Tesco shares...

planteria

an interesting point.
but i think that the 'spending caution' is entrenched. the days of people wanting to be seen to be shopping at Waitrose and M&S have given way to be it being 'wise' to pick up your broccoli at Aldi..
i deal with retailers myself, and purchases above about £50 seem to be far more considered nowadays than they were 10 years ago, and it feels relatively long term.
the culture of reducing debt and spending carefully, and getting value for money in the process, is entrenched.

Glen_Clark

kinger101 wrote: »

Although Tescos and Morrisons do appear to be losing market share to Aldi and Lidl, my prediction is that fewer people will use this discounters once wages start to rise in line with or above inflation. Despite everyone trying to pretend that quality is good at these stores (sometimes it is, but generally it is sh1te), you can't get away from the fact that Aldi et al stock fewer lines, and are less innovative than the major supermarkets. I also don't understand why half of their floor space is used to sell low-end tat. Once people feel they have more disposable income, they'll be returning to Tesco, so I think it's a good buy at the moment.

You make some good points.
But I think the problem for the middle of the road grocers is that their customer base is shrinking at both ends as the gap between rich and poor is widened (by subtle political policies). I can't see that changing anytime soon.

Glen_Clark

planteria wrote: »

wanting to be seen to be shopping at Waitrose and M&S have given way to be it being 'wise' to pick up your broccoli at Aldi..

But Waitrose and M&S food are doing well!
Its only the middle of the road retailers who are losing market share.

planteria

sorry, im not arguing they're not...
but the days of it being uncool to be careful are gone, so the relatively affluent folks that have picked up food at Aldi/Lidl, or, in theory, 'dropped down' to Tesco/Asda/Morrisons may not go back up.
there has been a shift 'down' and i think it may well stick.

bigadaj

planteria wrote: »

sorry, im not arguing they're not...
but the days of it being uncool to be careful are gone, so the relatively affluent folks that have picked up food at Aldi/Lidl, or, in theory, 'dropped down' to Tesco/Asda/Morrisons may not go back up.
there has been a shift 'down' and i think it may well stick.

I think it's just a normal polarisation of the market, which has been exacerbated by the recession. It's very easy to justify shopping purely done to price, or by saying that you appreciate and value additional quality, but saying you don't mind paying more than you have to, or that you're happy to spend a bit but not a bit more for the really good stuff is both less likely and illogical.

The big supermarkets have solved this problem to an extent in any case, though their results don't indicate it. When you are beaten on price and one end and quality at the other end then you start to be more creative and look to market on convenience and scale.

They can compete on the local level, convenient and cheaper than local small shops with extended hours, and similarly a mega store with convenience and opening hours and teh option of doing your non grocery shopping, people are still very time conscious, many more so than cost sensitive.

Minrich

Well since this thread started they have taken even more of a battering , we hold a big stack of them as one of us is employed by them and the SAYE scheme has been very good to us as far as the discounted price in the first place but now @ £2.46 we haven't paid that little for them for about 6 years plus probably 10 . Divi is nearly 6% now so have just bought a few more - well 6000 !

flashnazia

Phillip Clarke going in October. Maybe the uncertainty is holding people off.
I still can't see the appeal of aldi and lidl over tesco though. It may be slightly cheaper but the shopping experience is horrid: dimly lit, messy, cramped stores, surly staff who are few and far between, bread and fruit that tastes awful. Maybe my locals are of lower par than elsewhere?

Glen_Clark

flashnazia wrote: »

I still can't see the appeal of aldi and lidl over tesco though.

Price.
Aldi & Lidl are perceived as cheaper, sometimes they are, sometimes they aren't.
In any event the gap between rich and poor is widening.
But some people don't seem to want to admit it.

Stompa

flashnazia wrote: »

I still can't see the appeal of aldi and lidl over tesco though. It may be slightly cheaper but the shopping experience is horrid: dimly lit, messy, cramped stores, surly staff who are few and far between, bread and fruit that tastes awful. Maybe my locals are of lower par than elsewhere?

Quite possibly, that's not been my experience at all.

Minrich

Aldi understaff their stores on purpose to get their managers to work their socks off , they do pay very well and their graduate entry management scheme is/was the highest paying , something like £27k starting salary .
I have been in many Lidl and Aldi stores , not shopping (I don't do shopping!) and the layout of the stores and they way in which you shop is pure "Get your stuff and get out" type experience , if i was into shopping and being in a nice environment to enjoy i would definitley not go in either . I like the Tesco and Sainsburys shops , Asda less so on a par with Morrison . I see shopping for essentials like food as such a chore that if a shop made it a better experience the better for the shopper and that business . Tesco have been making the experience better and that to me has got to be good . But having been in many supermarkets over many years and being a people watcher not many people appear to enjoy the experience and always seems stressed and grumpy . This is quite apparent and hence the slagging off that Big supermarkets get from shoppers , people need to enjoy the experience more , somehow and this must be a priority for them , or is it just me ?
I am sure its not the price that has seen Lidl and Aldi improve their share , it is the grumpy?? or fed up people who don't like shopping and are getting back at the big 4 , but then many people are still struggling financially and if they can save £3 a week or whatever amount they will try to do so .