18:20 04/07/2017 Re: Q1
Here's what HL have to say about Q1. I'd go along with it. "When the Argos deal was announced, both businesses were struggling. We said that if CEO Mike Coupe could turn these two negatives into a positive, it would be a masterstroke. The early signs suggest some progress is being made, but there remains work to be done. In its last update as part of Home Retail Group, Argos delivered like-for-like growth of just 0.1%. Recently, this figure has risen to over 4%. While a strong performance from Argos is heartening, Grocery remains very much the senior partner. Despite Online and Convenience continuing to impress, continued weakness in Sainsbury's superstores means the outlook here isn't as bright. The store-within-a-store format eats up some excess sales space in the struggling stores, and a total of 250 Argos Digital stores are set to pop up in the group's bigger superstores within the next 2 years. This could boost footfall, but in reality we feel it's unlikely to have a transformative impact. The deflationary pressures that have dogged the industry might be easing, but this isn't because competitive pressures are going away, rather that sterling's weakness is raising the cost of imported goods. New challengers like Aldi and Lidl march on, and with traditional UK rivals unlikely to take a backwards step it's hard to see how profitability can be improved by engaging in a straight up slugging match. Sainsbury is instead seeking to differentiate itself by moving to serve customers wherever and whenever they like, through non-traditional services like Click & Collect. All in all, it feels like the right things are being done, but there are plenty of hurdles to overcome. Mike Coupe seems to have the boat facing in the right direction, but given the strength of the current still flowing against it, one gets the feeling he'll need to row pretty hard to make any decent progress. At present the shares offer a prospective yield of 4%, and trade at 12.6 times expected earnings.
10:45 04/07/2017 Re: Q1
Very good update. Argos is bringing about much needed growth.
8:08 04/07/2017 Q1
All looks good to me. Phil, I think that this answers your Argos concerns:- "We opened 36 Argos Digital stores in Sainsbury's supermarkets, bringing the total to 75. 17 of the 36 stores replaced an existing Argos store, taking the total number of replacement stores to 20. We also opened three Mini Habitat stores, bringing the total to 11. We remain on track to open around 135 Argos Digital stores in Sainsbury's supermarkets by the end of 2017/18, which will take the total to 175" They also closed Argos in Homebase.
13:33 03/07/2017 Re: Sainsbury?s could sign £2bn de...
Who pays whom for this? As it is a franchise then Sainsbury should receive the money and the franchisee make a profit on what it sells.
9:44 03/07/2017 Re: Sainsbury?s could sign £2bn deal
I don't want2 I would hope that they would put more heart into these possibilities than they did the Netto project. Much as I like shopping in Sainsbury's when I am in the UK, I am quite disillusioned with the management in connection with Netto. As far as I can see with Argos, apart from moving some branches (I understand, but they haven't done that yet in my old home town), they are just carrying on the same, but banging out even more email adverts to listed customers than the old Argos did. They have to be watching out for Amazon now, as well as the discounters - getting to be quite the rat race. Regards PR
7:39 03/07/2017 Sainsbury?s could sign #2bn deal
http://www.dailymail.co.uk/money/markets/article-4659308/Sainsbury-s-sign-deal-supply-newsagent-McColl-s.html Seems like the SBRY management are going to be busy!! roll on Tuesday and lets find out exactly whats happening! Supermarket giant Sainsbury?s could sign #2bn deal to supply newsagent chain McColl?s as grocers continue fighting to secure their futures Supermarket giant Sainsbury?s could sign a #2bn deal to supply newsagent chain McColl?s as grocers continue fighting to secure their futures. The pair are said to be discussing a deal which would see Sainsbury?s flog its products to McColl?s 1,400 stores. Sources hinted an even wider proposal might be on the table, and McColl?s has previously been discussed in City circles as a possible takeover target. It raises questions about a separate Sainsbury?s plan to buy convenience firm Nisa for a reported #130m. Nisa currently has a five-year contract to supply McColl?s with up to #500m of goods every year ? a deal which accounts for around 40 per cent of the former?s #1.2bn revenue. But this partnership is about to end, meaning a rival could swoop in. It was allegedly discovered by Sainsbury?s while the supermarket chain was analysing Nisa. The tie-up talk comes as grocers battle German discounters and American tech giants.
17:45 02/07/2017 Re: Sainsbury's poised to buy Nisa
Q1 on Tuesday, folks.
18:21 30/06/2017 2017 Top 10 - H1 Update
Having reached the end of Q2 and therefore H1 2017, it is time again to "own up" on YTD performance for my previously published 2017 Top Ten... Having just edged ahead of the market at the very end of Q1, the list has spent most of Q2 outperforming decently, albeit somewhat erratically with different stocks putting in a strong run at different times, only to fall back again. But despite a weak-ish end to the quarter and first half, I am pleased to report that it is still up 4.4% overall YTD (vs +3.1% at end Q1)... outperforming the FTSE100 by 2.0% and the All-Share Index by a slightly slimmer 1.0%. Star performer is now Capita - would you believe - up a full 30% YTD (and of course, the only one of the Top 10 I still don't own myself). The erstwhile magnificent Card Factory (+17%) has lost some of its lustre but holds on to a solid second place. After that, other decent returns were recorded by Vodafone and Bonmarche (both up c.9%) and Whitbread (up 5%). Braemar and Sainsbury's have just about held onto positive gains (up 1-2%), albeit a tad below the market, while my three "losers" are now Imperial brands (-3%), ITV (-12%) and Stagecoach (-13%, most of it in recent days - annoyingly - post underwhelming figures). For full disclosure, I continue to (mostly) happily own nine of the 10 stocks - I may now have missed the boat with Capita, though wouldn't be amazed to see it track back again with a number of outstanding issues still to play out. And I have recently doubled up on my holding of ITV, which is looking more and more the outstanding value play for H2 2017 (and a nice overseas take-out bid wouldn't go amiss). Even in the current fragile and nervous market I remain optimistic for H2 - though I should probably bite your hand off for another half of marginal outperformance... god knows, it's good enough for most professional managers (and better than many can manage), and my fees remain highly "competitive" (I know my worth, or lack thereof).
16:44 30/06/2017 NEW ARTICLE: The week ahead: Sainsbury's, Trakm8, Topps Tiles
"This week looks busy, with supermarket chain and Argos-owner Sainsbury's reporting sales data. There are also numbers from other big hitters.Monday 3 JulyA raft of contract wins has kept telematics and data supplier LSE:TRAK:Trakm8's recovery ..." http://www.iii.co.uk/articles/425869/week-ahead%3A-sainsbury%E2%80%99s-trakm8-topps-tiles
8:26 30/06/2017 Re: Sainsbury's poised to buy Nisa
From Nisa today:- "Following a number of enquiries from interested parties, the Nisa Board, which comprises nine member directors, three independent non-executive directors and two executives, has been running a process, with the help of professional advisors, to weigh up the merits of any possible offer for the company. The Board has determined that one such proposal is of sufficient merit to grant the party involved a period of exclusivity in order to carry out due diligence. Should that party wish to make a formal offer for the company, the Board will at that stage determine whether it is appropriate for this offer to be put to members. It will then be for the members to determine whether or not they wish to accept the offer." Whoever, whatever, whenever...
22:54 19/06/2017 Amazon
http://www.cnbc.com/2017/06/19/amazon-ceo-jeff-bezos-may-be-single-handedly-killing-inflation.html The impact on prices across the food spectrum could be dramatic. Games
8:34 18/06/2017 Sainsbury's poised to buy Nisa
Sainsbury's poised to buy Nisa in response to Tesco swoop on Booker https://www.theguardian.com/business/2017/jun/17/sainsburys-poised-to-buy-nisa-in-response-to-tesco-swoop-on-booker Sainsbury?s is closing in on a #130m deal to acquire the convenience chain Nisa as the industry rushes to consolidate following Tesco?s #3.7bn swoop on rival Booker. The board of Nisa, which is owned by its shopkeeper members, recently hired bankers to advise on its strategic options in light of the proposed Tesco-Booker alliance, which some regard as a tectonic shift in UK convenience retailing. It is understood that following talks with potential suitors, which included the Co-op and Morrisons, Nisa is poised to recommend Sainsbury?s to its members as its preferred bidder. Tesco?s takeover of Booker, the wholesaler behind the Londis and Budgens chains, has set a cat among the pigeons in a market where around 80% of the UK?s 41,000-plus convenience stores are still independent or belong to buying groups such as Nisa or Costcutter - known as the ?symbol groups? in the industry. Booker has around 5,400 stores in its network, which trade under the Premier, Londis, Budgens and Family Shopper brands. Tesco, meanwhile, operates nearly 2,500 convenience stores under its Express and One Stop banners. Tesco and Booker say the deal, which is the subject of a competition investigation, is not about stores but cashing in on the ?out of home? food market which is growing faster than retail sales as more Britons opt to eat out. A decision to sell up is likely to cause controversy among Nisa?s members, because its raison d?etre is to help them compete with supermarket giants such as Sainsbury?s. Nisa describes itself as a ?family of independent grocers? and when it launched in the late 70s, the goal of the Northern Independents Supermarket Association was ?to protect the interests of independents against the insurgence of the national supermarket chains?. Nisa?s 1,400 members operate 2,500 shops, and some entrepreneurs run small chains. The group?s biggest customer is the McColl?s convenience chain. The sale of Nisa, which would include members receiving a payout, would be akin to a demutualisation. According to last year?s annual report, the retailer has around 1,400 members who hold between 1 and 250 shares each. According to the 2016 annual report, there are just under 60,000 shares in issue.Nisa?s unusual ownership structure could block any deal, however, because 75% of members, many of whom are fiercely proud of their independence, must back it. They rejected bids from Nisa?s arch rival Costcutter in both 2006 and 2009. Industry sources suggest it is not a done deal yet from Sainsbury?s point of view because it is yet to carry out due diligence. Nisa members own their own stores, and their potential trading relationship with a Sainsbury?s-owned entity remains unclear. Some suggest it could form the basis of the supermarket?s proposed franchise network. Sainsbury?s said last month that it was considering offering franchise deals to independent retailers because it was struggling to find suitable convenience stores. ?The Co-op would have been a better fit for its mutual values,? said one source familiar with the deal. ?Sainsbury?s is just a PLC trying to do what Tesco has done. It?s an extreme outcome, Nisa has no need to sell itself.? Nisa?s chief executive, Nick Read, has led a turnaround of the business after it lost #3m in 2015. It swung back into black in 2016, recording a #7.3m profit on sales of #1.3bn. The group?s financial problems stemmed from the loss of #500m in sales in 2014 after Costcutter switched to the rival supplier Palmer & Harvey. Nisa?s contract with McColl?s, which ends next year, is currently out to tender with a handful of rivals competing to poach the business. Its loss would land another blow to Nisa?s finances. At Nisa?s annual trade show in April, Read said the combination of Tesco and Booker would create a more formidable competitor. ?I think there?s going to be an enormous amount of pain and consequently quite a bit of fallout,? he said. The mainstream grocery industry is in a state of flux as the German discounters Aldi and Lidl grab market share. There is also a growing threat from internet rivals such as Amazon, which sent supermarket stocks around the world into decline on Friday when it announced a $13.7bn (#10.7bn) takeover of the organic food chain Whole Foods Market. Under the leadership of Mike Coupe, Sainsbury?s has sought to broaden its appeal with last year?s #1.4bn purchase of Argos. The deal reduced Sainsbury?s reliance on the highly competitive grocery market and also gave it access to Argos?s fast delivery network. A spokeswoman for Sainsbury?s said: ?We don?t comment on market speculation.? A spokesman for Nisa also declined to comment.
16:19 16/06/2017 Wholefood Markets
Hopefully the threat from Amazon has been overdone. Fear that they will now buy Morrisons but then they will start to enjoy all the overheads that the big four have.
14:22 30/05/2017 Re: Stop Press
More at the bottom of this:- "The competition watchdog has begun an investigation into Tesco's planned #3.7bn takeover of wholesaler Booker. The Competition and Markets Authority will assess whether the tie-up could reduce choice for shoppers and for small stores supplied by Booker. Booker is the UK's largest food wholesaler and also owns the Premier, Budgens and Londis store brands. The deal was announced in January, with Tesco and Booker saying it would create the "UK's leading food business". Despite rising competition from the likes of Aldi and Lidl, Tesco remains Britain's biggest supermarket with 27.6% of the market in the three months to March, according to Kantar Worldpanel. That was down slightly from the 28.1% for the same period last year. What does Booker Group do? The CMA has announced the first phase of its investigation, which will run until 25 July. A spokesperson said it had taken a relatively long time to start the probe because the CMA has had to collect detailed information about the deal from both Tesco and Booker. It has asked for interested parties to submit their views by 13 June. After this first phase, the CMA will either clear the takeover or submit it for a more in-depth investigation, unless Tesco and Booker take steps to counter any competition issues identified. Among its recommendations, the CMA could force Tesco to sell stores if it believes the deal will harm competition within the industry. When the merger was announced, Tesco and Booker said they did not expect it to be completed until late 2017 or early 2018, suggesting both companies expected closer scrutiny from the watchdog. As well as raising concerns over competition issues, Tesco's move for Booker has also been criticised by some of its shareholders. In March, one of Tesco's biggest investors, Schroders, warned about the cost of the deal, telling the BBC that the supermarket giant was paying a "premium" and it had "major concerns" about the deal. Tesco shares were down 0.7% in afternoon trading in London at 185.5p, and have fallen 10% this year. The announcement follows reports on Friday that Sainsbury's is considering a takeover bid for wholesaler Palmer and Harvey (P&H). P&H has a turnover of more than #4bn a year and supplies alcohol, groceries and frozen food to 90,000 retail outlets, including Tesco supermarkets. Jonathan Buxton, head of retail at Cavendish Corporate Finance, said it would be a defensive move by Sainsbury's in the face of the Tesco-Booker deal.
17:26 26/05/2017 Re: Stop Press
Sainsburys now showing interest in a Tobacco and Confectionery Wholesaler and Retailer apparently with a good customer base but low on funds. Could either be a good buy or a good by. Should be an interesting new trading week. Sainsburys. Full of surprises.