Tesco Share Discussion Threads

[nerdlinger] 04/4/2020 16:28

re Aldi & Lidl, wasn't their main advantage lower business rates for the smallish shops? If so that advantage is gone for a year and they could struggle to compete on price.

[panshanger1] 04/4/2020 14:26

Re : the dividend Presumably we will get an update on the promised special as well following the sale of the Thai business Small matter of 5 billion as I recall !!

[the oak tree] 04/4/2020 14:00

To answer a pervious question and put right a pervious post, Tesco haven't cancelled their dividend. What they will do on that will be announced with their results shortly.

Its anyone quess on what they do with their dividend.

Anyone know what the margin is on drink compared to food at the supermarkets? Agree with pervious posts that drink sales will be very high now and probably continue growing for a while yet. Its quite staggering to think every bar, restaurant selling drink has closed down. Demand has to go somewhere.......

All eyes on the forthcoming update.

[panshanger1] 04/4/2020 13:30

Seen the same myself Actually I think people are drinking more in aggregate during the lockdown - factor in all the drink that would have been consumed in pubs and restaurants (with a fair amount of that now purchased from the supermarkets) and the high margins Must be good news for these

[konradpuss] 04/4/2020 13:29

In the long run more people might die of sclerosis of the liver than the virus then?

[loganair] 04/4/2020 13:11

I am now shopping in a convenience store about the size of a small Sainsbury's local or Tesco Express.

I am truly astounded at the amount of alcohol that is being bought. Only 5 staff are now allowed in the store at any one time with one of them, there only job is to constantly be restocking the booze, especially beer which is literately flying off the shelves. Almost every trolley I saw has 2 x packs of 12 beer/larger and some even more.

[hazl] 04/4/2020 09:34

Everybody has to eat.
You can look at the detail all you like but food shops generally are amongst the few doing business.

[albert3591] 04/4/2020 09:22

Buywell,,that maybe the case but I can honestly say any queue I have been in I haven’t seen/heard people sneezing.also in general when about I have not seen people sneezing.

[albert3591] 04/4/2020 09:19

Good point Konrad.

[konradpuss] 04/4/2020 09:02

Will this crisis lead to the topping out of market share of Lidl and Aldi?

The plus points are that people have been looking for more choice as they have been cooking more at home. They might have rediscovered the choice at say a Tesco Extra. As Tesco have become much more price competitive perhaps returning customers might think paying a little more for the choice and car parking is worth it. When the crisis passes the increase in home cooking might stick as people will have less money to eat out. The Waitrose customers might start looking at price a little more and this could perhaps help Sainsbury rather than Tesco although this depends on extract location.

The negative points are that when the crisis passes the economy will then be 'on the ropes' for a while. People will then have less cash so price will be more important again as it was coming out of the last recession. The new unemployed will have more time to hunt for bargains. Lidl and Aldi do chime with people who are strapped for cash. If the lock down lasts for a long time people running low on cash might start visiting sooner rather than later.

[hazl] 04/4/2020 06:54

23742 Great post oak tree

[carpingtris] 03/4/2020 23:51

@ BOIX

Has it been announced that the divi is cancelled?

[boix] 03/4/2020 23:40

Dividend cancelled
Also 2 updates due Late April (agm) and early May (Q1) so might be best to sell and buy back after?
Great post pandemic hold but turbulence expected.

[imjustdandy] 03/4/2020 13:01

When is the ex dividend date

[thamestrader] 03/4/2020 11:00

yeah, that doesn't make sense does it?
The value of the divi is retained by the company, so why does the price drop?

[alibx11] 03/4/2020 10:04

Doesn't make much odds to share price anyway when the share price drops by the divi amount on XD day anyway.

[peteret] 03/4/2020 09:38

This is why I think they will cancel the dividendIt might look a bit wrong to get a rate holiday and pay for isolating staff then pay a dividend to shareholders. Morrisons cut theirs and they had good results.

[konradpuss] 03/4/2020 09:22

Morrison say their rates (UBR) bill was circa £300 million for their stores last year.

They are awaiting the detail from the government to make sure they qualify for the year rates free holiday.

How much did Tesco pay in respect of their stores? My guess £700 million?

I just wonder if the government will remove the exemption from super stores.

If only the Metros and Expresses get it, I think it still could £150 million.

[konradpuss] 03/4/2020 08:17

Peteret, I am not sure they will cancel the dividend. If they do it, it will be a P.R. exercise. They have got their credit rating back and have lots of liquidity. We will see next week.

[konradpuss] 02/4/2020 22:33

Oak, I went past a Pets at Home this afternoon to get to a Tesco Extra.

Only a few cars out side the Pets at Home. The Tesco Extra car park brisk.

At the Extra I had the usual ten minute queue around the car park. Spoke to the nice check out lady who said it was very, very busy again this morning. Not so busy when I was there in the afternoon.

[the oak tree] 02/4/2020 22:01

Its worth saying that the very positive Pets at Home trading update its given today is great for that company but Sainsbury and other large supermarkest such as Tesco are in a quite different sector. Dog Food tends not to be fresh and most is bought from the exact same shop.

This is unlike supermarkets at the moment that have new demand as other outlets people would have used are closed plus it sells alot of fresh food that if bought in baulk and under lets say stressful conditions can go off and is wasted.

Pets at Home will have a good month or two but in total for the year it won't be that much up I suspect. Albeit its margins might be better now.

[ladeside] 01/4/2020 19:27

Good post Oak Tree, as you say, point 2 in particular has seen the end of offers, multi buy deals and price matches which means the profit margins are increased massively, especially for such a huge operation as Tesco.

Over and above this, Tesco now have Booker which shouldn't be underestimated, as again the increased margins are huge.

Ultimately these are very tough times, however if there's one sector which will not only weather the storm but go from strength to strength, it's this one.........