Sainsbury (j) Share Discussion Threads

[loganair] 04/1/2023 14:13

For December Lidl sales up 23.9%, Asda 6.4% and Sainsbury's 6.2%, Tesco 6.0% while Morrison saw a decrease of 2.9%.

As food inflation is running at circa 15%, any sales increase less than 15% means the supermarket is selling less stuff.

[imperial3] 04/1/2023 12:36

Share price looking good today.

[bountyhunter] 03/1/2023 12:36

But surely they should be given the return to the High Street this December vs Omicron December in 2021.

[loganair] 03/1/2023 11:04

Just being reported that Aldi sales are up 26% this December compared with December 2021.

[loganair] 03/1/2023 10:31

J Sainsbury:


2022 has been a bruising year for the UK’s established grocers like Sainsbury’s (LSE:SBRY).

Takings have been hit hard by falling demand for food and other essentials. At the same time their margins have shrunk as they’ve slashed prices to tempt shoppers through their doors.

A subsequent fall in the J Sainsbury share price now leaves the grocer looking extremely cheap on paper. At 218p per share, it trades on a price-to-earnings (P/E) ratio of 10.5 times. The forward dividend yield meanwhile clocks in at a market-beating 5.7%.

Pleasingly, the cost-of-living crisis is tipped to moderate during the second half of 2023. So shoppers could have more money to spend in Sainsbury’s.

But the business still has to grapple with the long-term problem of rising competition, a battle it’s shown little sign of winning. Its market share has dropped 1.7% over the past 10 years as discounters Aldi and Lidl have expanded.

Earlier this month, Sainsbury’s announced plans to invest another £50m to bring down prices. As a potential investor, I want to see the firm do more to defend itself. Profits-sapping price cutting hasn’t worked yet and I think the business is pouring away good money after bad.

The FTSE 100 firm also faces prolonged staff, energy and product cost inflation that could persist long beyond 2023. This low-cost share carries far too much risk for my liking.

[dondee] 03/1/2023 09:33

Where is everyone.Still on the shrinking ski slopes?

[tuftymatt] 30/12/2022 07:56

The City boys need to be given time to get to the airport spob and fly off skiing or to the sun for the long weekend. Have a bit of consideration 😂

[spob] 30/12/2022 05:32

Half day trading today

It's not even new year eve yet

lazy gits

[bountyhunter] 28/12/2022 12:29

Sounds unpleasant, but not just Sainsbury's...

[spob] 24/12/2022 21:24

Sainsbury's oldest worker Eddie, aged 92

[amaretto1] 23/12/2022 08:55

ALDI and Lidl ....Are having a big problem taking the money ..... Skeletal business models don't work in times of floods of people !

[amaretto1] 23/12/2022 08:52

Well i went in my local Sainsbury's yesterday......Packed ... ARGOS ques same ...It's been like that for last 2 weeks ... words from the resident security guard ....

[loganair] 23/12/2022 08:48

Sainsbury's sees a drop in online searches while discount supermarkets Aldi and Lidl see boosts:

Data released this week suggests that Sainsbury’s is heading for a tough Christmas, with online searches for the supermarket taking a tumble during the busiest shopping period of the year.

MediaVision’s annual “Top 10 Supermarket Christmas Winners” reveals that of the leading supermarkets, Sainsbury’s has seen the biggest drop in online searches from the start of December; a fall of 3,462,198 compared to the same period last year.

Rival Tesco saw a decrease in searches of 472,286 while Asda experienced a drop of 108,563.

It was much better news for the German discounters, Aldi and Lidl. In the “Top 10” line up, they were two of only three “risers” - seeing a 93,002 and 69,358 increase respectively even if they still represent a smaller share of the pie than the “Big Four”.

Total searches for Aldi came in at 2,313,418 while Lidl saw an impressive 1,258,058 searches in December, narrowing the gap on stalwarts such as Sainsbury’s and Morrisons.

This news is unlikely to land well with Sainsbury’s whose CEO, Simon Roberts recently announced £550m worth of investment to cut prices in store to compete with Lidl and Aldi. Only Costco saw a larger increase, with 150,962 searches vs the same period last year, as it almost broke the 1m mark for searches (926,462).

Louis Venter, CEO at MediaVision, comments: “The lead up to Christmas is always a busy time for all supermarkets, but this year the cost of living has led to consumers looking for alternatives to their normal retailer of choice.

“It should come as no surprise that Aldi and Lidl are seeing big increases in search, proving they are ever-more serious contenders for the UK supermarket crown, while Sainsbury’s are finding themselves in the eye of the storm - wanting to compete on price, while known for choice and quality. A difficult balance, when people are counting the pennies.”

[loganair] 23/12/2022 08:41

It was only a few years ago where the grocery shopper was subsidising the car driver with the buy £50 worth of groceries and get a 10p per litre off petrol/diesel voucher.

While today its the complete opposite where the car driver is subsidising the grocery shopper as the supermarkets are making circa 4 times the profit from their petrol/diesel they use to in order to subsidise the grocery shopper, in order to try and compete with the prices of Aldi and Lidl.

[bountyhunter] 19/12/2022 20:49

More coverage in the Mirror today of the Sainsbury's vs Aldi story:

[spob] 19/12/2022 19:04

Anyone still remember the days when common sense was common

[spob] 19/12/2022 19:02

Always thought it was daft that Sainsbury's self scan checkouts ask you if you want a receipt or not.

If you go through the front door and an alarm goes off, the first thing you will be asked is ... "can I see your receipt"

Doh

[spob] 19/12/2022 18:58

Sainsbury's sparks furious backlash from shoppers who 'feel like hostages' as barriers at self-service checkouts will not open until a receipt is scanned

[loganair] 18/12/2022 08:36

Once again Sainsbury's are acting more like a charity.

Sainsbury's needs to make as much profit as possible to be able to pay the highest possible dividend as that is what provides many pension companies with income to pay out to pensioners.

Instead of spending money on lowering prices, Sainsbury's need to completely restructure its management and the way they run is the only way to take on the discounters. This is why the likes of British Airways, Air France etc lose out to the likes of Ryanair and Wizzair.

[philanderer] 18/12/2022 00:33

Supermarket boss has a message of hope for shoppers feeling the pinch at Christmas: We'll spend £550m to cut Sainsbury's prices and take on Aldi

[bountyhunter] 17/12/2022 10:12

They should give shoppers a nectar point in exchange for scanning their receipt then cash strapped shopper's would suddenly find it a pleasure ;)
Seriously though it's not a very 'green' or cost effective measure requiring all shoppers to print out receipts so maybe they should rethink this and come up with something else!

[bountyhunter] 16/12/2022 21:53

This may drift until we get a Christmas trading update which hopefully will be supportive, 12 Jan previously, although we are in strange times so it's hard to predict. Sainsbury's will no doubt be losing some customers to Lidl & Aldi but should be picking up new customers from Waitrose, M&S and Ocado. There is also Argos to consider, acquired in 2016, which should do well over the Christmas season. The current price is underpinned to an extent by the 6% yield.