Future of tesco, morrisons

Ifts

Minrich wrote: »

From a personal point they state that the Defined Benefit Scheme is to be closed , is this for all employees or for just newcomers?

According to this its for all employees:

The group will also hold off from increasing investment in payrolls and introduce a new benefits package for employees, as well as a "turnaround-based bonus". At the same time however, the company has decided to close its defined benefit pension scheme for all staff.

https://www.share.com/find-investments/advanced-finder/company-overview/tesco/news/180/?pass=1&story_id=22373012

Glen_Clark

gadgetmind wrote: »

fear that they will join the ranks for the unforgiveable cutters.

Sorry I don't understand what you mean.

gadgetmind wrote: »

Tescos have done a number of very bad things recently .

As far as I can see Tesco have only done the same as they have been doing for years. But what worked then doesn't work so well now as the marketplace is constantly changing.

I guess the new man has got all the bad news out now, except the cancellation and closing of stores will lead to write downs in the property portfolio, a paper loss. We also don't know how much profit they have sacrificed to maintain sales, so I think there will be a better opportunity to buy the shares.
(I followed Warren Buffet into Tesco, bought for less than he did and am sitting on a loss. But I don't plan on selling anytime soon as they may go back up, and if they don't I can hopefully sell them at the right time to lessen my capital gains)

Glen_Clark

Minrich wrote: »

Tesco were able to increase profit over time due to creating new stores . This has stopped and they will only keep the most profitable ones. Thats good business practice as it IS a Shareholder owned company . There is No point in having shares if you don't make any money. We were happy with 5% dividend , it is part of our pension income afterall. We have lost value greatly over the last year or so as far as what our shares were worth , that is not that important to us as we hold for dividend only . Now we find we will not get our dividend of about £2000 at year end ! That WILL effect our standard of living more than the £40k we have lost (on paper) on the share value . As posted elsewhere we will be investing £500pm into the Tesco SAYE scheme for the next 5 years at £1.50 a share , hopefully that will give us our money back , so to speak over the next five years ?

They couldn't really tell the staff they are reducing their pensions, laying off staff, and maintaining the dividend could they?
At least the pain is being felt all round, including another cull of senior management and closing of offices.
How I wish the public sector would follow Tesco's example of moving out of their expensive offices, cutting senior staff and their Gold Plated pensions. Instead of forever cutting our services and putting our taxes up to line their own pockets :mad:

RobStaffs

Sort of feeling uncomfortable about my gains on Tesco's share price surge. Real jobs and careers are sacrificed to give the impression of value added and boost market confidence. This is only a short term strategy. Tesco need to understand why shoppers have deserted them.

Minrich

RobStaffs wrote: »

Sort of feeling uncomfortable about my gains on Tesco's share price surge. Real jobs and careers are sacrificed to give the impression of value added and boost market confidence. This is only a short term strategy. Tesco need to understand why shoppers have deserted them.

They do know , they are one of the best businesses for knowing what their customers habits are ..... and their customers haven't really deserted them . They still have them they just don't spend as much . The plan i think is to have a "Cheap" area of goods in their bigger stores to buy own brand or lesser know named products . So people can do their cheap purchases and their branded purchases in the same shop .There won't be that many people losing their jobs as a proportion not like has been happening in the banking sector . I would like to see Tesco really push the online shopping more and really take a stangle hold over that part of the food shopping market .....What proportion do they hold now ? Talk of amazon doing it is fraught with danger for them , they don't make profit as it is , so why do something else that is very low/nil profit ?

Glen_Clark

RobStaffs wrote: »

Tesco need to understand why shoppers have deserted them.

I believe that Tesco do understand their customers. As the gap between rich and poor grows wider, all the middle of the road grocers including Tesco are losing customers at both ends. Not much they can do about it other than downsize, which is what they are doing. In business as in the animal kingdom it isn't the biggest or strongest species which survives. Its the ones who can adapt - to their changing circumstances and environment.

Glen_Clark

Minrich wrote: »

They do know , they are one of the best businesses for knowing what their customers habits are ..... and their customers haven't really deserted them . They still have them they just don't spend as much . The plan i think is to have a "Cheap" area of goods in their bigger stores to buy own brand or lesser know named products . So people can do their cheap purchases and their branded purchases in the same shop .There won't be that many people losing their jobs as a proportion not like has been happening in the banking sector . I would like to see Tesco really push the online shopping more and really take a stangle hold over that part of the food shopping market .....What proportion do they hold now ? Talk of amazon doing it is fraught with danger for them , they don't make profit as it is , so why do something else that is very low/nil profit ?

The big 4 middle of the road grocers already have a cheap basics range. And how could Tesco push the online shopping more than their £1 delivery promotion? - they must have been losing money hand over fist on that.

Scarpacci

Tesco is far by the leader in online grocery shopping as it is. I believe they have over 50% of that market. That, along with the fact that Tesco is also the leader in smaller convenience stores which everyone's so worried about killing the large stores, is one of the reasons I do believe the market is likely underestimating Tesco's longer term strengths. For many of the fears people have over Tesco (except the discounters, at least), namely the switch to online shopping and the change to smaller shops at smaller stores, Tesco is very well placed against its larger competitors.

There's some sizeable couponing going on in online even outside the delivery charges. £15 off £60 spends - yikes. Though that's obviously a more one-time deal.

hyposmurf

Minrich wrote: »

They do know , they are one of the best businesses for knowing what their customers habits are ..... and their customers haven't really deserted them . They still have them they just don't spend as much . The plan i think is to have a "Cheap" area of goods in their bigger stores to buy own brand or lesser know named products . So people can do their cheap purchases and their branded purchases in the same shop .

Are you talking about Tesco? The main part of the problem is that they weren't in tune with what their customers wanted and have lost market share to those that did.I doubt the basics range will be of much use.You can shop at LIDL or Aldi and don't have to go to a basics section to gets good at a lower price as the majority of their goods are lower price anyway.There is also that stigma of buying basics goods when other people are buying the branded items.

Thrugelmir

Minrich wrote: »

Also no final dividend , which is the only reason we hold them.....Will they they revert back to what they used to pay ?

Unlikely. Like the banks, the golden era of UK supermarkets is over. Lower margins are here to stay. In the short term Tesco's is more likely to tap it's shareholders for a rights issue to raise cash. So your shares are going to be diluted further as matters stand.