Future of tesco, morrisons

iltisman

All companies that grow large start getting "public sector syndrome" and become inefficient and carrying dead wood. Hopefully the new MD of Tesco will sort the company out. There will allways be detractors of Tescos etc who wish to live in a dream world of small farms and little shops selling organic food.

IronWolf

atush wrote: »

the dont turn a profit anywhere they have to pay tax.

I am sure in luxemborg they make profits from all their european sales.

even at a group level they dont make much profit. Theyre a US company, you cant dodge taxes there due to the repatriation tax rules.

planteria

agreed, Amazon are playing the system, but don't make a lot of profit. the concept is that they are continuing to invest and build.. and for those that were hoping they'd have done so from the retail business by now they may be very disappointed as they have chosen to go into other things instead

Ryan_Futuristics

I still find Amazon an astonishing service compared to what we grew up with

I remember when ordering something from a magazine or catalogue would often have a 'Please allow 28 days for delivery' disclaimer

Imagine still having to wait 4 weeks while some mail order firm gets around to shipping your order (in many cases possibly drop-shipping from overseas) ... I remember it being a huge inconvenience - a last resort after trawling all the local shopping centres

I know they're moving above and beyond retail, but you see the way they run their warehouses (workers all location-tracked, running beep-tests from one place to another)

Wonderful from a capitalist point of view; my inner Marxist finds it appalling ... But with drone delivery around the corner, and presumably warehouse workers soon to be replaced with robots that can work 24 hours/day - and then of course self-driven delivery vehicles

I think they know how efficient THAT business model can become, and they're building market share at the right time

planteria

i hope you have some Amazon shares Ryan;)

Ryan_Futuristics

The P/E ratio's always scared me off - it's something like 500!

But they say that's because they put so much into R&D - so the real P/E's probably closer to 27

I notice they're on a strong buy, but things can change so quickly in the tech world ... Think I'll wait till the next economic apocalypse hits US shares

Thrugelmir

Ryan_Futuristics wrote: »

A good online food service should run more like Amazon - a cold warehouse staffed with efficient worker bees running from point-to-point

Good? It's a business model that's been limping along for years. Struggling to be profitable.

Thrugelmir

Ryan_Futuristics wrote: »

I think they know how efficient THAT business model can become, and they're building market share at the right time

I boycotted them some years ago and know others that have to. Rarely are they price competitive. All smoke and mirrors. Particularly their Black Friday promotions and "sales".

Steve_xx

Thrugelmir wrote: »

I boycotted them some years ago and know others that have to. Rarely are they price competitive. All smoke and mirrors. Particularly their Black Friday promotions and "sales".

I agree with you. Amazon are rarely cost competitive and once delivery charges are added it gets pretty expensive.

The layout and navigation of Amazons website is an abortion.

Ryan_Futuristics

Thrugelmir wrote: »

Good? It's a business model that's been limping along for years. Struggling to be profitable.

Another way of looking at it is that Amazon have built a retail business that's larger than their next dozen top competitors combined

When I was researching their figures, it's certainly not a limping or unprofitable business you find - it's simply one that's investing heavily in their future

And as I said, if you consider the amount they invest in R&D as earnings, their p/e ratio goes from something like 500 to about 27 ... i.e. they only look unprofitable at the crudest reading of the numbers