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frogesque

Tesco Closures

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http://www.bbc.co.uk/news/business-31023136

 

Supermarket giant Tesco has named the 43 stores it is closing across the country, a move that will see 2,000 staff lose their jobs.

 

 

Whatever you think of Tesco, it's a lot of jobs to loose nationwide with many households relying on a flexible second source of income. Is it the end of the big 4 dominance in the retail sector or just simple Tesco mismanagement?

 

EDIT: Mods, I hope it's OK to discuss a specific commercial operation but it does have wider consequences.

Edited by frogesque

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I worked in food retail for 22 years and was alive and kicking when Safeway went down the pan, had the joys of Morrisons for about six months and then they sold us out to waitrose, which the store still is to this day. I then went to work in a somerfield cum Morrisons for a couple of years until I had my bubs. So I know full on what this sort of thing is like, but these poor people are facing no job rather than a hope.

With Safeway it was mismanagement full stop. The head chicken took 1 million with him when he suddenly quit and then a few days later Bang safeway was gone. It was a great place to work and it saddens me even now that it was left to rot. 

Tesco was always the Big cheese, so i think the greed factor may be playing a big part as well as customer demands - the cheaper places like aldi are now becoming competition, as purse strings become tightened.

Edited by Dami

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http://www.bbc.co.uk/news/business-31023136

 

Supermarket giant Tesco has named the 43 stores it is closing across the country, a move that will see 2,000 staff lose their jobs.

 

 

Whatever you think of Tesco, it's a lot of jobs to loose nationwide with many households relying on a flexible second source of income. Is it the end of the big 4 dominance in the retail sector or just simple Tesco mismanagement?

 

EDIT: Mods, I hope it's OK to discuss a specific commercial operation but it does have wider consequences.

A bit of both.

 

Tesco expanded and expanded, diversified, then diversified some more and inevitably it's core business suffered.

Meanwhile, our Continental 'cousins' turned up and piled it high and cheap - Hang on, where did we here that before?!

 

Tesco's biggest profit margins are in the Expresses in the suburbs; but the once/week 'big' shop came under pressure in their superstores, from the likes of Aldi and Lidl.

 

I could simply put it that it got so big it eventually went 'bang'!

 

So it slims down again, not that slim, probably sells off some of its stores, cuts staff benefits (Final Salary pension scheme shutting i believe), and shows the City that it's taking the right action quickly.

Next to come under (more) pressure will be Morrisons i reckon. They kinda had a close shave last year.

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I agree that Morrisons may be next. Won't say why. 

Edited by Dami

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My neighbour works in Morrisons and she fears for her job as they have been performing badly for some time now. Expansions are being shelved and management being sacked and stores are being closed down. She is hopeful our local will survive as she has given me her staff discount card..............bless, unless it is going to become obsolete. :shok:

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Nothing and no one is too big to fail, here we have a company like the others that tried to enter as many markets as possible, sacrificed service and quality for fast turnover and quantity.  They stopped selling just a few item ranges (mainly food) and moved into clothes, homewares, entertainment, books etc... all that did was take custom from the dedicated high street shops, that catered better for these markets, and saw them decimated and removed from our high streets.

 

Big shop? big store?  times have changed and the trend is little shops more often and online for a better selection of non food items since the likes of a book shop have gone,  try and get a classic book from a big four supermarket, they will only cream off the latest top ten best sellers at any given time, same with other such wares, you need a proper shop to get anything else.

 

Now I like to do most of my shopping each week in Iceland, they are good on price, and have stuck to what they do best and not tried to take on other markets, they may not have a huge market share, but they know their market share, it may not be big, but it is not falling drastically either.

Edited by Jax

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I agree that Morrisons may be next. Won't say why. 

Recently opened store in Headington has since shut, as it had 4 major rivals nearby and was taking pittance. 

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Morrison's is the best shop in are town, Mind you its the only big one all the others r tiny, Most people shop at Morrison's here... dont see why so many people dislike them r local Morrison's only just expended to longer hours to meet demand, Maybe the one here is just bucking the trend 

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Tesco's biggest profit margins are in the Expresses in the suburbs

Indeed, the local Tescos in Winterbourne is always very busy. Goes hand in hand with the petrol on a busy route, though. It's very much about placement of strategical assets in high footfall locations for profitability. (this must account for a small percentage of their business, though?)

 

I hate the big superstore like up Bradley Stoke. This is where they are feeling the pinch now, I imagine.

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Personally, I have never shopped in Tesco for years. Tried it a few times but didn't like their meat quality or, for that matter, their choices. Always liked the good choices and quality available in Morrisons but boy were they pricey. I think what happened was that over and beyond the 'crash' of 2008, they just didn't read how the population was struggling. Aldi & Lidl did. As someone else said above, they piled it high and kept it low. Choices were always restricted before 2008 and you could never get all your requirements there. Quality and choice has improved greatly now and a lot of their fresh produce is purchased from local meat and food producers. Personally, I think they cut their profit margins to get the customers in. Those customers have stayed loyal.
The big boys didn't read what was required in the market at that time and put their profits before customer service. Buy one get one free or 2 for 1 offers just didn't cut it and they suffered.
Aldi & Lidl took the hit at the time but it has now paid off handsomely. They are expanding rapidly with new stores opening all over the place.

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This was obviously going to happen a few years back when they had that massive expansion and those crazy ideas to build 'Tesco villages'. People at the time were saying they were expanding far too quickly.

 

Our local Express with Petrol is always busy. Cheap petrol, a great little bakery, a fridge section with Meal Deals, quick meals and the basics. Then a few shelves of basic household stuff, alcohol, newspapers and magazines and a coffee and cigarette stand. Keeping it simple with stuff people need all the time.

 

Tesco is OK, good for a few things but I much prefer Sainsbury's out of the Big 4.

Edited by Lauren

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The food supermarkets should of stayed at being just that - places to buy food - I think it's a shame, along with internet that my child won't have the experience of a proper let's say,Book shop, the smells, the rows of shiny new books, the joy, or the community spirit of your own butcher or baker because everyone wants to have everything in one place. 

That's not too say i don't use the net, but going to a shop is much better at times and these big stores having destroyed the high street as we knew it are finally getting the karma they deserve.

Edited by Dami

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The food supermarkets should of stayed at being just that - places to buy food

 

My local Tesco is one of the big ones. I'd say that only around 50% of the floor space is dedicated to 'groceries', the rest being clothes, books, electrical, toys, houseware etc. If you break down the groceries space, a large part of that is taken up with alcohol, crisps,  biscuits, seasonal (often a combination of food & non-food). If you were actually to analyse it, I'd estimate that only around 20-25% of the floor space was potentially 'useful' to me on a weekly basis. It's no wonder the big supermarkets are beginning to struggle as I'm just not sure how much profit they can make off of the roughly 10% of their floorspace, to take just one example, dedicated to dishes, plates, cookware, cushions, bedding and even fancy scented candles (a lot of this came in recently, after they vastly reduced their range of electrical items, CDs, games etc, probably because it was always easier and much cheaper to buy them online).

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TESCO blew the traditional high street and it's traders apart. i have no sympathy for them, they screwed so many people, being taken down is something they deserve for the many that they have destroyed on their climb to dominance. Unfortunately they changed the look of the high street forever, and as much as things much change it was always TESCO that led the destruction.  It's proving it's not too late to return to the smaller shop with a weekly purchase being adopted once again.

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I worked in food retail for 22 years and was alive and kicking when Safeway went down the pan, had the joys of Morrisons for about six months and then they sold us out to waitrose, which the store still is to this day. I then went to work in a somerfield cum Morrisons for a couple of years until I had my bubs. So I know full on what this sort of thing is like, but these poor people are facing no job rather than a hope.

With Safeway it was mismanagement full stop. The head chicken took 1 million with him when he suddenly quit and then a few days later Bang safeway was gone. It was a great place to work and it saddens me even now that it was left to rot. 

Tesco was always the Big cheese, so i think the greed factor may be playing a big part as well as customer demands - the cheaper places like aldi are now becoming competition, as purse strings become tightened.

you do know that Safeway is a huge north American supermarket chain and is alive and doing very nicely thank you??..tis the equivalent of Waitrose here. Very much the high brow competitor to Wal-Mart...still have my Safeway card quite like this supermarket.

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Nearest to me (about 5 miles), Kirkcaldy Tesco is closing with the loss of 180 jobs. There is also a big question mark over the Post Office as it is part of their complex. Could be a real double blow for the town centre which despite a long and expensive re-vamp and pedestrianisation has seen the loss of car parking spaces (metered) and  increasing out of town competition from Morrisons, Sainbury and Asda with free parking and all the other main chain shops situated nearby. Also, given the rise of on-line shopping, it probably means the death of a once vibrant shopping High Street and I suspect there will be even more low profile closures that won't make national headlines.

 

http://www.thecourier.co.uk/news/local/fife/tesco-to-close-kirkcaldy-store-with-loss-of-180-jobs-1.811677

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I don't think it's entirely fair to blame Tesco for the ruin of the highstreet. Customers create demand. If Tesco and other supermarkets provide an all in one service and customers then decide to use that, that is the customer choice. If they didn't want to use it they wouldn't.  Customers want cheap over anything else, morally questionable as that might be, the customer dictates demand. If you are a family struggling to make ends meet you aren't going to be bothered if you are buying a chicken for £1 cheaper at a supermarket and doing the local butcher out of business.

 

Personally I always try to help the little guy and because I have the cash to spare, will happily purchase my meat from the butcher, veg from the greengocers etc, but I often regularly end up in supermarkets, which is entirely my choice, not the supermarkets.

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you do know that Safeway is a huge north American supermarket chain and is alive and doing very nicely thank you??..tis the equivalent of Waitrose here. Very much the high brow competitor to Wal-Mart...still have my Safeway card quite like this supermarket.

I worked for Safeway for 15 years and Yes, I know the story..but do you know that the British side was sold off in 1987 to  Argyll foods. They in turn changed pesto stores to the Safeway format. The first ever Safeway opened in Bedford as well in 1962 a good few years before Safeway INC was sold and became Safeway PLC. The American chain has nothing to do with the British chain since then.

 In 2003/2004 it was merged with Morrisons and now trades mainly as Morrisons with some units sold off to other companies. 

 

http://en.wikipedia.org/wiki/Safeway_(UK) to back up my claim.

 

Anyway, yes it's people love of convenience that has destroyed the High street as well, why have to take time going to 3 shops when one does it all? 

Edited by Dami

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I don't think it's entirely fair to blame Tesco for the ruin of the highstreet. Customers create demand. If Tesco and other supermarkets provide an all in one service and customers then decide to use that, that is the customer choice. If they didn't want to use it they wouldn't.  Customers want cheap over anything else, morally questionable as that might be, the customer dictates demand. If you are a family struggling to make ends meet you aren't going to be bothered if you are buying a chicken for £1 cheaper at a supermarket and doing the local butcher out of business.

 

Personally I always try to help the little guy and because I have the cash to spare, will happily purchase my meat from the butcher, veg from the greengocers etc, but I often regularly end up in supermarkets, which is entirely my choice, not the supermarkets.

I am not just blaming TESCO but their kind, here is was ASDA that killed off many of the indie's, but their business model and approach of snatching the top 10-20% of trade like, books, electricals, homewares etc sapped the trade from the rest, now we are left with "this years" top ten items to choose from rather than the wider and often unique choices we had before.

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