Sainsbury (j) Share Discussion Threads

[loganair] 07/2/2024 10:20

It will see Sainsbury’s roll out its personalised Your Nectar....like Your M&S and Your Waitrose....that's innovative isn't it?????

[loganair] 07/2/2024 10:15

On my scale of -5 to +5 i give this new strategy no more then -2, in other words detracts value.


The UK’s second biggest supermarket said it will cut its general merchandise and clothing to boost its food ranges....What was the point in spending over £1bln in buying Argos?

Sainsbury's margins are far higher on their clothing then on foods.


The strategy revamp – called Next Level Sainsbury’s – will see it cut costs by £1 billion over the next three years, focusing on technology investments to deliver automation and savings = slashing staff numbers...most probably leaving just the one single manned till.


Roll out rapid electric vehicle (EV) charging points to more than 100 stores by the end of its 2024-25 financial year, up from 20 currently....The CEO really thinks people make a choice on where to shop just because of EV charging points???


William Woods, a retail analyst at Bernstein, said the strategy update was “more evolution than revolution, as expected, building on the ‘food first’ strategy launched in 2020, which has so far been successful in turning around market share and bringing the focus back to food”.

He added the “commitments are a bit fluffy, such as delivering profit leverage from sales growth”.

[loganair] 07/2/2024 10:09

No...No...No share buy backs a complete waste of money. If any spare cash a one off special dividend.

[dondee] 07/2/2024 10:00

A buy today, surely.

[dondee] 07/2/2024 09:58

Down over 10p this morning. Must be a good buy at this price.

[philanderer] 07/2/2024 09:55

The strategy update went down well :-(

[dondee] 07/2/2024 09:54

Down over 10p

[bountyhunter] 07/2/2024 07:44

Enhanced Returns for Shareholders - Progressive dividend commitment and share buyback



The strength of our balance sheet and cash generation will allow us to invest capital in targeted areas, further strengthening our capabilities, driving growth and efficiency and generating higher profits and returns. A higher level of capital investment is balanced with a reinforced commitment to strong free cash flow generation and stronger returns for shareholders.



Specifically, we will now commit to a progressive dividend policy from the start of next financial year and the commencement of a share buyback programme, with £200 million of share capital to be bought back over the course of the next financial year.

[spob] 07/2/2024 07:22

.
" We're only just at the beginning of rediscovering quite what this business is capable of "

Seriously ?

After how many years in this business ?

[spob] 07/2/2024 07:14

.
£200 Million down the toilet

[philanderer] 06/2/2024 10:43

HSBC raises Sainsbury to 'buy' (hold) - price target 310 (300) pence

[loganair] 05/2/2024 21:40

The problems that both Morrison and Asda are having, the CMA may not let another private equity firm take over Sainsbury's, Tesco is out of the question, therefore I struggle to see anybody else that may wish to take them over.

[bountyhunter] 05/2/2024 20:42

It's interesting to note that Tesco shares have been beating Sainsbury's by a small amount on the 6 month and 1 year charts, however the yield is a bit higher for Sainsbury's so that puts them pretty much neck and next. I still prefer Sainsbury's as I consider them to be a more likely takeover target, although it has to be said that neither the takeover of Asda or Morrisons could be considered to have been a roaring success!

[alphorn] 04/2/2024 20:58

spob - doesn't the TUPE arrangements cover 12mths? A long time since I studied it so may easily be wrong.

[spob] 04/2/2024 18:05

.
Ex-Sainsbury’s pharmacists fear loss of redundancy claim after Lloyds liquidation

By Stephen Jones

2 Feb 2024

The Grocer

Lloyds closed all 237 of its concessions in Sainsbury’s branches in January 2023

Pharmacy workers behind a redundancy claim against Lloyds Pharmacy, made following the closure of its concessions in Sainsbury’s stores, fear they’ll lose any prospect of financial compensation after the pharmacy group entered liquidation.

The workers – who are being represented by the union Pharmacists’ Defence Association (PDA) – were all originally employed by Sainsbury’s before it sold its pharmacy sites to Lloyds in 2015. They began a group claim against Lloyds in July, arguing that they are entitled to enhanced redundancy packages based on their original contracts, after the Lloyds owner Aurelius closed all of its 237 Lloyds sites in Sainsbury’s stores in January 2023.

Last week Lloyds Pharmacy – which has been slowly divesting its store estate over the last year – entered a voluntary liquidation, owing a combined £293m to hundreds of creditors, the trade title Chemist + Druggist first reported.

Despite the amount, documents posted by the administrator to Companies House show that only £8.2m of assets will be available to preferential creditors.

Given the financial situation, the former Sainsbury’s workers believe they are unlikely to receive any financial pay should they win their claim, according to the PDA.

The claimants argue they are owed an enhanced redundancy package based on the terms of their original employment contract with Sainsbury’s. Some of the claims are thought to be for some tens of thousands of pounds, based on the discrepancy. Sainsbury’s has no involvement with the proceedings.

Lloyds – which has since been renamed to Diamond DCO Two Limited – has maintained that the group has no contractual right to enhanced terms, and would only offer statutory benefits, per a report by Chemist + Druggist.
Read more: What Lloyds Pharmacy’s woes says about the state of British chemists

Earlier this month a preliminary employment tribunal hearing was set to hear the claims, however a 28-day hold was placed on proceedings following the news of Lloyds’ creditor voluntary liquidation.

The claimants intend to proceed with the claim, however, a person with knowledge of the proceedings told The Grocer some members are resigned to any potential victory being more “moral” than leading to financial compensation.

“The PDA recognises the surprise announcement that their former employer was being placed into liquidation will be a bitter blow for members, who will be concerned they may not now secure justice for the loss of their enhanced redundancy entitlement,” the PDA said in a statement following the initial preliminary hearing last week.

“Due to the company decision to go into liquidation, the tribunal claims by members face some challenges ahead. Even if these claims proceed to a final substantive hearing and a tribunal upholds them, there is a very real risk the company will have no money to pay any compensation awarded.”

The PDA said it is also exploring whether it would be possible to receive compensation through indemnity insurance.

The rescheduled preliminary hearing is set to take place at the end of February.

[loganair] 04/2/2024 10:08

Interesting what is being said about Morrison's....

"The ultimate goal is clearly to restore the profitability and dividends for the company's private sector investors. Forecourts, city centre convenience stores and acting as wholesaler operators of smaller stores is part of the plan. But the ultimate goal must be to fatten up Morrison's for an eventual return to listed markets."


So far the private equity owners have sold and leases back Morrison's Manufacturing, warehouses and distribution centres and is about to sell all its petrol forecourts and freehold of their EV charging areas.

Then like with Debenhams or Woolworths after asset stripping, pay a couple of years of huge dividends to its private equity owners via taking on more debt then guess what relist Morrison's.

[loganair] 04/2/2024 09:54

News of a possible stake sale heaps more uncertainty on Asda, Britain's third largest supermarket chain, which has been losing market share to the discounters Aldi and Lidl.

Mohsin has run Leeds-based Asda in the absence of a chief executive since 2021. But MPs investigating the debt-fuelled takeover have criticised his lack of food retailing experience and an inability to answer basic questions about Asda's finances.

[loganair] 03/2/2024 19:25

ASDA is in a complete mess at the moment and shows that the CMA hadn't a clue, didn't know what they were doing by refusing the merger between Sainsbury's and ASDA.

If the merger had been allowed to go ahead and with the disposal of stores that Sainsbury's had promised then today the combined Sainsbury's/ASDA group would have circa 0.5% less market share then TESCO has today and would therefore be able to give Tesco a run for their money.

The CMA got it wrong as with the disposal of stores Sainsbury's had promised there were really NO competition concerns by allowing the two supermarkets to merge.

[loganair] 03/2/2024 11:25

Clive Black, analyst at investment group Shore Capital, played down the likely impact on the supermarket sector.

‘We do not think it rocks the UK grocery market apple cart,’ he said.

Morrisons is battling the increasingly popular discounters Aldi and Lidl.

Industry data shows that Morrisons’ hold on the grocery market was sliding even further.

Morrisons has once again emerged as one of the worst performing of Britain’s major supermarkets in the wake of its private equity takeover only doing slightly better than Asda, which is also floundering under private equity ownership.

By contrast, Lidl is currently the fastest growing supermarket followed by Aldi then Sainsbury's and Tesco.


Note - Look at Asda going cashless, pay at the pump only at all its petrol stations, therefore also needing less staff, shows how desperate they are to cut costs. I can see Morrisons'/MFG forecourts being next.

[loganair] 03/2/2024 11:18

UK supermarket chain Morrisons has agreed a £2.5 billion deal to sell its 337 petrol forecourts to Motor Fuel Group (MFG).

The proposed transaction – which includes fuel, convenience retail stores attached and ancillary services such as 500 freehold plots of land at the supermarket chain’s locations where “ultra-rapid electric vehicle (EV) [charging] and valeting hubs.

The U.S.-based private equity group Clayton Dubilier & Rice owns both Morrisons and MFG therefore I seems reasonable to me that something fishy is going on here.

[loganair] 02/2/2024 14:56

Asda and Morrisons lose market share over Christmas as Aldi and Lidl's popularity increases.

Asda's market share at 13.7% is now 2% lower then Sainsbury's 15.7% when this time last year was only 0.3% lower.

[blackhorse23] 02/2/2024 11:49

Bought some GNC who is one of food manufacturers for Sainsbury

[pirates4] 02/2/2024 11:20

Would the share buy back include the offering from share save scheme including.