Craig_ Posted March 13, 2014 Share Posted March 13, 2014 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. Have never understood how it could possibly be profitable to distribute food to stores, arrange it out on the shelves, then go round picking it again and delivering it to the customer. Must be an easier way to do it, perhaps Amazon will start selling groceries soon?! Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 13, 2014 Share Posted March 13, 2014 Have never understood how it could possibly be profitable to distribute food to stores, arrange it out on the shelves, then go round picking it again and delivering it to the customer. Must be an easier way to do it, perhaps Amazon will start selling groceries soon?! I was in a local 'big' Tescos a few weeks back and watched what appeared to be two student types wandering around having a nice chat randomly chucking food into one of those home delivery trolleys - no attention was made to checking use by dates or the quality of the food. Amazon are selling food already and are planning to get into fresh food apparently. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 13, 2014 Share Posted March 13, 2014 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. Their bread is supposed to be quite nice. Then again, so is waitrose and I find it far too salty. I also like how morrisons never seem to change their style. Still looks like c1985 in one near me. Tesco on the otherhand seem to have a makeover every other year, just as Ive worked out their previous aisle arrangement. :angry: Quote Link to comment Share on other sites More sharing options...
(Blizzard) Posted March 13, 2014 Share Posted March 13, 2014 (edited) The move away from pile it high sell it cheap was what lead to Tesco's success in the early 90s. So, what does it tell you if this trend is now reversing? Personally, I take it as another sign of the slow, relentless (and not recorded in official statistics) impoverishment of the average Brit. GDP up, house prices up, and yet we're heading back to tinned food and crispy pancakes. Edited March 13, 2014 by (Blizzard) Quote Link to comment Share on other sites More sharing options...
spongeh Posted March 13, 2014 Share Posted March 13, 2014 Morrisons is screwed, theres nothing they can do about it and it's been a slow decline ever since they took over Safeways. Rumours from inside are that it's being intentionally crashed so that Pirate Equity can come along and snap it up on the cheap. Quote Link to comment Share on other sites More sharing options...
kzb Posted March 13, 2014 Share Posted March 13, 2014 It's just the start of the next phase. Phase 1 was open loads of unsustainable supermarkets to close down local businesses and trading links. Phase 2 will be to close the unsustainable supermarkets and make people order online from regional distribution centres. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 13, 2014 Share Posted March 13, 2014 It's just the start of the next phase. Phase 1 was open loads of unsustainable supermarkets to close down local businesses and trading links. Phase 2 will be to close the unsustainable supermarkets and make people order online from regional distribution centres. Tesco are such a major employer though. I'l bet govt will do the Bush-Obama-GM thing, support rampant monopolistic corporatism, say its 'for the workers' and bail tesco out if ever it came to it. Cant have too many new entrants into the marketplace, now can we? Too big to fail isnt just for banks... Quote Link to comment Share on other sites More sharing options...
R K Posted March 13, 2014 Author Share Posted March 13, 2014 The move away from pile it high sell it cheap was what lead to Tesco's success in the early 90s. So, what does it tell you if this trend is now reversing? Personally, I take it as another sign of the slow, relentless (and not recorded in official statistics) impoverishment of the average Brit. GDP up, house prices up, and yet we're heading back to tinned food and crispy pancakes. Daughter tells me she and her just post-grad house sharers (they've all just started professional jobs) load up on chicken etc from online discounters, rather than pay supermarket prices. Can't vouch for quality but chicken for instance c 50% below supermarket prices bought in bulk. Quote Link to comment Share on other sites More sharing options...
R K Posted March 13, 2014 Author Share Posted March 13, 2014 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. Only London is successful remember. Evan Davis says so. Rest of UK is a hollowed out, unproductive, low wage husk living on rice and beans. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 13, 2014 Share Posted March 13, 2014 (edited) 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? Yes. However over at Home retail (Argos, Homebase) their sales have increased presumably partly due to the recovery in unit house sale volumes. Interesting comparison. Edited March 13, 2014 by Ash4781 Quote Link to comment Share on other sites More sharing options...
winkie Posted March 13, 2014 Share Posted March 13, 2014 Only London is successful remember. Evan Davis says so. Rest of UK is a hollowed out, unproductive, low wage husk living on rice and beans. ...better to let them keep thinking that, don't want them exporting their overpriced services and housing to places that can make things far better with less.....things work well when profits are shared out evenly, fairly and honestly amongst all the participating players that have an input...... Quote Link to comment Share on other sites More sharing options...
tomwatkins Posted March 13, 2014 Share Posted March 13, 2014 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. Sainsburys veg and fruit is cack. Quote Link to comment Share on other sites More sharing options...
1929crash Posted March 13, 2014 Share Posted March 13, 2014 If you keep on cutting people's incomes, eventually they will not be able to consume. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted March 13, 2014 Share Posted March 13, 2014 Classic case of making the results look as bad as possible and throwing everything into exeptional items.Morrisons has a strong underlying business and also has a very interesting integration by owning many of the factories where their fresh food is made.Iv been investing in shares for over 30 years.Always picked up companies who pay big divis when they were getting hit hard.Im going to pick up some Morrisons now as well and forget about them.6.5% divi with free cash flow to easily support it. Some of the shares iv bought and kept are now yielding 34% a year in divis on the original price. My only worry with Morrisons is with it owing most of its estate freehold with a good free cash flow it is a sitting duck for a private equity takeover to ram its balance sheet with debt. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 13, 2014 Share Posted March 13, 2014 Should add the MPC better be thinking as this will reduce the cpi index. If petrol starts falling are they going to sit back if cpi goes under target or deflates? Would certainly put more cash in peoples pockets. I could see proclaiments for low inflation and high growth. Hitting labour market spare capacity might be interesting. Maybe we'll end up with really low cpi and very hpi and deteriorating underwriting standards.. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted March 13, 2014 Share Posted March 13, 2014 Should add the MPC better be thinking as this will reduce the cpi index. If petrol starts falling are they going to sit back if cpi goes under target or deflates? Would certainly put more cash in peoples pockets. I could see proclaiments for low inflation and high growth. Hitting labour market spare capacity might be interesting. Maybe we'll end up with really low cpi and very hpi and deteriorating underwriting standards.. Its a good point Ash as it looks like deflation is hitting.Food prices are falling hard now.2 litres of milk in Morrisons today was 84p.Sugar down from 98p to 69p. Meat/chicken etc is still expensive but seems to be flat and could also fall as the feed prices have fallen a lot and that will feed into prices.Sterling recovery is probably the reason though and thats probably short term. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 13, 2014 Share Posted March 13, 2014 Morrisons' share-holders keep saying their property portfolio is worth 9 billion and the share price values the company at 5 billion. I ain't sure that their property is worth that much - who would they sell property to if they cannot make money from the locations? House builders? Quote Link to comment Share on other sites More sharing options...
1929crash Posted March 13, 2014 Share Posted March 13, 2014 Retail sales have been falling off a cliff in the US, although some have tried to blame this on the weather. this has led to a downward revision of growth forecasts, according to Zerohedge. I expect the same to happen here. As we predicted when we highlighted the cumulative decline in the control retail sales group, it was only a matter of time before the banks started cutting their Q1 GDP forecasts. Sure enough, first it was Barclays trimming its Q1 GDP tracking forecast from 2.3% to 2.2%, and now it is Goldman's turn which just cut its latest Q1 GDP forecast from 1.7% to 1.5%.From Goldman: BOTTOM LINE: Although February retail sales rose a bit more than expected, negative back revisions more than offset the front-month surprise. Separately, initial and continuing jobless claims both fell more than expected. Import prices rose more than expected in February, but declined on a year-on-year basis. We reduced our Q1 GDP tracking estimate by two-tenths to 1.5%. February retail sales rose 0.3% (vs. consensus +0.2%). Core retail sales?used by the Commerce Department to estimate the personal consumption expenditures (PCE) component of the GDP report?also rose 0.3% (vs. consensus +0.2%). By category, the strongest gains occurred in sporting goods (+2.5%) and non-store retailers (+1.2%), both bouncing back from weakness in January. (Non-store retailers mainly represent online shopping.) However, back-revisions to core retail sales in January (-0.3pp to -0.6%) and December (-0.2pp to +0.1%) were significant and widespread across categories, suggesting a trajectory of consumer spending in Q1 that was weaker than we anticipated. We reduced our Q1 GDP tracking estimate by two-tenths to 1.5%. As a reminder, Goldman's original Q1 GDP forecast, as recently as a month ago, was for a growth of 3%. How things change when weathermen, pardon economists, are shocked to find it gets cold in the winter... http://www.zerohedge.com/news/2014-03-13/goldman-cuts-q1-gdp-forecast-15-weaker-retail-sales-half-goldmans-original-q1-gdp-fo Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 13, 2014 Share Posted March 13, 2014 If you keep on cutting people's incomes, eventually they will not be able to consume. Help to Eat...coming to a town near you. Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted March 13, 2014 Share Posted March 13, 2014 Morrisons are definitely one of the better supermarkets (sadly on top of hill which puts me off visiting my local more regularly). Basically, the only place where you can still get a couple of decent(ish) loaves of bread for under a quid. But plenty of fat in the system. I've seen regularly seen stuff that's failed to scan - and the staff just wave it through. Good for the customer, bad for Morrisons. The 1985 reference earlier is right. Personally, I like it - but I guess that's the reason why they've completely missed the boat on internet ordering. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted March 13, 2014 Share Posted March 13, 2014 Inflation busting minimum wage pay rise of 3% that their workers will spend at Aldi and Lidl? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted March 13, 2014 Share Posted March 13, 2014 Help to Eat...coming to a town near you. Aka food banks. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 13, 2014 Share Posted March 13, 2014 Classic case of making the results look as bad as possible and throwing everything into exeptional items.Morrisons has a strong underlying business and also has a very interesting integration by owning many of the factories where their fresh food is made.Iv been investing in shares for over 30 years.Always picked up companies who pay big divis when they were getting hit hard.Im going to pick up some Morrisons now as well and forget about them.6.5% divi with free cash flow to easily support it. Some of the shares iv bought and kept are now yielding 34% a year in divis on the original price. My only worry with Morrisons is with it owing most of its estate freehold with a good free cash flow it is a sitting duck for a private equity takeover to ram its balance sheet with debt. I agree, so many good companies have been destroyed by this in the past.....excessive greed kills any good, because it can. All you have to do is look a JL they are good because their staff have a stake and are part of their business and it works because the profits are divided between them, a simple partnership system that works on all levels. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 13, 2014 Share Posted March 13, 2014 Morrisons near us has seen footfall drop over the years. A new big Asda opened up about 2 miles up the road, a smaller asda opened up 1 mile away, and now a new Aldi has opened up a 1 mile away as well all on the main road. Sunday morning traffic used to be queuing from about 10am all day to get in, now that's eased as market share for the store has been lost to the other 3 stores. Quote Link to comment Share on other sites More sharing options...
renting til I die Posted March 13, 2014 Share Posted March 13, 2014 Morrisons is screwed, theres nothing they can do about it and it's been a slow decline ever since they took over Safeways. Rumours from inside are that it's being intentionally crashed so that Pirate Equity can come along and snap it up on the cheap. Care to expand on who these inside sources are? Quote Link to comment Share on other sites More sharing options...
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