Sainsbury (j) Share Discussion Threads

[chiefbrody] 05/12/2020 19:20

Yes. Maybe more warehouses and less expensive real estate for front line shopping.Might save a few bob on business rates too. Assuming the UK government continues to yield to Amazon.

[tim 3] 05/12/2020 16:58

Good question not sure I know the answer but am pretty sure the current system of picking online orders in stores will have to change as they need to make online as cost effective as possible.More "dark warehouses" would seem likely.

[essentialinvestor] 05/12/2020 16:12

Tim, so where does this end?.

It's not sustainable to run potentially loss making

and growing home delivery operations.

[tim 3] 05/12/2020 16:11

About time they had some "instore only" offers to reward people prepared to make the huge effort involved to visit a store to shop ;)

[sharesoc] 05/12/2020 16:10

The Stockopedia report and recording from our webinar with Sainsburys on 24th Nov can be found here for full members to view:

To access the presentation, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here: hxxps://www.sharesoc.org/membership/

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[grahamite2] 05/12/2020 13:14

I have an e-mail from Sainsbury's promoting their Chop Chop service - order up to 20 items for delivery within 60 minutes.

[netcurtains] 05/12/2020 07:54

The way I see it, with more baby boomers retiring
each year one of the few things a pensioner likes
to do is SHOP in real shops. Thus, gut feeling is
retail is coming back. Its just a matter of holding
on.
Someone born in 1955 is 65 now. The UK baby boom was
from about 1950 to 1970. So there will be more and
more people who will want to shop in PHYSCIAL SHOPS
every year for the next 15 years. And these people
are the richest people in the UK...

There is not much for a boomer to do with their time
during the 'working' day apart from eat, shop, walk.

The boomers have the TIME to shop in real shops
and the MONEY. And walking is healthy. The people
who will live the longest will be those that go out side
the most. Those who go shopping.

[tim 3] 05/12/2020 00:12

Take your point but considering 40% of their sales and growing now come from the net don't think there's any way back.

[tardelli2] 04/12/2020 19:08

You and me both .

[tardelli2] 04/12/2020 18:53

Average cost was around 27 pounds per customer 4 years ago . It has possibly come down considerably since then but hard to see it at even break even . Online has always been non profitable but the risk of losing more market share was unthinkable .

[netcurtains] 04/12/2020 18:04

OCADO!!!

LOL

Dark Stores are two a penny:


If you want to invest in UK Dark Store management then WIN (Wincanton is a good start - they do Waitrose)

[tim 3] 04/12/2020 17:55

Thats the question nobody seems able to answer I personally think at best they break even when you add in everything.

The closest thing you can look at is Ocado which has none of the huge store overheads has a state of the art picking system and is 100% set up for the net and yet it has only made profits twice in its 20 year history.

[essentialinvestor] 04/12/2020 17:33

Tesco stated in 2014 that their home delivery operation was making profits

of over £100 million annually- I've seen no comment since.


SBRY, at their recent results, references the % of sales now made online,

how profitable, or otherwise, is their home delivery operation?.

[grahamite2] 04/12/2020 07:22

Sainsbury’s (SBRY) has handed back £440m in Covid-19 business rates relief, setting back its deleveraging plan, but Jefferies is still confident about the supermarket’s profit potential.

Analyst James Grzinic retained his ‘buy’ recommendation and target price of 240p on the shares, which were trading 3.4% higher at 217p yesterday at the time of writing.

Grzinic said the repayment would ‘feed through to a one-year delay in the deleveraging process as the group focuses on maintaining income attractions’.

However, he said the rate relief refund was not the main point to be taken from Sainsbury’s trading update. ‘The key point is yet another upgrade in 2020/21 underlying profit expectations and confidence in the mid-term profit potential.

[unastubbs] 03/12/2020 12:59

no pun perceived.

:)

kidding... you mean "trumpeted"?

[imperial3] 03/12/2020 12:52

Trump had trumpted America first.By the same token we could say UK first.Sorry no pun intended.

[pierre oreilly] 03/12/2020 11:03

The mistake Amazon is making is rising prices too quickly - with prime, everything is effin expensive these days. Great getting stuff the next day, but from my experience, you pay dearly for it. (And i know they are a window for other retailers, but the charges to them must have risen a lot over the last several months judging by their prices).

[imperial3] 03/12/2020 11:00

In 2019 Amazon paid a total of £220 million in direct taxes in the UK.Revenues in this country amounted to £10.9 billion!

Time for the UK government to toughen up and impose a fair taxation regime on US digital business companies.

[netcurtains] 03/12/2020 10:38

EI: You could argue that Argos is an Amazon...
Eg SAINSBURYs could be a big winner - depends how they go....

[essentialinvestor] 03/12/2020 10:37

Tesco turning the screw on its smaller rivals.

A little ironic as Amazon has been the major beneficiary of this crisis.


Increasing online (food shopping) migration suits Amazon, no one can compete with their scale

and cost structure, particularly with a growing number of Prime members paying monthly subs.


The rest of the sector faces a prolonged challenge of navigating

home delivery sales growing year on year, with instore sales having to

largely fund those deliveries.

As in store revenue continues to decline, you can see the longer term issue

for the rest of the sector ex Amazon.


Paints a vulgar picture.