Sainsbury (j) Share Discussion Threads

[ny boy] 23/7/2019 21:27

Mondaytuesday..you’re not mike coupe are you by any chance? 😂

[pvee] 23/7/2019 21:26

Loganair,
Apart from the McColl tie-up I agree with what you say - and in general on other posts. Ignore the criticisms and carry on !

[loganair] 23/7/2019 21:09

Sadly McColl's are unable to do this with the Co-ops they bought for another year and have to keep stocking via Nisa.

As from mid next year all the Co-ops McColl's bought will be supplied by Morrisons and selling their Safeway foods.

[tim 3] 23/7/2019 20:50

We have one near us used to be a co op only difference now is the food they stock is nowhere near as good can only assume co op sold it because it was not profitable.Co op was pricey but good quality they are just expensive.As co op they had fresh bakery products now it's all long life stuff.Mc Coll's need to re brand as Morrison's and also improve quality to that expected at a Morrison's store if they are to survive imo.Currently they are just a cheap and nasty local without the cheapness.

[loganair] 23/7/2019 13:46

mondaytuesday - filtered for hostile, confrontational toxic language.

[loganair] 23/7/2019 13:14

Sainsbury's management seem to be trying every thing under the sun in the hope that something they're doing will pull Sainsbury's out of the mire they're in now.

The big problem is the UK is over saturated with supermarkets and with Aldi/Lidl opening 40 new supermarkets per month this is only going to make the saturation worse and it seems to me something has to give.

Sainsbury's need to differentiate themselves from the other supermarkets which doesn't mean just to try and follow the latest FAD which is an expensive way to follow something that is only going to last for a brief period of time. This is exactly where M&S have fallen down, they use to sell good quality, natural fibre timeless clothing and therefore became the first retailer to make £1bln (£5bln in todays money) in profit in 1990. Then, for some unknown reason the management of M&S decided to follow the latest FAD of made made fibre tat and rags and ever since profits have fallen year after year so M&S are now barely making £500mln profit.

[buywell2] 23/7/2019 13:02

Seems like SBRY idea to become a pizza delivery outfit has been seen by the market
As a sign of their desperation and current plight

[loganair] 23/7/2019 11:46

In my experience grocery inflation is well over 0.9%.

With increase in prices and the size of products getting smaller for the same price, on the whole it seems to me grocery inflation is running at well over 5%, most probably more like 8%.

[poikka] 23/7/2019 11:42

From Alliance News

(Alliance News) - UK supermarket sales have declined so far this summer, Kantar reported Tuesday, though this was expected due to the hot weather during 2018.

Kantar data showed all of the "Big Four" grocers, Tesco PLC, J Sainsbury PLC, Wm Morrison Supermarkets PLC, and Asda lost market share in the 12 weeks to July 14.

Sales in the period declined 0.5%, to GBP27.18 billion, with this the first overall decline in the sector since June 2016.

"However, on the back of record sales during last year's hot summer, the tough period was not unexpected. As in politics, nothing is certain in retail, but it is anticipated the market will return to growth once the comparative highs of the 2018 summer pass," said Kantar.

Tesco's sales declined 2.0% in the period to GBP7.49 billion, with market share slipping to 27.2% from 27.6%. Sainsbury's sales fell 2.3% to GBP4.24 billion, and market share reduced to 15.3% from 15.5%.

Morrisons sales fell 2.6% to GBP2.85 billion, with market share declining to 10.3% from 10.5%. Walmart Inc's Asda sales were down 2.0% to GBP4.11 billion, and market share dipped to 14.9% from 15.1%.

Ocado Group PLC's sales rose 12%, the strongest of all grocers included in the survey, with market share rising to 1.4% to 1.2%.

The two major discounters, however, Aldi and Lidl registered strong periods. Aldi sales climbed 6.7% to GBP2.04 billion, and market share was up to 8.1% from 7.5%.

Lidl's sales increased 7.0% to GBP1.48 billion, with market share rising to 5.8% from 5.4%.

"It was a challenging 12 weeks for all the major grocers, with growth slowing at every supermarket except Ocado. The main factor behind the sales drop-off is shoppers heading out to stores less often," said Fraser McKevitt, head of retail & consumer insight at Kantar.

"Last year people shopped more frequently and closer to home as they topped up the cupboards while enjoying the sunshine and the men's football World Cup. This year households are making one fewer trip, which may not sound like much but is enough to tip the market into decline," he continued.

"In addition, like-for-like grocery inflation fell marginally to 0.9%, which is good news for consumers but has made it harder for retailers to achieve value growth."

Some GBP75 million less was spent on alcohol, Kantar continued, with beer sales down 11% and cider down 13%. However, chocolate did grow 15%, due to the cooler weather.

Tesco shares were 2.3% lower on Tuesday at 229.80 pence each, Sainsbury's down 1.4% to 204.00p, Morrison's down 0.5% at 204.70p, and Ocado down 0.6% at 1,212.50p.

In Johannesburg, Brait SE was untraded early on, last quoted at ZAR16.40 a share. It owns 63% of frozen food retailer Iceland.

Iceland's sales fell 1.5% to GBP582 million for the 12-week period to July 14, with market share flat at 2.1%.

[loganair] 23/7/2019 10:20

By Robert Stephens Equity Analyst - Following news that the merger between Asda and J Sainsbury was not going to be allowed on competition grounds, the share price of the latter has fallen significantly.

In fact, in the last year the company’s shares are down by 36%. This has pushed them to their lowest level in over 25 years.

In the short run, it wouldn’t surprise me if the company and peers such as Tesco and WM Morrison Supermarkets see their share prices come under a degree of pressure. Consumer confidence in the UK is weak at the moment, and this may make shoppers more price conscious than they otherwise would be.

However, with wage growth being ahead of inflation, I remain relatively optimistic about the long-term prospects for the wider retail industry. Therefore, I believe that Sainsbury’s P/E ratio of around 9.5 suggests that it could offer good value for money at this moment in time.

It’s a lower rating than Tesco’s 14 and Morrisons’ P/E ratio of 14.5. However, it should be pointed out that both of those companies have stronger EPS forecasts than Sainsbury’s for the current year, with them being 20% and 10% respectively versus a figure of just 4% for Sainsbury’s.

As a result, I think all three supermarkets have long-term investment appeal. Although they may experience challenges as the retail sector transitions towards an increasingly online focus, which may suit sector peer Ocado Group to a greater extent, I’m of the view that they have sound strategies through which to generate improving sales.

Further, Sainsbury’s remains highly profitable. Ocado may be able to deliver higher sales growth, and could post stronger capital gains in the near term, but its lack of profitability remains a risk in my eyes.

Sure, I’m optimistic about the online-focused company. But, equally, I think that the Sainsbury’s share price could offer investment appeal due to what I view as a low valuation and a strategy that focuses on differentiation and customer loyalty.

While further volatility may be ahead for the retail sector, I wouldn’t be surprised if there is capital growth potential on offer over an extended time period.

[loganair] 23/7/2019 09:47

Aldi/Lidl are opening up around 40 supermarkets per month.

[loganair] 23/7/2019 09:43

It seems to me just another 6 to 9 months and Aldi/Lidl will have around the same market share as Asda and with in a little over a year will over take Sainsburys.

[loganair] 23/7/2019 09:35

Not me with my Goldies.

[buywell3] 23/7/2019 09:34

FTSE 100 will soon be sinking into the sunset I believe

Supermarkets and Retailers

Building and Construction

Banking,Insurance and Finance

Aircraft and Travel

Overdebted old Telco's

ALL IMO are going to feel pain

dyor

[loganair] 23/7/2019 09:30

The latest Kantar figures show that Aldi/Lidl have increased their market share by 0.3% over the past month to give them a combined market share of 13.9%.

[imperial3] 22/7/2019 09:09

Out and out pessimists.

[s34icknote] 22/7/2019 08:44

Who called 150 ??Looks like 220p ten times earnings on the cards .Sicknote

[loganair] 19/7/2019 14:46

For Sainsburys to survive it either needs scale or margins.

It tried for scale with merging with Asda...failed.

This leaves Sainsburys needing to increase their margins which is the lowest out of the big 4 supermarkets, actually sadly Sainsburys have the lowest margins out of the biggest 10 supermarket groups.

[poikka] 19/7/2019 11:27

Buywell - "The scale of the problem for SBRY",

or the scale of the opportunity for investors.