Sainsbury (j) Share Discussion Threads

[spob] 22/7/2020 02:01

Is that why most of the customers move and act like Zombies ?

Lol

[buywell3] 21/7/2020 21:33

Debt the 4 letter word

[loganair] 21/7/2020 19:32

I don't get it???

First round bids in February valued ASDA at over £7bln. ASDA made £391mln last year, less than Sainsbury's, has a smaller market share than Sainsbury's and has no convenience stores and yet is valued 60% higher than Sainsbury's???

TDR Capital, Apollo Global Management and Lone Star Funds are the three private equity firms believed to be in the running and asked to summit a second round of bids.

[loganair] 21/7/2020 19:07

Retail giant Walmart is back in talks to sell its majority stake in Asda, a year after having a £10billion merger with Sainsbury's blocked.

The US supermarket said it's revived talks with potential investors after putting the sale on hold due to the coronavirus pandemic.

It comes just over a year after the competition and markets authority (CMA) blocked a takeover deal with Sainsbury's over fears it would lead to higher food and fuel prices for consumers in the UK.

A Walmart spokesman said it was the "right time" to revive the talks.

"Walmart and Asda have restarted conversations with a small number of third-party investors who are interested in acquiring a stake in Asda and partnering with Walmart, following renewed inbound interest," a spokesman said.

Walmart, which purchased Leeds-based Asda in 1999, has overhauled its international strategy in recent years to focus on new markets, such as Asia, where it has forged alliances with local partners, such as JD.com in China.

There is renewed confidence that Walmart will finally be able to exit the UK sooner rather than later. But to do so, Walmart’s Asda Price has to be right.

[loganair] 21/7/2020 16:16

WM Morrison saw the strongest growth of the big four grocers in this period, with its sales growth accelerating to 17.4% from 10.5% a month ago, its growth ahead of the market in the past 12 weeks and gaining market share for the first time since 2015.

While down from its peak, strong sales looks likely to continue to be elevated for the supermarkets because of the continued worries about the coronavirus, Kantar's McKevitt suggested.

“Despite pubs, bars and restaurants re-opening recently, more than half of consumers say they are still uncomfortable with visiting a pub and 42% with visiting a café or restaurant,” he said, pointing to take-home alcohol sales up 41% as an example.

Promotional activity also picked up in the latest four weeks, with 29% of sales including some type of discount.

“Retailers scaled back promotions at the start of lockdown as they prioritised serving as many customers as possible and keeping shelves full,” said McKevitt.

“Now, they are putting the emphasis back on deals."

“Promotional levels are still behind the pre-crisis level of 31% but, particularly given that the 2008 recession led to shoppers seeking out more discounts, we expect the grocers to bring in more enticing offers to attract cash-strapped shoppers in the months ahead.”

City analysts are increasingly of a similar view.

“The legacies of the Coronavirus crisis are yet to be fully understood but we feel the contraction of [food and beverage outlets] alongside [the working from home trend] represent permanent shifts, as is the stepped change in online,” said Clive Black of broker Shore Capital.

“The superstores are well-placed to harness these processes, much more so that the non-online German discounters and M&S, the latter with its substantial urban centre/travel hub trade.”

Analysts at UBS recently said their own research indicates the higher level of online grocery use is “likely here to stay, though the dramatic growth will likely normalise”.

Surveys by the Swiss bank's show 88% of households shopping online say that their grocery spend online will remain the same or increase in the coming weeks, while 71% of those said they will shop online as often or maybe even more after the Covid-19 situation improves.

[loganair] 21/7/2020 11:54

Tesco's market share continues to fall now down to just 26.7%. Just think a little over 10 years ago their market share stood at c33%.

Sainsbury's and Asda's market share also continue to fall whereas Morrison's who do not really have any convenience stores market share rose to 10.3% from a low of a few months ago of 9.9%.

Lidl's market share, just down 0.1% over the several month covid period is holding up better than Aldi's which is down 0.4% over the same period, maybe because Lidl are opening up a c3 new stores every week.

The biggest winner seems to be the Co-op who has seen its market share rise from 6.0% to 7.2% over the past few months while Iceland has gone up from 2.2% to 2.5% market share.

Over the past year Ocado's market share has increased from 1.2% to 1.7%.

Note - Kantar's figures are always skewed as they do not include the 3.3% market share of M&S Simply Food and therefore in reality the market shares are lower then Kantar report, Tesco's for example is most probably well under 26%.

[muffinhead] 21/7/2020 07:34

Kantar latest

[debsdowner] 20/7/2020 15:55

Looking bearish again, LIDL expecting to open a store every week and with millions to be made redundant the big four will continue to suffer.

[dondee] 20/7/2020 11:09

A good buying opportunity here.

[muffinhead] 09/7/2020 23:47

Looks like Sainsburys has been put back on the extinction list

[ny boy] 09/7/2020 10:49

Spob, should be all electric vans, I am certainly a fan of the electric black cabs, beautifully quiet and much more spacious inside, even though they are more expensive than Uber, I use them in central London for short journeys, it’s nice to treat yourself from time to time.

Sp here drifting lower again, I thought once we broke 200p, we were off on a gentle race to 220’s!

[neilyb675] 08/7/2020 18:30

Lololololol

Get your food delivered 2nd class

[muffinhead] 08/7/2020 15:15

Click 'n Collect

or supermarkets use Deliveroo for home delivery

Royal Mail could do home delivery now that letters are dying a death


in a word... "outsource"

[muffinhead] 08/7/2020 15:13

or go "green"

[spob] 08/7/2020 12:00

it's not just about profits either

how much pollution is pumped out by all those diesel vans running around 7 days a week

[spob] 08/7/2020 11:47

I'd like to see supermarkets forget all his online grocery shopping nonsense

I really doubt there is any profit in it

be great if they went back to basics like Lidl and Aldi

[spob] 08/7/2020 11:45

" With the continued invasion of the Germans taking another c9% market share in the next 8 years, I can not see Sainsbury's increasing their sales. revenues or profits, at best standing still and most probably continuing to fall back as I believe there is very little that any Sainsbury's CEO is able to do about it. "


as i said ...

Hampsters on a wheel


lot's of activity

running very fast

but going nowhere

[loganair] 07/7/2020 18:40

ii view:

Food retailing is a tough and highly competitive market. Discount retailers Aldi and Lidl continue to grow their UK store portfolios. Tesco is working hard on its recovery and Morrison's is fostering a growing relationship with Amazon. At the high end, John Lewis is folding Waitrose management into its broader structure, while M&S is now partnering Ocado to grow its online food sales.

For Sainsbury's itself, and following its government rejected merger with Asda, cost saving programmes became the order of the day, although has subsequently been overtaken by Covid-19. Now, the pandemic is arguably pushing forward many of the areas which Sainsbury's may have attempted to have done. Digital sales more than doubled in the quarter and use of its self-service SmartShop devices in store have risen significantly.

For investors, cautious management comments regarding the outlook for sales should not be overlooked. Whether the growth in sales at Argos will continue now that other non-essential retailers are back open under reduced lockdown restrictions, only time will tell. But the digital stress-testing provided by the pandemic for both Sainsbury's and Argos may well prove beneficial. A return to dividend payments could well be seen at its November first-half results, while the new chief executive will be hungry to make an impact.

Positives:

Digital sales more than doubled in the quarter
Targeting cost reduction of £500 million over five years

Negatives:

Supermarket sales fell by 0.1% over its last financial year
Dividend payment suspended for now

[loganair] 06/7/2020 15:34

With the continued invasion of the Germans taking another c9% market share in the next 8 years, I can not see Sainsbury's increasing their sales. revenues or profits, at best standing still and most probably continuing to fall back as I believe there is very little that any Sainsbury's CEO is able to do about it.


All I can say is I was a fool not to sell my Sainbury's shares when their share price tipped 340p during the merger talks with Asda as I doubt very much we'll ever see that share price again.

God knows what the QIA think about it and their 22% stake which they paid c600p for.

[rolo7] 06/7/2020 14:22

loganair same in southampton hedge end lidl got approval to go into old homebase site right next to sbry and m+s

[loganair] 06/7/2020 13:32

I believe it was shorted sighted of the CMA not to allow the merger of Sainsburys and Asda with a disposal of c150 stores as in 5 years or so time would have left the combine group with c24.5% to 25% market share.


With the continued march of Aldi and Lidl, like an army of invading soldier ants other then doing nothing, standing still and thereby going backwards what options do the other supermarkets have.

1. Sainsburys merge with Morrisons.
or
2. Morrisons takes over McColl's
or
3. Morrisons takes over McColls then merges with Sainsburys.


Anybody have any other thoughts?

[loganair] 05/7/2020 21:31

Once Aldi and Lidl have completed their store expansion plans my predicted possible market share for each of the supermarkets is as follows:


Tesco.........24.1%
Sainsbury's...13.0%
ASDA..........12.8%
Lidl..........12.0%
Aldi..........11.5%
Morrisons......8.0%

[loganair] 05/7/2020 21:14

This means over the next few years Aldi & Lidl will probably take a combined further c9% market share.