Tesco Share Discussion Threads

[loganair] 06/3/2018 11:05

Market leader Tesco and No. 4 Morrisons were jointly the fastest growing of Britain's big four supermarkets over the last three months,while No. 2 Sainsbury's was the laggard, industry data showed on Tuesday.

Market researcher Kantar Worldpanel also said grocery inflation was 2.9 percent in the 12 weeks to Feb. 28, down from 3.6 percent in its last report.

Kantar said Tesco and Morrisons' sales both increased 2.7 percent year-on-year over the period, ahead of growth of 2.3 percent at No. 3 Asda and 1.1 percent at Sainsbury's.

Kantar highlighted strong growth at Tesco's Extra hypermarkets, and said sales of Morrisons premium own label ranges were particularly robust.

During the 12-week period Asda attracted an additional 309,000 shoppers through its doors which helped its sales growth to reach its highest level since June 2014.

Meanwhile, there are no signs of a let up in the shift away from discounted products for Sainsbury’s: only 34.5 per cent of sales at Sainsbury’s were on promotion during the past 12 weeks, in stark comparison to 41.9 per cent for the rest of the big four.

Morrisons held its market share but Tesco, Sainsbury's and Asda all still lost ground to discounters Aldi and Lidl, whose sales rose 13.9 percent and 13.3 percent respectively.

Meanwhile, Kantar’s figures show that the Co-op returned to growth for the first time since July 2017 with sales up 0.4%.


Market share and sales (percent):

.....................12 wks to.......2 wks to...pct change
....................Feb 25, 2018.....Feb 26... 2017 in sales
Tesco................ 27.9............ 28.0..........2.7
Sainsbury's...........16.2.............16.5..........1.1
Asda..................15.6.............15.7..........2.3
Morrisons.............10.6.............10.6..........2.7
Aldi...................7.0..............6.4.........13.9
Co-operative...........5.8..............6.0..........0.4
Waitrose...............5.2..............5.3..........2.3
Lidl...................5.1..............4.6.........13.3
Iceland................2.2..............2.2..........1.3
Ocado..................1.2..............1.1.........10.7

As per usual Kantar have not mentioned M&S Foods which has around 3.6% market share which Nielsen does and then there is the others which account for a further 1.8% = 5.4% and the totals above give 96.8% leaving just 3.2%. Therefore there is a 2.2% discrepancy in Kantar's figures. Nielsen consistently gives lower market share to the big 4 supermarkets and includes M&S in their market share figures.

[ny boy] 06/3/2018 10:15

Not long before we break 214p resistance

[philanderer] 06/3/2018 10:05

Shore sticks with Tesco ‘buy’ rating


Shore Capital had not been convinced by the Tesco’s (TSCO) Booker takeover but believes the supermarket can rebuild margins and deliver strong earnings per share.

Analyst Clive Black reiterated his ‘buy’ recommendation after Tesco formerly announced the Booker deal had been completed and Booker chair Charles Wilson would be joining the board as a non-executive director.

‘Shore Capital has not been bowled over by the Booker merger, it has to be said, but we welcome its completion and so the commencement of the job in hand of combining the two entities and extracting targeted synergies,’ said Black.

‘More broadly though, our positive stance on Tesco reflects our well-versed expectations that margins can rebuild and on our current expectations support strong earnings per share growth to 2020 with corresponding rating compression.’

The shares were trading at 203p yesterday.

[philanderer] 06/3/2018 09:55

Barclays resuming coverage this morning with 'overweight' and tp 255p

[chinese investor] 06/3/2018 09:54

"Tesco PLC (TSCO.LN), the U.K.'s number one grocer by market share, together with number four peer Wm. Morrison Supermarkets PLC (MRWSY) were the fastest-growing grocers in the latest 12-week period, a survey from Kantar Worldpanel showed Tuesday."

[mercer95] 06/3/2018 09:26

I don’t think the Booker vote has been priced in yet, Tesco looking good IMO I hope they do open some discount stores, along with Tesco express & the mainstay supermarkets that’s nearly all of the retail demographic covered, let’s see if the new boss Wilson delivers as well as he did for Booker GLA

[anony mous] 06/3/2018 08:27

Nice bounce back over 2.10

[chinese investor] 06/3/2018 08:16

10p to 220p !

[philanderer] 05/3/2018 17:53

Jefferies 'buy' note.......


Analysts at Jefferies upgraded their recommendation for shares of Tesco and Morrisons on Monday from 'hold' to 'buy', explaining that the pound has rallied against the dollar by well above 10% over the past year, while discount supermarkets' new store applications have fallen 25% in the past 2 years.

The analysts believed that after a cautious 15 months the time had come to review their stance on the UK grocery market due to the aforementioned factors and the fact that "wage challenges, whilst ongoing, are on a different scale relative to the position the industry found itself in two years ago."

The analysts added that a margin-focused Tesco, together with Asda's focus on free cash flows, made for a rational competitive backdrop, meaning that "the sector may be rediscovering its low Beta mojo at exactly the time when investors need it most."

Jefferies therefore revised its target price for Tesco up to 250p, while also highlighting the strongly accretive nature of the company’s merger with Booker for its free cash flows over the medium-term.

The above also assuaged the analysts' near-term concerns that investors were being overly optimistic on Tesco's stand-alone prospects.

Indeed, Jefferies analysts expected Tesco’s stand-alone EBIT margin to fall short of the company's 3.5-4% ambition - instead penciling in a margin of 3.3%.

[vaneric1] 05/3/2018 17:30

Give it a few days for the holders of both to get their heads around what's happening, I think it will rise but I'm no expert.

[hazl] 05/3/2018 14:07

Tesco, Morrisons and Sainsbury's to benefit from easing inflation, says Jefferies

[philanderer] 05/3/2018 13:17

BOK holders dumping their TSCO shares ?

[mercer95] 05/3/2018 10:18

I’m putting this drop down to profit taking, the price was performing better before the Booker vote confirmation, I’m holding out, hopefully get a rally in the US markets this afternoon GLA

[philanderer] 05/3/2018 10:10

Jefferies upgrades from 'hold' to 'buy'


edit : new tp = 250p

[chinese investor] 05/3/2018 08:07

14p to 220p !

[loganair] 03/3/2018 15:38

toon - Depends on what one calls a real emergency.

[toon1966] 03/3/2018 14:50

loganair could you please rephrase 'what the British consumer has become like' to 'what a very small minority of British consumer has become like'. I am a British consumer and do not dial 999 other than in a real emergency.

[toon1966] 03/3/2018 14:41

Personally I think loganair's plastic bag problem is rather sad. I use 'bags for life' and they certainly last a lot (and I mean a lot) longer than a month. What are you doing with them for god's sake?

[loganair] 03/3/2018 13:55

To show what the British consumers has become like, I understand during the KFC crises that customers have been calling the police asking them when their local KFC was due to re-open.

[ignoble] 03/3/2018 13:42

Loganberry
Enjoyed your post ...absolutely true

[vaneric1] 03/3/2018 13:29

Just reading the public notices in the local rag,there are applications to extend the booze licensing hours to from 6am to 11pm in three of the smaller Tesco stores.

I wonder if that's being done countrywide.