Morrison (wm) Supermarkets Share Discussion Threads

[sooty snipes] 12/9/2019 11:57

Oh I agree. They have done a great marketing job. How they get away with the copycat packaging is unbelievable. These well known brands go to great lengths and cost designing their packaging. For Aldi/Lidl to come along and plagiarise them is disgraceful.

[loganair] 12/9/2019 11:32

What is even worse it just how many people believe these adverts by Aldi and Lidl that they are cheaper.

[cheshire man] 12/9/2019 11:06

Very pleased with these results and a special divi to boot :-)

[sooty snipes] 12/9/2019 10:16

Great results from Morrisons in spite of all the doomsters on this thread. There are only so many people want to shop in Aldi or Lidl. I believe both these German stores have peaked. They are a disgraceful bunch. Copycat packaging that tries to convey the product is on a par with the well known brand. They are no cheaper than the main supermarkets if the shopper was to only buy the supermarkets own brand produce. It's all smoke and mirrors. PS I'll look forward to my dividend too.

[debsdowner] 12/9/2019 10:06

Johnwise

I suspect they are paying a special dividend to boos the share price to prevent a takeover.

[debsdowner] 12/9/2019 10:02

johnwise

I agree they shouldn't be paying a special dividend sales growth reversed.

[scotches] 12/9/2019 09:53

A new accounting standard now requires that leasehold debt is reflected in the figure of net debt.



"The IFRS16 accounting standard has come into force and it will generally make debt appear higher and affect different levels of profit. This is particularly true of the retail sector."

Generally the MRW figure for debt is considered low at under 1 billion on pre IFRS 16 figures (had been over 2.5 billion in the desperate Dalton years).

[johnwise] 12/9/2019 08:04

They should not be paying a special dividend when they have a Net debt GBP 2,358m with a Profit before tax and exceptionals of only GBP198m

[justiceforthemany] 12/9/2019 07:47

Better than expected H1. Rise in profit and another special dividend + extended partnerships with Amazon & others.

[loganair] 10/9/2019 09:32

When a Morrisons stores has come under direct competition from either Aldi or Lidl in some cases Morrisons have been force to close their store.

[johnwise] 10/9/2019 07:39

Morrisons making aggressive price cuts in attempt to win back customers as supermarkets and discounters slug it out


Analysis of Kantar data by Barclays suggested that 46.2 per cent of Morrisons' revenues in the 12 weeks to August 11 came from discounted goods. This compared with the sector average of 32.3 per cent and was 5.3 percentage points higher than any other retailer.

James Anstead, of Barclays, suggested the decision to deploy selected promotions was either 'a very clever promotional strategy or an unsustainable approach'.

It comes at a time when grocers' market share is being savaged by German rivals Aldi and Lidl.

[justiceforthemany] 09/9/2019 15:46

Is struggling Morrisons the next takeover target?

[galatea99] 30/8/2019 16:22

"Asda legal chief quits for Amazon - PA
The senior executive responsible for providing legal advice to Asda throughout its attempted merger with Sainsbury's has quit the supermarket after more than eight years.

General counsel and company secretary Alex Simpson has resigned to take up a new role at Amazon - joining the online giant's UK boss Doug Gurr, who also previously worked at Walmart-owned Asda.

In an internal email sent by Asda chief executive Roger Burnley, staff were told a new recruitment process is under way and Mr Simpson leaves on September 12."

Interesting that Amazon have recruited someone with those specific skills and experience, given the persistent talk of Amazon being interested in either Asda or Morrison.

[johnwise] 28/8/2019 17:30

More shoppers abandon Britain's biggest supermarkets in favour of Aldi and Lidl as half of UK households visited an Aldi in last 12 weeks

All of the 'big four' supermarkets saw sales decline in the last 12 weeks

Lidl notched up a sales rise of 7.7 per cent, according to the figures from Kantar

Aldi saw sales rise 6.2 per cent, and Ocado soared by 12.6 per cent

[scotches] 28/8/2019 16:45

Investec upgraded Wm Morrison from “hold” to “buy” with a 240p target price as part of a UK supermarket sector review.

“Having reviewed the possible impact of Brexit-driven changes in consumer spending patterns, tariffs and supply chain disruption, we believe that the current weakness in the supermarket sector is unwarranted. While there is currently undoubted nervousness on companies with large UK exposure, we still feel the sector offers compelling value.”

INVESTEC
Consumers are better off yet have grown more cautious since the start of 2019, as shown in a breakdown in the correlations between supermarket like-for-like revenue growth versus household consumption expenditure and disposable income, said Investec. Since the third quarter of 2018 household consumption expenditure and disposable income metrics have expanded but grocery sales have declined markedly, it said. As savings rates have also fallen, the disconnect suggests consumers have been spending in other areas, Investec said. It estimated that supermarket revenue growth was already tracking around 4 per cent below the expected level, suggesting further downside would be limited post-Brexit.

The broker also saw trade tariffs as a manageable expense, estimating an extra cost of £2.54 a week on the £66 average weekly spend on groceries. Supply chain disruption was a concern, with almost half of the UK’s food supplies at risk, but European suppliers are just as invested as UK buyers in finding a solution and any hit to supermarket revenue was likely to be temporary, Investec said.

Morrisons has been a resilient performer this year, with a revitalised core business and the strongest balance sheet of the publicly quoted UK supermarket stocks, giving it the firepower to grow through acquisitions, said Investec. Expanding the wholesale operation would be the key catalyst for the stock, it said.

The research also repeated “buy” advice on J Sainsbury and Tesco while keeping a “sell” on Ocado.

[albert3591] 27/8/2019 15:37

Been to one Morrison’s at 11am fresh veg hadn’t turned up,sorry down the road to Tesco,or either of the other non German supermarkets.

[loganair] 27/8/2019 12:41

And there's Waitrose who are opening up in store freshly made Sushi by a Sushi chef. By early afternoon, all but sold out.

[essentialinvestor] 22/8/2019 13:54

If you look at the last Kantar update it was a weak read for MRW.