Sainsbury’s share price: Retailer readies Netto launch

on Oct 27, 2014
Updated: Oct 21, 2019
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iNVEZZ.com, Monday, October 27: J Sainsbury (LON:SBRY) is to accelerate its fight back against budget rivals by launching a new discount supermarket chain next month.

In June, Britain’s second-largest grocer revealed that it had teamed up with Danish group Dansk Supermarked to bring discount retailer Netto back to the UK ().

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As part of the plan, Sainsbury’s said that it would open 15 Netto stores in the UK by the end of 2015, with the first opening in northern England later this year. The joint venture has invested £12.5 million in the trial, which will lead to a national roll-out if successful.
Netto – which withdrew from the UK in 2010, when Asda bought its stores for £778 million — is to open its first store at Moor Allerton Retail Park on November 6, the Danish retailer announced on Twitter on Friday.

Aside from the store in Leeds, Sainsbury’s confirmed that a second store would be co-located at its 100,000 sq ft superstore at Manchester’s Heaton Park, the Financial Times yesterday reported.
According to the newspaper, the company’s decision is a testament to the weakened position of the so-called ‘big four” supermarket chains, which also include Tesco (LON:TSC), Asda and Morrisons (LON:MRW). Traditionally dominant, since the financial crisis they have come under ferocious pressure from discount supermarkets, such as Aldi and Lidl.

**Sainsbury’s share price edges up**
Sainsbury’s share price has been trading marginally higher today. As of 15:26 GMT, the stock was changing hands at 238.50p – 0.13 percent up intraday.
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Of the 18 analysts projecting 12 month price targets for the retailer for the Financial Times, the median target is 192.50p, with a high estimate of 325.00p and a low of 145.00p.
According to the FT, as of 25 October 2014, the consensus forecast amongst 49 polled investment analysts covering Sainsbury’s has it that investors should hold their position in the company.
**As of 15:11 GMT, buy Sainsbury’s shares at 239.10p.**
**As of 15:11 GMT, sell Sainsbury’s shares at 238.90p.**

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