Sainsbury (j) Share Discussion Threads

[loganair] 03/1/2024 10:15

It seems to me reasonable to say that the Private Equity firms are going to destroy Asda and more so Morrison in the same way they did to Debenhams, Woolworths, Comet, Toys R Us etc.

[loganair] 03/1/2024 09:38

Iceland are also struggling, even their CEO said as much and the reason why they cancelled their Christmas ad campaign to save money.

[netcurtains] 03/1/2024 09:25

Yes its quite possible Asda and Morrison are on the way out..... Perhaps up for sale even...

[loganair] 03/1/2024 09:20

net - Even so, compared to last Christmas, Lidl had the highest increase in market share, followed by Sainsbury and Aldi.

How poorly are both Asda and Morrison are doing since they've been taken private even though Morrison took over the 1,000 chain McColl's and the nearly 500 conversations to ASDA express in the Issa brothers petrol stations and still they continue to massively lose market share.

[netcurtains] 03/1/2024 09:09

loganair: I think Lidl and Aldi have done badly as really the extra sales were done sneakily by "price inflation" - 1p is a bigger percentage of a Lidl sale then a Waitrose sale. When prices stabilise it might be clearer who are the real winners. I suspect its the supermarkets with the BIG car parks........

[loganair] 03/1/2024 08:56

Headline such as - UK Supermarkets Experience Busiest Christmas Since 2019, Says Kantar - are useless as more important is the actual amount of products sold.

With food inflation running at 20%, not too difficult to get a 5% etc rise in spending, still means 15% less product was sold.


At the same time, however, Lidl and Aldi were the strongest performing retailers during the 12 week period – Lidl increased its sales by 13.8%, while Aldi's sales rose by 9.9%.

Compared to Christmas 2022, Christmas 2023 market share:

Tesco +0.1% higher market share and 7% higher spend.
Sainsbury +0.3% higher market share and 9.3% higher spend.
ASDA -0.4% lower market share and 3.4% higher spend
Aldi +0.2% higher market share and 9.9% higher spend.
Morrison -0.3% lower market share and 3.2% higher spend.
Lidl +0.5% higher market share and 13.6% higher spend.
Co-op -0.2% lower market share and 3.8% higher spend.

Iceland had the lowest increase of spend at + 2.9% with Ocado at +5.5%.

As can be seen, both Aldi and Morrison continue to fall back compared to the other 4 big supermarket chains.

Except for the covid bump up, Ocado market share has stayed the same over the past few years which seems to me shows that on-line home delivery is not the way to go for the supermarkets.

[spranson] 03/1/2024 08:22

However, Tesco and Sainsbury’s, the UK’s two largest supermarkets, also took a share with Sainsbury’s grabbing more than Aldi to claim a 15.8% slice of the market, its highest level since 2020 as sales rose 9.3%, making it the best performer among the traditional chains.

[loganair] 02/1/2024 11:18

Rules will soon become mandatory to ensure customers only pick loose fruit and vegetables in supermarkets. Pre-packed produce will no longer be available under the change, reports the MirrorOnline.

That's disgusting as I can imagine half the people touching all this lose fresh fruit and veg haven't washed their hands since they last went to the toilet.

[pirates4] 28/12/2023 12:41

Time sainsburys to make a bid for asda then. Jmo.

[pete160] 26/12/2023 20:44

Lazy dosser says the poster who just copy and pastes other people's work. :-)
In any case, unless you're a day trader, I don't think it really matters whether the market is open full days, part days, or just twice a week.
It might be that the London Market does better if we shut when the US opened ?

[tim 3] 26/12/2023 17:57

100% especially when you consider many retail staff and nhs etc lucky to get 2 days off !

[spob] 26/12/2023 17:25

.
I see the LSE is half day Friday.

Not a bank hol and not new years eve.

Lazy dossers

[bountyhunter] 23/12/2023 13:42

"Sainsbury’s has strengthened its positioning through the year, with Goldman’s proprietary price analysis indicating that it has closed the price gap versus Aldi, becoming the second of the Big 4 to do so."



“Consequently, Sainsbury’s has seen strongly improving market share momentum, with recent market share gains outpacing Aldi,”

[spob] 20/12/2023 14:40

.
Debt-ridden Asda faces soaring interest bill exceeding £400m


Georgia Wright

Retail Gazette

20 December 2023


Asda Billionaire Issa brothers 'laser-focused' on helping employees and brits through cost-of-living crisis despite profits slipping

By early next year Asda is set to see its debt interest bill exceed £400m, driven by escalating interest rates that are piling pressure on the private equity-owned supermarket.

The grocer’s chief financial officer Michael Gleeson told the Business & Trade Committee on this week that the company’s debt interest bill would rise by as much as £30m in February when half a billion pounds of loans switch from a fixed to floating interest rate.

The £500m in borrowings are part of the debts taken on by the supermarket to finance the acquisition of Asda in 2021. Brothers Mohsin and Zuber Issa bought the retailer in a highly-leveraged £6.8bn takeover alongside the private equity firm TD

The £500m in borrowings are part of the debts taken on by the supermarket to finance the £6.8bn acquisition of Asda back in 2021 by brothers Mohsin and Zuber Issa and private equity firm TDR.

The grocer currently has around £4.2bn of debt, accruing interest payments of £396m in 2022 and that annual bill is on track to rise to £426m in February unless interest rates fall before then.

Asda’s debt interest bill has risen from an estimated £90m in 2021 as the Bank of England has rapidly increased interest in a bid to bust inflation.

The Telegraph reports that Gleeson appeared before the committee beside Mohsin Issa on Tuesday to answer questions about the company’s finances and the role of private equity in the supermarket sector.

MPs fear the high levels of borrowing will prevent grocers from passing on falling prices to customers.

Issa stressed there were “no gaps” in Asda’s finances and insisted the supermarket could cover its debts.

He told MPs: “What I would say is that the debt leverage at the start of the year was at 4.2 times, that has gone down to 3.8 times and that trajectory is to go down even further by the end of this year.

“At the same time, we are investing in colleague pay, customer pricing and loyalty. The business is highly cash generative.”

The Issa brothers have spent much of the last year selling off assets in order to pay down borrowings accrued by their petrol station empire EG Group.

This included the £2bn sale of EG Group’s UK assets to Asda earlier this year, subsequently burdening Asda with an additional debt amounting to hundreds of millions of pounds.

Issa defended his running of the company to MPs and said had “chosen to invest in customers”, including spending £140m on price cuts to help with the cost of living crisis, at the expense of profits.

[loganair] 18/12/2023 11:46

net - Currys started as a UK firm and often UK firms struggle outside of the UK whereas ALDi/Lidl started off by being German in the first place then moved into the UK.

Also I know how Currys is run, and it is run extremely badly with Area and Regional mangers acting as though the stores under them are their chiefdom and are very malevolently dictatorial in the way they are towards the stores under them.

I disagree about Poundland, when the new Poundland opened where my teen is at college, customers were walking in and talking about it as though it was a winter wonderland full of surprises.

Sainsbury's will hammer ASDA, Morrison which they are already doing so due to the extensive amount of debt the new owners took on in order to buy out these two supermarkets and Iceland is also struggling under their debt pile.

[netcurtains] 18/12/2023 11:12

loganair: Being Europe wide (like Currys) can cause problems when it goes pear shaped.
I think Sainsburys hammers Alidi/Lidl/Iceland/Poundland hands down.

[loganair] 18/12/2023 10:55

Net - I disagree, how can Sainsbury's beat the discounters into the ground when each have 5,6,7 times the turn over of Sainsbury's therefore they have far more buying power than Sainsbury's.

Sainsbury's was not set up to compete on price, which is what they are trying to do against Aldi/Lidl

Also being European wide, the likes of Aldi/Lidl have far more connection with the European farmers and food manufactures than any of the British Supermarket chains have.

[pirates4] 18/12/2023 09:39

Oh ..and sainsburys items to be picked are more than any other stores. As much as 23,000 per day.

[pirates4] 18/12/2023 09:37

You can compare thus at most major stores.

[pirates4] 18/12/2023 09:36

I disagree with the percentage here.Sainsburys stores have more online shoppers than tesco,Tesco online shopping carts have 6 boxes for food, whileSainsburys have 8 boxes for online shopping carts.I have seen as much as 25 to 30 online shoppers at sainsburys Tescos have 15

[netcurtains] 18/12/2023 07:47

loganair: "sainsburys not set up as a discount retailer"

I went for a job interview to Sainsburys 30 years ago.

It was for a Telon DB2 contract...

The interviewer asked:

"Why does good food COST LESS at Sainsburys"....

And I had to give all the reasons why...

They clearly are proud of a long tradition of cost cutting.....

I'm 100% sure Sainsburys will beat the Germans into the ground...

[loganair] 17/12/2023 21:49

How has online shopping market share gone over the past 5 years:

Tesco.....37.5% to 34.9%
Sainsbury.15.5% to 21.3%
ASDA......23.9% to 19.0%
Ocado.....17.5% to 14.5%

Why does Ocado have a higher market cap then Sainsbury's when it is losing over all market share, losing on-line market share and has never made a profit and is still not profitable???