Sainsbury (j) Share Discussion Threads

[yousif] 31/10/2022 14:19

Looks like the shorter hedge funds are gradually closing their position.

[bountyhunter] 30/10/2022 22:12

First-half profits from J Sainsbury PLC (LSE:SBRY) next Thursday, 3 November are expected to be at the bottom end of the supermarket chain's guidance range from modest sales growth and tighter margins.

Shore Capital, one of the company's house brokers, forecast an 11% decline in pre-tax profits to £318mln on grocery sales up 0.8%, Argos sales down 5% and clothing sales down 1%.

The group saw a 2.4% fall in grocery sales in the first quarter, which Susannah Streeter, senior investment analyst at Hargreaves Lansdown said reflected shoppers “being super-vigilant about what to put in their shopping baskets,” requiring the supermarket sector to adjust from the high demand during lockdowns but also the worsening cost-of-living crisis.

Investors will keep a keen eye on whether full year underlying profit is still set to come in between £630mln and £690mln, Streeter said, suggesting it “is beginning to look more likely it’ll come in near the lower range, with signs back in the summer that customers were watching every penny and every pound”.

Shore Cap analyst Clive Black said he was “cautiously” keeping his full-year forecasts for pre-tax profit unchanged at £636mln, which is near the lower end of the group’s guidance range.

He believes the FTSE 100 group navigated the spring and summer periods well, with its core grocery business being “effective” while general merchandise arm Argos didn’t suffer as much as initially feared...

[clive7878] 30/10/2022 20:47

72 Weetabix
Sainsbury £8.00
Tesco & Asda £6.50
No price match here
Although S do

[rolo7] 30/10/2022 16:45

If that's the case it's failure to pay the minimum wage?

[spob] 30/10/2022 10:27

Nurses are currently working an extra day per week, on average, in unpaid overtime.

They'd be better off at Aldi.

[spob] 30/10/2022 10:12

Aldi increases staff pay for third time this year (to £12.45 an hour within the M25) as cost of living soars




Minimum rate of £11 an hour puts it above Lidl and back at top of supermarket wage league


Supermarket pay has risen this year as stores try to hold on to experienced staff and attract new recruits before the Christmas rush.


Sarah Butler

Fri 28 Oct 2022

Aldi is increasing pay for its workers for the third time in a year with a new minimum rate of £11 an hour, putting it back at the top of the supermarket pay league.

The UK’s fourth largest grocer is upping pay by 50p an hour – or almost 5% – for about 26,000 staff from January, announcing the increase just over a month after its last rise, in September, when shop workers’ hourly rate rose 40p to a minimum £10.50 an hour. Workers inside the M25 motorway around London will see their pay rise to at least £12.45 an hour.

The new rates put Aldi back above Lidl, which put up pay to £10.90 an hour this month. Aldi pays for breaks during shifts, unlike Lidl and many other supermarkets, a benefit worth an additional £871 annually.

Aldi’s new minimum is also higher than the independently verified living wage, which was raised to a at least £10.90 in September.

Giles Hurley, the chief executive of Aldi’s business in the UK and Ireland, said: “Just as we promise Aldi customers that we will always offer the lowest grocery prices in Britain, we are committed to being the highest-paying supermarket for our colleagues.”

Supermarket pay has shot up this year as stores compete for staff against other high street, travel and hospitality businesses now that coronavirus pandemic restrictions have eased, in a labour market where supply has been restricted by Brexit worker visa limits.

Several chains have raised pay two or three times this year as they try to keep pace with the soaring cost of living in order to hold on to experienced staff and attract new recruits before the Christmas rush.

The budget chain Wilko joined Aldi in upping pay on Friday, announcing its shop workers would now get a minimum of £10 an hour, increased from £9.60 awarded in the spring. Those in its warehouses and delivery operation would get an additional 50p to £10.50 until March under a temporary “market forces” deal in response to heavy competition for workers.

Hospitality businesses, including restaurants and hotels, are also being forced to increase pay and in some cases limit trading hours as they struggle to find enough suitably qualified workers to cope with an increase in demand.

Aldi is particularly in need of more recruits as it is opening about one new store a week and is vying with its fellow German-owned discounter Lidl to be the UK’s fastest-growing grocery chain.

Both are thriving as shoppers switch at least some of their spending away from traditional supermarkets in an effort to keep down costs at a time of significant food price inflation.

[loganair] 28/10/2022 16:56

First-half profits from J Sainsbury next Thursday, 3 November, are expected to be at the bottom end of the supermarket chain's guidance range from modest sales growth and tighter margins.

Shore Capital forecast an 11% decline in pre-tax profits to £318mln on grocery sales up 0.8%, Argos sales down 5% and clothing sales down 1%. (That's dreadful, considering inflation is well over 10% which means even for groceries Sainsbury's are selling 10% less product.)

The group saw a 2.4% fall in grocery sales in the first quarter, which Susannah Streeter, senior investment analyst at Hargreaves Lansdown said reflected shoppers “being super-vigilant about what to put in their shopping baskets,” requiring the supermarket sector to adjust from the high demand during lockdowns but also the worsening cost-of-living crisis.

Investors will keep a keen eye on whether full year underlying profit is still set to come in between £630mln and £690mln, Streeter said, suggesting it “is beginning to look more likely it’ll come in near the lower range, with signs back in the summer that customers were watching every penny and every pound”.

Shore Cap analyst Clive Black said he was “cautiously221; keeping his full-year forecasts for pre-tax profit unchanged at £636mln, which is near the lower end of the group’s guidance range.

Forecasts for the financial year 2024 may be hit as the macro factors continue to pile up, with Black saying Sainsbury’s, the second-largest of the ‘big four’ retailers, faces several external challenges, including rising grocery inflation and pressure on households from rising mortgage payments and energy bill.

Recent evidence via ONS retail sales figures indicated shoppers are tightening their belts more than forecast, which doesn’t bode well for own brand homeware and Argos ranges, said Streeter.

“However, a fresh round of investment in keeping prices low means the group's been able to offer its strongest value proposition in years, which should help it cling onto market share, despite being hit with plenty of headwinds in the second quarter with a fresh storm brewing for the month to come,” she said. (Market share over margins and profits???)

For 2024 Black forecasts pre-tax profits will be flat.

Sainsbury’s share price is down 30% in the year so far to 193p, despite being considered a non-discretionary spend among consumers.

Where it may have struggled, however, is consumers trading down to some of the discount retailers, such as Aldi and Lidl, with the former having recently overtaken Morrisons as the UK’s fourth largest supermarket.

[blackhorse23] 28/10/2022 08:41

CURY (LSE) looks very cheap

[loganair] 27/10/2022 15:16

Sainsbury's, Britain's second biggest supermarket group, looks likely to follow market leader Tesco and lower its full-year profit sights when it reports half-year results next week, analysts' forecasts indicate.

At a first quarter trading update in July, Sainsbury's kept its forecast for underlying profit before tax of between 630 million and 690 million pounds for the year to March 2023, down from the 730 million pounds made in 2021-22.

However, according to analysts', the average estimate is 637 million pounds, with the highest at 655 million.

Shore Capital is forecasting 636 million pounds. It notes that with UK consumers facing higher food and energy costs in the second half demand is likely to remain weak.

Analysts see Sainsbury's as more challenged than other supermarket groups because it owns the Argos general merchandise business - an area more exposed to cutbacks in discretionary spending.

[bitcoin tosser] 27/10/2022 10:25

Agree with Neilyb675

[loganair] 27/10/2022 10:13

N675 - There is no need for a toxic personal attack on another poster.

It seems to me there are now one or two posters who are following me around from company thread to company thread putting down every comment I make, pulling me a part and are being thoroughly nasty because I do not follow the status quo by not being completely anti Putin and anti Russia and I'm not completely pro the Ukraine.

All I can say Neilyb675 is that you are a really horrible , vile, vulgar and unpleasant person.

[neilyb675] 27/10/2022 09:49

is she a serial liar like you

[loganair] 27/10/2022 09:35

The lady in charge of the cereals department at my local Tesco said that to me.

Often is the case the standard supermarket brand is made by a branded company.

[unastubbs] 27/10/2022 09:05

i did not know that nestle make food for tesco. can you identify your source for that?

[loganair] 26/10/2022 09:40

When looking at the ingredients on the back, more often than not the branded foods (excluding the basic range) are not as good as the non-branded.

As long as not buying the basic range of foods in the supermarkets, usually their non-branded own foods are made by the very same branded companies. Eg, Tesco cereals are made by Nestle.

[spob] 26/10/2022 03:09

For many, food brands are a kind of status symbol, akin to wearing certain clothing brands


People pay a label premium to make them feel better about themselves.

But I don't know anyone who feels better after being mugged or losing their wallet.


For the most part, there is no difference between the two.

[stewart64] 25/10/2022 11:07

Or you could buy Sainsburys wheat biscuits ( 48) for £2.70..or Lidl's Bixies for about £1.70.

I am pretty anti- brand tbh. I don't understand why folk want to double or even triple their food costs on certain purchases.

Not a fan of Post Holding shares ( owns Weetabix)or the big beast Unilever. No doubt brand lovers view these shares differently.

Sainsburys, put on a bit of a surprise run hasn't it. Not a big fan,I bought them because they were bombed out. Up 10% in a couple of weeks.

[clive7878] 21/10/2022 21:01

SBRY maybe better for the sharehoder than customer as - not matching Asda prices
72 Weetabix
SBRY now £8
Asda now £6.50

[blackhorse23] 19/10/2022 08:54

Sold some & bought CURY (LSE)

[spob] 19/10/2022 08:54

At the last trading statement Simon Roberts said


"The pressure on household budgets will only intensify over the remainder of the year"

naturally the same applies to corporate budgets

[spob] 19/10/2022 08:45

Anyone anticipating a profit warning in two weeks ?

and possibly a dividend cut ?