Sainsbury (j) Share Discussion Threads

[loganair] 01/7/2020 08:39

The profit hit from the crisis was expected to be more than £500m, as previously guided, but it would be "broadly offset by business rates relief and stronger grocery sales", Sainsbury's said.

The company has not taken up Government support in the form of the furlough schemes or delayed VAT payments, although it has accepted £450 million in business rates relief for the year.

Outlook:

Sales growth has been stronger than base case assumptions outlined in April, helped by good weather. However Sainsbury's is cautious about the sales trajectory for the rest of the year given the weather benefit to date and a likely further weakening of consumer spending.

[loganair] 01/7/2020 08:35

Sainsbury’s in ‘strong financial position’ after more than doubling online sales
Supermarket giant Sainsbury’s has announced a higher than expected sales performance despite the disruption caused by COVID-19.

The firm has reported a 10.5 per cent increase in grocery sales, as well as more than doubling its online revenue, since the coronavirus crisis began.

In addition, the company’s clothing and fuel sales have started to recover “more quickly than expected” and its financial services business has an improved capital position compared with the year end.

[buywell3] 01/7/2020 08:16

P/E of 35.98

Seems a tad rich to buywell IMO

[rolo7] 01/7/2020 08:14

Got to include fuel so now q2 sales will be down v last year noone driving.

[unastubbs] 01/7/2020 08:13

analysts call 8.20am

[tardelli2] 01/7/2020 08:05

Don't include fuel then .

[rolo7] 01/7/2020 07:57

Sales down if you include fuel!?

[leadersoffice] 01/7/2020 07:22

Given the climate at the moment...Sainsbury's weathering the storm. I should imagine the other food retailers with exception to M&S will have shown resilience. Not looking good sat in my portfolio in negative territory but over time, this will recover.

[ny boy] 30/6/2020 11:10

Resistances in play..

Resistance1: 214.53p. Resistance2: 250.57P

[ny boy] 30/6/2020 11:03

Looks like we are finally seeing some upward movement after yonks of consolidation, defensive qualities kicking in

[unastubbs] 28/6/2020 17:36

this board is quiet given that there's a trading statement on wednesday! anyone like to venture an opinion on what's in ... store?

www.theguardian.com/business/2020/jun/27/sainsburys-new-boss-sales-soaring-expecting-bumpy-ride-simon-roberts

www.expressandstar.com/news/uk-news/2020/06/28/sainsburys-set-to-post-reassuring-sales-jump-in-new-chiefs-first-update/

i'd really like some guidance on the dividend from the new ceo. don't suppose i'll be any the wiser ;)

[lfc19] 26/6/2020 12:27

[b]LFC!!![/b]

[spob] 26/6/2020 12:10

Clearly Sainsburys shops don't have that much free space

because the in-store Argos shops I have seen are tiny

and have very little warehouse space

meaning they only stock around 20% of the full argos range



I know what the directors thinking is, in regard to the stand-alone Argos shops

but customers are not directors. They will do what they want to do

[loganair] 26/6/2020 12:02

1. Many of the large Sainsbury's stores have too much spare space, so bring in Argos to fill this space.

2. By doing so Sainbury's also hopes to increase foot fall into their supermarkets.

3. Many of the in house Argos's are at the back of the Sainsbury's therefore they are making people who shop at Argos walk through Sainsbury's hoping that these people who may not be Sainsbury's shoppers, buy their food from Sainsbury's.

4. This was one of the main points about trying to merge with Asda. Asda only have large stores which are ripe to put Argos's in, even said as much in the merger document at the time. By doing this could me worth as much as £200m to £300m a year in extra sales for Argos, while bringing in a further £100m of saving for Argos.

[spob] 26/6/2020 11:34

Sure you can close some stand-alone argos shops if they are losing money

but if you close too many, there comes a tipping point where the brand dies and becomes irrelevant in the eyes of the average argos customer

[spob] 26/6/2020 11:27

yes i'm quite sure it works for some

but this is a numbers game

and you have to weigh up the numbers for the full range of Argos customers

[spob] 26/6/2020 11:25

remember that if you dont need your item "right now"

and you don't mind waiting for it

then you may aswell buy it cheaper on ebay anyway and get it delivered for free

[tim 3] 26/6/2020 11:24

Probably agree to disagree on this spod.

I think the model of ordering in the morning while browsing the net/reviews ect then collecting later/with your shopping works quite well.It does for me anyway have done it many times.

[spob] 26/6/2020 11:18

You don't want Argos to be known as that tiny little shop in Sainsburys where you have to come back later to get what you want

or the little shop in Sainsburys where you have to buy online first, before you can go and collect what you need "right now" because they have to transfer your item from another location

especially for people who don't shop in Sainsburys

[tim 3] 26/6/2020 10:58

spod

I see it a bit like carphone will soon be incorporated into the stores in a similar way.

Its all about money at the end of the day if the savings of closing shops out weigh the lost sales then they will do it.

Argos is one of the few that can compete with Amazon, huge range of goods delivery or collection from thousands of physical shops within a few hours I know no other retailer that has that offer.

[loganair] 26/6/2020 10:48

When Sainsbury's took over Argos they said it was because:

1. Argos had better logistics then Sainsbury's.

2. By closing c65% of the Argos shops and bringing them into Sainsbury's stores will save £110mln a year and will fill empty spaces in current Sainsbury's stores.

The other c35% of Argos stores will remain as stand alone stores.

3. By closing Argos head office would also bring a saving.

[spob] 26/6/2020 10:28

I guess most Sainsburys directors have never used an Argos store.


So they will not understand the importance of keeping most of the proper Argos stores open.

Trust me, if they close all of the stand alone Argos shops then the Argos brand will be dead.

[poikka] 26/6/2020 08:12

A reminder of the costs that Covid has imposed on supermarkets - Tesco:

"...The majority of these costs relate to payroll which includes the provision of twelve weeks' paid leave to 26,000 vulnerable colleagues, in addition to the recruitment of 47,000 temporary colleagues to cover absence and meet increased demand.

We have also incurred costs in areas such as distribution, where we have needed to re-open previously mothballed distribution centres and property, where we have incurred costs to adapt the store environment and temporarily lost tenant income.

The provision of safety-related consumables and personal protective equipment across all of our 3,628 stores in itself results in a charge of c.£(65)m.

In total, our latest estimate of incremental costs for the UK for the full year is c.£(840)m. These costs will be partially mitigated by the UK business rates relief of £532m and a contribution from additional food sales."

[pmount] 25/6/2020 17:28

Lidl and Aldi put this well into shorting. chop prices or lose cutom, Aldi no longer a laughing stock stock. Covid was lucky for them but now its time to go back to 180p. People remember them removing all offers due to ques outside and they will pay for that.

[tim 3] 25/6/2020 14:46

The standalones will be gone in time imo.Even though many items are not available instantly you can still order online in the morning and collect the same day which is pretty fast.It would not surprise me if some standalones remain shut.The Argos in Sainsburys have been incredibly busy during the shut down.