Sainsbury (j) Share Discussion Threads

[loganair] 08/4/2020 14:35

Can one one please confirm that the in store Argos' are actually open as in my local Boots they have cordoned off and shut down the make-up and photographic printing areas and therefore Sainsbury's may have done the same with their in store Argos'.

[tim 3] 08/4/2020 14:01

Good points and in the end the stand alone stores will close anyway.This might bring that forward.Would imagine that as the stand alones act as hubs the key is sorting much cheaper warehouse storage when they go.Have always thought the Argos buy was a good one by Coupe infact it probably gave him a false sense of confidence to attempt the doomed Asda deal.

[the oak tree] 08/4/2020 13:01

Agree Tim. Their rates are covered and staff redeployed in Sainsbury / inhouse Argos. Weather good now for Argos type good too.

Compare that with Tesco's Booker whose customers being the pubs, restaurants etc are closed. Although they probably will beable to redeploy the staff as well.

Supermarkets have put in alot of effort recently to do the right thing, they don't want adverse PR now. In any other situaton you'd have these guys giving very positive direction to the investment community when people are Q outside your door each day.

[tim 3] 08/4/2020 12:25

I bet Argos are booming only place you can buy many items without going online and people are bored so they buy stuff.Although stand alone's are shut it must be a big cost saving.

[the oak tree] 08/4/2020 11:49

As I said on the Tesco thread I believe , why all of that is true, they haven't said much on the positives as they don't want bad PR. Cant really blame Tesco, there will be journalists out there just waiting to shoot down anyone that looks to be profiting from this crisis.

For example they could have said there margins were up due to less offers etc but why bother. Better wait till this current years results are out (in a years time) and at that point we'll be talking about other stuff like Brexit.

For Sainsbury I do think being a fair bit smaller they should beable to do better than Tesco in this fast moving situation. Tesco have also put down a marker that their dividend will be paid which is good news for Sainsbury as they can just follow suit.

[rolo7] 08/4/2020 11:38

Tesco increased costs, staff sickness no guidance given by tesco

[ny boy] 08/4/2020 11:22

Any reason for today’s fall?

[poikka] 07/4/2020 17:49

"Mandatory use of face masks" - I hope not as they're pretty useless, combined with a false sense of safety = waste of time and resources.

Well, tomorrow, with Tesco's results, we'll have a better idea of the situation, and also if the divis is secure, or not.

There's no guarantee with the divi: companies are using the virus as an excuse to shore up their accounts, or prepare for a spot of enlargement, or just show (ill-advisedly) solidarity with Joe Public.

[tradejunkie2] 06/4/2020 18:58

Bog rolls
Hand wash
Alcohol
Pasta

[loganair] 04/4/2020 13:09

I am now shopping in a convenience store about the size of a small Sainsbury's local or Tesco Express.

I am truly astounded at the amount of alcohol that is being bought. Only 5 staff are now allowed in the store at any one time with one of them, there only job is to constantly be restocking the booze, especially beer which is literately flying off the shelves. Almost every trolley I saw has 2 x packs of 12 beer/larger and some even more.

[albert3591] 04/4/2020 09:24

Buywell..I say the same answer as I have on the Tesco thread

[the oak tree] 02/4/2020 22:00

Its worth saying that the very positive Pets at Home trading update its given today is great for that company but Sainsbury and other large supermarkest such as Tesco are in a quite different sector. Dog Food tends not to be fresh and most is bought from the exact same shop.

This is unlike supermarkets at the moment that have new demand as other outlets people would have used are closed plus it sells alot of fresh food that if bought in baulk and under lets say stressful conditions can go off and is wasted.

Pets at Home will have a good month or two but in total for the year it won't be that much up I suspect. Albeit its margins might be better now.

[1savvyinvestor] 02/4/2020 16:09

Strange sell off of Sainsbury today . Looks like 200p is the support

[the oak tree] 02/4/2020 10:57

Thats true Argos stores have been closed but the ones inside Sainsbury haven't been. And they are experiencing all time record demand IMHO. People are Q to get in. Again margins will be much better than normal.

The excess staff from the Argos stores closed are now working in home delivery and inside Sainsbury so in some ways it was a ready made situation to get in extra people without hiring brand new people from outside.

The bottom line is we don't really know yet the impact for Argos: good or bad. My gut says they are selling stuff like crazy to families that cant leave their homes and at good margin so it will be well positive.

GLA

[rolo7] 02/4/2020 09:36

What about Argos stores being closed losses?

[the oak tree] 02/4/2020 05:17

Its true Sainsbury and the like will be under pressure just like before once this situation is over.

However there is a difference.

Sainsbury will have earned a fair bit of money from this situation which it can invest in its business model. The non supermarkets will have faced heavy losses.

As I say follow the money - if you can buy value cheaply which IMHO this company is.

[tim 3] 01/4/2020 21:09

spod

This is my argument for many of the shares that are hit hard like JDW, it is temporary if the business model worked before it will likely work after and visa versa.

I see this highlighting some excellent opportunities but you may need to be patent, could take till next year or beyond depending on how this pans out but personally would be surprised if we dont see a recovery certainly in part by the end of the year or sooner.

One thing for sure I am selling nothing and buying a little here and there.

[the oak tree] 01/4/2020 20:40

Alot of companies have / will be cancelling their Dividends which is quite understandable.
The point is I don't think the supermarkets will be doing that (inc Sainsbury).
Another positive.

Don't over complicate things - follow the money.
Especially when you aren't paying over the odds for it.

IMHO

[investor2019] 01/4/2020 20:29

....dont forget the experts said bond yields could not trade below zero

[investor2019] 01/4/2020 20:28

apparently the oil price is heading sub-zero. so much of it around, no where to store it.

[spob] 01/4/2020 19:40

It's human nature to assume that a sudden change will now become the new normal
when in reality nothing could be further from the truth


We had a few bad hurricane seasons close together a while back in the US
people assumed that was the new normal

it wasn't


We had an oil price well over 100 dollars a barrel a few years back
experts said oil will never go below 100 again

the oil price went down to around 30
experts said the oil price will stay low

the oil price went back up again
experts then said it can never go that low again

the oil price went below 20 this week


who needs experts

[spob] 01/4/2020 19:19

the beneficial effect from Chinese flu is temporary

a few months at most


there won't be a pandemic next year

and probably won't be one again for the rest of your life


that's why this pandemic makes no difference whatsoever to the valuation of any of the companies that I follow

okay some busineses will suffer from consumer confidence for a few years (eg cruise line operators) but that will soon recover (people have short memories)