Sainsbury (j) Share Discussion Threads

[loganair] 28/4/2021 12:45

New strategy:

The group’s revamped strategic objectives are also playing into the outlook. Under the strategy, Sainsbury’s is now simplifying operations, saving money which it can invest into its core food offering and which should drop through to higher profits.

Meat, fish and deli counters are being closed given waning customer demand, standalone Argos stores are being swapped for stores and collection points within Sainsbury outlets, while a focus on growing profitable online sales continues.

[pierre oreilly] 28/4/2021 11:34

They'd love to forget Aldi!

[chiefbrody] 28/4/2021 11:14

They should concentrate on good service and improving margins.Forget chasing Aldi. Forget chasing sales. 30B of sales and no profit lol.Better to have 15B of sales and 500M of profit.Argos always seamed a daft fit (to me) but hey ho.

[loganair] 28/4/2021 10:33

It seems to me that the management of Sainsbury's just like for example British Airways etc is trying to operate in two completely incompatible worlds.


A company can either operate in a world of driving up volumes, radically decreasing costs, thereby also decreasing customer service and widening demand which is where the likes of Aldi/Lidl or Ryanair/Easyjet operate

or

operate in a world of steady volumes and good customer service and experience like Waitrose or KLM.

Companies that try and operate in both worlds tend to either fail or at best struggle and go no where eg Sainsbury's or many of the airline legacy carries.

M&S what is it, a fashion retailer or sells good quality, long lasting practical clothing??? M&S is desperately struggling due to the simple reason it is trying to be both.

Be one or the other but not both.

[chiefbrody] 28/4/2021 07:08

Dire results but at least theres another div.

[rolo7] 28/4/2021 00:11

That's all changed with increasing staffing levels and earlier starts.

[alphorn] 26/4/2021 10:49

What are online shoppers doing inside the store? They do their own 'picks'? ;)

[spob] 26/4/2021 10:37

I used to do my shopping in Sainsbury early in the morning to avoid the crowds and the queues at the checkouts


Had to stop because online shoppers have taken over the store

you cannot move in there in the morning now

insanity rules


At what point does Sainsburys say enough is enough

and let CUSTOMERS actually do their shopping

[chiefbrody] 26/4/2021 10:34

Results later this week. Not expecting anything great so steady as she goes for the SP?

[spob] 26/4/2021 10:12

Anyone thinking of buying Sainsbury's should speak to the Quataris first.

They have lost around 70% of their investment.


I guess it's very easy to lose money when you have too much of it to start with.


Easy come, easy go

[the_man_with_the_pink_gun] 20/4/2021 10:05

DOW AND FTSE HAVE BEEN ARTIFICIALLY INFLATED AFTER LOCKDOWN 2020 AND ARE IN A BUBBLE.

[poikka] 18/4/2021 18:16

How the hell did I manage to miss Vesa's stake here!

Oh well, still invested so no probs.

[muffinhead] 15/4/2021 13:06

Just imagine a Royal Mail delivery van for mail, parcels and groceries working between the hours of 8am and 11pm

Makes sense, increases delivery logistics productivity.

Qatar has been a passive investor. If it is willing to give up 7% to Daniel Kretinsky, the remaining 15% holding is up for grabs. Qutar has signaled is intention to the market.

Daniel Kretinsky has 10% of Royal Mail from 140p level, now 500p

Imo, the supermarkets should outsource deliveries of online orders.... it would release the value in this sector. It could be Royal Mail, Deliveroo or a Just Eat van

Analysts are forecasting recovery in fundamentals for Sainsbury/Tesco/Morrisons for 2020/2021

Money to borrow is cheap and activist investors will soon shake this sector up

Patience will be rewarded

[lochgarman] 14/4/2021 17:42

He is not the only value investor invested here.

[debsdowner] 14/4/2021 14:16

Speculation that Sainsburys could go private



The sector is still competitive, TESCO saw a 20% decline in profits due to covid but an increase in sales.

SAINSBURYS is a good brand name however.

The latest news could prevent a serious decline in the share price.

[yokelee] 14/4/2021 13:50

He is a value investors, surprised he would make a bid for Sainsbury

[chiefbrody] 14/4/2021 13:08

If i had a few spare billions then i'd buy Sains.Plenty of opportunities to reduce inefficiencies and improve profits.Probably wouldn't have to pay much more than 10 times future annual profits..

[loganair] 14/4/2021 12:32

The catalyst was news that Czech billionaire Daniel Kretinsky has raised his stake in the supermarket from just over 3% to 9.99% through his Vesa investment group. He bought the extra shares over the weekend from the supermarket's long term investor the Qatar Investment Authority, which as a result has reduced its own shareholding to 15.02%. Vesa originally bought shares at around 190p each last September.

Analysts at UBS said: "QIA's stake reduction from 22% to 15% seems to coincide with the simultaneous increase in Vesa stake of 3% to 10%. We see this as a small positive This removes a potential overhang of QIA stake as that is absorbed by a willing buyer who could look to raise the stake further and as such we see it as a modest positive.

Sainsbury faced two bids in 2007 - from a private equity consortium and Qatari group Delta Two - but neither came to anything.

It's own attempt to merge with Leed's based Asda was blocked on competition grounds, but the subsequent purchase of Asda for £6.8bn by the Issa brothers put Sainsbury back in the takeover spotlight.

As for Vesa, it made a failed bid for German retailer Metro in 2019 and Kretinsky - who also owns Sparta Prague football club.

[imperial3] 14/4/2021 12:15

All this has done nothing for the share price.So far,today, it has gone down a bit.

[chiefbrody] 14/4/2021 12:07

Probably fed up with the way the company is run (which has no regard to shareholders).

[loganair] 14/4/2021 12:03

If Sainsbury's represents such good value with its current management why has the QIA sold 40% of its stake in Sainsbury for less then half what they paid for it in the first place, making a c£300mln loss on this 10% they have just sold.???

[loganair] 14/4/2021 11:56

Sainsbury’s could be the next major UK supermarket be bought out in a private takeover deal after a leading investor bought £300 million in shares.

Speculation surrounding a possible takeover bid for Sainsbury’s has been ignited after Daniel Kretinsky, billionaire owner of Vesa Equity Investments, increased his company’s stake in the grocer to 9.99 per cent.

Kretinksy, a major retail investor who owns 40 per cent in German wholesaler Metro, purchased £300 million worth of shares in Sainsbury’s from Qatar’s sovereign wealth fund.

The raid on Sainsbury’s stock, which has made Kretinsky Sainsbury’s second largest shareholder, has sparked debate among analysts and investors that its three major stakeholders could launch a “take-private” deal.

Takeover speculation first surfaced in January, as Sainsbury’s rival Asda was nearing the end of a £6.8 billion private takeover deal by the Issa brothers.

It’s stocks hit a 12-month high in January as many saw Asda’s private acquisition as a potential new trend in retail, citing Sainsbury’s as low hanging fruit for possible investments.

A spokesman for Kretinsky’s told The Telegraph: “This reaffirms Vesa’s long-term interest in acquiring strategic minority participations in publicly listed companies across the wider food retail distribution segment, where we continue to perceive Sainsbury’s as an attractive investment opportunity.

“We are very pleased to be able to be associated with the strong and reputable brand of Sainsbury’s.”

Any takeover deal would have to be approved by Sainsbury’s founding family, and Qatar’s sovereign wealth fund, which now owns around 15 per cent.

However, the success of the Issa brothers’ Asda takeover may have opened the door for similar moves and paths around approval by the UK’s competition and markets authority (CMA).

[sphere25] 14/4/2021 11:53

Current price 239.5p and it spiked to 248p yesterday so some mild speculation about, but no follow through today or any irregular activity in the shares so clearly nothing concrete:


"Analysts at UBS said: "QIA's stake reduction from 22% to 15% seems to coincide with the simultaneous increase in Vesa stake of 3% to 10%. We see this as a small positive This removes a potential overhang of QIA stake as that is absorbed by a willing buyer who could look to raise the stake further and as such we see it as a modest positive.

"There was a brief statement from Vesa back in September when they said they saw Sainsbury as 'an attractive investment opportunity for the long run' fitting in with their key area of interest in food retail. We await any further such statement from Vesa and will look for any clues as to their intentions at this time."

All imo
DYOR