Sainsbury (j) Share Discussion Threads

[loganair] 25/9/2019 09:25

The only people who did well out of Sainsbury's taking over Argos, was the Argos share holders.

[buywell3] 25/9/2019 09:08

ALDI and LIDL continue to steal market share from the BIG 4

Soon they will be part of the BIG 4 themselves methinks say 2 years from now

Amazon will soon be number 1 in the BIG 4 same timescale

all IMO

dyor

[loganair] 25/9/2019 09:02

Sainsbury's still had to borrow £1bln to buy Argos.

[rolo7] 25/9/2019 08:55

SBRY brought argos with argos net cash balance?

[buywell3] 25/9/2019 08:49

Outlook

We expect first half underlying profit before tax to reduce by c.GBP50m year on year due to the combined impacts of the phasing of cost savings, unseasonal weather against a strong comparative period last year and higher marketing costs.

[loganair] 25/9/2019 08:48

Per pound of turnover Asda 50% more profitable then Sainsbury's therefore £632mln isn't really that OK.

[loganair] 25/9/2019 08:15

It seems to me buying Argos was not a good deal for Sainsbury's. Being a very low margin business. Once the one time costs of moving Argos' to inside Sainsbury's stores to fill space have been stripped out in the first couple of years, Sainsbury's is left paying the interest on the huge debt they took on in buying Argos.

[nw99] 25/9/2019 07:13

Argos not doing well then after these numbers

[loganair] 17/9/2019 14:07

Supermarket market share - note Kantar excludes M&S who have around 3.3% of the grocery market share so in reality the market share of the supermarkets is lower then that given by Kantar:


...........June 2018..June 2019..Sept 2019

Tesco........27.7%......27.3%......26.9%
Sainsburys...15.6%......15.3%......15.3%
Asda.........15.1%......14.9%......15.1%
Morrison.....10.6%......10.4%.......9.9%
Aldi..........7.4%.......7.9%.......8.1%
Co-op.........6.1%.......6.2%.......6.6%
Lidl..........5.4%.......5.7%.......6.0%
Waitrose......5.1%.......5.0%.......5.0%
Iceland.......2.2%.......2.1%.......2.1%
Ocado.........1.2%.......1.4%.......1.4%

Out of the so called big 4, Asda seems to be holding up the best. Pound for pound turnover they are 50% plus more profitable than Sainsbury's.

15 months ago Morrison had 3.2% more market share than Aldi, this is not down to 1.8%. If the shrinking differential carries on at the same rate then in less then 2 years Aldi with over take Morrison in market share.

[poikka] 17/9/2019 13:54

In August the 12 week period stated - "Overall Sainsbury's sales fell by 0.6%"; so is "broadly flat" now showing a trend?

[poikka] 17/9/2019 13:50

"The UK grocery market returned to growth in the 12 weeks to September 8 but consumers are not stockpiling items ahead of Brexit, Kantar said. Total grocery sales for the 12 week period rose to GBP26.77 billion from GBP26.62 billion in the same period in 2018. The "big four" grocers, Tesco, J Sainsbury, Wm Morrison Supermarkets, and Walmart Inc-owned Asda Stores all lost market share in the 12 week period, however. Tesco's sales fell by 1.4% to GBP7.19 billion from GBP7.29 billion, with market share slipping to 26.9% from 27.4%. Sainsbury's sales stayed broadly flat at GBP4.10 billion though its market share fell to 15.3% to 15.4%. Asda had a 1.0% year-on-year sales fall to GBP4.04 billion from GBP4.08 billion and market share slipped to 15.1% from 15.3%. Meanwhile, Morrison sales were down 2.0% during the period at GBP2.66 billion versus GBP2.72 billion and market share fell to 9.9% from 10.2%. The strongest sales rise of all grocers was by Ocado, which had a market share increase to 1.4% from 1.2%."

[neilyb675] 17/9/2019 12:13

Sharesave to be announced in October I reckon. Wonder what the price after the 20% discount applied.

[s34icknote] 17/9/2019 10:58

I took profits yesterday at 220pTen times earnings .It's had a good run , think the market will struggle and lose momentum with the Saudi crisis.Will be back after October / November out the way .Sicknote

[poikka] 17/9/2019 09:22

FWIW

UBS RAISES SAINSBURYS TO 'BUY' (NEUTRAL) - PRICE TARGET 240 (245) PENCE

[loganair] 16/9/2019 21:00

Asda continues to follow a three point strategy focused on the following areas:

1. Strengthening the customer proposition:

Price - Asda has stepped up activity and communication of its prices through 'low price every day' and 'famously low prices' messaging, supported by longer running promotions. Asda places particular emphasis on The Grocer magazine's G33 Price Award which it won for the 21st consecutive year in 2018.

Own brand quality and range - In its accounts, Asda highlighted the 26 awards it won at the 2018 Quality Food Awards. The focus on quality is something Asda is keen to build further through its current advertising campaign to support the big screen debut of Downton Abbey, which uses the strapline "Dine like Downton without paying a king's ransom". Asda has also stepped up its investment in new product development. In May for instance Asda extended its vegan offering with new barbecue lines.

Availability - Fresh food availability has improved i 2018 following changes to the supply chain and store processes.

Customer service - Asda's customer promoter score, the equivalent of the industry's net promoter score, increased by two points in 2018, due to its focus on easy, fast and friendly shopping

2. Developing a trusted online offer: Asda continues to prioritise e-commerce development. It reports that online sales have grown ahead of the market due to improvements to its customer service offer and investments to its platforms that have made it easier and faster to shop. Rapid online delivery is a focus for Asda in 2019 with the launch a trial 30 minute delivery service at two stores.

3. Delivering a low cost operating model: Improving operating efficiencies and productivity savings across store, home shopping, distribution centres and offices helped to offset cost pressures during the year. Asda also benefited from cost savings at its IPL, its global produce sourcing business.

[loganair] 16/9/2019 20:48

Asda revealed a 3.2% rise in sales to £22.9bn and near 13% rise in pre-tax profits to £804.9m for the year to 31 December 2018. The company said sales at established stores were up 1.6% for the year as it had cut prices and improved availability of fresh foods.


It seems Asda are 50% plus more profitable per pound of turn over then Sainsbury's are.


Under Chief Executive Roger Burnley, Asda is following a strategy focused on lower prices to narrow the gap with the discounters, a step-up in innovation in own-brand products, and better store environments and product availability, along with improvements in its e-commerce operations and use of technology.

[loganair] 16/9/2019 20:47

The chief executive of ALDI UK, Giles Hurley, said “We are a long-term business not like other supermarkets. We are focused on sales, stores, customer numbers and growth.”

So I take this to mean that Aldi are not focused or really concerned about customer experience.


Online sales for the group reached £100m as it expanded beyond selling wine and non-food special buys for home delivery of spirits and packaged items such as coffee pods.

Hurley said: “We are watching the online grocery market with a real degree of interest.” But food delivery – loss-making for several rivals – was a very challenging area, he said.


In the next two years, Aldi plans to invest a further £1bn in about 100 new stores, as well as distribution centres to serve them. It will also upgrade dozens of existing outlets. The group, which opened its first UK store in 1990, is aiming to increase the number of stores it has from 840 to 1,200 stores by 2025.

Aldi is focusing on opening stores in London, where it has 45. It aims to have 100 by 2025 and potentially 250 within the M25 in the longer term, about 50 of which could be in the group’s new small format. These are, on average, only about 6,400 sq ft, just under half the size of a typical Aldi.

“Our market share is only 3.4% in London compared to 8.1% nationally,” said Hurley, “Clearly there is a significant opportunity.” Stores are planned in Sydenham, Blackheath and Watford in the coming year.

[jagworth] 16/9/2019 17:34

Many people were surprised that Tesco was allowed to buy Booker (£3.7bn)

Sainsbury’s probably should have bought NISA but it is quite small in comparison.
But I think this shows again the advantage of not being a quoted company (for the Co-op).



“Shareholders in the Nisa convenience store group have approved the chain's £137m takeover by the Co-operative Group...
Nisa is a member-owned business that has more than 3,000 stores and operates a wholesale business...
In the year to 2 April, Nisa reported revenues of £1.25bn with pre-tax profits of £2.8m”.

[loganair] 13/9/2019 10:56

My understanding on a supermarket sale and lease back and supermarket will pay around 6% per year on the lease which means after around 17 years, the supermarket will have paid all the money they got for the sale of their asset however they'll will continue to pay the 6%.

If a Supermarket sale and lease back for £50mln, will pay £3mln per year lease. After 17 years the supermarket will have paid £50mln in lease and will continue to pay £3mln per year for the lease on an asset they once owned but no longer do so.

Actually after a while the supermarket will be paying more than £3mln per year as every so often their will be a review and reviews only mean one thing, an increase in the amount to be paid on the lease.

[loganair] 13/9/2019 10:12

I feel all this talk about the pound being low and therefore UK assets are cheap so will be taken over is being way too over-hyped as I firmly believe a part from one or two companies is not going to happen.

[ny boy] 13/9/2019 10:06

All good since the bottom, rise fuelled by hungry overseas buyers of under valued U.K. equities, £ won’t stay this low for long, they sense this.

Strong buying of U.K. equities.

Onwards & upwards

[loganair] 13/9/2019 09:37

Sadly over all the share price is still well down and where it was many, many years ago.

[keelstow] 13/9/2019 09:35

meanwhile the share price has gained over 20% during the last month

[loganair] 13/9/2019 09:13

Right from the word go, I posted that I thought losing out to the Co-op when it came to the wholesaler Nisa was a big deal for Saisnbury's.

Tesco bought Booker while Morrison's have their own wholesale division supplying companies such as the 1,500 strong convenience store retailer McColl's.