Sainsbury (j) Share Discussion Threads

[philanderer] 17/1/2022 10:41

GOLDMAN SACHS RAISES SAINSBURY(J) PRICE TARGET TO 280 (270) PENCE - 'NEUTRAL'

[spob] 15/1/2022 07:47

Lord Sainsbury kicked the bucket yesterday

He probably only had a small shareholding

So not significant

[loganair] 13/1/2022 20:58

Bamfield’s research shows in supermarkets in the UK that about £1.4bn a year is lost to shoplifting, followed closely by £1.3bn in employee theft.

Bamfield says the most common technique staff use to steal is referred to in the industry as “the switcheroo”.

“An uncle will say to his cashier nephew, ‘I’m coming into the store tomorrow afternoon and I’d like a discount,’R21; he explains. “When the uncle comes to the checkout, the nephew will have a barcode sticker for a watermelon or orange or something on his palm and while pretending to scan the uncle’s bottles of scotch whisky the nephew will scan the watermelon sticker.”

Shoplifting began soaring in 2014 after the law was changed to define “low-value shoplifting” as a summary offence. This means that police forces can decide not to investigate thefts from shops of goods worth less than £200.

[loganair] 13/1/2022 20:50

Amazon is planning to open about 60 more UK grocery stores this year, followed by 100 in 2023 and another 100 in 2024.

[loganair] 13/1/2022 14:47

Five takeaways from Sainsbury’s Christmas results by Nick Gladding Senior Retail Analyst:


Grocery sales hold on to 2020 gains:

Total grocery sales may only be up 0.1% on last year1 (or 0.8% excluding the impact of stores being closed on Boxing Day), but this is on top of last year’s stellar 7.4% growth. It’s enough to have increased Sainsbury’s volume market share through the Q3 period2 and for the Christmas period over one and two years. It has also allowed Sainsbury’s to lift its profit guidance for the full year to March 2022 from at least £660m to over £720m. It’s certainly true that the robust sales reflect shoppers’ desire to celebrate after missing out on festivities last year and an element of inflation, but Sainsbury’s deserves credit for successfully executing against its Christmas strategy and offsetting the impact of reopened foodservice sector, even though this was lessened by the Omicron outbreak

Delivering on value:

Sainsbury’s entered the Christmas period with a much-improved position on value, particularly on the lines that matter most to its shoppers, and this helped to boost visits from secondary shoppers. Customer satisfaction for value for money was up four percentage points on last year and Sainsbury’s is keen to take this further. The grocer will now build on its Aldi Price Match Christmas dinner campaign by matching Aldi prices on 150 fresh lines and by expanding its Price Lock guarantee to 2,000 high volume lines to encourage customer loyalty. My Nectar Prices, launched last September, provided another boost for the grocer, with 95 million personalised offers delivered every week.

Focus on product innovation:

As part of its commitment to triple levels of product innovation, Sainsbury’s launched 600 new products in Q3, 300 of them new Christmas lines. These launches helped Taste the Difference to be the fastest growing private label tier at Sainsbury’s with sales up 13% on 2019 levels. The outperformance of premium private label is a trend seen across the market with Kantar noting 7% year-on-year growth in product sales, reflecting both retailer investments and strong underlying demand after the much reduced festivities of 2020.

Online sales resilient:

While 15% down on 2020 for the six-week Christmas period, online grocery sales remained at almost double 2019 levels and orders were up 41% for the key Christmas week. Growth in order numbers was offset by a slightly lower basket size, fuelled in part by the introduction of a monthly option for Sainsbury’s Delivery Saver scheme. Sainsbury’s remains focused on improving the profitability of online and the higher pick rates and deliveries per hour it has reported will help. At the same time, Sainsbury’s saw more shoppers return to supermarkets.

Non-food sales decline:

Overall retail sales at Christmas fell by 2.9%, pulled down by a 10.6% drop in general merchandise sales against exceptional growth last year when Argos units at Sainsbury’s stores benefited from being classed as essential retail. Contributing to the sales fall this year were supply chain challenges limiting availability in key areas and a strategy to focus on more profitable categories and reduce promotional activity also impacting.

[philanderer] 13/1/2022 14:34

13th jan JP Morgan retains 'underweight' ...tp 230p , up from 220p

[philanderer] 13/1/2022 14:21

Sainsbury’s shines after bumper Christmas


Sainsbury’s (SBRY) has reported a profit jump following bumper Christmas trading and Third Bridge says private equity investors are still circling the grocery sector.

The supermarket increased full-year operating profits guidance by £60m to £720m following a jump in quarterly sales, reflecting market share gains.

Analyst Ross Hindle said UK supermarkets are ‘attractive to private equity investors and should remain so during the whole of 2022’. However, unlike Morrisons, Sainsbury’s is a ‘complex target’.

‘The group is not vertically integrated, does not boast an impressive property portfolio, and is currently faced with some market share risk from both the discount and rapid-delivery sector of the market,’ he said.

Sainsbury’s could benefit from food price inflation, which is expected to outpace cost inflation this year and may result in higher operating margins.

Hindle warned that pricing remains ‘a balancing act, with Sainsbury’s contending with not just cost pressures but a highly competitive jobs market and pressure from the rapid-delivery players’.

Shares in Sainsbury’s rose 3.1%, or 8.7p, to 288p on Wednesday.

citywire.com

[oracle14] 13/1/2022 13:35

Time to buy..this is going to grind up a long way

[quepassa] 12/1/2022 14:36

a big beat against consensus analyst forecasts

[philanderer] 12/1/2022 14:33

Yes, happy to hold.

[imperial3] 12/1/2022 11:21

The market likes these results.

[anhar] 12/1/2022 09:44

Best bits of the update imo are, quote:

"...Our expectations for full year profits are ahead of previous guidance..."


"...Free cash flow remains strong and we expect to meet our net debt reduction target ahead of schedule..."

As an income investor I see these items as encouraging for future divis. However the current yield is not that great, 3.7% at 284p if they repeat the latest annual divi of 10.6p, though in light of the above there may be a small rise in the payment. SBRY is close to my dump rule which applies to the lower quality shares in my port, if their yields fall to around the FTSE100.

[loganair] 12/1/2022 09:10

On a scale of 5 (being the best) to -5 the best I can say about these latest set of results is a 0 tending to -1.

[netcurtains] 12/1/2022 09:10

I shop at Sainsbury's because it has huge car parks - Aldi is total rubbish - just causes traffic jams. It's a load of tosh.

[loganair] 12/1/2022 09:06

Ross Hindle, analyst at Third Bridge, said: "Despite many expecting the discounters to flourish in the face of food inflation pressures, our experts don't expect Sainsbury's to be easily caught out."

He added: "December's trading was particularly strong for UK supermarkets, with home working translating into home eating and fewer consumers dining out as Omicron swept the country.

"There is now plenty of evidence to suggest the UK's grocery renaissance is here to stay. Sainsbury's should be able to hold on to its gains thanks to its loyal customer base and innovation around product lines, however it would be remiss not to highlight the threat the discounters and rapid-delivery grocers pose, particularly to Sainsbury's."

[loganair] 12/1/2022 09:05

Sainsbury's, the UK's second-largest supermarket chain by market share, reported grocery-led sales growth for the festive season covering the six weeks to 8 January - when compared to the same pre-pandemic period in 2019/20.

However, the picture was less rosy on a year-on-year basis as total retail sales came in 2.9% down on 2020/21 though its core food and drink offering saw growth of 0.1%.

Online grocery sales fell 15% as demand for deliveries tumbled given fewer COVID restrictions on families compared to Christmas 2020.

The company added that full price clothing sales were up 38% versus two years ago - and 2% higher on 2021/2021 thanks to reduced markdowns and promotions.

Argos sales were more than 9% down in the wider third quarter compared to the same period last year while the supermarket chain's general merchandise performance was 20% lower.

Total retail sales were 5.3% down on the same three months in 2020/21.


Its six-week festive performance does not compare favourably to discounters Aldi and Lidl, who both reported surging sales over their respective Christmas seasons.

[oracle14] 12/1/2022 07:14

Results look very very good...

[oracle14] 12/1/2022 07:13

Results look very good...

[philanderer] 11/1/2022 13:55

Lidl claims to be fastest-growing bricks and mortar retailer after Christmas sales growth

The firm's UK boss says Lidl will be "the destination for the lowest grocery prices" this year as household budgets are squeezed by rising inflation.

[anhar] 11/1/2022 08:45

I believe they've putin for a lot more stores, but I'm not russian to visit them. Too far to go and it's aldi same to me, rather have a lidl journey.

Wonder if they'll be selling novichoklate?

[loganair] 10/1/2022 17:08

New 'Russian Lidl' shop: Mere sells products half the price of Aldi.

I understand they currently have 2 stores opened, one in Preston and the other in Caldicot and are aiming to have 300 stores with in the next few years.