Future of tesco, morrisons

Thrugelmir

bowlhead99 wrote: »

You may decide that is exposure that you want, but others would say you don't counteract bad decisions by buying more of the same at a lower price. You are buying more hoping for greater gains, which is not a risk reduction strategy.

Understand the business, it's markets, it's finances etc etc. Movement in share price may be totally unrelated to the financial performance of the Company. That's the time to buy. If you want to move with the herd, buy some cows.

Stompa

Glen_Clark wrote: »

Aldi is only about price, lets be honest about it...

Not entirely. There are those (myself included) who regard their products to be of better quality than their larger competitors.

Minrich

So why can't Tesco sell the same products as Aldi/Lidl at the same prices ? Surely if they approached the companies that supply Aldi/Lidl the suppliers would jump at the opportunity ?
I believe its down to image of Tesco that has caused the downturn , many people are very anti Tesco , ruining the high street and all that !

2010

The fact remains the share price continues to fall 244.88p at the moment.
As the 12 weekly statements come out they only keep falling.
Declining sales are bad news.

Niv

Minrich wrote: »

So why can't Tesco sell the same products as Aldi/Lidl at the same prices ? Surely if they approached the companies that supply Aldi/Lidl the suppliers would jump at the opportunity ?
I believe its down to image of Tesco that has caused the downturn , many people are very anti Tesco , ruining the high street and all that !

Quite a lot of lidl goods are actually their own brand. This is not obvious unless you read the small print on the back of the products though.

Glen_Clark

Minrich wrote: »

So why can't Tesco sell the same products as Aldi/Lidl at the same prices ?

They do have similar products at similar prices in their essentials range

Minrich wrote: »

Surely if they approached the companies that supply Aldi/Lidl the suppliers would jump at the opportunity ?

They couldn't just increase their production enough to supply Tesco overnight. They would have to build more factories, employ more staff etc. And the brand names they sell under are Aldi's anyway.

Glen_Clark

Minrich wrote: »

I believe its down to image of Tesco that has caused the downturn , many people are very anti Tesco , ruining the high street and all that !

And yet now Tesco have withdrawn plans to build new stores they are getting criticised for that as well. Councils had demanded Tesco build infrastructure like new roads etc (all the things we pay the council to do) as a condition of planning consent

planteria

agreed Glen. the ringroad in Walsall was completed at Tesco expense.

antrobus

Glen_Clark wrote: »

...They couldn't just increase their production enough to supply Tesco overnight. They would have to build more factories, employ more staff etc. And the brand names they sell under are Aldi's anyway.

That's assuming that Tesco and Aldi have different suppliers.

There are only a limited number of suppliers out there with sufficient capacity to supply any supermarket with own brand products. In fact, as a general rule any specific supplier will already have contracts to supply a number of supermarkets. It's very likely that everything that Aldi sells under it's own 'exclusive' label is made by a company that is also supplying exactly the same thing to another supermarket. Only in different packaging, of course.

Thrugelmir

Glen_Clark wrote: »

They couldn't just increase their production enough to supply Tesco overnight. They would have to build more factories, employ more staff etc. And the brand names they sell under are Aldi's anyway.

Northern Foods makes Pizzas for all the main supermarkets. Just makes them to each customers specification. Simple as that.