Sainsbury (j) Share Discussion Threads

[chiefbrody] 27/2/2023 21:45

Struth. Looks grim for a Morrisons. Too much debt. Once again.

[smurfy2001] 27/2/2023 13:33

For traders upper trend ~285

[bountyhunter] 27/2/2023 13:21

Taking off! along with the others in the header, anyone know why? Maybe the ABF results?

[smurfy2001] 27/2/2023 13:13

Wow just wants to keep going higher this.

[chiefbrody] 27/2/2023 10:45

Wouldn't say dreaming. Just 300p (maybe sell half more at 280p) and then out of this dog forever.

[spob] 27/2/2023 10:10

Is anyone still dreaming about Bestway buying Sainsburys ?

Lol

[bountyhunter] 26/2/2023 15:06

I'm sure there's a market for ugly tomatoes and cucumbers right now lol!
...if only the supermarkets would lower their standards.

Good move by Sainsbury's re the flexible working week.

[loganair] 26/2/2023 11:09

I was stunned to hear that British supermarkets only accept circa 40% of the fresh fruit and veg grown in the UK and offered to them, the other 60% they reject as being too ugly or too missed shaped or too small etc - what food wastage.

I also understand that in the UK, we and the supermarkets waste around 15% of all fresh foods supermarkets stock - what a waste.

There is plenty of fresh fruit and veg, if only we and the supermarkets didn't waste so much of it.

[philanderer] 25/2/2023 10:15

Sainsbury's make huge change for staff with four-day working week

Eligible Sainsbury's staff will be allowed to choose how they work their hours, such as working four longer days, or at the weekend, so they can have more time off in the week

[loganair] 24/2/2023 18:06

Budget supermarkets Lidl and Aldi have seen the biggest price rises over the past year, according to new research.

Which? found prices were up 23.6% at Lidl and 22.5% at Aldi compared to a year ago.

It compares to 13.2% at Sainsbury’s and 13.6% at Tesco, 14.4% at Morrisons and 16.8% at ASDA with Which? having analysed inflation on more than 25,000 food and drink products across eight major retailers amid the cost of living crisis.

However, Which? still found the discount retailers were generally still cheaper than their competitors.

The research also found shoppers who rely on supermarkets' cheapest ranges are bearing the brunt of grocery inflation, with price rises on value items far outstripping those of branded and premium products.

The price of value range items was up 21.6% in January compared to a year before, well in excess of overall grocery inflation of 15.9%, Which? found.

In comparison, branded goods rose by 13.2% over the year, own-label premium ranges were up 13.4% and standard own-brand items increased by 18.9%.

[loganair] 21/2/2023 18:25

Co-op front runner in race to buy Sainsbury’s Bank’s £650m loan book, according to reports:


The Co-operative bank is among a number of parties understood to have tabled a bid for the supermarket bank’s loan book .

An insider cited by Sky News said the Co-operative “appeared to be the frontrunner” and that Starling Bank had also expressed an interest, but withdrew “some time” ago.

The Co-operative has been eyeing up potential acquisitions for more than a year as it hopes to consolidate the mid-size banking market.

[dipa11] 21/2/2023 08:28

hTtps://m.marketscreener.com/quote/stock/J-SAINSBURY-PLC-9590189/news/Sainsbury-s-to-Launch-Discount-Fruit-Vegetable-Boxes-43037158/

[spob] 16/2/2023 06:26

Bestway is mostly a wholesaler to uk corner shops (and their extended families Lol)

[bountyhunter] 15/2/2023 18:05

All over the place today but held it's own at the close.

[georgeo1] 15/2/2023 08:49

Even IF bestway do merge with sainsburys, it's a better choice, nowthat inflation is at its highest and a budget store is the best way.

[chiefbrody] 14/2/2023 13:10

Sold a few more. Just before that little spike ffs. No thanks needed :-)

[bountyhunter] 10/2/2023 12:50

"Bestway Tastes the Difference"

Great headline! :)

[loganair] 10/2/2023 11:43

Bestway Tastes the Difference With Sainsbury Stake - By Andrea Felsted:

Talk about a takeover of British grocer Sainsbury has been mounting. What if it became the acquirer instead?


Pervez’s company said when it announced the stake that it was not considering a takeover offer for Sainsbury. Indeed, a bid for the supermarket, with a value of £6.2 billion ($7.5 billion) before any premium, would be a big stretch for the conglomerate, which also includes a bank and a cement business. The privately held company generated £4.5 billion of sales in the year to June 2022, and £400 million of profit.

Bestway would have to borrow heavily to acquire Sainsbury, something that Pervez may be reluctant to do. He has an aversion to debt but likes freehold property.

But what if the endgame is not an acquisition of Sainsbury, but the supermarket buying Bestway?

There’s already a precedent in Tesco Plc’s £4 billion purchase of wholesaler Booker Group Ltd. five years ago. Booker generated about £5 billion of sales in the year to March 2017. This increased to £7.8 billion in the year to February 2022. Net income was £153 million in 2017. Tesco doesn’t disclose Booker’s earnings, but this could easily have doubled, with the deal also delivering £200 million of cost savings along with healthy cash generation.

Sainsbury has dabbled with different formats before, eyeing wholesaler Nisa Retail Ltd. in 2017, and having a partnership with Danish discount retailer Netto between 2014 and 2016. So it may be amenable to exploring a move into cash and carry.

Bestway’s wholesale business generated sales of £2.9 billion in 2022, and £71 million in pretax profit. Tesco and Sainsbury each trade at 0.4 times sales. So very simply, putting Bestway’s wholesale unit on this multiple would value it at about £1.2 billion. Sainsbury could acquire the cash and carry arm from its owners the Pervez, Choudrey and Sheikh families in return for a 15%-20% stake in the supermarket. With Bestway’s existing holding, this could give them up to 25%.

The two companies could benefit from buying scale and potentially cost savings — at least £100 million based on Tesco and Booker. Bestway also owns Well Pharmacy, the UK’s largest independent chemists’ chain. That could prove useful to Sainsbury given that Lloyds Pharmacy is planning to close its outlets in the supermarket’s stores. Meanwhile, Tesco’s purchase of Booker encountered few competition hurdles, unlike Sainsbury’s aborted £7 billion acquisition of Asda in 2018.

If this is Pervez’s aim, he didn’t need to buy shares in Sainsbury. But as Sports Direct (now Frasers Group Plc) founder Mike Ashley has demonstrated, a sizable shareholding gets management’s attention.

Even if Bestway doesn’t go down this route — it has said its holding is for investment purposes after all — there’s another way it could benefit.

Sainsbury already had two big shareholders: the Qatar Investment Authority with 14.3%, and Czech billionaire Daniel Kretinsky with 10.1%. Add in Bestway’s 4.5%, and if any potential bidder could persuade these holders to sell, it would have support for an offer from investors representing close to 30% of the shares.

The seizing up of the leveraged-loan market makes a tilt from private equity less likely than it may have been a couple of years ago. But Pervez is known to take a long-term view. Having the opportunity to participate in any future industry consolidation is much better than looking through the shop window.

[loganair] 08/2/2023 13:30

Sainsbury’s can be ‘notably re-rated’ reckons Shore Capital:


Sainsbury’s can be “re-rated̶1; notably higher Shore Cap believes based on the plans laid out at an investor day yesterday.

The FTSE100-listed supermarket, which also used the meeting to highlight the strengths of its executive team below C-suite level, added it will emphasise the stronger brands and lower prices going forward.

“Much more needs to be faced into and undertaken, however, for the group's earnings to enter a trajectory of sequential growth,” Shore Cap said in a note.

Sainsbury’s should draw on the “fast-moving” environment around automation and artificial intelligence added the broker.

“Strategically, Sainsbury has much to think about, as do all multi-channel retail businesses at this time when it comes to human capital, fixed assets, processes, and policies,” added the bank.

Analysts also suggested that the “surprise investment” from wholesaler Bestway had helped to prop up the supermarket's share price, although this was not discussed at the meeting.

[loganair] 08/2/2023 09:54

Sainsbury’s boss Simon Roberts will meet investors on Tuesday afternoon for the first time since wholesale retailer Bestway bought a 4.47% stake in the supermarket giant.

It marks the first opportunity for Bestway to engage with Sainsbury’s since it upped investment in the FTSE100-listed supermarket in recent weeks.

Shore Capital analysts suggest it is unlikely Sainsbury’s will acknowledge the move in any great detail, but would rather focus on the supermarket’s operating model, which has a seen an overhaul during the past year.

Sainsbury’s committed some £500mln to cutting its prices last year, aiming to stem rising costs and keep it competitive with discounters Aldi and Lidl, which have seen stronger performances as consumer’s pockets are squeezed by the higher cost of living.

“We would not expect any comment from the company on this investment aside that it will engage with Bestway as it does any other shareholder in the present circumstances,”; said Shore Cap.

Suggestions have previously been made that Bestway could be eyeing a supply deal with Sainsbury’s, with AJ Bell analyst Russ Mould explaining its investment gives it the power to “demand proper conversations” with the group.

“A notable stake in the business also suggests it is serious about wanting to collaborate," Mould added in late January.

Bestway is the UK's largest cash and carry wholesaler and owns the likes of Costcutter, Well Pharmacy and Bargain Booze.