Tesco Share Discussion Threads

[johnwise] 10/1/2023 07:42

Britain’s cheapest supermarket revealed – and a typical basket costs £31 less than Waitrose

Cost of living crisis forces shoppers to turn away from premium supermarkets

According to a report by consumer group Which?, a shopping basket of 48 groceries
cost an average of £81.63 at Aldi in December, while the equivalent shop in Waitrose cost £112.62 – 38pc more than at Aldi.

[johnwise] 09/1/2023 08:28

Lidl Christmas sales jump 24.5%

Discount retailer Lidl reported a surge in Christmas sales on Monday as shoppers switched from other supermarkets amid the cost-of-living crisis.

In the four weeks to 25 December, sales rose 24.5% year-on-year. The retailer said it attracted more than 1.3m more customers in the seven days to Christmas eve, as shoppers switched from more expensive traditional supermarkets.

[johnwise] 09/1/2023 07:54

Is Amazon's Job Cuts Announcement A Nail In The Coffin For Amazon Fresh?

This week's announcement by Amazon that it plans to shed its workforce by more than 18,000 – its biggest ever job cut – caused no shortage of ripples in the tech world, as well as the retail sector.

The retailer also crossed the pond in early 2021 to open the first of what would grow to 19 Amazon Fresh stores in the UK, all bar one of which are in London.

Here too, the planned expansion of Amazon Fresh has ground to a halt, with the tech firm reportedly 'abandoning talks' on dozens of new sites, noting that sales at most locations had 'fallen short of projections'.

[hazl] 07/1/2023 18:49

Sometimes the share goes down after a distribution like that though, so prefer not myself.
Smooth and steady wins the race.

IMO

[yump] 07/1/2023 18:36

How specifically am I going to get more money from buybacks ? Will it just be a small extra increase in dividend per share per year if I choose to hold for the next 10 years, through thick and thin ?

Its just that I got a nice cash special dividend from both Aviva and Tate&Lyle, both returning cash to shareholders as a reward for actually owning shares, when the extra cash was being generated.

[hazl] 07/1/2023 17:51

Good point konradpuss!

[konradpuss] 07/1/2023 16:36

Buybacks only enhance the shareholder if they take place at below intrinsic value.

My own view of the current intrinsic value of Tesco is circa £2.75/£3.00. Hard to be accurate.

So it will enhance shareholder vale with buybacks at below this level. You are buying a pound for less than a pound, ergo enchanting shareholder value.

Do not right off a bid for Tesco. Silchester now have 5% after picking up 2% (of the 5%) of this recently at £2 - now that was very brave and clever.

They were big shareholders of Morrisons. Follow the money!

[yump] 07/1/2023 16:06

rovi70

Agree 100%. Buybacks are just optics. I want my special dividend instead, now.

[yump] 07/1/2023 16:04

Tesco has been very clever in our local Express. Bit by bit, own label has been replaced by main brands.

Expected of course. We pay for convenience and there are numerous calculations at work in the head offices.

95p for Pesto at Aldi - absolutely fine own label.
£2+ at our Tesco Express - Sacla - no different.

30% margin on £2 is much better than 30% margin on own label.

Blueberry Wheats at about £1.70 disappeared over Christmas. Now its all Kelloggs, Jordans etc. No own label to be seen.

There is always pricing flexibility.

[konradpuss] 07/1/2023 12:54

Clive, the first international expansion of Tesco was buying a chain in France - they soon moved that on!

I think they are best suited to the U.K.

What it means is the company generally resembles a bond.

A good yield and zero growth.

O.K. Booker was a very good buy. They still have some room to expand in the U.K. in my humble.

[rovi70] 07/1/2023 12:53

I've never understood why buybacks are said to be a way of 'returning money to shareholders'. They don't. They could seem to enhance EPS longer term - which MIGHT then cause an increase in the share price - but in the meantime cash which could come back as dividends will as the company has spent supposed for you on its own shares ! So the money virtual disappears. Cash gone.

[clive7878] 07/1/2023 12:24

If the price hits 290 we will be back to the price last January 2022.
Could well happen as Tesco -
despite in some stores like Hayes, Bulls Bridge which appears to be badly managed,
at the tills for 25 minutes plus to pay -
they have not been short of customers,
and some pricing there has been quite good.

A number of big UK companies have dipped their toe in America and Canada in the past without success, maybe Tescos should expand on the Continent.

Aldi opens more tills when it gets busier, and is far better to get through the tills then Lidi, as here you are lucky in some stores to have any checkouts open at all. Not everyone wants self service, especially if you have a load of items, and stuff that need weighing.

[helen troy] 06/1/2023 15:01

My latest prediction fwiw and wdik ? is we will soon reach 250 IF buybacks remain paused.

[yump] 06/1/2023 12:49

I hope nobody sold on the head and shoulders that wasn't one, because you don't know until afterwards if it was or not.

Best to look at the business and whether its over or under-priced or suffering from gloom or excitement first.

Charts that look like they might be head and shoulders when a share is richly priced are the scary ones.

[philanderer] 06/1/2023 11:07

Goldman Sachs raises Tesco price target to 290 (245) pence - 'buy'

[hazl] 06/1/2023 10:23

TSCO A stalwart.

[konradpuss] 05/1/2023 20:54

I said here a while back that Amazon will struggle with food retail.

Not sure if these redundancies will impact/reflect their food offer.

What have they done with Wholefoods?

[hazl] 05/1/2023 16:41

Tesco continuing to do well.

[helen troy] 05/1/2023 15:39

Morrisons seem to offer competitive diesel prices in their forecourt. 3 or 4p cheaper. Maybe trying to attract people to their store to pay higher prices?

[helen troy] 05/1/2023 09:26

Well I got my 240p. I think the buybacks have been paused for a breather.

[johnwise] 05/1/2023 06:52

Morrisons in festive flop: Setback for supermarket's private equity owners after shoppers flocked to rivals over Christmas

Check out the comments
"They have totally wrecked a once excellent supermarket, I called in yesterday and I was really shocked at how expensive it is there now. Needless to say that I didn't spend a penny and went straight to Tesco where prices were much more reasonable".

[philanderer] 04/1/2023 19:43

Supermarket chains Tesco and Sainsbury's rose between 2% and 4% after data showed British grocery sales rose 9.4% in the four weeks to Dec. 25, driven by price inflation rather than increased purchasing

Tesco sales, meanwhile, grew by 6.0%. It remained the UK's most popular supermarket though its market share slipped to 27.5% from 27.9%. Peer Sainsbury saw sales growth of 6.2%, though its market share fell to 15.5% from 15.7%.

Shares in Sainsbury's and Tesco closed up 4.8% and 2.6% respectively.

Alliance News

[loganair] 04/1/2023 14:13

For December Lidl sales up 23.9%, Asda 6.4% and Sainsbury's 6.2%, Tesco 6.0% while Morrison saw a decrease of 2.9%.

As food inflation is running at circa 15%, any sales increase less than 15% means the supermarket is selling less stuff.