How do Tesco make profits?

Legacy_user

Some of their deals are just great, no one can match them sometimes. Their Tesco Direct codes for example, £20 off £100 when their prices all already quite cheap. And then their Topcashback rates are also higher than most of the similar stores.

£15 off £50 first grocery order + £10 cashback.

The legendary double the difference promotion.

Double CC points is basically 2% off (6% in rewards) which is actually quite a lot.

I like Tesco and think they are the best value for money store in the UK but don't understand how they make so make so much profit.

dinglebert

farmers may be able to tell you how they make so much profit. Then they cut the value of their clubcard points. The prices have been rising.


Just my opinion mind

VoucherMan

Mmmm now how does one of the most expensive high street supermarkets make a profit?

thor

berbastrike wrote: »

I like Tesco and think they are the best value for money store in the UK but don't understand how they make so make so much profit.

I think someone has a big wedge of tesco shares they want to sell.....

colmil

i have certainly noticed that Tescos prices have increased heavily in the last few months, Morrisons is still my favourite.

MorrisonsEmployee

Their are lots of ways they generate revenue to allow for promotions and discounts -

*Promotion ends and key space in stores is 'sold' at a heafty premium to suppliers wanting to get their promotions/new product launches seen.

*Clubcard actually makes them a profit and again companies pay heavily for the privillage of advertising in CC mailouts and for the inclusion of money off/bonus points on their products

*Tesco buy in huge bulk - Meaning while one company maight be paying 23p per product Tesco could be paying 12p.

Oh and of course they s*rew suppliers at every chance!

MorrisonsEmployee

colmil wrote: »

i have certainly noticed that Tescos prices have increased heavily in the last few months, Morrisons is still my favourite.

I have to agree:p:T

marywooyeah

MorrisonsEmployee wrote: »

I have to agree:p:T

lmao - you do have to agree seeing as you work for them!

Owain_Moneysaver

marywooyeah wrote: »

lmao - you do have to agree seeing as you work for them!

Don't have to - I see Morrisons and M&S employees shopping in my local Tesco. And probably vice versa.

lawrie28

berbastrike wrote: »

Some of their deals are just great, no one can match them sometimes. Their Tesco Direct codes for example, £20 off £100 when their prices all already quite cheap. And then their Topcashback rates are also higher than most of the similar stores.

£15 off £50 first grocery order + £10 cashback.

The legendary double the difference promotion.

Double CC points is basically 2% off (6% in rewards) which is actually quite a lot.

I like Tesco and think they are the best value for money store in the UK but don't understand how they make so make so much profit.

Because the cost price of most things is so ridiculously cheap that even when they sell it really cheap, they make money.

If something sell for £1 at tesco, chances are Tesco pay 30p or less for the product on many items, and less than 50p on everything.

And as other people said, people will pay big money to have items in store and also on the promo spaces.

thunderbird

MorrisonsEmployee wrote: »

Oh and of course they s*rew suppliers at every chance!

I think that is the key reason!

It's not Tesco taking the hit when they reduce prices or have special offers...