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Or the re-birth of JS Chilting! Businesses that are held in families often have success and longevity, indeed most of the top 10 companies on the planet have stayed in families. Sainsbury’s lost its way by moving from its customer base and strong hold in quality and fresh food.
Marble deli worktops holding freshly boiled gammon ham, and the game bird range the best money can buy, and sold in a surgically clean environment, staff selection criteria high, and staff development top priority. They understood food and the value of quality. More importantly the strategy was profitable.
They moved into mass and gimmicks, forgot their customer base, the family were too far away from the shop floor 20 years ago. John Sainsbury would be rolling in his grave today as the family moved into the arts and science, and gave the empire away for a fraction of its worth.
Any strategy that returns JS to its roots is a good thing and M&S would certainly help in that endeavour. Market street has been Morrison’s saviour too as it returned to its roots of manufacturing. On the other hand ASDA didn’t understand or return to its roots and failed to dominate, associated dairies and British farm stores food manufacturing was ASDA’s roots .
Play with price wars and you will die, no one remembers last weeks bargain, it wins short term loyalty. Quality in all you do wins loyalty, and you remain profitable.
" Sainsbury's has failure imbedded in its DNA now, from top to bottom of the business."
I wouldn't say that......their margins are small...but in view of the immense competition in the sector they actually do amazingly well.... I would never write off Sainsbury ....
I am not sure that M&S would exist after 5 years bedded in with Sainsbury's Neil.
Our Mks shares wouldn’t exist Chilting!
Turning M&S around is achievable and its happening - adding the burden of turning Sainsbury's around would be far more than one step too far - Sainsbury's has failure imbedded in its DNA now, from top to bottom of the business.
" You never know! £29b sales at JS., £10b M&S , £39 B sales is a good size to challenge Tesco at £58b! "
Now you are talking... I can see "Colin the Caterpillar" growing into a super mega-hit once they give him that bigger arena to sell from :-)))
))) indeed Pokerchips! Leeds penny bazaar haberdashery and draper meets a Holborn deli ! Not a match in the 19th century but Leslie Porter changed that when he put Delamare into Tesco stores during the 1960’s .
You never know! £29b sales at JS., £10b M&S , £39 B sales is a good size to challenge Tesco at £58b!
Clearly not easy seeking a marriage to the Sainsbury Girl....
Neil
They nearly got engaged but then Asda courted JS and Marks never got to have his marriage with the Sainsbury Girl ....
Maybe M&S will remember that old , short romantic "friendly takeover" fling and after looking through old photographs wonder if a once strengthening "love" could be re-kindled
HaHa
Time is amazing Pokerchips isn’t it! What a reverse in fortunes!
Although I’d rather be M&S than JS on futures.
Neil,
A trip down memory lane..... for those "Marks & Sainsbury's" ideas
-------------------------
Marks & Spencer mulls bid for Sainsbury's
· Watch this space, Rose tells investors
· Britain's biggest retail takeover on the cards
https://www.theguardian.com/business/2007/mar/01/supermarkets.marksspencer
Anyway, food for the birds or food for thought? How daft is it?
VESA equity or Kretinsky own just shy of 10% of JS, Qatar have been linked to a JS takeover for decades. Together VESA/Qatar have 25% stake and both have the leverage to take M&S say 7-8b with debt. Before delisting JS.
I don’t imagine the CMA having much difficulty accepting a JS/M&S takeover, and no fuel to worry about in M&S.
Add to that: Qatar still own 15% of JS.
Sainsbury’s shares over 2b higher in the last 12 m or +30%> largely due to the Czech billionaire Kretinsky.
JS strategy has been confused for many years and lost market share, in an opportunistic manner the then CEO thought ASDA would be the answer, and would put them in the money. He overlooked the CMA and we all know where that went and indeed him!
Perhaps Kretinsky might be planning to build JS market share (and property assets) before he takes it private and take advantage of low priced businesses and snap up some real bargains. JS still have a middle market customer base, they are growing their textiles with Tui.
Maybe M&S might be what JS are looking for and a leg up, it’s strategy in food and non food is the same market and with a failing Waitrose or JL, he might see more quality synergy with M&S, digital growing fast, Ocado.
I realise the M&S food/clothing quality attracts a more affluent customer base than JS, but imagine M&S replacing JS own label throughout its food ranges, and Tui adding to M&S entry point pricing.
I overheard a conversation last week about JS/M&S last week and I chuckled to myself and shrugged it off for the birds, but the more I think of it the more it makes sense. I heard one guy say losing JS own label food wouldn’t be a big loss in the market if M&S was there instead. This stuck with me, and I wonder?
Indeed Pokerchips, that article made me chuckle too! Worrying isn’t it.
I also thought how ironic if they are one of the companies coming for M&S !!!! Now that’s a long strategy!
Neil
Morrisons did better without Bolland and M&S did worse with him....
He is now a Senior Operating Partner at Blackstone ..." He has had an outstanding career leading and developing international businesses"...lol ...https://www.blackstone.com/people/marc-bolland/
http://annualreport2011.marksandspencer.com/downloads/PDFs/annual-report/MandS_AR2011.pdf
Highlights of 10 years ago! The past is not a reflection of the future but it a reminder of what’s possible. Bolland was an enigma !