Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Squirters. About six years ago I bought some shares in Morrisons (MRW). And I immediately regretted it. And that was before all the hoo-ha about Lidl and Aldi taking the customers of the big British supermarkets.
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Comments
David Russell
Great article Malc ,but like the other idiots they lost the plot and expanded far to fast and made to many mistakes. I would not touch Morrisons till March because the results for Christmas. My Dad also bought in around £1.80 but did get a dividend and hopes to see a return above £2. My own belief is that they have a lot of problems and most we cannot see yet. Good Luck with your investment and I hope I am wrong and mist the boat at £1.41.
Phil
Morrisons needs to make a decision. Is it alive or is it dead, cos it sure looks dead to me.
The issue is the store floor, their staff have all the time in the world. It is nothing to watch a couple of supposed till operators having a chat until the store manager tell em to open a new till. Finish the chat, amble over to the till, get comfortable, open the till. change the paper roll, and just as the ever patient shoppers in the out of the door queue eagerly await the anticipated announcement of a new queue, oh no, lets open a few carrier bags, just to be ready.
There is only one group of shoppers who have the time to shop in Morrisons, and it sure aint busy young mums, Pensioners, trouble is they don’t spend that much. You will find the young Mums in Aldi, I can do a trolley full of shopping in Aldi from in and out in 37 minutes, which is 2 minutes less time than the longest I have waited in a Morrisons queue, and I sure aint a young Mum.
Ever watched one of Britain’s young Mums put two trolleys full of shopping and two toddlers through the Aldi tills and into their cars, and away. Awesome
There are two types of supermarkets in Britain, group(Aldi) and group(Walmart), but is has nothing to do with budget brand. Tesco is obviously group(Walmart) but Marks and Spencer is a group(Aldi). What is Morrisons. Interesting question, well I can tell you, it is a group(Aldi). Morrisons is pretty much a store recovery, it just needs to be a better Aldi, but it will need to respond to young Mums. Whoever attracts Britians young Mums, they spend more than anyone else.
I don’t know what to say about Tesco board, they have taken Britain’s best ever retailer and trashed it. Their institutional shareholders want taking out at dawn and shooting. Tesco problems are more deep rooted, they are a board recovery.
group(Aldi) – Straight retailers Low to medium stack fixed costs, key metric margin, group(Walmart) High stack fixed costs, the capacity machine. key metric turnover