Sainsbury (j) Share Discussion Threads

[loganair] 04/3/2020 16:55

Fraser McKevitt, head of consumer insight at Kantar, said: 'Sainsbury's has performed well this period despite a challenging market.

'Lidl has been benefiting from its store expansion programme for a number of years. The new locations have helped to bring in nearly 900,000 additional shoppers.'

In a sign Aldi's growth is running out of steam, analysts at Shore Capital said sales may be falling once new store openings are stripped out.

[poikka] 04/3/2020 08:08

From what I'm hearing, panic buying (and I apologise for mentioning it) will more likely have a negative impact on supermarkets' profits; although I can't make a judgement.

It's a pretty sickening spectacle, whatever. Popped into my local yesterday for the usual - toilet paper shelves were pretty thin and long life milk non-existent.

I mean, why?!

Such is life. Where's me coffee.

[loganair] 03/3/2020 11:20

Nationwide confirms talks to purchase Sainsbury’s mortgage book:


Sainsbury’s announced its departure from the mortgage market in September last year.

Sainsbury's Bank is following rival supermarket bank Tesco in deciding to exit the home loans market as cheap funding orchestrated by government schemes comes to an end.

The UK building society is believed to be within weeks of completing a transaction that would add about 10,000 people to Nationwide's base of 1.7m mortgage customers.

A spokesperson for Nationwide, said: “We can confirm we are in discussions with Sainsbury’s Bank regarding the purchase of its mortgage book. This may or may not lead to a deal in the future.”

Sainsbury’s mortgage book is worth an approximate £1.9bn and the supermarket has an estimated 10,000 mortgage customers.

[loganair] 03/3/2020 11:13

Sainsbury's was the only one of Britain's "big four" supermarkets to record year-on-year sales growth in the 12 weeks to Feb. 23, although it still lost market share to discounters Aldi and Lidl, according to researchers Kantar.

Sales at Sainsbury's rose 0.3%, Kantar said on Tuesday, whereas market leader Tesco recorded a dip of 0.8%, Asda was down 1.2% and Morrisons fell 2.0%.

Lidl was the fastest growing supermarket for the first time since 2017, with sales up 11.4% in the period, taking its market share to 5.8%, Kantar said. Its bigger rival Aldi recorded growth of 5.7%, giving it a 7.9% market share.

The impact of the coronavirus crisis has been seen at the tills, with sales of hand sanitiser up 255% in February while liquid soaps grew by 7%, Kantar said.


The rise helped by new shoppers, more visits and the launch of ‘Nectar Prices’. According to the closely watched Neilsen supermarket report, Sainsbury’s grew sales by 0.6 per cent.


Kantar say Sainsbury's sales rose 0.3% and Neilsen says they rose by 0.6% - who is correct???

[poikka] 02/3/2020 14:38

And now...

"J Sainsbury was among the risers, up 3.4%, after Bernstein raised the supermarket to Outperform from Market Perform."

[onjohn] 28/2/2020 16:12

will benefit from panic buying shopping

[poikka] 28/2/2020 09:56

CREDIT SUISSE INITIATES J SAINSBURY WITH 'OUTPERFORM' - TARGET 280 PENCE

Sentiment appears to be turning, but maybe not today, lol.

[albert3591] 27/2/2020 15:08

All supermarkets suffering today.

[loganair] 27/2/2020 09:57

Walmart is in talks with private equity firms about selling a majority stake in Asda. The US retail giant confirmed the talks in a statement, although it also said that “an IPO is an attractive long-term objective for Asda”. With Asda valued at around £5bn on a standalone basis, a full takeover would probably require a consortium, with a stake sale to a private equity house seen as a stepping stone to a flotation in a few years time. KKR is one name in the frame.


The original £7.3bln that Walmart valued Asda at at the time of the take over bid by Sainsburys would now value Asda approximately the same as Sainsbury's and M&S combines which is just a ridiculously high valuation.

What I see happening is the following:

1. Private Equity firm takes majority stake in Asda.

2. Private Equity firm asset strips Asda and loads Asda with a huge amount of debt paying a huge dividend to both the Private Equity Firm and Walmart.

3. Private Equity firm lists an over valued Asda carrying a huge amount of debt - shares being bought by the Private Retail Investor because they think they are buying a safe company - This is what happened with Woolworths and Debenhams etc.

4. In the end Walmart get the £7.3bln they wanted for Asda and the Private Equity Firm also makes a huge amount of money, doubling there original investment with in a few very short years.

[loganair] 26/2/2020 19:31

Asda has attracted interest from suitors including private equity firms, the people said, asking not to be identified because the information is private. Walmart is working with an adviser and has recently started a formal process for the stake sale, the people said.

[loganair] 26/2/2020 19:28

I would be surprised if anybody is going to offer the £7bln plus Walmart had valued ASDA at during the take-over/merger with Sainsburys.

[loganair] 26/2/2020 19:22

BBC - Walmart in discussions to sell stake in Asda:


Walmart says it may sell a majority stake in Asda, its UK supermarket, after "inbound interest" in the idea.

The US retail giant said it was talking to a "small number of interested parties" about a possible investment.

It comes after UK regulators blocked Walmart's plan to merge Asda with Sainsbury's last year on fears it would raise prices for consumers.

Walmart said it would be likely to retain a stake in Asda if the plan moved forward.

"No decisions have been made and we will not be commenting further on these discussions," it said.

"If or when we decide to pursue this opportunity further, our first priority will be to share more detailed information with our colleagues."

Walmart purchased Yorkshire-based Asda in 1999. The company is among the top three supermarkets in the UK, with an estimated 15% of the market.

However, in recent years, it has seen increased competition from low-priced German competitors such as Aldi and Lidl.

'Clear strategy'

After regulators blocked the Sainsbury merger, Walmart said it was considering a stock market flotation for Asda.

On Wednesday, the firm said that remained "an attractive long-term objective".

"Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy," Walmart said in a statement.

Walmart has overhauled its international strategy in recent years, scaling back its business in countries such as Brazil while partnering with local firms in markets where it sees growth.

In 2018, it took a majority stake in India's online retailer, Flipkart. It also has partnerships with China's JD.com and Japan's Rakuten.

"Walmart has a clear international strategy around 'strong local businesses, powered by Walmart' - which involves a number of different ownership arrangements, depending on the needs of its different markets," the company said.

A potential third-party investment in Asda would be intended to "support and accelerate the delivery of Asda's strategy and position Asda for long-term success", it said.

John Colley, associate dean of Warwick Business School, said: "Having pinned all their hopes on a merger with Sainsbury's, bosses at Asda have struggled to find a Plan B for the business.

"The company is clearly not wanted by Walmart, which is occupied with greater challenges such as the threat of Amazon."

He said a flotation had "always seemed improbable", but the idea suggested that Walmart had been "struggling to find potential buyers at a price it found appealing".

[poikka] 26/2/2020 17:35

Berenberg upgrades to Buy - fwiw.

[mattjos] 25/2/2020 23:26

Sold all my profit share stock and my senior management options in JS back in 1998 at somewhere around £5.75 ... left JS in 1999 ... shares have gone nowhere ever since for the simple reason that no one there has any vision for the future whatsoever.It has been downhill ever since Sir John Sainsbury stepped back from the helm.David Sainsbury was a total disaster for the company and all subsequent leadership hopeless.I still shop there, most competitors ghastly shop experiences (Tesco, Lidl, Aldi, Asda, co-op, Morrison's .. full of the great unwashed. Marks & Waitrose insanely expensive) but, as an investment proposition? JS continues to gradually wither away. The founders would not countenance any of current management.

[poikka] 21/2/2020 17:28

Guess that they'll be looking for alternative suppliers, spob, amazing just how quickly suppliers can be changed. If there is a general shortage, prices would rise, I guess; so no change?

I dunno.

[spob] 21/2/2020 14:45

I wonder what effect the China shutdown is having here

I think they import most of their General Merchandise directly from Chii-naa

[demonboy] 13/2/2020 11:37

https://www.retailgazette.co.uk/blog/2020/02/sainsburys-launches-new-on-the-go-convenience-stores/

[poikka] 12/2/2020 11:10

And here's the above, again.

"(Alliance News) - J Sainsbury PLC on Wednesday said it is looking to capitalise on a "growing trend" for fast, convenience shopping by opening 10 smaller format stores in the UK.

The first "On the Go" site is to open at Mansion House in the City of London. The grocer said it will launch nine more in London, Edinburgh, Bristol and Glasgow.

Elsewhere, the company said it has 130 of its "local" format stores in urban areas which could be converted into On the Go sites.

"The On the Go stores tap into the growing trend for convenient food to go. According to IGD, the UK food to go market is forecast to be worth GBP23.4 billion by 2024, up from GBP18.5 billion in 2019, growing by 26%.

"The stores will help Sainsbury’s maintain its market-leading position in convenience. For the last five years Sainsbury’s convenience stores have outperformed the market in terms of trading intensity and around nine million customers visit Sainsbury's Locals every week."

The new format stores will also "puts a spotlight" on its general merchandise arm, which includes the Argos catalogue retailer and the Tu clothing brand.

Sainsbury's Director of Commercial Operation Graham Biggart said: "Convenience is a growing part of our business and we have greater capability than ever to truly tailor Local stores to local needs – across our products, formats, services and operations.

"Our new On the Go Mansion House Local is a great example, bringing a new kind of convenience to busy local workers with limited time and delivering the curated range and fast experience that will enable them to get exactly what they want at pace. We're confident this format will further strengthen our market-leading position in convenience."

In September, the company said an internal review resulted in plans to launch 10 new supermarkets but close between 10 to 15."

[poikka] 04/2/2020 13:00

I think that we know that by now, thanks loganair.

[loganair] 04/2/2020 11:10

Kantar give false representation of grocery market share as they never include M&S in their figures which has around 3.3% share of the grocery market.

[poikka] 04/2/2020 09:57

According to Kantar, Ocado was the fastest growing grocer in the 12-week period with its market share increasing by 0.2 percentage points to 1.4%. Sales at the online grocer jumped 11% year-on-year to GBP397 million from GBP357 million.

Fraser McKevitt, head of retail & consumer insight at Kantar, said: "Ocado was once again Britain's fastest growing grocer with sales 11.2% higher than this time last year. More than half of the online retailer’s sales come from customers in London and the South of England, but its quickest growth is actually found outside of this heartland in the North of England where its sales were 17% higher than the same time last year.”

Among the big four retailers, J Sainsbury PLC's was again the best performer as its sales fell by 0.6% to GBP4.61 billion in the 12 weeks and its market share declined marginally to 15.8% from 15.9%.

Tesco PLC, the country's biggest supermarket, saw its market share dipping to 27.3% from 27.7% and sales declining 0.9% to GBP7.99 billion. WM Morrison Supermarkets PLC market share slipped to 10.3% from 10.6%, with sales falling by 3% to GBP2.99 billion from GBP3.09 billion last year.

Walmart Inc's Asda saw its market share decline to 14.9% from 15.3%, with sales down 2.2% year-on-year to GBP4.37 billion from GBP4.46 billion.

Aldi's market share grew to 7.9% from 7.5% and sales rose during the 12-week period to GBP2.29 billion from GBP2.17 billion last year. Lidl's market share increased to 5.9% from 5.3% and the discounter's sales were up 11.1% to GBP1.72 billion from GBP1.55 billion.

Co-op sales were up 2.7% year-on-year to GBP1.76 billion from GBP1.71 billion and market share edged up to 6.0% from 5.9%.

Iceland sales climbed 1.4% to GBP676 million and its market share remained flat at 2.3%.

Waitrose & Partners sales slipped 1.5% to GBP1.47 billion in the 12 weeks and its market share declined to 5.0% from 5.1%.

Kantar said grocery inflation stood at 1.0 in the period, with prices rising fastest in markets such as bacon, sausages and cooked meat, while falling in butter, instant and fresh poultry."