Sainsbury (j) Share Discussion Threads

[rolo7] 13/5/2022 07:01

nice bonus for director share options last night 2.7million shares totaling over 6£million worth.

[ny boy] 13/5/2022 06:48

Yeah, that’s about it Tim and hold for an eventual takeover.. within the next 10 years!

[tim 3] 08/5/2022 15:25

I doubt you will ever get rich with sbry but buying decent dips and pocketing/ reinventing the Dividend is not a bad strategy here imo.

[tuftymatt] 08/5/2022 14:51

That's great and is in line with why I got into this one recently.
Strong divi and now being viewed as a value stock should be enough to see it hold up well in difficult market conditions 👍🏻

[unastubbs] 08/5/2022 12:31

Buy recommendation from Questor in The Sunday Telegraph today

[loganair] 06/5/2022 16:31

The owners of Asda Group Ltd. are considering piling debt onto the supermarket chain to raise the money to buy Boots, another fixture on U.K. high streets.

Brothers Zuber and Mohsin Issa, alongside TDR Capital LLP, have discussed saddling the supermarket with as much as 4.5 billion pounds ($5.6 billion) of additional debt, on top of the multi-billion pound package that funded the firm’s buyout last year, according to several people with knowledge of the matter who asked not to be identified because the talks are private.

The new debt will go toward the approximately 7 billion-pound asking price for Walgreens Boots Alliance Inc.’s international drugstore unit and could come alongside other, riskier forms of borrowing to reduce the brothers’ and TDR’s equity contribution, the people said. They are also considering selling off Asda assets to raise the money for the equity stake, they added.

Asda’s owners will look to use loopholes in the supermarket’s existing financing documentation and space within its permitted debt baskets to raise the additional cash. By combining earnings with Boots, Asda will be a much larger entity than it already is, enabling it to carry more debt.

It’s unclear whether Asda will maintain its BB credit rating if it introduces this additional financing to purchase Boots.

With Asda’s existing secured bonds yielding between 7% to 7.5%, that is a being used as a minimum reference point for pricing any new debt. The financing could be more expensive, given where the market is pricing new issues.

[rolo7] 05/5/2022 18:54

Do u work for sbry?

[loganair] 05/5/2022 15:59

And what is Sainsbury's doing at the moment??? - Sainsbury's management have absolutely no vision what so ever on how to move the company forward except price matching with other UK supermarkets.


Asda's billionaire owners the Issa brothers are involved in £12 billion talks to merge their EG petrol forecourt business with Canadian firm Couche-Tard who runs 7,000 convenience stores in the U.S. as well as stores and fast food restaurants in Canada and Northern Europe.

If successful, the merger of the two companies would have over $70 billion in annual sales and 21,000 fast-food restaurants, petrol stations and grocery stores.

It could also help unlock billions of pounds towards a potential takeover tilt at high street chemist Boots.

It comes after the Issa brothers finalised a deal to take on almost 300 forecourts in Germany worth €485million. EG Group has acquired OMV Deutschland GmbH, the company behind 285 service stations, as long as they sell 48 stations, 24 Esso stations and 24 OMV stations in Baden-Württemberg and Bavaria

[debsdowner] 04/5/2022 13:47

Both BooHoo and Joules are having bad trading both issued bleak statements today, retail is not the sector to be in at the moment.

[unastubbs] 04/5/2022 07:27

Emma Powell (Tempus - The Times) today - HOLD

[loganair] 29/4/2022 10:58

John Moore, senior investment manager at Brewin Dolphin, commented: “Broadly speaking, Sainsbury’s has posted a good set of results for the past 12 months, but all eyes are on the impact of inflation in the year ahead.

“The supermarket expects the higher cost of living to hit profits, and it will have a difficult balance to strike between helping customers, upping staff pay, and maintaining its commitment to shareholders.”

However, he noted that the group’s self-help measures taken in recent years on debt reduction and cost management have also strengthened its balance sheet.


NAM Implications:

These profits will become a consumer issue when soaring inflation hits the shelves…

Whilst suppliers will want credit for their input…

Both Tesco and Sainsbury’s results will add further pressure on the two Private Equity mults (Asda & Morrison)…

Anticipate an escalation of ‘early signs of customers being a bit more cautious, watching every penny, every pound’.

[loganair] 29/4/2022 10:53

Following today’s release of Sainsbury’s figures for FY2021/22; Honor Strachan, sector head for food & grocery at GlobalData, a leading data and analytics company, offers her view: “While Sainsbury’s has this morning reported an impressive 25% uplift in underlying profit before tax on 2019/20 (+104% on last year), reaching £730m, the market has responded to the grocer’s downcast forecast for the current financial year with profit guidance of £630m to £690m – at worst a 13.7% decline on 2021/22. Continued cost savings across the business – including integrating supply chains in the general merchandise division and reducing front of house store costs such as closing instore cafes and hot food counters – will not be enough to offset the investment it is making in price to limit the impact of inflation for customers and to protect volume performance.

“Over the year, Sainsbury’s has rightly invested in its value position and has recently extended its Aldi price match scheme which now includes 150 fresh products. This was essential to help shift consumer perception that the grocer is more expensive than rivals, especially now that we are in a period where consumers are looking to trade down and make savings. Sainsbury’s has also invested in product quality and innovation, namely in its Taste the Difference range (15% sales growth on 2019/20) which it must leverage as consumers consider trading down from branded goods to private label alternatives. However, we do expect a level of trading down across its private label price architecture which will impact revenue and margin performance.

“In recognition that core grocery will fail to deliver substantial revenue or margin gains over the next few years, Sainsbury’s is targeting growth areas such as food service and rapid delivery to supplement its performance. Instore third party foodservice outlets and takeaway/delivery services should benefit footfall and instore dwell time but rivals have tried and failed before with similar concepts and we expect consumers to cut back on eating out this year as budgets are squeezed. We expect the online and convenience channels to outperform superstores this year, particularly as urban footfall continues to improve – stimulating demand for food-on-the-go.̶1;

[philanderer] 29/4/2022 09:57

JPMorgan cuts Sainsbury price target to 190 (230) pence - 'underweight'

[m_kerr] 28/4/2022 20:06

there's £11bn of property here, potentially lots of value creating property opportunities in the pipeline.

the lease liabilities are a problem, but it has a solid asset base. at 300p+ i observed a takeover wouldnt make sense for an acquirer. however, having fallen around 30% you view the stock in a different light.

there are different dynamics with regards to sales. they will lose customers to cheaper supermarkets, but will gain from people trading down from eating out, and they are a beneficiary of the shift to work from home. their customers are also likely to be better off which is a good place to be.

it's not an obvious enough bargain for me to invest, but at this price it's fully asset backed and of course operates in a utility like sector. if it falls further private equity will be waiting in the wings IMV.

[spob] 28/4/2022 14:20

So did Argos actually make a net profit contribution ?


or when they say more profitable, are they talking about ebitda ?

or do they mean it lost less money than last year ?


just asking

haven't had time to go through the results properly

[ny boy] 28/4/2022 12:41

Any bidders that were looking can buy loads cheaper, adding soon,needs taking over, kick the useless management out.

[loganair] 28/4/2022 11:46

In this article, senior retail analyst Nick Gladding highlights five areas of focus for the new financial year.

Priorities for 2022/23

1. Sustain strong value position:

By inflating its prices less than rivals Sainsbury’s has improved its value position relative to competitors and driven volume growth and this approach will continue to meet shoppers increased demand for value as living standards are squeezed. At the heart of the strategy is Aldi Price Match with price investments concentrated on fresh lines to attract secondary shoppers. This is supported by the increasingly prominent Price Lock mechanic that reassures price have been held for at least eight weeks across 2,000 products. Most distinctive however are Nectar Prices, which offer customers personalised discounts on products they buy regularly, but only if they use the Smart Shop technology in-store. Uptake for this mechanic is increasing and helping to support store footfall.

2.Focus on driving trade up:

Sainsbury’s has delivered against its target of tripling product innovation with almost 2,000 new products now launched. Ranges such as ‘Inspired to Cook’ and helping to position the retailer as a destination for distinctive products for shoppers looking to trade up as Sainsbury’s extends choice in the categories that matter most to customers while consolidating ranges in other areas. Following 15% growth on two years ago on from Christmas and Easter campaigns, Sainsbury’s is also keen to use celebratory events to drive sales further - with the platinum jubilee holiday a current opportunity.

3.Invest in stores:

Sainsbury’s has a major programme of investment in stores. Following the rollout of beauty halls to many stores, Sainsbury’s commenced its foodhall transformation programme in March. Areas of focus include improving fresh produce section and resetting in-store bakeries to elevate quality perceptions. Sainsbury’s is also investing in major improvements its world foods offer, making use of space vacated by the closure of counters to present a much more compelling offer

Sainsbury’s will also transform its eat in and takeaway foodservice proposition in 250 stores over the next four years, working in partnership with Boparan to introduce the Restaurant Hub to more locations and bringing Starbucks Cafes to 150 stores.

4.Convenience back on track:

Sainsbury’s convenience business grew 9% in 2022/2 restoring it to pre-Covid levels as more people returned to the work place and travel began to normalise. In the year ahead Sainsbury’s will progress its opening programme of Neighbourhood Hub stores that offer a wider product range, more choice and better services in residential areas. At the same time its food on the move stores offer much potential for recovery with sales still down 28% on pre-pandemic levels.

5.Enhancing online:

While online groceries demand has normalised in 2022/22, accounting for 16% of sales in H2 2021/22, down from a peak of 19% a year earlier, Sainsbury’s is delivering around twice the orders of two years ago. This makes improving the profitability of the channel is now a key focus as some shoppers shop at stores more, while maintaining improved levels of customer satisfaction. An important priority is maintaining the increase in the number of loyal delivery pass holders. Quick commerce is also an opportunity with weekly orders reaching 130,000 in the fourth quarter through its Chop Chop service and partnerships with Deliveroo and Uber Eats.

[loganair] 28/4/2022 11:38

39% of Sainsbury’s sales online in latest full-year – including 17% of grocery and 80% of Argos sales.

The retailer says that Argos is now a more profitable business, and it aims to save at least £250m by integrating the Sainsbury’s, Argos and Habitat supply chain and logistics operations. Five local fulfilment centres opened during the year, and nine more are planned this year.

Habitat products are now available online via its own website, via the Argos website and in 600 Sainsbury’s shops.


John Moore, a senior investment manager at Brewin Dolphin, said: 'Broadly speaking, Sainsbury’s has posted a good set of results for the past 12 months, but all eyes are on the impact of inflation in the year ahead.

'The supermarket expects the higher cost of living to hit profits and it will have a difficult balance to strike between helping customers, upping staff pay, and maintaining its commitment to shareholders.

'But, with Argos and Habitat to lean on, the business has options to help it through this tricky period in a highly competitive grocery market. The self-help measures taken in recent years on debt reduction and cost management have also strengthened its balance sheet.'

[unastubbs] 28/4/2022 11:12

he was buying initially in the 1.80s, idk his average but i reckon he's still ahead

[chiefbrody] 28/4/2022 10:37

How much of a paper loss is that Cz guy sitting on!

[chiefbrody] 28/4/2022 10:36

Struth i wanted to see 300p so i could dump the rest of my shares. At this rate though, i'll end up buying back at 200p before long and then wait for the slow climb back to 300p...

[spob] 28/4/2022 10:25

Plat

Only price matching on very few select items in each category.

It's just normal retail propaganda.

[tuftymatt] 28/4/2022 10:23

Yeah all the big boys are now as it's a case of needs must.

That's ok though IMO as there is money to be made still and without customers they have no chance. The big boys in this sector have the firepower to compete even though it's somewhat of a mindset shift.

[plat hunter] 28/4/2022 10:19

I saw an advert on telly the other day... Sainsburys price matching Aldi on essentials.