The chief executive of ALDI UK, Giles Hurley, said “We are a long-term business not like other supermarkets. We are focused on sales, stores, customer numbers and growth.”

So I take this to mean that Aldi are not focused or really concerned about customer experience.


Online sales for the group reached £100m as it expanded beyond selling wine and non-food special buys for home delivery of spirits and packaged items such as coffee pods.

Hurley said: “We are watching the online grocery market with a real degree of interest.” But food delivery – loss-making for several rivals – was a very challenging area, he said.


In the next two years, Aldi plans to invest a further £1bn in about 100 new stores, as well as distribution centres to serve them. It will also upgrade dozens of existing outlets. The group, which opened its first UK store in 1990, is aiming to increase the number of stores it has from 840 to 1,200 stores by 2025.

Aldi is focusing on opening stores in London, where it has 45. It aims to have 100 by 2025 and potentially 250 within the M25 in the longer term, about 50 of which could be in the group’s new small format. These are, on average, only about 6,400 sq ft, just under half the size of a typical Aldi.

“Our market share is only 3.4% in London compared to 8.1% nationally,” said Hurley, “Clearly there is a significant opportunity.” Stores are planned in Sydenham, Blackheath and Watford in the coming year.

[jagworth] 16/9/2019 17:34

Many people were surprised that Tesco was allowed to buy Booker (£3.7bn)

Sainsbury’s probably should have bought NISA but it is quite small in comparison.
But I think this shows again the advantage of not being a quoted company (for the Co-op).



“Shareholders in the Nisa convenience store group have approved the chain's £137m takeover by the Co-operative Group...
Nisa is a member-owned business that has more than 3,000 stores and operates a wholesale business...
In the year to 2 April, Nisa reported revenues of £1.25bn with pre-tax profits of £2.8m”.

[loganair] 13/9/2019 10:56

My understanding on a supermarket sale and lease back and supermarket will pay around 6% per year on the lease which means after around 17 years, the supermarket will have paid all the money they got for the sale of their asset however they'll will continue to pay the 6%.

If a Supermarket sale and lease back for £50mln, will pay £3mln per year lease. After 17 years the supermarket will have paid £50mln in lease and will continue to pay £3mln per year for the lease on an asset they once owned but no longer do so.

Actually after a while the supermarket will be paying more than £3mln per year as every so often their will be a review and reviews only mean one thing, an increase in the amount to be paid on the lease.

[loganair] 13/9/2019 10:12

I feel all this talk about the pound being low and therefore UK assets are cheap so will be taken over is being way too over-hyped as I firmly believe a part from one or two companies is not going to happen.

[ny boy] 13/9/2019 10:06

All good since the bottom, rise fuelled by hungry overseas buyers of under valued U.K. equities, £ won’t stay this low for long, they sense this.

Strong buying of U.K. equities.

Onwards & upwards

[loganair] 13/9/2019 09:37

Sadly over all the share price is still well down and where it was many, many years ago.

[keelstow] 13/9/2019 09:35

meanwhile the share price has gained over 20% during the last month

[loganair] 13/9/2019 09:13

Right from the word go, I posted that I thought losing out to the Co-op when it came to the wholesaler Nisa was a big deal for Saisnbury's.

Tesco bought Booker while Morrison's have their own wholesale division supplying companies such as the 1,500 strong convenience store retailer McColl's.

[loganair] 13/9/2019 09:10

When I write many positive posts about a company no body asks me what my agenda is, however as soon as I start posting many negative posts about a company I am asked what my agenda is, often at these times other posters make horrendous toxic personal attacks against me.

For me these threads are to engender dialogue, discussion and involvement of other posters, posting information and points of view of both sides in an objective, informative and hopefully sometimes interesting manner so others can carefully explore, examine and interpret the value of the information while not necessarily intended to change other posters attitude towards investing in the said company.

Not trying to Sell an opinion, or are really recommending a specific course of action, rather give all on this thread a better understanding and knowledge about the investment environment in the said company with which to form their own opinion on whether or not they choose to invest.

[poikka] 13/9/2019 09:02

Loganair, we know that you don't like Sainsbury's and why, but what's your agenda with your never-ending negative postings? I don't wish to sound antagonistic, but it does seem kind of ott.

Meanwhile, some small investors might have been put off investing in Sainsbury's while the share price continues its rise.

[loganair] 13/9/2019 08:25

Analyst Sophie Lund-Yates said the sector was competitive and Morrison’s wholesale business was ‘an important extra strong to its bow’.


This is where I think Sainsbury's has failed big time, spending all their precious managerial time buying Argos and trying for Asda while losing out to the Co-op when it came to buying Nisa. It is seeming more and more that the Wholesaler Nisa was where Sainsbury's needed to pull out all the stops to have bought.

[cjohn] 12/9/2019 16:55

I mean CVC.

Though any investor would be attracted by the freehold assets.

There have been other approaches too, as I'm sure you're aware.

I will take a look at Morrisons'. Thanks for the heads up.

[loganair] 12/9/2019 15:29

QIA buying 25% odd stake in Sainsbury's was not about getting hold of Sainsbury's property assets.

QIA have also bought stakes in El Corte Ingles and Mercadonna Supermarket groups in Spain.

[cjohn] 12/9/2019 15:23

loganair
12 Sep '19 - 13:50 - 20389 of 20390
Freehold supermarkets can easily be borrowed against and with sale and lease back the supermarket is left with a long term liability of paying for the lease.


They CAN be borrowed against. But it's not obligatory, you know.


The fact that Sainsbury's has several billions pounds worth of freeholds is obviously financially preferable than if those several billion pounds of property were leaseholds. For one thing, they don't have to pay rent.

You may remember that a few years back there was a take over approach to Sainsbury's motivated by the potential acquirer's desire to get hold of Sainsbury's property assets - at a considerable premium to the then much higher than now share price. Fancy that.

[cjohn] 12/9/2019 15:18

spob
12 Sep '19 - 13:41 - 20388 of 20389
0 0 0
freehold supermarkets are not liquid assets


Who said they were?

[loganair] 12/9/2019 13:50

It seems to me that Morrison's have a plan moving forward whereas the directors Sainsbury's seem to be just sitting on their hands.

Freehold supermarkets can easily be borrowed against and with sale and lease back the supermarket is left with a long term liability of paying for the lease.