Sainsbury (j) Share Discussion Threads

[debsdowner] 12/3/2020 12:49

Sainsburys clothes could be hit with the public staying in doors.

[spob] 12/3/2020 02:09

Trust me no business will do better from CV if it really takes off in the UK.

It has the potential to cause massive labour shortage issues

And major stock supply issues

[boystown] 11/3/2020 20:12

I don't really understand why SBRY has fallen with the market.

Certainly at 191.5p, it seems pretty good value if things go on broadly unchanged on all basic parameters as an essential services provider - and if things take a turn for the worse, then SBRY deliveries will become like a de-facto care organisation and they could do even better.

So what am I missing (currently no position) ???

[spob] 04/3/2020 19:50

ONJohn
28 Feb '20 - 16:12 - 20655 of 20663

" will benefit from panic buying shopping "


what happens if one third of the customers get chinese flu

and one third of staff are stuck at home

including depot workers and delivery drivers


don't think anyone will benefit from this if/when it goes exponential

[neilyb675] 04/3/2020 18:40

Definitely people are stock piling. Seen it first hand.

[loganair] 04/3/2020 16:55

Fraser McKevitt, head of consumer insight at Kantar, said: 'Sainsbury's has performed well this period despite a challenging market.

'Lidl has been benefiting from its store expansion programme for a number of years. The new locations have helped to bring in nearly 900,000 additional shoppers.'

In a sign Aldi's growth is running out of steam, analysts at Shore Capital said sales may be falling once new store openings are stripped out.

[poikka] 04/3/2020 08:08

From what I'm hearing, panic buying (and I apologise for mentioning it) will more likely have a negative impact on supermarkets' profits; although I can't make a judgement.

It's a pretty sickening spectacle, whatever. Popped into my local yesterday for the usual - toilet paper shelves were pretty thin and long life milk non-existent.

I mean, why?!

Such is life. Where's me coffee.

[loganair] 03/3/2020 11:20

Nationwide confirms talks to purchase Sainsbury’s mortgage book:


Sainsbury’s announced its departure from the mortgage market in September last year.

Sainsbury's Bank is following rival supermarket bank Tesco in deciding to exit the home loans market as cheap funding orchestrated by government schemes comes to an end.

The UK building society is believed to be within weeks of completing a transaction that would add about 10,000 people to Nationwide's base of 1.7m mortgage customers.

A spokesperson for Nationwide, said: “We can confirm we are in discussions with Sainsbury’s Bank regarding the purchase of its mortgage book. This may or may not lead to a deal in the future.”

Sainsbury’s mortgage book is worth an approximate £1.9bn and the supermarket has an estimated 10,000 mortgage customers.

[loganair] 03/3/2020 11:13

Sainsbury's was the only one of Britain's "big four" supermarkets to record year-on-year sales growth in the 12 weeks to Feb. 23, although it still lost market share to discounters Aldi and Lidl, according to researchers Kantar.

Sales at Sainsbury's rose 0.3%, Kantar said on Tuesday, whereas market leader Tesco recorded a dip of 0.8%, Asda was down 1.2% and Morrisons fell 2.0%.

Lidl was the fastest growing supermarket for the first time since 2017, with sales up 11.4% in the period, taking its market share to 5.8%, Kantar said. Its bigger rival Aldi recorded growth of 5.7%, giving it a 7.9% market share.

The impact of the coronavirus crisis has been seen at the tills, with sales of hand sanitiser up 255% in February while liquid soaps grew by 7%, Kantar said.


The rise helped by new shoppers, more visits and the launch of ‘Nectar Prices’. According to the closely watched Neilsen supermarket report, Sainsbury’s grew sales by 0.6 per cent.


Kantar say Sainsbury's sales rose 0.3% and Neilsen says they rose by 0.6% - who is correct???

[poikka] 02/3/2020 14:38

And now...

"J Sainsbury was among the risers, up 3.4%, after Bernstein raised the supermarket to Outperform from Market Perform."

[onjohn] 28/2/2020 16:12

will benefit from panic buying shopping

[poikka] 28/2/2020 09:56

CREDIT SUISSE INITIATES J SAINSBURY WITH 'OUTPERFORM' - TARGET 280 PENCE

Sentiment appears to be turning, but maybe not today, lol.

[albert3591] 27/2/2020 15:08

All supermarkets suffering today.

[loganair] 27/2/2020 09:57

Walmart is in talks with private equity firms about selling a majority stake in Asda. The US retail giant confirmed the talks in a statement, although it also said that “an IPO is an attractive long-term objective for Asda”. With Asda valued at around £5bn on a standalone basis, a full takeover would probably require a consortium, with a stake sale to a private equity house seen as a stepping stone to a flotation in a few years time. KKR is one name in the frame.


The original £7.3bln that Walmart valued Asda at at the time of the take over bid by Sainsburys would now value Asda approximately the same as Sainsbury's and M&S combines which is just a ridiculously high valuation.

What I see happening is the following:

1. Private Equity firm takes majority stake in Asda.

2. Private Equity firm asset strips Asda and loads Asda with a huge amount of debt paying a huge dividend to both the Private Equity Firm and Walmart.

3. Private Equity firm lists an over valued Asda carrying a huge amount of debt - shares being bought by the Private Retail Investor because they think they are buying a safe company - This is what happened with Woolworths and Debenhams etc.

4. In the end Walmart get the £7.3bln they wanted for Asda and the Private Equity Firm also makes a huge amount of money, doubling there original investment with in a few very short years.

[loganair] 26/2/2020 19:31

Asda has attracted interest from suitors including private equity firms, the people said, asking not to be identified because the information is private. Walmart is working with an adviser and has recently started a formal process for the stake sale, the people said.

[loganair] 26/2/2020 19:28

I would be surprised if anybody is going to offer the £7bln plus Walmart had valued ASDA at during the take-over/merger with Sainsburys.

[loganair] 26/2/2020 19:22

BBC - Walmart in discussions to sell stake in Asda:


Walmart says it may sell a majority stake in Asda, its UK supermarket, after "inbound interest" in the idea.

The US retail giant said it was talking to a "small number of interested parties" about a possible investment.

It comes after UK regulators blocked Walmart's plan to merge Asda with Sainsbury's last year on fears it would raise prices for consumers.

Walmart said it would be likely to retain a stake in Asda if the plan moved forward.

"No decisions have been made and we will not be commenting further on these discussions," it said.

"If or when we decide to pursue this opportunity further, our first priority will be to share more detailed information with our colleagues."

Walmart purchased Yorkshire-based Asda in 1999. The company is among the top three supermarkets in the UK, with an estimated 15% of the market.

However, in recent years, it has seen increased competition from low-priced German competitors such as Aldi and Lidl.

'Clear strategy'

After regulators blocked the Sainsbury merger, Walmart said it was considering a stock market flotation for Asda.

On Wednesday, the firm said that remained "an attractive long-term objective".

"Asda is a great business with a clear strategy for the future and Walmart is committed to ensuring it has the resources and support it needs to deliver that strategy," Walmart said in a statement.

Walmart has overhauled its international strategy in recent years, scaling back its business in countries such as Brazil while partnering with local firms in markets where it sees growth.

In 2018, it took a majority stake in India's online retailer, Flipkart. It also has partnerships with China's JD.com and Japan's Rakuten.

"Walmart has a clear international strategy around 'strong local businesses, powered by Walmart' - which involves a number of different ownership arrangements, depending on the needs of its different markets," the company said.

A potential third-party investment in Asda would be intended to "support and accelerate the delivery of Asda's strategy and position Asda for long-term success", it said.

John Colley, associate dean of Warwick Business School, said: "Having pinned all their hopes on a merger with Sainsbury's, bosses at Asda have struggled to find a Plan B for the business.

"The company is clearly not wanted by Walmart, which is occupied with greater challenges such as the threat of Amazon."

He said a flotation had "always seemed improbable", but the idea suggested that Walmart had been "struggling to find potential buyers at a price it found appealing".

[poikka] 26/2/2020 17:35

Berenberg upgrades to Buy - fwiw.

[mattjos] 25/2/2020 23:26

Sold all my profit share stock and my senior management options in JS back in 1998 at somewhere around £5.75 ... left JS in 1999 ... shares have gone nowhere ever since for the simple reason that no one there has any vision for the future whatsoever.It has been downhill ever since Sir John Sainsbury stepped back from the helm.David Sainsbury was a total disaster for the company and all subsequent leadership hopeless.I still shop there, most competitors ghastly shop experiences (Tesco, Lidl, Aldi, Asda, co-op, Morrison's .. full of the great unwashed. Marks & Waitrose insanely expensive) but, as an investment proposition? JS continues to gradually wither away. The founders would not countenance any of current management.

[poikka] 21/2/2020 17:28

Guess that they'll be looking for alternative suppliers, spob, amazing just how quickly suppliers can be changed. If there is a general shortage, prices would rise, I guess; so no change?

I dunno.