Sainsbury (j) Share Discussion Threads

[alotto] 04/9/2022 09:31

What makes them more expensive to run?

[loganair] 04/9/2022 07:20

The biggest challenge for the so called big 4 legacy brand supermarkets compared to the 2 German discounters is they are circa 25% per customer more expensive to run and therefore they are effectively unable to compete on price.

[alotto] 03/9/2022 20:21

Loganair are you suggesting it is better to buy Aldi or Lidl shares (that is if they are public companies).
Lidl and Aldi are doing their best to challenge Tesco and Co., they stroke some deals with big produces like Unilever (recently I saw Magnum ice creams in Lidl).
Sainsbuy is lowering prices (with a price lock) of some of their products, products that you would't even find in Lidl or Aldi, so not really trying to compete on prices on the very same products.
I think shoppers ultimately will notice that, and combining it with the Aldi price match thing, many shoppers won't indulge much longer in discount shops.
Many discount products are rubbish btw. I bought some toilet paper in Lidl for few pence less and its much thinner than what you find in Sainsbury for almost the same price. Not to mention the dish washing liquid bought in Lidl lasted one week, can't really compare to Fairy (although the dish washing liquid in Aldi is better than Lidl's, but still not as good as Fairy, which isn't that much more expensive anyway)

[loganair] 03/9/2022 18:47

From mid 2022 to mid 2024 Aldi plans to open 100 new stores, that's approximately 1 store per week over the next two years.

This will increase Aldi's UK grocery market share by circa 1%.

[loganair] 03/9/2022 18:29

Sainsbury’s latest advertising campaign is encouraging customers to practice financial control, shop smarter and access personalized discounts in its SmartShop app.

The Sainsbury’s SmartShop app enables customers to shop, scan and check out autonomously, while the technology tracks purchases to unlock tailored product deals.

Radha Davies, brand communications director, Sainsbury’s, said: “For a customer to break their deeply-engrained shopping habits, even where there’s a compelling reason to, is difficult. Millions of Nectar customers have access to personalized prices at Sainsbury’s, and we wanted them to know about it. Using behaviorally-driven insights that focused on the ease of use, the many benefits of SmartShop in conjunction with food-focused creative has created impactful and identifiably Sainsbury’s creative.”

[loganair] 03/9/2022 18:23

Asda has agreed to acquire 132 sites from The Co-operative Group in a transaction with a cash value of £438m, as part of its growth strategy to move into the convenience market and bring Asda value to more local communities. The purchase includes 129 established, high-quality sites with a grocery retail store of between 1,500 and 3,000ft² and attached petrol filling station, and three development sites. They are located nationwide and will create a new and distinct format for Asda in the convenience market.

[muffinhead] 03/9/2022 13:02

Worst supermarket price rises revealed as grocers ‘inflate like crazy’

[muffinhead] 03/9/2022 12:45

Discounter business model will be challenged in an inflationary environment.

Lidl and ALDI rapidly came to prominence during "deflation" when German bonds were negative and cash was literally free. It was easy to discount future cash flows into the distant future. Not any more. So I expect momentum to slow.

Even Poundland regularly blows up and requires a reset.

To expect smooth sailing is naive.

I cannot imagine any capital appreciation on new or existing investment.


10 year UK government gilts are about 2.9% currently and climbing. Corporate bonds yields are higher. Far higher than the return German discounters receive for the pleasure of parking their tanks in the UK.


Cheap borrowing is drying up. The market is mature.


Profit margin on discounter total sales is about 1% which does not cover the cost of capital investment. Lidl UK made losses during Covid which can be seen on Company House records. Inflation adjusted returns are non-existent.


Would you invest in ALDI or Lidl if given a chance?

Personally, I think the Germans are idiots to continue UK expansion. Times have changed.

[loganair] 02/9/2022 12:23

As I posted many moons ago, when Aldi/Lidl combined share was no more than 9%, I thought by 2025 their combined market share would be between 20% and 25%.

Today their combined market share is now well over 16% and increasing by circa 0.8% every year.

It seems to me reasonable to say by 2025 Aldi will be vying with ASDA for the number 3 spot while Lidl will be doing the same with Morrison for the number 5 spot which would mean Morrison in less than 5 years dropping from being the 4th largest supermarket in the UK to 6th.

[loganair] 01/9/2022 13:16

The reason I shop at the supermarket I do is because it's by far my nearest. The next nearest is a good 25 minute extra drive away = £6 in extra petrol drive away.

[bend1pa] 01/9/2022 13:00

"Aldi and Lidl make it very clear who their customer base is, it is customers who have little disposable income, customers where only the price matters..."

I'm afraid that's a myth on your part. That may have been the case a decade or so ago, but no longer. The quality at Aldi is every bit as good as what you buy at the top 3 supermarkets who have all been gradually losing market share over the years to the discounters and for good reason. Why should I pay £1.80 for a 450g tub of Onken fruit yoghurt, when I can go to Lidl and get exactly the same tasting tub of ingredients for 99p (currently).

Many of the customers I see at Aldi/Lidl don't exactly look impoverished or suffering to my eyes. I could easily afford to shop at Tesco/SBRY/MRW, but rarely do now. Just rather glad I discovered the discounters, and since my nearest supermarket happens to be a Lidl I'm happy to continue shopping there for food.

[spob] 01/9/2022 10:39

"I understand since the year 2000, the average worker in the UK, in real terms has had a 25% pay cut."


I think they will be close to 25% this year alone

If they get a 10% pay rise and inflation is over 30% this year, you have a 20% pay cut in just one year.


Dred to think the true figure over 22 years

[loganair] 01/9/2022 09:34

I see the share price bounced off the 200p level. If breaks I can easily see the share price falling to 180p in rather quick order, then 150p from there.

[unastubbs] 01/9/2022 09:32

i'm thinking about asking management to find other jobs...

[action] 01/9/2022 09:21

If they ask too much management will ask them to find another job.

[rolo7] 31/8/2022 20:20

John Lewis and Waitrose staff get food at work Oct to jan

[loganair] 31/8/2022 13:50

I understand since the year 2000, the average worker in the UK, in real terms has had a 25% pay cut.

[unastubbs] 31/8/2022 05:07

logan, you are turning in to victor meldrew. fight it.

[loganair] 30/8/2022 11:38

Just for info....

Today, Tuesday 30th August 2022, I've just returned from my local Tesco and I couldn't hardly believe my eyes...

One product I buy on a regular basis has increased in price by over 100% compared to last week. What was stupid on Tesco's part was they have stocked the same number of items as usual, however none have sold.

A second product I buy has increased 40% compared to last week while over the past 1 year has risen in price by 65%.


I posted on Friday 27th August....

In my local Tesco, prices up 30% on a good number of items over the past couple of weeks and compared to the start of the year a good number of items are up 50%.

I've also noticed a reduction in the number of yellow club card offers over the past couple of weeks. I would say at least 25% less than this time last month.

[unastubbs] 30/8/2022 11:17

was hoping to get in under £2 today, that's been nixed!

[loganair] 29/8/2022 07:47

The problem with any retailer turning their thermostat down during the winter to save on their energy bills is it becomes a staff welfare problem.

[rolo7] 29/8/2022 00:56

What about the hike in energy bills now it's fixed costs have become variable and out of sbry control, don't invest in the unknowns?