Sainsbury (j) Share Discussion Threads

[nick rubens] 03/10/2019 15:25

Yes I agree with Loganair on both businesses being low margin, groceries and electrical.

I did sell my stock on the merger announcement because
1. I got a refund after around 6-7 years of a declining share price and the dividend cut.
2. I didn't believe it would happen and it sounded a little strange also, with both supermarkets keeping their own separate businesses.

The price and Yield are tempting just like it was 7 years ago at 320p. I hope this dividend can be upheld a few years ahead.

[tardelli2] 03/10/2019 14:53

Online is s money pig ,I agree . Ok lose market share but profits will soar.

[tardelli2] 03/10/2019 14:51

At the end of the day discounters lack range , I use lidl and Sainsbury's . Lately I've found JS to be very competitive in many items. I've not found quality to be an issue in either.

[spob] 03/10/2019 14:46

I disagree

Sainsburys is not a charity, it's a business.

Ditch profitless online grocery shopping.

[she-ra] 03/10/2019 14:42

I agree with you up to a point. But I think quality across the board is falling; and its because of Aldi and Lidl (and perhaps Brexit).

You may like Waitrose but they have been selling off some stores. They are losing some customers to the German discounters. The fact is Aldi and Lidl are taking customers from all the food retailers. I don't think it is a good thing but its happening.

But Sainsburys should in no way drop internet shopping regardless of whether it is loss making.

[loganair] 03/10/2019 14:34

I know quite a few shoppers that have stopped shopping at Sainsburys due to the poor shopping experience they now have.

Sainsbury's use to be a pleasant place to shop, sadly now days its more like a zoo.

30 years ago Sainsburys had a particular customer base. Who are their customers now?

[she-ra] 03/10/2019 14:20

loganair you keep talking about you and your families shopping habits as though they are representative of UK consumers. How do I know you don't model yourselves on the Manson family.

[loganair] 03/10/2019 13:26

At least unlike many posters, I ask questions instead of saying such things as "did a little cheeky top up, had to at this price' etc.

[essentialinvestor] 03/10/2019 13:03

I like the way you answer your own questions ).

[loganair] 03/10/2019 11:04

I no longer do any shopping at Sainsbury's most is now Waitrose with a little at Tesco. Why no longer Sainsbury, becasue now days it is an appalling shopping experience.

Why Tesco? I use their free car park, only a 5 minute walk into the centre of my local town, then on the way back pop into Tesco to pick up some basic items such as milk and what fruit they may have on offer at the front of the store.

As for my local Aldi, pop in a few times a year to see what they have to offer and always come out with out buying a single item as much of what they sell is complete rubbish and often poor quality like the basic rages that Sainsbury's and Tersco both sell.

Also none of my family have ever done grocery shopping on-line as we like to see the quality and condition of the products we're actually buying.

[tim 3] 03/10/2019 10:55

There is certainly an argument for stopping online there are plenty of studies out there that say its unprofitable.

As it stands store shoppers are in a way subsidising internet shoppers would estimate delivery charges needed to cover the picking and all the other logistics involved would be closer to £20 not the few quid they currently charge.

Would be a brave move to do it though when Morrisons resisted till much later was not a popular move.

[loganair] 03/10/2019 10:49

NR - The liabilities that Sainsbury;s and Argos have is that they are both very low margin business with little prospect of significantly increasing their margins.

What I have noticed over the past 30 years is how the shopping experience has gone right down hill when shopping at Sainsbury's, one of the reasons why most of my family now shop at Waitrose.

[nick rubens] 03/10/2019 10:35

Ok, so I shop alot at Sainsbury's (for the quality), they don't need to compete with price on their own brand products as they are superior to the discounters and to the other regular supermarkets. They need to emphasize more the quality rather than the discounting IMO.

Anyway, once the Argos cost cutting is done, I can't help thinking the company wil then have two liabilities, groceries (a struggle) and then also Electrical retail (a struggle).

Is their reason to buy the stock at this level?

What can they do to turn things around. I wouldn't bother with Internet orders and delivery on groceries myself, i'm sure that's costing too much. Aldi and Lidl have not adopted this and likely for good reason.

[spob] 02/10/2019 22:47

April 18 - March 19

[spob] 02/10/2019 22:43

Actually most people did think it would go through. (myself not included)

Which is why the share price shot up and stayed over valued for a long time

Mr Coupe was singing about his share options when the share price jumped 22% in one day


" Sainsburys are a big company, so they must know what they are doing " LOL

people are so easily swayed by money/size

[loganair] 02/10/2019 10:47

Tesco and Morrison's are both really expanding their whole sale businesses which seems to be the area of growth and growth in profits.

All Sainsbury's seems to be doing is spending ever more money to lower prices to keep their market share which seems to me how a clueless 5 year old would do things when it comes to retailing.

Sainsbury's must stop trying to battle it out with Aldi/Lidl who are the food retailers who have the discount expertise.




Tesco today said it now plans to open 150 more Express stores over the next three years - and four new supermarkets in the UK Ireland.

The move will also see 153 Metro stores 'repurposed' with new counters in 692 stores next year.

Ongoing changes will include a reduction in opening hours during quieter trading periods at the start and end of the day,

[muffinhead] 02/10/2019 10:30

loganair
2 Oct '19 - 09:29 - 20442 of 20444
How come Tesco are being allowed to get away with such an acquisition with out it going to the CMA?

wholesale and retail difference

Coupe hasn't got a clue either.... ASDA/Sainsburys was SO stupid

[loganair] 02/10/2019 09:46

Genrali - If little to no organic growth means a company is not successful. Can not be successful with M&A alone.

Must invest in growth whereas Sainsburys invests to lower prices = lower margins = lower revenue = lower profits.

I would much prefer Sainsburys to have 14% or even 13% market share with double the profit margins then 15.3% market share with much lower profit margins.

[loganair] 02/10/2019 09:30

What else is Tesco doing:


Online, Tesco plans to double its UK capacity, with the support of three new Urban Fulfilment Centres to be opened by Summer 2020, as part of plan to open more than 25 over the next three years.

[loganair] 02/10/2019 09:29

How come Tesco are being allowed to get away with such an acquisition with out it going to the CMA? And what is Sainsbury's doing - nothing!!!!!!



Booker to be boosted by Best Food acquisition:

Booker sales growth was modest compared to last year as the business annualised against contract wins. With small business confidence remaining low Tesco supported retail and catering customers with increased promotional activity. To boost growth, Tesco has today announced the acquisition of the assets and operations of Best Food Logistics, adding a further £1.1bn of additional foodservice sales.

[neilyb675] 02/10/2019 07:32

2.20 x 0.20 = 0.44

2.20 - 0.44 = 1.76

[muffinhead] 01/10/2019 20:55

tim 3
1 Oct '19 - 08:58 - 20431 of 20439
Sainsburys are ahead of the competition on minimum wage already paying 9.29 so a rise to 10.50 in 5 years is only 12% or less than 2.5% a year.

My post was not specifically directed at Sainsburys.

Think about how businesses with large workforces in service employment are going to deal with 5% compound wage inflation. Manufacturing is already in contraction.

The current 5% compound minimum wage inflation started in 2015. So another 5 years is being proposed. The economic cycle started in 2009 so the expansion could absorb increasing costs. Higher wages also leads to higher employer pension and NI contributions. Do you seriously believe that the economy is going to expand for another 5 years without a recession?

The average pretax profit margin for Sainsburys for the last 4 years comes in at 1.63%. The sector has overexpanded and there is ruthless competition. 2.5% wage inflation currently is too much for shareholders and is part of the reason the shareprice has been so weak for years

My point is that Javid is irresponsible. Something has to give: ? price inflation...? employees laid off and service sector goes into recession..?corporate tax cuts.

Whatever happens the discounters will further benefit in the supermarket sector imo

[spob] 01/10/2019 19:25

Regarding Mr Rogers

I get the feeling running Argos was too much like a proper job. LOL