Jump to content

Archived

This topic is now archived and is closed to further replies.

Weather-history

Tesco: a loss of £6.37 billion last year.

Recommended Posts

They have not had a good last few months.

43 stores are to closed

http://www.bbc.co.uk/news/business-30712762

Being probed by the FCA

http://www.bbc.co.uk/news/business-29438683

http://www.bbc.co.uk/news/business-29357840

http://www.bbc.co.uk/news/business-29306444

Panned for Black Friday

http://www.theguardian.com/business/live/2014/nov/28/black-friday-uk-shoppers-fight-for-bargains-at-london-supermarkets-live

IMO, they have become arrogant and overstretched. Why my town with a population of 20000 has a small Tesco Express as well as a 24hr Tesco superstore beats me.

Share this post


Link to post
Share on other sites

We have 2 Tesco Express and one supermarket all within a mile of us. I only use one of the Express for the fuel.

Share this post


Link to post
Share on other sites

I'll admit to be adding to their woes. I used to shop at Tesco every week, mainly because it's always been the most convenient option for us, partially because we've done well out of the Clubcard deals over the years (virtually paid for a holiday to France, several cheap phones and tablets, cheap days out etc). Recently though I've also been using a new Aldi store and sometimes Morrisons (although our local store is small and cramped and annoying).

 

Why? Not sure. Aldi is certainly cheaper, but it just doesn't have the same range of products. Morrisons sometimes has some quite good offers and I think their fresh stuff is better. Tesco just somehow seems to have lost it's appeal to me. Part of that is that they recently "refurbished" our local store and I don't like what they did. It seems to be only half done and they seem to have reduced the number of products. Even although the refurbishment happened months ago they still seem to be constantly moving stuff around and that just annoys the hell out of me. I want to be in and out as quick as possible, I don't want to have to go around the store 3 times trying to find where they've put the stock cubes this week (last Saturdays' example). Oh, and why can I never seem to find meat or veg in Tesco that has a 'Use By' date of more than 3 days ahead, which is a problem when you shop weekly.

 

I think all the big supermarkets need to get back to the basic job of being grocers rather than trying to be grocers, banks, online retailers etc all rolled into one.

Share this post


Link to post
Share on other sites

They tried to grow way too fast. Do you remember several years back those ideas for Tesco villages? Funnily enough Tesco's overexpansion was a case discussion in some financial and economic classes as businesses likely to be growing at an unsustainable rate.

Share this post


Link to post
Share on other sites

Interesting..

 

http://www.bbc.co.uk/news/business-32408661

 

 

 

Around £4.7bn of the losses were the result of the fall in property value of its UK stores, 43 of which it said would close earlier this month.

 

 

Annual group trading profit, which counts sales through the supermarket's tills was also down 60% at £1.4bn, compared with £3.3bn a year earlier.

UK like-for-like sales excluding fuel declined by 3.6% in the year.

 

There's a £3bn loss somewhere that's not in the article unfortunately. 


It simply occurs because many people also vote with their wallets.

 

They still made a profit from your shopping there, sales only fell 3%. 

Share this post


Link to post
Share on other sites

Tesco full year statutory loss of £6.37 billion

OUCH!

 

Now we can see why zero-hour contracts are so appealing to some? as in companies.

Share this post


Link to post
Share on other sites

Nice bit of accounting. Probably means they'll pay no tax for a few years, but hey ho, there's plenty of wages to be cut.

Share this post


Link to post
Share on other sites

Now we can see why zero-hour contracts are so appealing to some? as in companies.

While no doubt, paying huge sums to the directors who created the mess.

Share this post


Link to post
Share on other sites

While no doubt, paying huge sums to the directors who created the mess.

 

Whilst destroying numerous, often privately ran smaller or medium type businesses in the process, more often passed down through generations. Entire livelihoods depended on them.

Share this post


Link to post
Share on other sites

Whilst destroying numerous, often privately ran smaller or medium type businesses in the process, more often passed down through generations. Entire livelihoods depended on them.

 

Creative deconstruction Schumpeter calls it.

 

His view always was that an established business has little to fear from it's local established rival competing on cost because they can match each others movements easily. Instead, he said that the business to fear was the innovator (which Tesco are in terms of product range, convenience ect..) and he's been proven right. Albeit Tesco does have oligopoly traits.  

 

Of course my posts above open up whole other debates about protection of sole traders vs multinationals, using market power to give consumers cheap milk vs protecting British farmers and whether oligopolists are even bad by nature (Amazon and trade unions both display such traits but are perceived as being good things).

Share this post


Link to post
Share on other sites

Creative deconstruction Schumpeter calls it.

 

His view always was that an established business has little to fear from it's local established rival competing on cost because they can match each others movements easily. Instead, he said that the business to fear was the innovator (which Tesco are in terms of product range, convenience ect..) and he's been proven right. Albeit Tesco does have oligopoly traits.  

 

Of course my posts above open up whole other debates about protection of sole traders vs multinationals, using market power to give consumers cheap milk vs protecting British farmers and whether oligopolists are even bad by nature (Amazon and trade unions both display such traits but are perceived as being good things).

 

Bottom line remains, whilst the crocodile tears continue with regards to losses at least they were given the chance. Sheer greed, nothing more nothing less has been their downfall. No estimates as to the other billions of pounds of losses to the minnows in comparison who are struggling at best to get by.

Share this post


Link to post
Share on other sites

Well those figures are not right are they? You cannot lose £6.4bn in a year can you?

 

I know the staff at my local Tesco, and we were talking about this today, I was told working conditions are bad, training is poor, and the staff demoralized and isolated from those that make decisions.

 

You don't see a happy Tesco employee, it rubs off on to the customers, and they have lost both staff and customer focus.     

Share this post


Link to post
Share on other sites

They will be ,asset write downs can really push up losses ,their stores are simply not worth what they once were ,oh how the mighty have fallen !!.

Share this post


Link to post
Share on other sites

Hasn't Call Me Dave offered to bail them out yet? Or at least provide them with some more free labour?

Share this post


Link to post
Share on other sites

Hasn't Call Me Dave offered to bail them out yet? Or at least provide them with some more free labour?

I thought he did some time ago ??. Sorry missed the more , lol :)..

Share this post


Link to post
Share on other sites

Well those figures are not right are they? You cannot lose £6.4bn in a year can you?

 

I know the staff at my local Tesco, and we were talking about this today, I was told working conditions are bad, training is poor, and the staff demoralized and isolated from those that make decisions.

 

You don't see a happy Tesco employee, it rubs off on to the customers, and they have lost both staff and customer focus.     

 

And yet those who make it happen often carry on regardless. If as you say staff are not contented then what chance have customers got? in that respect the same rules probably apply to any business or organisation, no matter their size or status.

Share this post


Link to post
Share on other sites

Been shopping in Lidl more than Tesco for about 6 months now- only thing I really go to Tesco for is the fizzy drinks at 3 for £1.30 and the pharmacy. Don't even bother with the petrol station because of the permanently red traffic lights at the entrance, use the Esso round the corner.

You don't see a lot of people doing "big shops" in Tesco at all these days, it's mostly 10 items or less or people going in for something on offer. You still see them in Asda though, interestingly.

Lidl is right opposite Tesco here, so isn't any further to drive. It pretty much sells everything we need, it's only drawback is there isn't a basket only till. As for the others, Sainsburys is miles away, Asda we use for the create your own pizzas they do, Morrisons has a good salad bar and deli counter but is otherwise overpriced, Aldi is always full of dithering OAPs blocking your way (and isn't as cheap as Lidl), B+M have some good bargains.

Share this post


Link to post
Share on other sites

The only good thing about Tesco`s here is the jersey milk 2 pinters,can`t get it anywhere else much now.

Share this post


Link to post
Share on other sites

The main issue I think is that due to the increase in food prices people are choosing to shop at cheaper shops like Aldi and Lidl. You get more for your money and you don't feel like your getting ripped off. What we tend to do is do our big shop in Lidl and go to Morrisons around the corner for the extra bits and bobs you can't buy in Lidl

Share this post


Link to post
Share on other sites

Well I have recently returned to tesco having used aldi and lidl over the past year, my conclusion is it's a false economy.

yes the checkout is cheaper at aldi and lidl but way less choice is the main reason for the savings but....

take chicken kievs for example cheaper price yes but % wise less chicken hence cheaper price.

I have compared many many products and it is the same across the whole range of goods so I guess the old saying you get what you pay for is as true today as it's always been.

So now I split my weekly shop to two smaller deliveries a week keeping everything nice and fresh and no hassles standing in queues.

works a treat for me

Share this post


Link to post
Share on other sites

A common thing they are all doing is making things smaller but keeping prices the same.
 

 

due to the increase in food prices

The average food shopping bill has actually got cheaper by quite a bit the last couple of years.
Unless you go to the Co-op like we did today  :whistling:   :shok:
More or less similar load of stuff must be almost 20% more than Morrisons.
They do have some nice things like those stem ginger cookies.  :good:

Share this post


Link to post
Share on other sites

I find Tesco food to be generally decent quality, and above Asda and Morrisons, although I can believe what has been said about poor treatment of employees.  I agree with the notion of Aldi and Lidl being cheaper but having less choice.

 

These days I often shop at Sainsbury's which I think ranks about equal with Tesco, slightly better for some things, slightly worse for others.

Share this post


Link to post
Share on other sites

×
×
  • Create New...