IF Sainsbury pull out?

[ooh-andy-ansah]

This campaign is clearly aimed at raising cash to complete the RH deal.........panic over

http://www.standard.co.uk/news/lond...tomers-spend-more-on-public-view-9764250.html

 

[ooh-andy-ansah]

Sainsbury's latest trading update published today is pretty poor, sales down, average customer basket down, here's an extract regarding store openings, note that they are announcing to the market their next strategic update on November 12th......

"During the quarter we opened 23 new convenience stores and refurbished 10 convenience stores. We opened two new supermarkets, three supermarket extensions and refurbished a further two supermarkets. We are on track to deliver five new Netto stores by the end of the year following our announcement on 20 June 2014. We will deliver around 750,000 square feet of new space this year, including around two new convenience stores per week. In the second quarter, our performance has been impacted by the accelerated pace of change in the grocery market, including significant pricing activity and food price deflation in many areas. These conditions are likely to persist for the foreseeable future and we now expect our like-for-like sales in the second half of the year to be similar to the first half. We will provide a detailed strategic update at our Interim Results on 12 November 2014."

 

[EastStandBlue]

So, short of a statement from either Sainsburys or the club it looks like we might have to wait another month before the situation is clear.

 

[londonblue]

It's interesting because they are saying they still expect to deliver more space - 750,000 sq feet, so will Roots Hall be part of that or not? What is the total floor space under review, i.e. what percentage of the under review space do they expect to deliver? Does that even include Roots Hall since it will almost definitely take more than a year to deliver?

The other question is what are they missing out on if they don't build? Is their store at the top of the high street considered adequate for the time being, or could they increase their revenue in this area with a build?

Basically they will have to complete a full investment analysis, and that could go either way. If they have any sense they will also look at the likelihood of this ever actually happening, and if so, how long will it take from this point. How long it has already taken is largely irrelevant, other than to possibly give an indication of how slowly things are moving.

 

[Sentinel]

Tesco have built a brand new store in Chatteris, Cambridgeshire, but have decided to mothball it rather than open it.

http://www.cambridge-news.co.uk/22-...atteris-near/story-22971056-detail/story.html

Large superstores are falling out of favour. It's more probable than possible than Sainsbury's will pull out now.

 

[ooh-andy-ansah]

They are totally committed to the small convenience store model for the foreseeable future and adding more Netto's to try and compete with Aldi and Lidl, if they do go ahead with RH we will be very lucky indeed.

http://www.thegrocer.co.uk/stores/p...here-they-want-15-trial-stores/359002.article

Tesco are going to develop some of their land with housing rather than building the planned stores so everything points to a no at the moment, we shall see.

 

[Jam_Man]

They are totally committed to the small convenience store model for the foreseeable future and adding more Netto's to try and compete with Aldi and Lidl, if they do go ahead with RH we will be very lucky indeed.

http://www.thegrocer.co.uk/stores/p...here-they-want-15-trial-stores/359002.article

Tesco are going to develop some of their land with housing rather than building the planned stores so everything points to a no at the moment, we shall see.

Its possible I guess that Sainsbury may scale back the store but also try to build houses or something thus not killing the project completely.

Time will tell, lots of unanswered questions that none of us will know the answers to.

 

[SUFCFANS]

perhaps they'll open one of these smaller stores at Fossetts :)

 

[C C Csiders]

perhaps they'll open one of these smaller stores at Fossetts :)

Back of the Netto

 

[Razam]

I don't suppose there's been any new developments/announcements with the Sainsburys Review?

 

[Jam_Man]

I don't suppose there's been any new developments/announcements with the Sainsburys Review?

Nope............

 

[londonblue]

Nope............

12th November wasn't it?

 

[Jam_Man]

12th November wasn't it?

Not aware of any date, last I heard is we are just being kept waiting.

 

[Smiffy]

Not aware of any date, last I heard is we are just being kept waiting.

Or the decision has already been made and Sainsbury/Ron are keeping it hush...

 

[londonblue]

Not aware of any date, last I heard is we are just being kept waiting.

I'm sure someone mentioned November 12th...maybe I'm wrong...

 

[Shrimpers are Magic]

Its possible I guess that Sainsbury may scale back the store but also try to build houses or something thus not killing the project completely.

Time will tell, lots of unanswered questions that none of us will know the answers to.

And when has that stopped anyone?!!!
For what it is worth, mate is a department manager for Sainsbury's in North London and he reckons the company are going for smaller local stores rather than the big mega stores. On line shopping is taking over big time so with this in mind, do I think Sainsbury's will build their store? - No, but I don't believe they will pull out either. The land is worth a fortune and that's what they are buying.
Supermarkets don't just sell sausage rolls anymore!

 

[Jam_Man]

Or the decision has already been made and Sainsbury/Ron are keeping it hush...

Not impossible, but I dont see the benefit.

If they pull our Ron gets a get out of jail card and no one can just step in and take over as they would need to go through the planning process anyway.

 

[chapperzUK]

I'm sure someone mentioned November 12th...maybe I'm wrong...

Look up ... or down as I've quoted it.

Sainsbury's latest trading update published today is pretty poor, sales down, average customer basket down, here's an extract regarding store openings, note that they are announcing to the market their next strategic update on November 12th......

"During the quarter we opened 23 new convenience stores and refurbished 10 convenience stores. We opened two new supermarkets, three supermarket extensions and refurbished a further two supermarkets. We are on track to deliver five new Netto stores by the end of the year following our announcement on 20 June 2014. We will deliver around 750,000 square feet of new space this year, including around two new convenience stores per week.In the second quarter, our performance has been impacted by the accelerated pace of change in the grocery market, including significant pricing activity and food price deflation in many areas. These conditions are likely to persist for the foreseeable future and we now expect our like-for-like sales in the second half of the year to be similar to the first half. We will provide a detailed strategic update at our Interim Results on 12 November 2014."

 

[Barry.C]

The Land values drop significantly if the large shed stores are not bringing in the profits. Sainsburys are more likely to sell some to gain from property value for a short term cash gain to prop up capital rather than expand, given the 41% drop in their share price and ever increasing pension pot from £105m to £737m. At the very least the consensus is that they will have £200m less cash to meet interest payments, refurbishments , pension deficits and dividends. Slashing capital investments could also save them £300m. But as has been said before we can speculate all we want , we dont know whats in any detailed agreement?