Sainsbury (j) Share Discussion Threads

[loganair] 19/7/2024 21:36

In the latest Kantar UK grocery market share it seems to me that ASDA has been losing market share equally to both Sainsbury's and Tesco, while Aldi, Morrison and Lidl have remained the same.

No. 3 Asda was again the industry laggard with sales falling 4.9% and its market share down a whole percentage point year-on-year.

Nearly a quarter (23%) of British households did their grocery shopping online in the last three months - Not surprised in my local Tesco yesterday there seemed to be more staff picking groceries from the shelves for on-line shopping then there did actual customers in the store.



Latest data from NIQ shows total till sales growth at supermarkets in the UK slowed to 1.1% compared. to growth of 12.1% in the same period last year

[spob] 19/7/2024 14:13

.
" Due to technical issues at the London Stock Exchange (LSE), the Regulatory News Service (RNS) is currently unavailable. Additionally, some market maker quotes are missing, and the FTSE feed has stopped. "


I'm guessing this does not apply to the city traders

[pjleeds] 18/7/2024 07:06

I just bought 5000,shows as a sale

[havinthelasttoast] 15/7/2024 09:25

Hey Logan.

Only Friday you were on solgold saying money about to run out. 750m funding announced today ! Another loggy special. Funny you not around over there, I think you just slate companies you have lost money on. Hehe.

Poor loggy ya daft mug

[loganair] 12/7/2024 08:38

Half time England v Spain, run out of booze, pop down to Sainsbury's Local for a top up.....they're closed...



Sainsbury's convenience stores and Tesco’s Express stores in England will close early on Sunday to allow employees to watch the Euro 2024 final, following England’s triumph over the Netherlands in the semi-final.

Tesco, the UK’s largest supermarket chain, revealed that more than 1,800 Express stores will shut at 7:30pm, rather than the usual 10pm or 11pm.

Over a thousand of Sainsbury's convenience stores and petrol filling stations across England will be closing at the earlier time of 7.30pm on Sunday. Usually opening hours vary, although they tend to open until 10pm or 11pm.

Tesco has assured its staff that they will receive their regular pay for the hours lost due to the early closure. Employees who choose not to watch the match will also be compensated as usual.

“So, if we make it through to the final, we will close our stores across England in time for them to get behind Gareth Southgate and the team and we’ll all be hoping that football will be coming home.”

Clodagh Moriarty, Sainsbury's chief retail and technology officer said, "We want to give our colleagues the chance to tune in live and cheer on England with friends and family. The atmosphere in stores is electric after last night's win and everyone is working hard across the business to make sure our customers can find everything they may want for the match - whether that's our half price stone baked pizzas, some of dips which are down to £1 or our by Sainsbury’s Strawberries at just £2.”

Both retailers reassured customers that their stores would remain open as usual during the day on Sunday, allowing ample time for pre-match shopping. Additionally, all online orders scheduled for Sunday evening will be fulfilled as planned. Stores in Wales, Scotland and Northern Ireland will continue to operate according to their regular hours.

Lidl has announced that all its stores in England will open later than usual the following day, regardless of the match outcome.

Morrisons has said that it is business as usual for now.

[loganair] 10/7/2024 07:50

I disagree totally that M&S have fixed its engine problem as in the early 1990's was the first British retailer to make £1bln profit, that's around £6bln in todays money, when today it barely makes £600mln.

Therefore M&S are making 1/10th the profit they were 30 odd years ago.

[loganair] 10/7/2024 07:45

Traditional supermarkets battle Lidl and Aldi for market share by KATIE WILLIAMS:


If you look at the share price history of the listed UK supermarkets, you will see that none of them have ever recovered their pre-2008 valuations. A big reason for that is the growth in popularity of Lidl and Aldi.

The German discounters first arrived in the UK in the 1990s, but have grown enormously in popularity over the past decade and a half. They now have a combined market share of 18.1%, according to data from Kantar World Panel.

This has hit Morrisons and Asda the hardest, according to Russ Mould, investment director at AJ Bell. He points out that both companies are “saddled with debt after their respective takeovers”.

Mould adds that Tesco and Sainsbury’s are holding their own when it comes to market share, but suggests this doesn’t negate the impact the German discounters have had on their margins. He says: “Their margins are not expanding and remain in the low single digits, [revealing] how competitive this business really is.”

Changing consumer habits have also created a more challenging environment for traditional supermarkets over the past decade. The UK has seen a shift away from the big weekly shop, as households instead opt for shopping little and often.

This change in behaviour means consumers are more likely to visit several stores over the course of a week, shopping around for their favourite products and the best deals. The cost-of-living crisis has only accelerated this trend, as highlighted by a recent research report from the House of Commons Library.

The report writes that “46% of adults in Great Britain reported an increase in their cost of living in March 2024 compared to a month earlier”, with 89% pointing to increased food prices as the main reason for this. It adds that 49% were shopping around more as a result, while 38% were spending less on food shopping and essentials.


Have UK supermarket stocks delivered decent investor returns?


Nevertheless, it isn’t all bad news. We’re now just over halfway through the year, and Tesco and Marks & Spencer have posted decent returns so far in 2024.

Both stocks are up by around 5% year-to-date, broadly in line with the overall FTSE 100. Tesco paid a full-year dividend of 12.10p (a yield of 3.93%). Meanwhile, Marks & Spencer’s 3p dividend represents a yield of 1.03%.

Sainsbury’s share price performance, on the other hand, has been pretty poor. It is down by around 14% year-to-date. The company announced a full-year dividend of 13.10p (a yield of 5.12%), but it is unlikely to be enough to entice investors given the poor share price performance. They can earn the same yield by simply putting their cash in the bank.

Chris Beckett, head of equity research at Quilter Cheviot, says the supermarket remains “considerably smaller than Tesco, and in the high-volume, low margin world of food retail, scale is a critical factor and the ingredient for success”.

Commentators also point out that Sainsbury’s non-food business (including Argos) has experienced a slowdown of late, and is letting the side down.

Mould says: “It’s beginning to have a lot of similarities to the Marks & Spencer of old, running a two-pronged business with one engine constantly spluttering. Marks & Spencer has finally fixed its engine problem and is now racing away, which might give some hope to Sainsbury’s situation.”

If interest rates fall later this year and inflation continues to slow, supermarkets will be hoping to see shoppers putting more items in their baskets. This could create a tailwind going forward.

[philanderer] 03/7/2024 09:02

‘Buy’ Sainsbury’s, says Jefferies


Declines in non-food sales at Sainsbury’s (SBRY) should have hit their trough as an improving consumer environment drives sales, says Jefferies.

Analyst Frederick Wild retained his ‘buy’ recommendation and target price of 300p on the Citywire Elite Companies AA-rated supermarket, which tumbled 2.9% to 250.4p on Tuesday.

It reported like-for-like sales up 2.7% in the first quarter compared to 4.8% last quarter, and 9.8% the same time last year. Grocery sales were up but general merchandising lagged. However, the group still expects retail underlying operating profit of between £1.01bn and £1.06bn for the full year.

‘An exceptionally strong grocery performance at Sainsbury’s in the first quarter was diluted by a more downbeat delivery in the general merchandise businesses, particularly Argos,’ said Wild.

‘This should represent the trough, which feels well understood by the market given the shares’ recent underperformance.217;

Wild added that sunnier weather in recent weeks ‘should underpin sequential acceleration, with the chief drivers through the rest of the year being an improving consumer environment and an easing comparative’.


citywire.com

[spob] 03/7/2024 08:09

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" sunnier weather in recent weeks ‘should underpin sequential acceleration "

some people

[loganair] 03/7/2024 07:53

NAM Implications:

Standout item has to be Sainsbury’s ‘biggest market share gains of any grocer’…
…by implication ‘at the expense of Morrisons and Asda’…

…with Nectar Prices and Aldi Price Match schemes helping to slow the march of the discounters.

More worrying for branded suppliers has to be Sainsbury’s ‘Taste the Difference’ range remained its fastest-growing own brand, with sales growing at 14%.

The issue for Sainsbury’s has to be how long they can tolerate non-food diluting grocery performance……without significant changes in trading strategy.

[loganair] 03/7/2024 07:51

Analysts at UBS also dropped a 'buy' rating on Sainsbury’s stock with a 295p price target.

Weaker-than-anticipated general merchandise and Argos sales aside, “the strong grocery execution supports our view of the midterm margin upside”, said UBS.

UBS sees Sainsbury’s “delivering the strongest grocery sales growth out of the mainline grocers with ongoing net switching gains, and an increase in primary shoppers driving higher basket sizes”.

Sainsbury’s Taste the Difference range emerged as a hero product for the supermarket, with UBS noting a 14% year-on-year bump in sales.

Analysts were also impressed with Nectar extending its membership to 18 million, from 17 million the year prior.

[loganair] 03/7/2024 07:47

Sophie Lund-Yates, an analyst at Hargreaves Lansdown, described Argos as ‘an albatross around [Sainsbury’s] neck’ that ‘can’t be ignored’.

She added: “As inflation cools, the weather worsens and tough comparisons crop up on the course, eking out the amount of growth seen last year was always a difficult ask.


The problem I see of Sainsbury's bring in so many Argos in store is now very difficult to off load, sell compared to if had left has stand a lone stores.

If Sainsbury's close any of their in store Argos's what will they do with all the extra shop floor space it would leave?

[loganair] 03/7/2024 07:34

What a waste the over £1bln Sainsbury's spent on buying Argos, could of used this money to have either paid down debt or increase dividends.

It seems to me Argos is more suited to the socio-economic group of customers that shop in Asda rather then in Sainsbury's.

Over the past several years I've notice the quality of merchandise Argos sells has gone down.

I can remember 1990 - 2010 in my local Argos there would always be at least 3 staff serving and a further 2 upstairs in the storeroom loading stuff to be sent through. This Argos closed and moved into the local Sainsbury's and today there is usually just the one person serving and this same person also goes into the back storeroom to bring the stuff through - shows how the Sainsbury's management got it so wrong as there is virtually no cross over of customers from their grocery shopping into the Argos section of the store.

[davebowler] 03/7/2024 07:33

Citywire-
Declines in non-food sales at Sainsbury’s (SBRY) should have hit their trough as an improving consumer environment drives sales, says Jefferies.

Analyst Frederick Wild retained his ‘buy’ recommendation and target price of 300p on the Citywire Elite Companies AA-rated supermarket, which tumbled 2.9% to 250.4p on Tuesday.

It reported like-for-like sales up 2.7% in the first quarter compared to 4.8% last quarter, and 9.8% the same time last year. Grocery sales were up but general merchandising lagged. However, the group still expects retail underlying operating profit of between £1.01bn and £1.06bn for the full year.

‘An exceptionally strong grocery performance at Sainsbury’s in the first quarter was diluted by a more downbeat delivery in the general merchandise businesses, particularly Argos,’ said Wild.

‘This should represent the trough, which feels well understood by the market given the shares’ recent underperformance.217;

Wild added that sunnier weather in recent weeks ‘should underpin sequential acceleration, with the chief drivers through the rest of the year being an improving consumer environment and an easing comparative’.

[tim 3] 03/7/2024 07:29

Argos pulling things down.

From my own experience recently their prices are erratic usually Beaten by Amazon.

They also seem slow to react to the competition.

[philanderer] 02/7/2024 22:52

Sainsbury chief calls for rate cuts to kick-start consumer spending as Argos sales slump



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[kennewil] 02/7/2024 17:50

I find amazon and other onliners expensive these days. Esp when postage added.Found some good bargins at argos however.

[philanderer] 02/7/2024 17:16

loganair, exactly describes what I've done with Argos.

[loganair] 02/7/2024 14:24

Typical companies buying other companies at the top of the market - 1990 to 2015 was the top of the market for companies like Argos.

Then of course Covid lockdown, people got so use to ordering on line through e-bay or Amazon.

In the last 6 years, I've only bought one thing from Argos and I can not see myself ever buying anything from Argos in the future.

[philanderer] 02/7/2024 12:51

Sainsbury’s “could do better”


Russ Mould, investment director at AJ Bell said: “SainsburyR17;s has the same nagging feeling as the England football team – it eventually scores a goal but you know it could do a lot better.

“On the one hand, the food business is trucking along nicely and the grocer is winning market share. On the other hand, non-food items across clothing and general merchandise including Argos aren’t resonating with its customer base.

“SainsburyR17;s has a food-first strategy so it might argue that as long as the core part of the business is doing fine, the rest will eventually catch up.

“However, the non-food operations have been letting the side down for a long time and causing unwelcome distractions for management when they could be doing even more to capitalise on the new-found strength in food.

“It’s beginning to have a lot of similarities to the Marks and Spencer of old, running a two-pronged business with one engine constantly spluttering.

“Marks and Spencer has finally fixed its engine problem and is now racing away, which might give some hope to Sainsbury’s situation.

“Analysts are optimistic about the non-food bit because the year-on-year comparative figures will soon be easier to beat, but that doesn’t get to the root of the problem, which is why consumers aren’t choosing Sainsbury’s for clothing and general merchandise in the way they used to.

“After all, its Tu clothing brand was once seen as a robust player in the market, and Argos has certainly been the envy of the retail world in the past.

“It’s clear that a lot more work is needed to reshape the proposition, otherwise one has to question if the non-food operations are worth bothering with at all.”

CITY AM

[powereddrones] 02/7/2024 12:09

hxxps://www.msn.com/en-gb/money/other/sainsbury-s-issues-update-after-confirming-plans-to-shut-up-to-20-argos-stores/ar-BB1pgf38?ocid=msedgdhp&pc=U531&cvid=15d5e26946134a5da835e0bcb6738c57&;ei=13

"The supermarket chain, which acquired Argos in 2016, confirmed sales at the catalogue retailer fell 6.2% in the 16 weeks to June 22 due to weaker demand for consumer electronics and gaming products."

GAME already stopped selling physical games. All games will be downloaded for next gen gaming.

As most people have mobile phones, there is less need for electronics which used to be separate - I.e. Camera, Alarm clock, radio, Sat Nav, TV, DVD player, Walkman.

A smartphone does it all.

The demand is never coming back for the foreseeable.

[powereddrones] 02/7/2024 12:07

I stopped using Argos. Just easier to pick up things from B&M bargains or what have you.

I'd shut them all or sell them off.

Even the big ones, that are stand alone are empty mostly.

Buy something at the end of the day and if your order number is low, that's how many customers they have seen that day.

[loganair] 02/7/2024 10:20

Over the past couple of years, when popping into various Sainsbury's, most of the time the Argos section is completely empty of customers.

When Sainsbury's was taking over Argos, I was posting at the time that it seemed to me it was not the right thing to do and also Sainsbury's were paying too much.

More and more these days, the supermarkets are divesting themselves of the over paid for bolt-ons and returning to their traditional core of selling groceries.

[philanderer] 02/7/2024 09:54

Victoria Scholar, head of investment at Interactive Investor, said: 'Argos is struggling with the backdrop of weak demand given that its offering isn't a priority for cash strapped consumers at this time.

'Sainsbury's boss even said consumers remain cautious when it comes to discretionary spending.

'Garden and home are also struggling amid the disappointingly wet weather and in the era post the pandemic DIY boom.'

Chris Beckett, head of equity research at Quilter Cheviot, said: 'While Sainsbury's has demonstrated some positive trends, particularly in grocery, the overall thesis remains that in food retail, the bigger businesses are generally better positioned to reap the benefits due to economies of scale, hence we prefer Tesco.'

Scholar of Interactive Investor, said: 'Investors have had a tough time with the stock, which is down around 16 per cent so far this year, compared to Tesco up over 4 per cent.

'And they have failed to get enthused by the supermarket's mixed performance today, with the stock shedding around 4 per cent.