Sainsbury's-Asda merger blocked by regulator

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planteria
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Re: Sainsbury's-Asda merger blocked by regulator

Post by planteria » Fri Apr 26, 2019 2:50 pm

pabenny wrote:
Fri Apr 26, 2019 1:53 pm
planteria wrote:
Fri Apr 26, 2019 9:16 am
.. Amazon was the only retailer to own, and it's my biggest holding. it's not Just a retailer, of course...
And will become less and less a retailer as their other services become ever more important - 40% of Q1 2019 revenue was services. Of course the share price is a result of their growth potential rather than their current profitability. The UK supermarkets enjoyed boom time in the 90s with expanding margins and growth in higher margin categories. Aldi and Lidl have called time on that and are both stealing share and eroding margins. Online grocery is said to be unprofitable.

I'm not convinced how much of a threat amazon is to the (UK) grocery market. Their attempts to date are way off- limited range, difficult to shop, unpredictable delivery slots and no chilled/frozen/fresh ambient. The UK grocery market is very competitive and there is not really enough margin to support home delivery
agreed too. UK grocery is tough, no doubt. i do think that Amazon.co.uk will take a larger slice of our grocery market over time, but it will be a tiny portion of Amazon Inc's turnover and the UK grocery wars will be fought in the aisles of physical shops.

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Re: Sainsbury's-Asda merger blocked by regulator

Post by AAAlphaThunder » Fri Apr 26, 2019 4:49 pm

planteria wrote:
Fri Apr 26, 2019 2:39 pm
AAAlphaThunder wrote:
Fri Apr 26, 2019 11:39 am
I have every confidence that Amazon will "one way/another surely it will take some more share of the UK's big 4 grocers over the coming years". Whether that is a good or bad development is open to debate.
i agree. whether we look at what is good for our nation, our high street, our community etc. or whether we are looking to 'back the winner' as an investor. fwiw we never order food online, we go and choose it ourselves in a Co-op/Morrisons/Tesco store, and eat & drink at independent/small group businesses. but i've bought books/CDs/fishfood on Amazon, and Amazon is, i think rightly, a disproportionately large portion of our assets - an IFA wouldn't get his/her hat on if they looked at my 'portfolio' :mrgreen:
Diversification is the key word. there is talk of regulation and putting limits on the FANGS (Facebook, Amazon, Netflix and Google).
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Re: Sainsbury's-Asda merger blocked by regulator

Post by Constantine » Fri Apr 26, 2019 7:08 pm

pabenny wrote:
Fri Apr 26, 2019 1:53 pm
....

I'm not convinced how much of a threat amazon is to the (UK) grocery market. Their attempts to date are way off- limited range, difficult to shop, unpredictable delivery slots and no chilled/frozen/fresh ambient. The UK grocery market is very competitive and there is not really enough margin to support home delivery
I'd agree. You can only do a limited range of foodstuffs out of a warehouse. To really do groceries you need a dedicated dark store with a chilled and frozen section. Amazon UK doesn't have any.

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Re: Sainsbury's-Asda merger blocked by regulator

Post by Boro Boy » Sat Apr 27, 2019 12:25 am

"We're in the money..." or perhaps not! https://www.msn.com/en-gb/money/news/sa ... spartanntp

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Re: Sainsbury's-Asda merger blocked by regulator

Post by AAAlphaThunder » Sat Apr 27, 2019 8:10 am

Boro Boy wrote:
Sat Apr 27, 2019 12:25 am
"We're in the money..." or perhaps not! https://www.msn.com/en-gb/money/news/sa ... spartanntp
IMHO, it was a good move by Mike-Coupe.
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Re: Sainsbury's-Asda merger blocked by regulator

Post by planteria » Sat Apr 27, 2019 10:30 am

AAAlphaThunder wrote:
Fri Apr 26, 2019 4:49 pm
Diversification is the key word. there is talk of regulation and putting limits on the FANGS (Facebook, Amazon, Netflix and Google).
i have some Pension pots and an RSP that are diversified, sitting alongside my concentrated ISA, but..

It is unwise to spread one’s funds over too many different securities" Bernard Baruch.

The winning investor’s objective should be to have one or two big winners rather than dozens of very small profits” William J. O'Neil

Behold, the fool saith, "Put not all thine eggs in the one basket" - which is but a matter of saying, "Scatter your money and your attention"; but the wise man saith, "Put all your eggs in the one basket and - WATCH THAT BASKET" Mark Twain

Diversification is a protection against ignorance, [It] makes very little sense for those who know what they’re doing” Warren Buffett

--accepting that you are proposing that i don't :mrgreen:.

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Re: Sainsbury's-Asda merger blocked by regulator

Post by planteria » Sat Apr 27, 2019 10:39 am

Constantine wrote:
Fri Apr 26, 2019 7:08 pm
I'd agree. You can only do a limited range of foodstuffs out of a warehouse. To really do groceries you need a dedicated dark store with a chilled and frozen section. Amazon UK doesn't have any.
and you don't think that Amazon are capable of setting up the facilities they'd need, if they want to? and..

1999 3%
2000 3%
2001 6%
2002 17%
2003 22%
2004 25%
2005 28%
2006 28%
2007 29%
2008 30%
2009 31%
2010 34%
2011 38%
2012 42%
2013 46%
2014 49%
2015 51%
2016 54%
2017 56%
2018 58%


The percentages represent the share of physical gross merchandise sales sold on Amazon by independent third-party sellers - Amazon can partner with another company or companies to tackle online UK grocery. or maybe just buy Ocado :think:

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Re: Sainsbury's-Asda merger blocked by regulator

Post by planteria » Sat Apr 27, 2019 10:43 am

or maybe Amazon take Sainsbury's at their 25yr low, and we have hundreds of Amazon Go stores in the UK..
https://www.youtube.com/watch?v=NrmMk1Myrxc

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Re: Sainsbury's-Asda merger blocked by regulator

Post by pabenny » Sat Apr 27, 2019 3:10 pm

planteria wrote:
Sat Apr 27, 2019 10:43 am
or maybe Amazon take Sainsbury's at their 25yr low..
I very much doubt it. Argos might be of interest but as amazon didn't appear to want it when it was a stand-alone business, I can't imagine why they would want it with a grocery business attached.

Ocado? Maybe. The arrangement with M&S does suggest a future split into a tech business and a grocery business.

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Re: Sainsbury's-Asda merger blocked by regulator

Post by Constantine » Sat Apr 27, 2019 4:30 pm

planteria wrote:
Sat Apr 27, 2019 10:39 am
....

and you don't think that Amazon are capable of setting up the facilities they'd need, if they want to? and..
Of course they can. This is a free(ish) country. Doesn't change the fact that Amazon do not have the necessary dark stores.
planteria wrote:
Sat Apr 27, 2019 10:39 am
The percentages represent the share of physical gross merchandise sales sold on Amazon by independent third-party sellers -
Yes I'm aware of Amazon Marketplace. There are some sellers who even offer groceries. I've used one or two of them to buy coffee pods. But as far as I'm aware, none of them offer a full grocery shop.
planteria wrote:
Sat Apr 27, 2019 10:39 am
Amazon can partner with another company or companies to tackle online UK grocery. or maybe just buy Ocado :think:
Ocado has already sold 50% of their UK retail business to M&S. So probably not.Amazon has already partnered with Morrison as a supplier. The same Morrison that has a deal with Ocado.

I suspect that Amazon has no plans at present to enter the UK grocery market, Not enough profit.
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