Future of tesco, morrisons

silverwhistle

hyposmurf wrote: »

I feel that many customers have got fed up of all the tricks to lure them in and can see through many of them, so have lost trust in the big supermarkets.

I moved back to the UK last year and early on I popped in to a local Tesco for a hurried purchase. Mislabelling and what I thought was on offer wasn't. Not realising until later I thought, never mind, you've just lost yourself a customer. I've hardly been in one since, although I admit I was yesterday whilst waiting around. Total purchase a bottle of distilled vinegar - which I can't get in the nearby Aldi. By and large though, as I mainly cook from scratch the absence of brand names in the latter doesn't worry me, and I've never seen that as a reason not to shop at the discounters.

In Tescos I see they're still at it: e.g. there were plenty of offers of 50% off wine - down to £5 or whatever. Now those wines are never worth the £10/11 claimed. If I were to spend that much I'd go to Waitrose where for that price there is a host of interesting wines.

jabba42

IMO they are in deep doo doo now and they will to be forced to reform, resize , rebrand to get leaner and meaner. I am hoping, as I just bought some shares, that when the new management team are announced it is like BA, Hannibal, Face, Murdoch and the pretty reporter chick.


The A team, not the A hole team there currently. The board will be under extreme pressure now.

IronWolf

hyposmurf wrote: »

Part of the problem is that the big supermarkets try what they think are clever tricks to entise the customer into buying things at reduced price.Such as BOGOF, points and highlighting by colour or larger numbers for the savings or the max possible discounts in store.Also the over inflated costs for a week and then they cut the price in half to say they're goods are now at a 50% reduction.
Lidl and Aldi just offer lower prices over the majority of their range, less of the marketing tricks.I feel that many customers have got fed up of all the tricks to lure them in and can see through many of them, so have lost trust in the big supermarkets.

This is not some new concept that Aldi and Lidl have invented and championed.

Asda have for a long time, like their parent Walmart, offered consistent low prices and legitimate offers for managing inventory, and not engaged in the fake offer schemes.

Glen_Clark

IronWolf wrote: »

I've been following Tesco for a while. They already cut rewards from the clubcard and used the savings to cut prices back in 2011. In fact is was one of the first things the then new CEO Philip Clarke did. It didn't work, sales fell.

Exactly. Just because we personally don't want a savings card doesn't mean its a bad idea.
As far as I can see Sainsburys has the best idea to counter the threat to middle of the road grocers as the gap widens between rich and poor. They will attempt to split themselves into upmarket (Sainsburys) and downmarket (Netto)

hyposmurf

IronWolf wrote: »

This is not some new concept that Aldi and Lidl have invented and championed.

Asda have for a long time, like their parent Walmart, offered consistent low prices and legitimate offers for managing inventory, and not engaged in the fake offer schemes.

You're right Morrisons do offer low prices on certain products and seem to veer away from the fake offers.I tried doing a complete weeks shopping on there recently, but ended going back to Aldi for the other half of my shopping that was cheaper.I like the range that Morrisons offer and their fruit/veg and seafood.It's not a new concept, but part of the reason that Tesco have lost trade .Customers have started to see through the offers and gone for those supermarkets that offer simpler lower costing.I'm sure Tescos will bounce back, but they have to really offer something different to bring back that custom.

planteria

2010 wrote: »

Maybe for a start they should abandon their clubcard points and use that money to cut prices.
Asda were very wise in not going down the points (old green sheild stamps) route and decided to keep their prices lower by doing so.

i disagree, Clubcard is, and will continue to be, a really strong element of the Tesco business. they have information, and information gives them opportunities to profit, in increasingly sophisticated ways.

planteria

bowlhead99 wrote: »

At year end his 300m shares were worth about what he'd paid for them (he first bought in big around 2006 when they first started making their ill fated move into the US, bought another 1.9% of the company in 2012, but sold out about 1.4% last year). Although, the headline might say they were worth 98% of what he paid for them in USD, but he'd probably received about a third of his money back in dividends over the time so they were a reasonable investment for him.

Since then though, he'll be down about 40% in GBP, a bit less in dollars. So depending on how much he made on his exits last year and the proceeds of reinvesting his dividends elsewhere along the way, he might be down or up overall.

Tesco wasn't a top 10 stock for Buffet / Berkshire Hathaway - with only a billion pounds in it at the end of the year, it was in the bottom end of the top 15. Meanwhile they had $65bn between Wells Fargo, IBM, Coke and Amex, and $50bn+ of other investments. So, if he's now down on paper about 40% of a billion quid since that point he'll be very annoyed, but not despondent.

Your idea to get rid of the shares right after you bought them was a good move - not that buying them to just hold for a couple of months was a great idea in the first place

good analysis here bowlhead. i didn't realise that more than half BH was across those 4 companies...Coke and Amex are certainly strong though:)

planteria

Glen_Clark wrote: »

As far as I can see Sainsburys has the best idea to counter the threat to middle of the road grocers as the gap widens between rich and poor. They will attempt to split themselves into upmarket (Sainsburys) and downmarket (Netto)

good point. Sainsbury's certainly manage to feel 'upmarket' of Asda and Tesco, overall, to me. and yes, Netto will be interesting to watch.

2010

The bears are out short selling and have been for some time (same with MRW).
The only way the Joe on the street can do this is through spread betting.
Kicking off today at 194.5p, touched 191p at one point yesterday.
Every time sales updates come out they will continue to fall.

Last 12 weeks a 4,5% fall.
Things are bad and could get worse.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11116910/Supermarket-shares-fall-by-more-than-1bn-as-sales-tumble.html

The Kantar figures showed that Tesco sales fell by 4.5pc in the last 12 weeks and 5pc in the last four weeks, making it the worst performing food retailer in Britain. Tesco’s sales are now falling at the three times the rate of Wm Morrison, which was previously the laggard, while discounters Aldi and Lidl continue to grow their market share.

Uxb

I go to Tesco as the self scanner and hand held scanners with dedicated till just work perfectly.
As someone a long time Shopper as Sainsbury's said to me recently - I can see why you go to Tesco the whole checkout business with self/hand held scanners is just so quick.