Tesco Share Discussion Threads

[cocker] 08/7/2017 06:03

For lidl sake let's hope they employ some staff as I said the other day. Peeps leaving trolleys at the checkout as no staff available to serve. This is a flag ship new store in my town,I pass it two times at least everyday & since opening it has far less cars in the car park. The market is crowded at best & sooner or later one will either fail miserably or join forces. My town has also lost at least 3 pubs in the last few years, these are now express stores . Is this the case where you are ?,

[philanderer] 08/7/2017 00:28

Lidl to add 60 new shops a year in ambitious £1.5bn UK expansion plan

[philanderer] 07/7/2017 12:06

Gloves off ;-)


"Tesco and M&S in food fight as the supermarket giant launches posh meal deal"

Supermarkets want a bigger slice of the cake in popular promotions as Tesco square up to M&S in the £10 meal deal fight

[ignoble] 07/7/2017 11:20

Lol
One fish , two fish , three fish ...anyone can do it

[philanderer] 07/7/2017 11:05

This should help ;-)

'Tesco wins MSC 'Fish Counter of the Year' Award 2017'

[philanderer] 07/7/2017 09:40

7th july Deutsche buy tp 240p

reiteration

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Tesco is launching a new contactless Clubcard

[vaneric1] 06/7/2017 18:51

One of our local towns Cinderford has had for several years a block on new supermarkets because every time the planners gave permission the Co-op challenged it in the courts and won.

Tesco, Asda and I believe Morrison's all suffered the same fate.

In the end they all walked away saying "Call us when you have the planning sorted."

At a hearing due this week for another challenge by the Co-op they finally caved in and withdrew their action, so Mr Lewis now's your chance, a cleared site in a sizeable town with permission ready to build on and only the Co-op and Lidl to compete.

Anybody here in a position to pass on the message?

[anony mous] 06/7/2017 13:30

Well that rise fizzled out quickly.

[philanderer] 06/7/2017 09:05

6th july Macquarie outperform tp 250p

reiterates

[philanderer] 05/7/2017 23:47

One more ;-)


MARKET REPORT: Shares in Tesco soar to top of FTSE after recent hot weather led takeover target Booker to post ‘outstanding’ sales

Read more:

[spellbrook] 05/7/2017 22:15

Tesco climbs as Booker target delivers growth

[philanderer] 05/7/2017 17:31

Sector movers: Food retailers bought, oil stocks see profit taking


(ShareCast News) - Food retailers led UK stocks higher on Wednesday amid a report about improving shop prices and a strong update from wholesaler and convenience store owner Booker.
Although the BRC-Nielsen shop price index revealed overall shop price deflation eased to 0.3% in June from the 0.4% drop in May, food inflation persisted.

Food prices rose 1.4% in June as they did the previous month, with fresh food prices up 1.4% in June, 0.2 percentage points higher than in May and the highest increase since February 2014, while ambient food inflation softened to 1.% from the 1.8% increase in May.

Booker reported growth in like-for-like sales in the first quarter thanks to the late Easter and favourable weather, boosting Tesco, which is currently awaiting regulatory permission to take over the wholesaler.

Broker Shore Capital said food inflation was "more of a positive than negative feature of the investment case for the supermarket segment".

However, ShoreCap was cautious on Booker even though acknowledging the wholesale's quarterly performance was outstanding and ordinarily would have driven upgrades and a demonstrably positive share price reaction.

"However, the decision to merge with Tesco, one of the worst performers in the FTSE-100 in CY2017, means that the Booker share is now a function of the supermarket chain. So, recovery, deleverage and negative sentiment to Amazon-Whole Food Markets is controlling Booker's share price as well as Tesco's. In time this may work through if the CMA grants approval for the merger.

"However, if the CMA puts forward unpalatable remedies to Tesco then the de-rating risk to Booker could be considerable."

[philanderer] 05/7/2017 13:16

FT Alphaville:

Booker Group PLC (BOK:LSE): Last: 190.90, up 6.7 (+3.64%), High: 191.20, Low: 184.90, Volume: 3.79m

BE
That, of course, is the main reason Tesco's up, but there was also a positive meeting at UBS yesterday.

11:59 am
BE
Which I've got a summary of somewhere, though my computer's not providing at the moment.

BE

Dave Lewis (CEO) and Alan Stewart (CFO) presented to the UBS salesforce. Management is confident on its ability to deliver the strategic targets of a 3.5-4.0% EBIT margin by FY19/20 and £9bn of cumulative OCF.

This is underpinned by key pillars of volume growth, cost savings and mix. Lewis sees his price position as the sharpest it has been in many years (we agree), underpinned by higher volumes per SKU (Project Reset SKU count -25%) and collaborative 'win-win' relationships with suppliers.

On recent strong market share gains by the discounters, Lewis emphasised his primary concern is Tesco's volume (not value) market share in key food and grocery categories and the recent 1Q18 sales print and switching data show it is winning in these areas.

BE
Interesting also on Booker.

12:00 pm
BE
Lewis sees the industry over-spaced following the 2007-14 period, when 'a new Asda' was added. He acknowledges c.5% excess space in his estate, but argues grocery store footfall has strategic value to other retailers (cf. Arcadia, Curry's partnerships) and post-Booker a professional catering offer can be brought into larger stores. He believes the scale of the Booker tie-up is underappreciated (adds c.£4bn sales to Tesco's c.£20bn UK grocery business).

The ongoing merger with Booker will enable Tesco to offer lower prices and improved service to Booker's retail and catering customers (cost synergies: £175m), which drives growth potential beyond the undemanding £25m revenue synergy target.

[philanderer] 05/7/2017 13:11

Market report:

"...Booker traded higher after it reported growth in like-for-like sale in the first quarter thanks to the late Easter and favourable weather, lifting shares in Tesco, which is awaiting clearance for its takeover of the food wholesaler and convenience store owner."

[philanderer] 05/7/2017 12:18

Food prices rise at fastest pace for more than three years in June as weak pound bites

[shanieboy01] 05/7/2017 10:38

Nw99: Probably wait until final go ahead is given

[nw99] 05/7/2017 10:10

Booker news time to buy here

[shanieboy01] 05/7/2017 09:41

Chinese investor: entirely possible someone will. 14bn is too cheap for 6553 stores worldwide. Works out as approx 2 million per store (cost of a 4 bed house in london)

[r ball] 05/7/2017 09:16

Expensive way to get the Booker MD on board.

[philanderer] 05/7/2017 09:12

I wish everything jumped 4% the day after I bought in ;-)

Morning everyone.

[chinese investor] 05/7/2017 09:00

Will Amazon make a bid for Tesco ?

[chinese investor] 05/7/2017 08:58

This Booker news is a welcome surprise !

[r ball] 05/7/2017 08:56

Amazon rumour?

[philanderer] 05/7/2017 00:20

'ShoreCap sticks to a hold on Tesco despite positive Irish news'


Shore Capital said it took note of improved recent trading at Tesco implicit in the latest Kantar data from Ireland, but said the time had not yet come to invest.

After years of challenging trading conditions on the Emerald Isle, good work on price and proposition had evolved from better volumes into positive sales momentum and greater market share.

"Ireland may have lost a lot of its margin lustre for Tesco but it remains an important market where profit progress would be welcome," the broker said.

Yet investors' skepticism regarding the potential from the "surprise" Booker merger, current leverage - especially the perceived drag from its pension responsibilities - and the more cautious sentiment towards the market leader since Amazon.com's decision to acquire Whole Food Markets were weighing on the shares, the broker told clients.

So while there was potential to be more positive on Tesco 'down the line', there was no need to jump into the shares in order to front-run a more favourable valuation in fiscal year 2020.

As well, the latter assumed successful execution of the business plan, a material reduction in leverage and no regulatory risk from the Booker transaction, Shore Capital said.

"So, the good news from the provinces of Ireland does not lead us to adjust our stance on Tesco's shares, which remains HOLD, noting firmer downside support but not enough upward oomph yet for aforementioned reasons."


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