Morrison (wm) Supermarkets Share Discussion Threads

[dondee] 19/9/2020 13:55

MRW due a bounce soon, or very soon!

[scotches] 18/9/2020 09:03

Someone spots value in supermarket sector

"Czech billionaire Daniel Kretinsky has launched a fresh assault on a UK household name by taking a major stake in Sainsbury’s.

The serial investor, dubbed the “Czech sphinx”, has disclosed a 3pc stake worth roughly £130m in the supermarket, making him the fourth-largest shareholder."

[essentialinvestor] 17/9/2020 16:49

If anyone is ever in my neck of the woods, can recommend their Weybridge store.
Nice cafe area as well.

Personally don't get the attraction of Aldi/Lidl, then again I'm not raising
a large family.

If you want to make a fairer comparison between a basket of shopping at say Aldi
and Morrisons, then it's the own brand against own brand price.

[muffinhead] 17/9/2020 14:52

Afternoon tea for two

[muffinhead] 17/9/2020 14:51

Morrisons seem to be ready for Christmas

[muffinhead] 17/9/2020 14:50

Direct competition always possible with non perishable goods..eg. Nescafe or bleach

But short shelf life or ambient temperature goods? Maybe there is a market for Amazon crisps and cornflakes

[essentialinvestor] 17/9/2020 13:07

Yup indeed ).

[scotches] 17/9/2020 13:02

The average tenure of a FTSE 100 CEO is 5 years. I wonder if Potts (started early 2015) is preparing his departure and legacy with his relentless focus on doing the right thing rather than anything grubby like maximising profits.

[muffinhead] 16/9/2020 23:26

"The issue with online is the cannabilisation of higher margin in store sales." Essential

The stores are essential imo to physically fulfil online orders for local delivery. Online prices are the same as in the store. The customer either goes to the store for the grocery shop or the order is done online or telesales and is delivered to the customer for a charge. The only issue is the best means of delivery and associated cost. Morrisons has a few delivery options which are evolving. Amazon Fresh is a relatively new approach. As is Deliveroo.

My First Morrison’s Delivery | Amazon Flex UK

[muffinhead] 16/9/2020 21:50

Essential, during the webcast the question was asked if online made a profit and the answer was "yes". However the level was not mentioned. But it was revealing that the online revenue was similar to Ocado.

It is just an observation!

[muffinhead] 16/9/2020 21:45

bend1pa... listen to the webcast cfo talking. Two big reasons for working capital/cashflow/debt levels which are linked....

1. Petrol sales were down about £680 million in H1 which is obviously recovering post lockdown... Q1 was the worst part of H1

2. Supply chain suppliers were protected and paid faster than normal

Also in H2 there will be a £60million net benefit from business rates, which will balance out H1 over the full year


In essence this year H1 and H2 will be a lot different from normal years due to Covid.

However, there are concerns about costs for the market so down she goes..... probably best visit the company website investor pages and link to the webcast. IFRS 16 is also relevant as scotchs mentions but bear in mind that Morrisons owns 87% of it's supermarket freeholds. If you really want to have kittens about leases and IFRS16, have a look at Tescos

[essentialinvestor] 16/9/2020 21:34

How much pre tax profit have Morrisons made on that £1.8 Billion online revenue,

that's the question to ask.


It's estimated to cost up to £10 to pick and deliver a basket of groceries in the UK.

My understanding is Tesco may be the only UK supermarket to have a profitable home delivery operation
and even then it's margin dilutive.

Amazon, with their extraordinary scale and systems and without physical stores, can likely run a highly
profitable food delivery operation longer term.

[muffinhead] 16/9/2020 21:31

Interesting when asked during webcast Q&A what percentage of turnover was from online, the answer came back as 10%

Annualised, 10% would come in as £1.8 billion which is about same as Ocado currently

[scotches] 16/9/2020 20:25

IFRS 16 accounting change in relation to leases commented on last year.



Sainsbury are showing at 6.7billion and Tesco at 12 reflecting their considerably higher lease obligations.

[bend1pa] 16/9/2020 19:30

They are getting deeper and deeper into debt, net debt £2.8bn at Aug 2 and up over 15% from a year previously. How did they ever get into such a serious debt situation. Are the banks just going to continue to turn a blind eye to this indefinitely, or is there going to come a time when they are forced to say that's enough?

[leedslad001] 16/9/2020 18:58

Remember it's triple whiching this week so wild swings expected

[essentialinvestor] 16/9/2020 16:54

Was tempted before the close but held off, might regret it tomorrow.

[philanderer] 16/9/2020 16:46

albert, it's that downgrade by JP Morgan from 'neutral' to 'underweight ' this morning with a new target price of 160p

..... "Morrisons Growth Could Disappear Next Year, Says JPMorgan"

[cwa1] 16/9/2020 15:53

Joined the throng here with a few at 170. Good fortune to all

[albert3591] 16/9/2020 15:03

Down more than the other supermarkets today,why.

[albert3591] 16/9/2020 14:55

Maybe mrw will be doing a cull soon