Sainsbury (j) Share Discussion Threads

[loganair] 24/5/2019 09:26

The UK's competition watchdog wants to ban Sainsbury's and Asda from merging for at least a decade, a filing says.

In a draft order, the UK's Competition and Markets Authority, which in April blocked the retailers from combining, has set out plans to further ban any attempts to revisit the deal for ten years.

"The prohibition (Articles 12 to 15) ... provides Sainsbury's, and Asda and Walmart (while it continues to hold an interest in Asda) must not merge within the prohibition period of ten years from the date of the order," the CMA said yesterday (23 May).


It is a further setback for chief executive Coupe, 58, whose job is said to be hanging in the balance after he was criticised for pursuing the failed merger and taking his eye off the day job.

Sainsbury's recruited former RSA Insurance boss Martin Scicluna to replace David Tyler as chairman in March, prompting speculation that he could order a major overhaul of the supermarket's top team.

Clive Black, head of research at investment group Shore Capital, said: 'If either Sainsbury's or Asda thought they could come to revisit this any time soon, then they were living in cuckoo land.'

Shares in the grocer have plunged to a 30-year low amid investor concerns that it is struggling to compete against big four rivals such as Tesco, as well as German discounters Aldi and Lidl.

He said: 'That shows you how badly things have deteriorated and the market will be looking to the board to state how it expects to improve that clearly very poor share price performance.

Asda owner Walmart is plotting to exit the UK and offload the British grocer through a stock market listing, 20 years after it was delisted.

[pvee] 23/5/2019 21:20

...oh and talking about patriotism don't forget steel of course....Dunkirk spirit.....couldn't make it up if you tried

[eisler] 23/5/2019 17:30

Let's have the hardest Brexit possible - harder than no deal, if possible. We can grow all the produce we need - fruit, vegetables, the UK is the garden of Europe. Pineapples, oranges and bananas can be grown here with some UK ingenuity - fake news to say we can't. Remember the Dunkirk spirit.

[buywell2] 23/5/2019 15:10

And just when you didn't want it the USA is tanking


What was the Tory Party thinking giving that woman such a job ?

Promoted WAY beyond her capabilities

Crass stupidity on a GRAND scale

Now the Tory Grandees reap the whirlwind and serve them right

THE people come first ... forget that at your peril

[nick rubens] 23/5/2019 14:59

There are just too many food shops. Aldi, Lidl, Home bargains, B&M, Pound Stretcher etc People can find stuff here at the expense of the big four.

Sainsbury buying Argos shows how concerned they are for their core supermarket business. I still don't know if they will make back the money (and more)than they invested to purchase it.

These are Hard Times for shareholders.

[tim 3] 23/5/2019 11:40

They may be cheap but you have to ask what will drive them back up and there is certainly plenty of potential for bad news.

[loganair] 23/5/2019 10:18

As I posted a little while ago, I think Sainsbury's may drop as low as 150p at its bottom.

As many shares do, over shoot to the downside as well as over shooting to the upside.

[blueball] 23/5/2019 09:01

Sell down to 180p.

[nick rubens] 22/5/2019 21:37

"That is what is being reported, that 15% of all food sold in the UK, is thrown away"

Goodness, if people ever get too sensible that will mean food sales plunging by 15%. Bad for the food business. :)

[buywell3] 22/5/2019 17:37

Coming your way soon

Today was the Marks and Sparks effect day

There will be more like it

[loganair] 22/5/2019 15:09

That is what is being reported, that 15% of all food sold in the UK, is thrown away as most of it comes from being left and going out of the 'use by' date.

[davydoo] 22/5/2019 13:48

40 million biffa bins, for what, 70 million people?

If you think my family of 4 throw away more than 2 Biffa bins of food a year, you're deluded

[loganair] 22/5/2019 12:03

I would like to comment on one sentence "Over the next 150 years, we need to look hard at how we continue to create food with dwindling natural resources."

1. Each and every year, the equivalent of all the food Morrisons and the Co-op sells is wasted and thrown out in the UK, by the UK consumer. 40 million Biffa sized 4 wheeled bins of food are thrown away by the UK consumer ever year.

2. Each and every year, the equivalent of the whole area of China being planted with food, doesn't even make it to market in the world.

There is plenty of food to go round, we just need to waste less of it.


When ever I pop into my local supermarkets I very much notice how most customers do not look at the 'use buy' date, just pick up the first one that comes to hand.

[loganair] 22/5/2019 11:56

Mike Coupe: Why Sainsbury's will thrive for another 150 years:

As shopping habits continue to change, we need to continue to adapt and evolve the business to get ahead of them.

Currently that means a real focus on value to compete with the discounters and continuing to invest in technology to meet the growth of online shopping. Almost 20% of our business is online and that will grow considerably over the next few years.

Over the next 150 years, we need to look hard at how we continue to create food with dwindling natural resources.

Our food trends report last week showed that in five years’ time, we could be eating insect carbonara and drinking algae-milk lattes as we incorporate more sustainable forms of protein into our diets.

It also showed that in 30 years’ time, we could be eating jellyfish for dinner given its richness in vitamins and nutrients.

I believe Sainsbury’s has succeeded by remaining true to our values, adapting to changing circumstances and looking ahead to prepare for future trends.

Those values have stood us in good stead over the past 150 years and I am confident they will continue to guide us as we navigate the next 150.

[bor491] 21/5/2019 12:21

"carlsagan119 May '19 - 12:06 - 19829 of 19839
0 0 0
Interactive Investor have decided to increase fees AGAIN!

If anybody can recommend a cheaper broker let me know.

I am considering going to iweb-sharedealing(Halifax) for a fixed £5 a trade or X-O(Jarvis) for £5.95, neither have monthly, yearly, or inactivity fees like ii

I trade long term so dont want trading credits accumulating only to expire after 90 days..."

What are Interactive Investors' new fees if I may ask?

[konradpuss] 20/5/2019 22:25

Loganair, please re-read my post and you will hopefully get it.

[loganair] 20/5/2019 22:01

"The vast majority of Tesco’s convenience stores are located in leasehold properties."

This was written a couple of years ago "Embattled supermarket chain Tesco still owns less than half its British retailing space"

Unless they're bought back over 20% of their esates over the past couple of years then they still own less then 50%.

"The grocer still pays rent on more than half of its British space, after aggressive moves during its boom years raised £7bn by selling freeholds of 179 of its Extra superstores."

"The grocer has signed rental agreements on numerous Extras and Superstores that commit it to rising rents, even if the stores are losing money."

"The agreed rent rises are linked to the Retail Prices Index (RPI) of inflation, which currently stands at 1.1% and is 0.8 percentage points higher than the more widely used Consumer Prices Index (CPI), a measure likely to be more closely linked to any price rises achievable in Tesco stores. As a result, Tesco’s rent bill is likely to rise faster than the price of a basket of goods. The grocer’s new management already considers its £1.4bn annual rent bill to be a “significant part” of its total cash flow."

[konradpuss] 20/5/2019 21:29

Loganair, right but not right. Tesco have circa 70% of their freeholds however although it is not clear if you read their accounts that that is the case.

They have three large off balance sheet structures that hold the balance that take them up to 70%. They hold 49% of the equity of these off balance sheet structures so that these do not appear in their accounts. They have an option to buy out the 51% equity they do not hold. Currently they do not want the extra debt that these structures contain on their balance sheet. In due course they will bring them back on board.

[loganair] 20/5/2019 19:04

Sainsbury's have sold and leased back the most, slightly less for Tesco, however they're still well over 50% while for Morrison it's only around 30%.

At the time, Sainsbury's and Tesco say they sell and lease back in order to provide funds to build new supermarkets which they then sell and lease back to build even more super markets and so on and so on is why they were able to expand so quickly in the early years of the 2,000s.

[ny boy] 20/5/2019 17:14

Sub 200p, closed and bought more (STX), as it’s going up and up, as FDA decision is close now, make up any SBRY losses there.

Loganair are you sure they sold 70% of their freehold buildings for lease back, if so, even worse than I thought, basically already sold the family silver?

[buywell3] 20/5/2019 08:34

Amazon is now firmly on the way to the UK

Expansion wise that is

Expect the BIG 4 to suffer in 2020

[konradpuss] 19/5/2019 23:28

Well at Marks & Expensive's prices dream on Mr.Rowe!

[jagworth] 19/5/2019 21:37

I don’t think it has been mentioned here, but M&S is going to convert some of its larger stores into supermarkets.


18 May 2019
Rowe is expected to give more details of how M&S can capitalise on the momentum in the business after it struck a landmark deal with food delivery firm Ocado in February, as first revealed by The Mail on Sunday...
That will include appealing to a wider customer base – especially families – by having more stores with a bigger range of groceries...
Senior M&S figures are understood to have drawn up confidential plans to double the company's food market share in the next five years.