Future of tesco, morrisons

Glen_Clark

planteria wrote: »

Tesco up to 5.88% and Morrison up to 7.73%:)

as things stand though, i think i still fancy adding to Glaxo and/or buying Unilever or Diageo instead.

As far as I know, Aldi & Lidl don't buy branded goods from the likes of Glaxo, Unilever or Diageo. So don't they face the same risks as Tesco if Aldi & Lidl are taking over the world

Glen_Clark

2010 wrote: »

I don`t think tesco`s share price will improve until they show signs of sales increase, which is not happening thanks to Aldi and Lidl.

You forgot Waitrose

2010 wrote: »

They`ve now woken up to the fact that it`s all about prices and convenience .

If its all about price why are Waitrose doing so well?
If its about convenience why are Aldi & Lidl doing so well - I cannot see how they are any more convenient than Tesco? They don't do online either.

planteria

Glen_Clark wrote: »

As far as I know, Aldi & Lidl don't buy branded goods from the likes of Glaxo, Unilever or Diageo. So don't they face the same risks as Tesco if Aldi & Lidl are taking over the world

an interesting question. but all of those are suppliers of products Worldwide, in consumer products, and Glaxo predominantly in pharmaceuticals, of course. yes, Aldo and Lidl are not doing favours to Unilever, for example, but Dove, Ben & Jerry's, Colman's etc. are still big brands with plenty of distribution.

planteria

Glen_Clark wrote: »

You forgot Waitrose


If its all about price why are Waitrose doing so well?
If its about convenience why are Aldi & Lidl doing so well - I cannot see how they are any more convenient than Tesco? They don't do online either.

fwiw i think that Aldi is convenient, in that their stores are easy to whip around, get what you need, and get checked out & back to your car in a very few minutes.

planteria

bowlhead99 wrote: »

You may decide that is exposure that you want, but others would say you don't counteract bad decisions by buying more of the same at a lower price. You are buying more hoping for greater gains, which is not a risk reduction strategy.

agreed. it reduces your average buying price, but clearly increases your risk/exposure to Tesco. but many wise investors do not go along with the 'extreme diversification' which is promoted. a good, cash generative, profitable, diversified company is, on it's own, arguably a good home for 10-20% of a portfolio----if the investor knows them well & is entirely comfortable. i was reading some Warren Buffett info and he was guiding towards a 'Best Ideas' approach of 7 to 10 companies that an investor researches thoroughly, with a view to holding for the long term.

planteria

2010 wrote: »

From an investment point of view there`s a good chance Tesco will cut the dividend, which won`t help the share price either.
I think the share price has further to fall.

i agree with this part. if the dividend is cut the price will drop too, as with Morrisons, and as i have mentioned above, there could be some serious value ahead for investors who continue to hand sit at this stage. i like them both, in a way, but see the news all putting downward pressure on for now...and think that hanging on is a good idea.

and interesting Thrug. my Glaxo shares were well up, and are now just above what i paid. but i would happily buy more at the current price. consistent dividend payer, and a business and sector that i think will remain a good long-term hold. i will be watching their Consumer Healthcare with interest, including what they have listed with Morrison and Tesco.

planteria

and incidentally, we have had a big barbecue today. my girlfriend bought some of the drinks, for example, at Aldi. to take a single product: bottles of Lemonade. no doubt at all: they provide a very decent product at simple, very good value price points. and, as a man, the lack of options instore is not too bad at all as it makes the shopping process very easy. i bought some cleaning products for our shop the other week: i got sponges, washing up liquid, bleach and cloths..for less than £2:cool:

GingerFurball_2

Glen_Clark wrote: »

If its all about price why are Waitrose doing so well?

Because Waitrose are all about price as well, just in a different way. Their target market is middle-class suburban types who'll shop at Waitrose either because of quality (real or perceived) or because they can.

planteria

agreed, and i think they do an excellent job. there is a store near to where my Dad lives. he can get all of the food he wants, in a very neat, small, convenient store....quality, not quantity(range). you don't get Aldi-style or Tesco Everyday Value-style bargains, but you get what you need with no fuss. and pay a price for it...and i can entirely understand that many people are prepared to pay that price for quality and convenience.
what i, and many other shoppers don't want to do, is to trawl up & down lots of aisles, past loads of products we don't want, to get Milk, Cheese, Bread, Baked Beans and a tube of toothpaste. so Aldi, Lidl and Waitrose all enable that with far less hassle than a large Tesco, Asda or Sainsbury's store. Co-op ought to be doing exactly that, but ime they take about 20 minutes to check you out, as the 'nice but slow' staff chat to every customer and each other for as long as they can manage.

2010

Glen_Clark wrote: »

If its about convenience why are Aldi & Lidl doing so well - I cannot see how they are any more convenient than Tesco? They don't do online either.

They are popping up everywhere and ARE convenient, stocking only 1500 items that are cheaper than Tesco`s 30,000.
The Tesco Express are expensive compared to the superstores.
As for online, isn`t this is where it`s costing the big 4 shed loads of money.
Maybe you should read some articles on how Aldi and Lidl operate.