Sainsbury (j) Share Discussion Threads

[loganair] 20/8/2019 10:17

Sector outlook by Robert Stephens, CFA:

Sector peers such as WM Morrison Supermarkets PLC (LON:MRW), J Sainsbury plc (LON:SBRY) and Tesco PLC (LON:TSCO) also face uncertain futures in my view.

Sainsbury’s continues to be unpopular with investors following the failure of its Asda merger. Although I think the company has a sound long-term growth outlook due to its strategy of differentiating its offer compared to sector peers and its low valuation, investor sentiment may remain weak in the near term to my mind.

Morrisons may also record volatile share price performance in the near term. In spite of this, it is forecast to post a high single-digit rise in EPS in the current year, while its strategy of paying down debt and improving the customer experience could strengthen its competitive position in my view.

Tesco’s strategy seems to be working well in my opinion, with it due to post a rise in EPS of 20% in the current year. Since the stock is performing relatively well in terms of customer satisfaction rates and like-for-like sales growth, I think it could have a bright long-term future.

[loganair] 20/8/2019 10:15

Looking at the latest figures from Kantar it looks like Tesco and Morrisons have been losing out to Aldi/Lidl while Sainsbury's gained a little in market share, at what cost and Asda has stood still.

Aldi/Lidl combined market share now 14.0%.

[loganair] 20/8/2019 09:49

Poikka - Kantars figures never include M&S which account for about 3.3% grocery market share therefore Sainsbury's market share is more like 14.5% or even maybe a little lower.

[poikka] 20/8/2019 09:16

Now here's a thing: Sainsbury's performance improving amidst talk of replacing Coupe.

How should that affect a SP, which was allegedly rising over talk of his replacement, now that it appears that the company's doing well under his leadership?

[poikka] 20/8/2019 09:07

"J Sainsbury PLC accounted for 15.4% of all UK supermarket sales during the 12-week period. Overall Sainsbury's sales fell by 0.6%, however, despite sales of branded goods rising by 1.5%, driven by higher levels of promotion and Sainsbury's price lockdown strategy.

"While each of the big four lost share, Sainsbury's will be cheered to be the strongest performer among this cohort for the first time since November 2017," highlighted McKevitt.

Sales of the UK's largest grocer, Tesco PLC, and those of smaller peer Walmart Inc-owned Asda shrunk by 1.6% and 1.5%, respectively. Kantar said Asda's online growth of 11% was "notably" strong, while Tesco continued to find success with its cheapest own-label lines."

Now that ain't bad considering the disruption caused by the big upgrades taking place, better than I expected.

[loganair] 20/8/2019 09:02

Shore Capital questions Sainsbury’s ‘sell’ stance:

Peel Hunt is questioning its ‘sell’ recommendation on Sainsbury’s shares after they fell back to a level last seen 30 years ago.

Analyst Clive Black retained his ‘sell’ recommendation on the stock, but said the shares’ fall back to ‘levels of over 30 years ago,’ was ‘causing us to question our “sell” stance’.

The outlook for grocers remains weak but ‘if we can gain confidence around the robustness of our forecasts, which are broadly consensual, then we will reflect that in a more neutral stock stance’, he said.

‘If, however, those forecasts are nudged down again, then we feel it appropriate to remain cautious noting that there is much scope for volatility in the British food system around the true political mess that is Brexit,’ said Black.

[poikka] 19/8/2019 12:51

"if", "could"...

[muffinhead] 19/8/2019 12:51

Whoever takes over from Coupe will need to present a good old fashioned "stategic review"

[muffinhead] 19/8/2019 12:41

Lidl warns UK suppliers on no-deal Brexit


Lidl going to drive some suppliers to the wall with this policy

Just need to look at shareprice of Bog roll supplier, ACCROL GROUP HOLDINGS PLC, to see the consequences for shareholders when Lidl asks a supplier to swallow higher international pulp prices

Brexit not going to be so great for Aldi and Lidl imo if suppliers start winding down contracts and they have to import more products from Germany at current Euro/Sterling rate

[ny boy] 19/8/2019 12:13

Key reversal day shaping up, buyers returning en masse

[imperial3] 19/8/2019 12:10

Coupe's we are in the money was a pr disaster imo.I hope the next CEO will have the foresight, vision and innovation to turn this round.

[poikka] 19/8/2019 11:58

Interesting that both Ocado and Sainsbury's are leading the footsie, neck and neck; although I have no idea why it should be interesting!

Any thoughts, folks?

[loganair] 19/8/2019 10:28

If a female, will most probably trash TU clothing as will most probably want to go more in to fashion.

[poikka] 19/8/2019 10:12

Quite a lot of support merely for a newspaper article that the CEO succession planning is happening. Guess that investors want to get in now while the share price is depressed.

Internal candidates not being considered according to the article - maybe. Would have to be someone focussed on customer service, probably a female..?? Any guesses??

Coupe is definitely tarnished and would have to go. That's the way the cookie crumbles.

[ny boy] 19/8/2019 09:47

A close above 185p support, should mean a confirmation low is in

[poikka] 19/8/2019 08:28

Careful - "MKS + SBRY cap £7.5 bn.

Would these once great companies be allowed to merge?"

Possibly makes more sense now than the other numerous times that it's been spoken of, M&S wouldn't need to have Sales - just dump the stuff in Sainsbury's, lol.

Just think of the Ocado share price in that scenario - wouldn't see it for dust.

Not sure why the CMA would be a worry, but what do I know.

[loganair] 18/8/2019 22:23

Argos is a very low margin business.

Given the choice for Sainsbury's I would have not bothered with Argos and gone all out for Nisa, instead of letting the Coop get their hands on them.

M&S have done a silly deal to buy 50% of Ocado UK.

M&S and SBRY have completely different customer base and the only savings would HQ staff and other behind the scenes savings.

[imperial3] 18/8/2019 22:23

Once bitten twice shy of the CMA.

[careful] 18/8/2019 22:18

MKS + SBRY cap £7.5 bn.

Would these once great companies be allowed to merge?
Both are sick.

[jagworth] 18/8/2019 21:53

David Tyler recently resigned as chairman of Sainsbury’s (2009-2019)


He was a former finance director of GUS that owned Argos before it was demerged so knew a lot about Argos. From what I have read he was the instigator for the purchase of Argos, and was also closely involved in other decisions.

Argos was considered to be very advanced re logistics/delivery (2 hour delivery often possible)

Reasonable strategy to use the space in Sainsbury’s stores /property disposals/cost cutting/rationalize Argos.

Can't blame MC for everything.

[imperial3] 18/8/2019 11:05

The share price is little short of a disaster.A new broom is required for the benefit of customers and shareholders alike.

[johncasey] 18/8/2019 10:41

empty shelves,empty aisles..recipe for disaster

[alphorn] 18/8/2019 10:31

P - good posts.