Future of tesco, morrisons

sabretoothtigger

Ive worked behind the scenes in a factory supplying a supermarket. They will determine the mixture and ingredients, the factory does the legwork and even labelling but its all at the direction and on contract with firm paying.
Also they will supply many different companies with similar products but not exactly the same.

A firm like Tesco will run a very short leash with a supplier, its them who make the big money really. A real brand name that power will reverse some of course

PenguinJim

My cash came through so I bought at 244, but only a grand's worth. It's for the long term. I'm confident that at some point in the next 21 years it'll be doing better.

planteria

good luck PenguinJim:D

and yes sabre, the likes of Heinz, Unilever and P&G do have some bargaining power, as they are in the fortunate position of having Tesco, Asda and Sainsbury customers wanting, and expecting, to buy their products.

to be fair to the grocers, ime they haven't been too hard on us, in the garden products sector, when i have done business with them. this is very much the opposite to the impression the media gives us, of course.

IronWolf

Tesco has turned out to be a dog I think. My average buy price was/is 375p and through sheer luck I managed to sell most of it at 380p but I kept a really small holding. Results continue to disappoint and even I have stopped shopping there as their online delivery was awful, always late and with substitutions.

antrobus

Thrugelmir wrote: »

Northern Foods makes Pizzas for all the main supermarkets. Just makes them to each customers specification. Simple as that.

Northern Foods is now (of course) part of 2 Sisters Group, which is allegedly the largest food manufacturing business in the UK. Big in chicken and makes lots of other stuff including brands like Goodfella's pizzas and Fox's biscuits. I'd bet that they have every supermarket chain in the UK down as a customer.

planteria

they will certainly have Tesco, Sainsbury's, Asda and Morrison, each through various categories.
i'm not sure how much Aldi and Lidl have used 'the normal' UK suppliers, though, are you? i know in Gardening, Aldi have been wide open to UK product...but previously there seemed to be proportionately more German and Polish products on their shelves than there have been at Tesco and Morrisons.

Midas

PenguinJim wrote: »

They wavered earlier, but just touched 249.00.

Are you in or out?

Not yet in Jim but I will be! I've transferred the funds to my Fund and Share a/c and I'm just waiting to make the deal. There have been some sensible warnings on here about trying to catch a falling knife, and I'd like to see at least some sign of a break in the fall before dipping in. My guess is that the downward pressure on the price will continue for a bit longer as the dawning realisation that Tesco needs to slash the dividend is priced in. With all this anti-Tesco sentiment flying around at the moment the price will fall a bit further I think - even though we are getting close to the lowest 'expert' target price I've seen (of 235p). Saying all of that I think at 244p you've done a solid deal, and in the long term these should prove to be a decent investment. I'm putting a 5-10 year time frame on it - people keep raising the supertanker analogy, and it will no doubt take quite a while for tesco to turn things around, but my view is that they have some key fundamentals (market share, brand, online operation, huge clubcard databank) which will help the company deliver some solid value in the medium term, although not the growth or margins of the supermarket glory days.

Niv

Midas wrote: »

Not yet in Jim but I will be! I've transferred the funds to my Fund and Share a/c and I'm just waiting to make the deal. There have been some sensible warnings on here about trying to catch a falling knife, and I'd like to see at least some sign of a break in the fall before dipping in. My guess is that the downward pressure on the price will continue for a bit longer as the dawning realisation that Tesco needs to slash the dividend is priced in. With all this anti-Tesco sentiment flying around at the moment the price will fall a bit further I think - even though we are getting close to the lowest 'expert' target price I've seen (of 235p). Saying all of that I think at 244p you've done a solid deal, and in the long term these should prove to be a decent investment. I'm putting a 5-10 year time frame on it - people keep raising the supertanker analogy, and it will no doubt take quite a while for tesco to turn things around, but my view is that they have some key fundamentals (market share, brand, online operation, huge clubcard databank) which will help the company deliver some solid value in the medium term, although not the growth or margins of the supermarket glory days.

I am considering dipping my toe in to this sector (as I am light in it at the moment), of the big three which do you think are the best to go for? I am currently a little on the fence but an thinking Tesco, however I have read that Morrison's assets are worth £2 per share so any sell off/ buy out should 'guarantee' somewhere close to that? maybe? maybe not! ;P

Minrich

IronWolf wrote: »

Tesco has turned out to be a dog I think. My average buy price was/is 375p and through sheer luck I managed to sell most of it at 380p but I kept a really small holding. Results continue to disappoint and even I have stopped shopping there as their online delivery was awful, always late and with substitutions.

Don't accept substitutions then !

Tesco will turn around without doubt , they are still HUGE and have their fingers in so many pies . How long it takes is not really an issue for us , if they reduce the Dividend , well that would be a really big issue , afterall millions of shares are owned by their staff . Their SAYE scheme is directed at staff , they will see how many applications they get this November , but then the option price on today price would be about £2.20 , so pretty good ?

antrobus

planteria wrote: »

they will certainly have Tesco, Sainsbury's, Asda and Morrison, each through various categories.
i'm not sure how much Aldi and Lidl have used 'the normal' UK suppliers, though, are you? i know in Gardening, Aldi have been wide open to UK product...but previously there seemed to be proportionately more German and Polish products on their shelves than there have been at Tesco and Morrisons.

The answer would be 'I don't know'. Both supermarkets and their suppliers generally keep quiet about who makes what for whom. Although I expect that the likes of Tesco have a darned good idea of exactly where Aldi gets its baked beans from for example.

However, these days we are part of a single European market, and a lot of buying and selling takes places on a Europe wide basis. For example, both Tesco and Aldi sourced their horsemeat lasagne and spag bols from Comigel in France.