Tesco Misprices Discussion area part 7

Constantine

Clasics wrote:

As it was me who posted about the 'waste' situation, many thanks for clarifying that! But, fact is, this will still be written off against Tesco's overall tax liability, as it's 'waste' - I suppose, a similar scenario to shoplifting albeit totally legal? What I was trying to get across is this sort of thing is not quite as 'damaging' financially to Tesco as some people may imagine....

I have no idea on either the the tax liabilities or the overall damage to Tesco financially. Not areas I feel qualified to speculate on, I will bow to anyone with experience of corporate tax issues. What I can tell you is that it is a significant financial impact against an individual store.

FloFlo

Then perhaps they should spend their profit on training more staff to price their goods correctly. No incorrect prices, no R&R.

Constantine

FloFlo wrote:

Then perhaps they should spend their profit on training more staff to price their goods correctly. No incorrect prices, no R&R.

Wow! Great idea! If only that idea had been posted seven threads back we could have wrapped all this up ages ago

Coupon-mad

Maths is not my strong point but I can't understand what you are saying, Constantine, that an R&R costs the store twice.

Am I missing something?

Yes, the store is giving my money back but that is offset by the fact that I have just paid that money.........so this bit cancels itself out. Therefore the only cost is - to my mind - the waste, once. It's just that the wasted item has ended up at our house rather than in the bin!

FloFlo

Okay so I only read the posts on this page, its all been said many, many times before anyway, just a bit bored and thought I'd stick my oar in.

FloFlo

Also possible misprice in Tesco Newport Road, Tesco microwave with grill - floor stack and bottom shelf price £49, higher shelf price and shelf talker £44. Didn't have time today and won't be over there for a few days. I know that one or 2 shop there, so thought it was worth a mention. Hope that this info doesn't bankrupt Tesco.

jackashton1

hi guys, im really sorry, noobie here - how does this all work? You buy something for more than the price its marked up for and you get your money and the product back? Whats R and R stand for? thanks

Coupon-mad

jackashton1 wrote:

hi guys, im really sorry, noobie here - how does this all work? You buy something for more than the price its marked up for and you get your money and the product back? Whats R and R stand for? thanks

Hi, welcome!

You just need to read post number one on page one of this thread. Also look at the separate Tesco Misprices thread - where the actual tip-offs are posted!

:T

P.S. If you have any more q's after reading the posts, fire away!!

Constantine

Coupon-mad wrote:

Maths is not my strong point but I can't understand what you are saying, Constantine, that an R&R costs the store twice.

Am I missing something?

Yes, the store is giving my money back but that is offset by the fact that I have just paid that money.........so this bit cancels itself out. Therefore the only cost is - to my mind - the waste, once. It's just that the wasted item has ended up at our house rather than in the bin!

No, you are correct...I'm just (trying!) to give you the stores perspective

There are 3 main areas of loss -

Known Loss (aka Waste)
Unknown Loss (aka Shrink)
Refunds (aka...um...Refunds)

all of which come off the stores sales.

Going back to my hypothetical £1m store. Waste = 1%, Shrink = 0.6%, Refunds = 0.4%.

So this store thats in my head is budgeted to spend 2% of its sales each week in "loss". £20,000.

When an item is r & r'd, it is accounted for in two areas of loss - Refunds and Waste. So a £100 r & r will appear in the stores figures as £100 Waste and £100 Refund = £200 cost. Yes, the £100 sale shows in the turnover figure. But looking at the top line KPI's (Key Performance Indicators) does not take this in to account - From a stores point of view it "feels" like they have paid twice.

I am not trying to suggest that this is why some people end up with difficulties at the CSD, just trying to explain how it impacts an individual store. It is certainly in my mind that the cost is going to be double to me when I have r & r's (thankfully not that many for me). Waste is a tough enough kpi to achieve without needless (ie avoidable) impacts.

Hope thats a bit clearer? Let me know if anything is still confused - its late and I may have gone off track

jackashton1

ah right silly me, do things like games consoles etc every come up?