Tesco paying the price for greed?

spaceboy

cobblers_boy wrote: »

not sure if others have spotted this. I went to Tesco today and Heinz Baked Beans are now 2.49 for a 4 tin pack. I am sure about 2 months ago this was about 1.70. That makes it about a 50% price increase which they don't seem so keen to go on about

These increases just keep on mounting.

keith99_2

spaceboy wrote: »

These increases just keep on mounting.

http://forums.moneysavingexpert.com/showthread.html?t=1419093. Go to this thread and read your fellow moneysavers justify why its such big rises.

spaceboy

keith99 wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=1419093. Go to this thread and read your fellow moneysavers justify why its such big rises.

Sickening, isnt it. Wouldnt surprise me if half of them worked in supermarket management, up to the hilt in company shares and with their 15% employee discount.

VoucherMan

keith99 wrote: »

i am sorry but whilst i agree people rightly take advantage of DTD,it is hardly a reason for the majority to shop there. The same with MOC, it is a bonus but hardly a reason for making it your supermarket of choice.

I agree that it wouldn't be the deciding factor for most, but still think that enough would stop using Tesco for it effect profits. I think they'd just gradually reduce clubcard's value. They've already restricted the amount of points you can get and where you can get them. Recent clubcard vouchers seem to be lacking bonus points coupons.

Schamansky

I've just gone through some food commodity market charts, cocoa, wheat, beef, soybean, rice, etc...

... and it's a funny picture. In 2007, the above mentioned commodities rocketed in price, peaking over 2008, and ... have been coming down ever since, roughly to the level before 2007.

Wasn't it in 2007/08 when all food staples doubled in price, such as rice, bread, oils, milk, etc? So why are prices not coming down again now that the commodity bubble seems to have burst and the commodity markets excuse doesn't wash any more? Why is it still a one-way elevator that only knows one direction, this being "up"?

My first shot in the dark is this: what supermarket head offices rely on is that the customers simply got used to the higher prices (45p for a value loaf compared to 20ish pence in 2006) and see these prices as normal now. So why would food retailers drop the margin of their products knowing full well that customers will pay without moaning?

I mean, how many commodity market buffs are in here? It's the first time I ever looked at this sort of stuff myself.

Just an illustrative example: US wheat.
http://www.chartsrus.com/chart1.php?image=http://www.sharelynx.com/chartstemp/free/chartind1CRUvoi.php?ticker=FUTKW

saintwarwick

Schamansky wrote: »

I've just gone through some food commodity market charts, cocoa, wheat, beef, soybean, rice, etc...

... and it's a funny picture. In 2007, the above mentioned commodities rocketed in price, peaking over 2008, and ... have been coming down ever since, roughly to the level before 2007.

Wasn't it in 2007/08 when all food staples doubled in price, such as rice, bread, oils, milk, etc? So why are prices not coming down again now that the commodity bubble seems to have burst and the commodity markets excuse doesn't wash any more? Why is it still a one-way elevator that only knows one direction, this being "up"?

My first shot in the dark is this: what supermarket head offices rely on is that the customers simply got used to the higher prices (45p for a value loaf compared to 20ish pence in 2006) and see these prices as normal now. So why would food retailers drop the margin of their products knowing full well that customers will pay without moaning?

I mean, how many commodity market buffs are in here? It's the first time I ever looked at this sort of stuff myself.

The best measure of this is the supermarkets profit margins.

spaceboy

Price of cooking oils seems to have gone way up in the last couple of years. Used to be a good bit cheaper than diesel didnt it? Now it's much more...

matt1979_2

Constantine wrote: »

Shame the original article is not only old, but a lie. Originally reported in the Guardian.

http://www.accountancyage.com/accountancyage/news/2226138/guardian-issues-tesco-apology

It wasn't a lie - far from it, it actually turns out that Tesco "avoids" far more than was thought.
There was however a small inaccuracy in the article, Private eye then reported the story and found that what was reported in the guardian was the tip of the iceberg.
When it went to court Tesco claimed that they were tax "avoiders" rather than tax "evaders" - what the difference is I don't really know.

vwcampervan72

Dont know if its been mentioned on this thread but Tesco strong flour for bread makers always USED to be 48p per bag just before xmas it went up to 78p, then last week back down to 48p now UP again to 68p

The yeast has also gone up from 50p to 68p

Im certainly changing my supermarket, sorry MrT your taking the micky now

Tigert

Switched to Sainsburys just before Christmas, purely because I couldn't get a parking space at Tesco - Was surprised to find my shopping quite a lot cheaper (and the petrol!). I actually prefer some of there "value" products to Tescos normal ones.

So I shan't be going back for a while!