Sainsbury (j) Share Discussion Threads

[farrugia] 29/4/2020 09:47

doesn't sainsburys have a lot of convenience stores as well? anyone knows the numbers?surely these will be doing great in this environment?

[tim 3] 28/4/2020 21:39

Agree I think they have subtly cut a lot of their offers, why put something which you will probably sell out of anyway on offer.

A lot of reports about this causing a more permanent switch to people buying online, not good for the big 4 imo.

[spob] 28/4/2020 21:22

having said that I would expect the online service to be making a temporary small contribution at the moment (for a few months at least while this lockdown persists)

because from my experience there are fewer offers avilable in store and i'm sure prices have gone up accross the board

my food shopping bills seem to be much higher than normal even allowing for buying a few extra things here and there

[spob] 28/4/2020 21:12

Re... The Oak Tree 25 Apr '20 - 16:37 - 20848


Yes, I would point out that the economics of delivering groceries to peoples homes has not, and will not, change.

So no matter how busy or how many vans, the result will be the same

Which means mostly profitless sales or a very very tiny profit at best when using "head in sand" accounting methods :)


just my opinion - go do the math yourselves folks

[alphorn] 28/4/2020 11:22

An interesting commentary. I wonder how much of this change in shopping habits will stay over the coming months post lockdown?

[poikka] 28/4/2020 11:18

(Alliance News) - All major UK supermarkets saw rising grocery sales but convenience stores around the country are particularly thriving in the virus lockdown, research agency Kantar said on Tuesday.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "Convenience stores increased sales by 39% in the latest four weeks, now accounting for 16.3% of the market compared with 12.4% a year ago. It should be noted, however, that this rise may be offset by the downturn in on-the-go consumption, which will have had a disproportionate effect on convenience shops."

Data from Kantar showed take-home UK grocery sales rising by 9.1% in the 12 weeks to April 19, with online sales now accounting for 10.2% of the grocery market. Grocery sales were GBP524 million higher in the past four weeks than they were in April 2019.

"Year-on-year grocery market growth of 5.5% over the past four weeks is noticeably slower than the 20.6% recorded in March. People are spending more time at home and eating fewer meals out of the house, which has led to a strong growth in take-home grocery sales. But social distancing also means that expenditure on other categories like clothes, food bought on the go and general merchandise will have been considerably lower, so for some retailers, the overall picture will be more modest," McKevitt explained.

Kantar said UK households shopped only 14 times for groceries over the past month, a record low and down from 17 in more normal times. However, a drop in frequency was matched by a corresponding uplift in the amount spent on each trip to GBP26.02, the highest figure ever recorded by Kantar and GBP7 greater than a year ago.

In the 12 weeks to April 19, Co-op's market share rose to 6.7% from 6.1% a year ago, as sales grew by 20% to GBP2.01 billion. Independent retailers, such as Spar and Londis, also benefited from changing shopping patterns, with growth of 40.5%. Meanwhile online specialist Ocado grew sales by 19.4% to GBP458 million, with its UK market share rising to 1.5% from 1.4%.

German discounter Lidl saw a 15% growth in UK grocery sales to GBP1.79 billion, nudging its market share up to 6.0% from 5.7% in the year prior.

Compatriot Aldi had an 8.8% sales rise in the 12 weeks to GBP2.37 billion and retained its market share at 7.9%.

Among the "Big Four" UK grocers, J Sainsbury PLC booked the largest sales growth, rising 8.4% to GBP4.56 billion, but its market share fell to 15.3% from 15.4%.

Tesco PLC's market share fell to 26.8% from 27.3% despite sales rising 7.2% to GBP8.01 billion.

Walmart Inc's Asda had a 3.5% annual sales rise to GBP4.32 billion, but its market share slipped to 14.4% from 15.2%.

At Wm Morrison Supermarkets PLC, sales rose 4.3% year-on-year to GBP2.95 billion, with market share down to 9.9% from 10.3%.

Iceland sales rose 17% to GBP664 million with market share up to 2.2% from 2.1% and at Waitrose, sales climbed 9.4% to GBP1.50 billion. The John Lewis Partnership's unit's share of the market was unchanged at 5.0%.

Overall UK grocery price inflation for the 12-week period was 1.9%.

Tesco shares were down 1.2% in London on Tuesday morning. Sainsbury's was 1.6% lower and Morrisons down 2.1%. Ocado was down 0.8%, having started marginally higher.

[muffinhead] 28/4/2020 10:46

Kantar update

[muffinhead] 26/4/2020 18:11

How the Virus Crisis Flipped UK Retail Sales Upside Down

[prunk] 25/4/2020 21:55

Can we expect 10% rise before the results which on Thrusday!!

[poikka] 25/4/2020 20:50

Market might just be looking aa bit further ahead, Tim, at the possibility of inflation.

[tim 3] 25/4/2020 19:07

As Oak righty says the although short term demand has obviously increased in my experience what the markets look at is the longer term outlook and thats what drives the share price and in Sainsburys case it probably has not changed that much in fact if as I suspect it will have more people switch to online it could actually have a negative effect as online is probably at best break even for the big 4 when all the costs are taken into consideration imo.Will be interesting to see how it pans out.

[neilyb675] 25/4/2020 18:37

A few facts.

Sbry like other supermarkets are not accepting any returns from online orders. This means a massive reduction in waste, and means customers are no longer 'window shopping' via online shopping.

The demand for online delivery is off the scale. A lot of these vulnerable customers are likely sold on the idea and will remain as customers for more than just the Covid experience.

At my local sbry the online department is very likely being expanded to cater for more delivery vans. The demand is there and plans being talked about now

[muffinhead] 25/4/2020 11:36

Ocado raises prices by 16% during coronavirus crisis

[prunk] 24/4/2020 22:33

Difficult to understand although sainsbury's are busy but the share price remain as it is! Look Boo/Asos and others.

[loganair] 24/4/2020 17:55

Supermarkets – pandemic pantries:

March was the biggest month of UK grocery sales ever recorded. Or put another way, the pandemic has meant we spent more on groceries in March than we have ever at Christmas – unprecedented sounds about right.

For a sector to go from a state of fierce competition to not being able to fill or stack shelves quick enough – it’s certainly a stark contrast to those industries having to close doors.

So what has this meant for companies?

Perhaps not surprisingly, a significant boost to sales was first on the list.

As the pandemic has shown, supermarkets play a vital role in society, so sales aren’t going anywhere.

[ny boy] 24/4/2020 12:48

Sales are booming at supermarkets, maybe costs are rising too, as the share price is still going nowhere. This is like a continued Christmas for supermarkets, surely SBRY, should be considerably higher, what’s the problem here?

[spob] 24/4/2020 12:45

"it's important that supermarkets aren't seen to be exploiting situation"

yes, i'm sure they wouldn't dream of withdrawing all special offers and putting prices up in these difficult times

[whiskeyinthejar] 24/4/2020 08:20

Oak Tree, IMO it's important that supermarkets aren't seen to be exploiting situation.

I don't know how many delivery slots they had previously ? But I think also that many grown up children (students, young professionals) have returned home, so are now back on the big family supermarket shop, rather than pot noodles from Lidl or take aways. So the size of the supermarket delivery should have increased too.

ONS reports today that supermarket sales up by 10% in March,while "alcohol-focused stores" saw sales surge by a third.

And the total value of ONLINE food sales in March was more than DOUBLE the same month last year.

[the oak tree] 23/4/2020 17:23

Thanks WhiskeyInTheJar. Looks like they really have geared up for demand. Good letter.

A week today we'll find out the state of play. Hope they don't become too PR ordinated but I suppose they will. At the end of the day its still a business. So I hope their delivery charges more than cover their new costs of hiring etc.

[tim 3] 17/4/2020 13:32

Am thinking that post virus might see a big swing towards online.Although not a fan myself I can see with the current upswing in online shopping many will get used to it and continue afterwards.