Tesco Share Chat (TSCO)

Pokerchips - sensible analysts let the merger commission take the blame for any closures or redundancies. Do you think Tesco would buy up strategically placed stores from the Sainsbury Asda merger??

WallMart must be rubbing there hands in glee as they can offload there investment in Asda of 20 years ago which never really worked out for them. Sainsbury's are pretty smart cookies and this deal represents a new lease of life for them allowing them to hit the discount sector pretty hard however what happens to Sainsbury and in particular Asda should the deal not complete? Interesting times and a good one to watch on the sidelines - see the initial news has been brushed off as far as Tesco is concerned !!

"Pokerchips does anyone buy the line that Sainsbury states no job losses or store closures?? " No, I dont think they do...but today isnt the day for JS to announce any of that, which would be a gradual process...some time way, yet. I guess JS hopes the meegers commission tells them to close "x" number of stores, that way they can say they have been forced to...still the employeeswillprobably end up in some online picking warehouse ..or theclosed stores may become "dark stores"also doing online picking of orders ....time will tell

That�s the line they have to play mate to satisfy getting through the committee once passed it is a certainty as it won�t be sustainable to have stores so close together

Poker chips does anyone buy the line that Sainsbury states no job losses or store closures?? Tesco will be closing stores due to replicated sites etc and will be subject to job losses but with the straight admission that this will improve margins and profitability

There's nothing I would NEVER sell now that Grandma is gone.

Jonjo, All good here thanks..I recently sold some Tesco shares for 239p, prefering to be in other sectors. Tesco are indeed fairing better but it is all about cost cutting and improving margins....amazing really how much work has to bedone to shift so much product, for such small margins. It becomes a business that its growing number of pensioners depend on, as much as any shareholder. JS has been forced into a corner, and this move is being forced on them IMO, as the only way for them to make savings and be able to keep cutting prices. In all fairness they are a very experienced and strong retailer and this move shows are tough the sector is...you need a huge volume of customers earning small margins from each... JS are pretty smart and should the merger go through, I dont see them making any great mistakes on the combining of the two giants....but I certainly would not be buying JS shares today....

The average Joe punter in the street could not give a monkey's toss who is merging with who and who is taking over who and are hardly likely to change their weekly shopping venue based on fevered speculation about market sector share. They go on price and more importantly whichever of the big 4 has a store closest to where they live. I will not schlepp over the other side of the city to shop at Sainsbury or Asda my nearest store is Tesco and that is where we do (a much reduced) weekly shop. Having said that the place is about as inviting as a morgue these days and I noticed that they are really scaling back on many lines, so large TV's and electrical goods all disappeared a few months ago and far less choice of goods elsewhere as well. All no doubt based on streamlining the business and cutting costs.

all of this simply reinforces my view that the retail sector is to be avoided at all costs. Everything is reactive either to the threat of Amazon (Tesco/Booker) or the discounters (ASDA/Sainsbury) and all it does is shake things down in such a way that nobody can be certain of any outcomes. Good for a bit of trading activity if you like gambling, so good luck to all in the retail lottery.

Poker chips long time no speak hope you are faring well? Read the Sainsbury’s statement about no job losses or closures following any merger which I don’t believe anyone is going to swallow let alone the commission. Interestingly they are definitely lining up to hit the discount food market so Aldi and Lidle should be the ones most to suffer if it goes through - as for predictions I see the Sainsbury rise of today reversing and the Tesco price rising as the difficulties of this proposed merger become apparent long long way to go with a minimum of at least a year so on balance if it does complete which I doubt what will any conditions be and will they be acceptable? Meanwhile whilst Sainsbury and Asda are in turmoil it leads us to pick up more customers and continue to make further rises in the SP and market share and profitability which it has more than shown it is capable of doing

I see that they will investigate the proposed Sainsbury’s merger and unless the participants can put a compelling reason it will move from a stage 1 to a stage 2 mergers and competition investigation which will take at least 24 weeks - so much for any predicted merger taking place anytime soon.

I have to say..I would rathe rbuy into Tesco who have the 30% share of the market, than pay a premium on the JS share price for a company that now has to go through all the work of achieving their 30%. I would have thought Walmart are actually happy to take their �3bn and cut their exposure to the UK cut throat market.

Valid points made mate why would there not be job losses ,after all that is what cutting costs is all about in business there is no way that you are going to have either store or distribution centres close to each other , it doesn�t make business sense

Agree jonjo... asda customer service will add nothing by the way. Self serve tills dont make you want to spend more and thats what you get at my local Asda.

The shifting sands and fickle customers- does not appear to affect Or apply to Tesco does it? Still chunder on all you like. The turnaround continues for Tesco and we are by far the strongest and best placed in the market than anyone, also I would suggest do a quick peek at our last results will settle anyone’s nerves and confirm that the Booker deal was a stroke of genius. Unlike our deal with Booker which sailed through the competition commission with NO amendments I cannot see Sainsbury/Asda getting through without major modifications if at all. There will be major closures/ redundancies and let’s see how the unions react - still this will run and run and in the meantime our team will be rubbing there hands with glee.

nothing sadder than an football shirt wearing middle aged bloke with a beer belly ... try posting some relevant information for once as you will note my posts do just that and I only retort when presented with comments such as yours.

Sad

Why feed this non investor with any facts he is not interested in the business just wants to talk about doom and gloom How Dad he is ?

Just got to think...what has asda or Sbry got to offer and attract current Tesco customers away grom their usual big shop? On line is where they could but i dont see how the 2 can benefit unless they merge distribution sites.

I disagree, this will simply make the long-term prospects of Tesco more uncertain as the merger agreement becomes clearer. Shifting sands ... and fickle customers wait for no man.

No one had chance to buy in before the 40p rise so like all bubbles its gonna burst when it comes out it will be ages before any merger happens if at all. By then tsco will be on way to £3.00 i hope!

Tesco shoppers wont change stores. And if prices are gonna be 10% cheaper thats got to come from somewhere which means store closures and less turnover.... from an upset tesco share holder!

at the end of the day ... Tesco currently down 8p, Sainsbury up 40p. The battle begins.

Seems to me that this is a bad fit merger. With all due respect to asda shoppers wall mart model is pile em high,Asda is in direct competition with the likes of aldi and llidl ? sainsbury's more of a slightly upmarket experience so what is sainsburys trying to do ? compete with aldi et all with the asda brand but keep the more upmarket market share at sainsbury ???? Seems like a marger between Hamaleys and toys are us or marks and spencer with primark ??? hey what do i know but seems daft and doomed to me. I will stick with Tesco thanx

Tesco uses nice round figures ... Tesco Bookers synergy �200 million. Tesco Booker set a precedent and refusing merger on the basis of market competition will be untenable. Tesco has made lots of promises and I have yet to see a so called investor on this board question that validity. I suspect Tesco investors are a little upset, nothing more.