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R K

Morrisons Shares Hammered. Tesco, Sainsbury Plummet

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http://www.reuters.c...N0MA0SW20140313

A 9 percent share price drop at Morrison, Britain's fourth-biggest grocer, also knocked down its rivals, with Sainsbury sliding by around 7 percent while Tesco fell 3.8 percent.

Trading volumes in Morrison, which also cut its profit expectations, were 1.6 times above the stock's 90-day average, while volumes on the FTSE stocks as a whole stood at around 0.1 times the 90-day average.

Tesco and Sainsbury took the most points off the FTSE 100, and traders said the UK stock market was vulnerable to further falls over the next few weeks that could push it down by another 1-2 percent.

"Investors are running for cover at the moment. I could see the FTSE falling down to the 6,500-point level soon," said Berkeley Futures associate director Richard Griffiths.

Tesco dropped below 300p and is dicing with 2008/9 crash lows.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=uk%3Atsco&insttype=&freq=1&show=&time=13

Osborne's recovereh in full swing now (channelling IRRO)

Edited by R K

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Morrison is a very good supermarket, one of the best and has a lot going for it imo.....if you don't try you'll never find out, their meat and fish departments are at the top of the supermarket scale. :)

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more detail here

http://www.bbc.co.uk...siness-26556924

Supermarket chain Morrisons has reported a £176m loss for the year to the end of February, and announced a major restructuring of the business.

It said it would target the market between discounters and the "big four" retailers as a "value-led grocer".

But it warned that profits in the coming year would be less than £375m, about half the level last year.

Chairman Sir Ian Gibson called it a "disappointing year for Morrisons" as turnover fell by 2%.

The company was hit by a one-off £903m exceptional writedown, due to property and IT costs and a disappointing performance from Kiddicare, its baby products business.

Shares in Morrisons tumbled more than 10% in early trading before recovering slightly. However, it remained the worst performer on the FTSE 100.

Restructuring Chief executive Dalton Philips told the BBC how the firm would restructure: "This isn't about being a discounter. This is about offering really great value.

"There is a tipping point where the price perception gap has just widened too far between the discounters and the big four and we're going to address that."

"We have identified over a billion pounds that we can take out of our business now and that billion pounds is going to be invested back into our proposition to get those lower prices for our customers."

He said Morrisons would invest in increased efficiency, lower prices, more targeted promotions and a Morrisons loyalty card, so it could track the shopping habits of its customers.

He said that Morrisons had suffered badly at Christmas, with a "double whammy" of voucher offers from the big four supermarkets and lower prices from the discounters.

He said: "We have to recognise this is a paradigm shift, the rules of the game have changed. There is a new price norm.

There is a new price norm.

The poor stay poor, the rich get rich,

That's how it goes, everybody knows.

Everybody knows that the boat is leaking

Everybody knows that the captain lied

Everybody got this broken feeling

Like their father or their dog just died

Everybody talking to their pockets

Everybody wants a box of chocolates

and a long stem rose

Everybody knows

Edited by R K

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I quite like Morrisons, it's second to Sainsburys.

The house we just moved into is 2 mins walk from ASDA - I have never seen a shop sell such low grade food as I have seen in ASDA. I suppose their target market is the low income sector.

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more detail here

http://www.bbc.co.uk...siness-26556924

There is a new price norm.

The poor stay poor, the rich get rich,

That's how it goes, everybody knows.

Everybody knows that the boat is leaking

Everybody knows that the captain lied

Everybody got this broken feeling

Like their father or their dog just died

Everybody talking to their pockets

Everybody wants a box of chocolates

and a long stem rose

Everybody knows

Cameron: Let them eat artisan bread!

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No real surprise. I like Morrisons, but they have failed to develop and onlne business and some of there supply/processes are living in the 80s.

One of our PMs has just left to go there. There planning some major investment in the above.

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Morrison is a very good supermarket, one of the best and has a lot going for it imo.....if you don't try you'll never find out, their meat and fish departments are at the top of the supermarket scale. :)

True, and with some interesting cuts of meat.

That aside, I'd have thought, in the current climate, the supermarkets would be more concerned with market share rather than individual profits.

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Cameron: Let them eat artisan bread!

That's very unfair on Cameron. He's a man of the people and knows very well that the proles don't eat artisan bread. They prefer those pasty things and they can choose between the big ones and the small ones, and very nice they are too!

Edited by thecrashingisles

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On Fivelive's 'Wake Up To Money' this morning a guest talking about Morrisons surprised me when he stated that Sainsburys have narrower trading margins than Morrisons.

I do wonder whether the UK is now big enough for all the food retailers and whether we will see one of them fall by the wayside much in the same way that, a few years ago, we began to see various clothing and electronic goods chains disappearing?

Or whether we are going to see some kind of 're-evaluation' of the share prices of Tesco, Morrisons and Sainsburys to reflect future lower earnings due to the increased competition from the Germans?

On various financial sites this morning there seems to be lots of people seeing today as a buying opportunity with chatter of Morrisons being £2.80 by the end of the year and Tesco being £4.00... but what if the new longterm price for the supermarkets turns out to be in the mid to late two quid area? Say £2.90ish for Tesco/Sainsburys and Morrisons down well below £2.00?

I saw one posted this morning, after hearing MRW's results and him subsequently stacking up on more shares, write something about Morrisons can now 'see off the nasty little German discounters' :rolleyes:

On a wider economic note I visit all 3 of the above in Swansea and I am shocked by how empty their big stores are now Mon - Thurs and not so crowded on the weekend. Aldi and Lidl though - it is hard to find a carp parking space these days. Real wages falling but food, fuel and council taxes up. The British are struggling. Well, us plebs.

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No real surprise. I like Morrisons, but they have failed to develop and onlne business and some of there supply/processes are living in the 80s.

One of our PMs has just left to go there. There planning some major investment in the above.

This morning they said that they are investing 1 billion over 3 years and aim to target the internet more aggressively. They are also going to introduce a loyalty card scheme - I thought the public were fed up with loyalty cards and just wanted cheaper prices.

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Aldi and Lidl though - it is hard to find a carp parking space these days.

Yes, packed in like sardines

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Big stores, and now trying to compete with the compacter Aldi/Lidl supermarkets.

Reduce choice and stack-em high? Would that bring in consumer?

I can't stand going into these stores! Even if it means saving a few pennies! The almost of time it takes trying to buy the stuff out weights any cost savings in my mind!

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Morrison is a very good supermarket, one of the best and has a lot going for it imo.....if you don't try you'll never find out, their meat and fish departments are at the top of the supermarket scale. :)

I agree with this. Morrisons is my preferred supermarket by far. Perhaps it shows people are giving the discount supermarkets a try, but Morrisons has some good deals if you stick to what is on offer for that week.

They should have moved into the online arena much earlier though.

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Morrison is a very good supermarket, one of the best and has a lot going for it imo.....if you don't try you'll never find out, their meat and fish departments are at the top of the supermarket scale. :)

I agree, although I live in London and Morrison's main base is up north. Does this mean people up north are cutting back even more?

Btw, Morrison is on my watch list so I'm interested in any extra information you have about them.

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Real wages falling but food, fuel and council taxes up. The British are struggling. Well, us plebs.

Well yes.

If you don`t pay your rent?.....you get kicked out.

Don`t pay your council tax?....get locked up.

Can`t pay for petrol?.....walk.

Food is the weakest link, fairly easy to cut down on. Maybe the suits at Morrisons and Tesco don`t realise this?

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Well yes.

If you don`t pay your rent?.....you get kicked out.

Don`t pay your council tax?....get locked up.

Can`t pay for petrol?.....walk.

Food is the weakest link, fairly easy to cut down on. Maybe the suits at Morrisons and Tesco don`t realise this?

Well, quite. That's why I was more curious about market share than profits.

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True, and with some interesting cuts of meat.

That aside, I'd have thought, in the current climate, the supermarkets would be more concerned with market share rather than individual profits.

All I know is the individual who shops there profits......why is it the only good to profit has to be the top knobs raking it in and shareholders.....the customer is after all the king. ;)

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They should have moved into the online arena much earlier though.

I actually disagree that online supermarket-ing is this huge growth area. Its fine for curtain goods but rubbish for fruit and veg. I don't think that the profit margins are there.

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I actually disagree that online supermarket-ing is this huge growth area. Its fine for curtain goods but rubbish for fruit and veg. I don't think that the profit margins are there.

I read somewhere that it costs TSCO/SBRY about £15 per delivery. Last time I ordered online they were charging a fiver for delivery so that is a loss there and then.

I read last night that Ocado allow you to inspect your delivery before the delivery person leaves - so that has got to eat into time/profit per delivery.

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