Future of tesco, morrisons

frogsport

We used to be regular Tesco shoppers but along with most of our friends that used to shop there in person we are fed up with the constant blocking of the shelves by their internet shoppers, they charge round the store, like demented formula 1 drivers, and as far as checking what they have picked they don't!
It used to be an enjoyable experience shopping there but in the Durrington super store no longer.
On numerous occasions I complained to the duty manager who took no notice of me whatsoever, looking past me at whatever was going on in the background.
Tesco's need to look after their existing customers and make shopping in their stores an enjoyable experience once again.
We are looking to start a small portfolio and Tesco will not be in there.
Frogsport, in a grumpy mood.

planteria

where do you shop instead, frogsport?

alanq

Wilkins wrote: »

As I understand it, Morrison's will use Ocado technology for their deliveries which might be good for them. In our experience, whilst Ocado deliveries are packed by robots, Tesco's are packed by idiots.

Ocado's goods are picked and packed by humans. The difference is that the [STRIKE]crates[/STRIKE] totes are routed around the [STRIKE]warehouse[/STRIKE] Customer Fulfillment Centre by computer instead of an in-store shopper chasing round a supermarket. From what I have seen even where Tesco operates a [STRIKE]dark supermarket[/STRIKE] tesco.com store goods are stacked and collected in much the same way as in a store that has customers walking around.

Contrast
Ocado
http://www.youtube.com/watch?v=mJ9DPnfDCE8

Tesco
http://www.youtube.com/watch?v=z38bCVGVKq0

Update:
The Tesco dark store at Erith looks more like the Ocado model than the earlier Tesco dark stores that I have seen.
http://www.youtube.com/watch?v=QONyKR0KdYs

N1AK

Glen_Clark wrote: »

Imagine you were paying a driver to do it - say £20 per hour total costs, plus vehicle costs, fuel etc. Then ask yourself if the profit on the groceries would cover it.

Seems to me the supermarkets have been going into online to increase turnover at all costs.

Online isn't about instant profit increases, although it may lead to that in some cases. It's an investment into future trends. As online shopping becomes more popular the costs of delivery decrease (more efficient routing) and the cost of running stores fall (less shelf space required, less stocking and checkout staff).

Currently supermarkets are paying two sets of business operating costs; the ones for a store business and the ones for a delivery business. It's a big assumption to think that a store only business has picked the one true model.

If Asda started doing cheap, quick delivery near me without a store then I could well move to them and they'd have none of the costs of running a physical retail enviroment.

Wilkins

alanq wrote: »

Ocado's goods are picked and packed by humans. The difference is that the [STRIKE]crates[/STRIKE] totes are routed around the [STRIKE]warehouse[/STRIKE] Customer Fulfillment Centre by computer instead of an in-store shopper chasing round a supermarket.

Thanks, it does seem that the automated system leads to better packing, though, or else the packers are much better trained.

Glen_Clark

N1AK wrote: »

I could well move to them and they'd have none of the costs of running a physical retail enviroment.

sounds like you are their only customer

planteria

i am tending towards having a little slice of UK retail again, and am favouring Morrisons ahead of Tesco..i think

Ifts

planteria wrote: »

am favouring Morrisons

MRW goes Ex-Div 7.5.14 - 9.16p paid 11.6.14

planteria

thanks Ifts. i am waiting for II to get my ISA across from HL...will see how it all looks then:think:

yatinsardana

It's also edging slowly towards your desired 7% yield. That would be nice.