Future of tesco, morrisons

planteria

accepting that banking online will continue to increase in importance, i do think that banking whilst instore can work well for the grocers.

Scarpacci

Minrich wrote: »

But then what do i know about it is a clue , lidl/aldi run at about that don't they ?

Aldi reportedly has a 4% profit margin, so they haven't sacrificed profit margins to be cheap. Price difference is mostly down to the differing strategies of smaller stores, fewer products, less branded goods. They're pile 'em high, sell 'em cheap enterprises.

Thrugelmir

planteria wrote: »

accepting that banking online will continue to increase in importance, i do think that banking whilst instore can work well for the grocers.

Barclays has teamed up with Asda.

hyposmurf

Goldman Sachs: Supermarket groups must close one in five stores
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11235652/Goldman-Sachs-Supermarket-groups-must-close-one-in-five-stores.html

To close 1 in 5 stores sounds a little bit excessive, but it's no surprise that we will likely see some store closures or hold offs on new stores for the big 4 supermarkets. Maybe they have alternative plans to avoid store closures.Sad as it will likely put people out of work.

Minrich

People can get food now , so they don't need any new ones ? Lidl and Aldi are on about opening 600 more ! Anyway people have always slagged off the Big4 saying they put small businesses out of business and ruined the high street . Well what about Lidl/Aldi are they not making it even worse for the independents ? At least the money made by Tesco and Sainsburys went to shareholders who in turn spent it elsewhere , where is the profit going for Aldi/Lidl , to 2 German billionaires ! They might be opening a few more stores with a bit if it but when they are all up and running there will be no more independent shops !
At least with Tesco/Sainsburys independents had a chance to compete , my parents did for 35 years .

2010

2010 wrote: »

With NAV at 135p, pencil in 150p shortly.

158p today, getting closer.

InvestInPoker

2010 wrote: »

158p today, getting closer.

Yeah down 15% early doors this morning, ouch.

hyposmurf

InvestInPoker wrote: »

Yeah down 15% early doors this morning, ouch.

Yeh it is painful. I'd be tempted to buy some Tesco shares, but there still seems to be no sign of a clear strategy to turn the company around and doesn't seem like we've heard the end of the bad news yet unfortunately.

Scarpacci

I wouldn't be buying any more TSCO until we hear more on their strategy in January.The Christmas trading update was sure to be painful anyway, but it's even more important when they're going to shed more light on the turnaround plan. There's no clarity at all right now, so even with another 10% drop it's just not clear what you're buying.

The possibility of a rights issue come January means any purchase now might need topping up next month if you don't wish for your holding to be diluted. By buying now you could be essentially committing more money than you'd otherwise like.

The possibility of asset sales which would transform the company also keep me away for now. I would have to reconsider the size of my holding in Tesco if the Asian business is sold, as I don't think a UK/EU focused business would warrant as big a holding as I had been comfortable with for Tesco's current global makeup. I see their Asian business as one of the reasons for holding TSCO long-term, so I'm wary of a fire sale which helps in the short-term but makes the business much less attractive in the long run.

hyposmurf

Seems this maybe part of their strategy:
Tesco hunts for property boss to sell off assets
http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/11291437/Tesco-hunts-for-property-boss-to-sell-off-assets.html