How big is this store how old is it, maybe it is one of the older stores marked for deletion with a newer bigger one near by or just for Sainsbury's to withdraw. When there are new stores there is often a hit on old ones but this balances out eventually and I don't think those who shop at Morrison's are the same people that shop at Sainsbury's.so never really see that as a problem. Look at the South of Birmingham on the A38 corridor from the M5 J4 to the city. 1 Morissons (Rubery) 3 Sainsbury's, Longbridge, Northfield, Selly Oak, 3 Tesco Locals all seem to do well it maybe that the regional Sainsbury''s team will do some restructuring of the client profile for that store and change what it supplies. In the example above the 3 sainsbury's stores are separated by about 4 miles on the same road, you would think that they eat each other but they seem not to, but they do supply in some cases radically different product ranges. The running and placing of supermarkets is a very complicated business.
Reason for rise
I think the reason for the rise is more of a safe haven share, plus the fact the price has technically tested the lows for a while and failed to penetrate the physiological 300 figure. It is nice to see more positive broker forecasts, who knows what the figures for tescos will bring, or even how the market will react to our own, I predict hitting sales figures and missing the end of year target but this should be well priced in along with poorer figures from tescos. I suspect we will slowly climb back up towards 350 over the next couple of weeks. Fingers crossed we will taste the difference!
RE: Share Price Rise
I'm astounded to see the price rise. I don't own SBRY shares but am currently holding down a few jobs to recoup losses made on racy AIM agri shares, and one of those jobs is a nightshift at a large SBRY store. It's now come head-to-head with a new Waitrose, which opened last week, and Marks, which opened a few months ago as far as I know. Two Morrisons' are due to open in the area soon too. Anyway, the upshot is our Sainsbury store is being massacred; it's absolutely dead and sales are in freefall (common knowledge around here). Of course, this is just one store and so perhaps no indication of what's going on countrywide. Moreover, the effect may prove temporary. But if it's typical of what's going to happen across England as Waitrose expands, then SBRY holders had better focus more on potential buyout hopes than sales.
RE: Scratch That
IMPO I think this stock is being supported over £3.00 by a certain major share holder - assuming bad results from Tesco on Wed will tank all food retailers you would need to pump SBRY Mon and Tues to help keep it above £3.00 on Wed and Thurs.
Things are looking better than I thought
I think it'll be short covering, more than anything. Then again, looks like it'll be a horrific day today (based on the -3.8% google finance are indicating right now)...
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