Morrison (wm) Supermarkets Share Discussion Threads

[loganair] 29/4/2018 18:08

Currently Co-Op Market share stands at around 6% would bring Morrisons upto around 16.5% market share. I think this would be difficult due to the share structure of the Co-Op.

However in the next few years the combined market share of Aldi/Lidl is expected to reach 18%.

The next supermarket down on the list is Iceland with just 2.1% market share.

I put this forward before and was shot down, maybe McColls the convenience store operator which has around 1,350 stores and wouldn't cost then too much maybe no more than £350mln and re-brand the stores Safeways. This would give Morrisons the number two position in this sector behind Tesco/Booker.

[scotches] 29/4/2018 17:54

Russ Mould, AJ Bell
“Assuming the Competition and Markets Authority lets the deal pass relatively unhindered – and the manner in which it waived through the Tesco-Booker deal suggests it might – then the next decision that will follow the proposed Sainsbury-Asda merger is Morrisons’ competitive response.

“The defensive merger between two rivals may well force the Bradford firm to seek out a merger or a deal of some kind with the Co-Op. Although this will not make a huge dent in the market share gap between Morrisons and Tesco and the proposed Sainsbury-Asda entity, such a move would at least take Morrisons’ market share back above the combined reach of the discounters Aldi and Lidl, who continue to act as a disruptive force in the UK grocery market.”

[chinese investor] 28/4/2018 18:33

It'll be up first thing Monday !

Chinese Investor (MRW) 11 Apr '18 - 14:52
250p Soon !

[themattbarnes] 28/4/2018 18:29

Amazorrisons is my bet

[nerdlinger] 28/4/2018 17:54

If ASDAburys gets past the CMA will that encourage Tescorrisons...? I note that ASDA's boss in the UK is ex Sainsburys...

[mervin4] 28/4/2018 15:27

ASDA and Sainsbury tie up.

[themattbarnes] 28/4/2018 15:06

Morrisons won't get squeezed they are too vertically integrated. They even sell their meat to the suppliers of Tesco and Sainsburys

[loganair] 28/4/2018 14:09

I can see Morrisons being far more badly effected and squeezed than Tesco...


Sainsbury’s ‘in talks with Walmart over historic £10 billion Asda merger’:


Sainsbury’s bosses are in talks with US company Walmart over a potential merger that would see the supermarket take over Asda, it has been reported.

J Sainsbury and Walmart, the world's biggest supermarket retailer, have met to discuss a possible union between high street giants Sainsbury’s and Asda in a drastic shake-up.

According to Sky News, which reported the potential deal, bosses are keen to join forces to push UK favourite Tesco down in the rankings by creating a stronger rival.

It has not been established how a possible deal would work and whether Asda stores would become Sainsbury’s instead.

But reports have suggested that, following the merger, the company would still be led by Sainsbury's ceo Mike Coupe.

Newswires have reported sources as confirmed that the combined Sainsbury's Asda group would still be called Sainsbury's.

Experts have also suggested the chains could have trouble securing approval from the Competition and Markets Authority – which works to ensure health competition between retailers.

Sources have claimed an announcement is expected in the next few days. The Standard has contact Sainsbury’s for comment.

In February, consumer survey’s revealed that major British supermarkets had fallen in favour due to new brands such as Lidl and Aldi impressing shoppers with the quality and value of food available.

According the Which? consumer survey, Aldi knocked Waitrose off the top spot as British shoppers' favourite supermarket.

Whereas the "big four" – Tesco, Asda, Morrisons and Sainsbury’s – were at the bottom of the list– with Sainsbury’s ranking last.



It's yet to be reported how exactly the deal would work, but it is believed that one possibility would see Wal-Mart turn Asda stores into Sainsbury's and hold a big stake in the combined group.

The combined group would retain the Sainsbury’s name, though Asda stores would continue to trade under their existing banner.

[chopsy] 27/4/2018 20:12

Ok I think I understand. Shorts closing to avoid paying the divi, is that correct?

[scotches] 27/4/2018 19:41

Or perhaps...getting out for the divi. The hedge funds are due to pay 8.43p x 200+ million shares.

[themattbarnes] 27/4/2018 17:12

Getting in for the divi? Who knows. +13% in a month is nice though with 4% yield still to come

[pj fozzie] 27/4/2018 15:48

Hmmm - what's up? I'm happy for a bit more of whatever it is.....

Cheers,
PJ

[chopsy] 27/4/2018 15:24

Rather unusual price action. Are we sure a bid is not coming?

[chopsy] 27/4/2018 15:24

Rather unusual price action. Are we sure a bid is not coming?

[chinese investor] 27/4/2018 15:15

Imminent !

[chinese investor] 16/4/2018 14:37

Very Soon !

[chinese investor] 11/4/2018 14:52

250p Soon !

[themattbarnes] 09/4/2018 12:21

More wholesale deals would be what I'd like to see, not buying up the chain

[loganair] 05/4/2018 17:53

TRCML - I agree with your sentiments.

I was just thinking Morrison's owning McColl's would be like Tesco's who own One Stop Shop. That is if Morrison's would like to get back into owning their own Convenience stores.

[trcml] 05/4/2018 17:44

I am resisting the temptation to say what I really think about your suggestion M take over McColls because, with respect, it seems to me that you have no idea of the challenges that a multiple retailer in the food sector faces.

Generally, it is cheaper (and certainly less capital intensive) to be a wholesaler, not a retailer. It is less time-consuming for management and less risky. And although the profit margin between retailer and the general public is bigger (25.7% according to McC's latest), than between wholesaler and retailer, the higher margin for retailers is to compensate for the greater risks in retailing. Let's assume (no reason not to) that McColls do really well selling Safeway products, currently some 400 products in the range. The more trade McColls does the more stock it will buy in one go, the cheaper it becomes for Morrisons to service the order. Even if McColls doesn't do that well, it is still cheaper for Morrisons to service a large order from a single customer than sell products in dribs and drabs to thousands of people, whilst running the risk of operating 1600 shops and all that that entails, the more so since many of the McC branches are small shops in out of the way places.

Also, I am not convinced the convenience store sector is growing. I reckon it is running fast to stand still. McColls total LFT for 11 weeks to Feb 2018 was up 0.1%

[loganair] 05/4/2018 16:01

A couple of years ago I suggested that the way for Sainsbury's to move forward was to take over McColl's, now I think it maybe a good idea for Morrison's to take over the 1,300 store McColl's and as they are beginning to already stock them with Safeway products, to call them Safeway's.

A good, cheap fast way for Morrison's to get in to the growing convenience store sector.

[themattbarnes] 05/4/2018 11:11

Happy with my buy at 212p last week and happy to be in the share save scheme for Morrison's too.Work for them and think the current management team has a real clear vision and strategy and are delivering against it.Nice dividend too.

[loganair] 04/4/2018 11:43

Tesco and Morrisons outpace the rest of UK's big four supermarkets, Kantar data reveals:


Discount grocers Aldi and Lidl are continuing to disrupt the market with sales outperforming Britain's four largest supermarkets.

Tesco and WM Morrison Supermarkets sales growth continued to outpace the rest of the UK’s so-called ‘big four’ supermarkets in the 12 weeks to March 25, according to industry data.

For the 12 weeks ended March 25, Tesco's sales grew 2.4% to £7.32 billion, while its market share was unchanged at 27.6%.

Morrison Supermarkets sales rose 2.4% to £2.77 billion but its market share slipped to 10.4% from 10.5% the year earlier.

Sainsbury market share fell to 15.8% in the latest survey from 16.1%, with sales increasing 0.6% to £4.19 billion, Kantar reported.

Asda saw its market share slip 15.6% from 15.8%, while sales rose 1.8% to £4.15 billion.

The market share of upmarket retailer Waitrose was largely unchanged at 5% from 5.1%, while sales rose 1.5% to £1.33 billion, Kantar said.

Discounters continued to outperform the 'big four' with sales at Aldi and Lidl up 10.7% and 10.3% respectively.

Meanwhile, Aldi and Lidl continued to gain market share. Aldi's sales rose 11% to £1.94 billion and its market share increased to 7.3% from 6.8%. Lidl's sales grew 10% to £1.42 billion and its market share rose to 5.3% from 5%.

“Aldi and Lidl are continuing to disrupt the market,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

“As the discounters proceed with the expansion of their store portfolios, over the past 12 weeks 63.5% of all households visited at least one of the retailers.”

Grocery inflation eased back to 2.5% over the period from the 2.9% reported by Kantar in March.


Separately, a survey by Nielsen Homescan also showed Aldi and Lidl's market share growing. For the 12 weeks ended March 24, Aldi's market share has risen to 8.7% from 8.0% for the comparable period ended March 25, 2017, while Lidl's has risen to 5.8% from 5.3%, Nielsen reported.

According to Nielsen, Tesco's market share has dropped to 27% in the 12 weeks ended March 24 from 27.1%, while Sainsbury's fell to 15% from 15.4%, Asda's fell to 13.9% from 14% and Morrisons' fell to 9.8% from 10%.


Why are Nielsen's figures so different to those of Kantar's???

Nielsen give Aldi and Lidl's combined market share of 14.5% while Kantar give 12.6% while giving the big 4 market shares lower than those given by Kantar.