every little had better help... Tesco massive loss

vivatifosi

chucknorris wrote: »

Tesco has opened higher, 3 mins after opening the share price is up 1.4%. Although it has fallen back a bit now:


https://www.google.co.uk/finance?q=tesco&ei=LUg3VdDQFMr58gPM6IHoDA

Eamonn Holmes to Mark Kleinman (Sky Business Correspondent)
"Why has the share price just gone up?"
"I think it is being seen as kitchen sinking"
That's paraphrased, so not fair to put in quotes, but you get the sense.

Did make me think of Gen.

chucknorris

vivatifosi wrote: »

Eamonn Holmes to Mark Kleinman (Sky Business Correspondent)
"Why has the share price just gone up?"
"I think it is being seen as kitchen sinking"
That's paraphrased, so not fair to put in quotes, but you get the sense.

Did make me think of Gen.

Wasn't most of this bad news already known (but maybe not evaluated)? So it was probably already in the pre-opening price anyway

wymondham

Tesco substituted my cheap cola for Diet Coke last night so that probably didn't help profit wise!

wotsthat

vivatifosi wrote: »

Eamonn Holmes to Mark Kleinman (Sky Business Correspondent)
"Why has the share price just gone up?"
"I think it is being seen as kitchen sinking"
That's paraphrased, so not fair to put in quotes, but you get the sense.

Did make me think of Gen.

It does look like kitchen sinking but they've really not addressed their problems - the biggest one being that, of all the major grocers, they have too much space and don't know what to do with it.

They've completely taken their eye off their branding as well. I've seen a few Finest launches recently and they're allowing their suppliers to widely ignore the brand rules which means even something as simple as the Finest black colour is not being accurately represented across the store.

Generali

I had what we economists call a 'quick squizz' at the results. The standout thing for me is that they make a margin a little over 1%. That's horrible.

Tesco do have a bit of a stench about them of being yesterday's company. IMHO, people either want cheap, clear pricing or something a bit fancy. The middle market is dead: M&S were screwed by the same thing.

Interestingly for any whizzy interwebs startup that wanted to compete with Tesco and destroy them once and for all, Tesco have over £20,000,000,000 of physical assets (stores, warehouses, fridges, tills, shelves) sitting on the balance sheet. Twenty billion squids!!!! The cost of carrying that lot must be absolutely immense.

wymondham

Nothing can touch Tesco for online groceries though.... website is top notch, they were the pioneers. Been using them since they used to send CD's out and had dial up!


I suppose in the future most grocery shopping may be done this way and no need for stores apart from daily items or forgotten stuff!

michaels

Generali wrote: »

I had what we economists call a 'quick squizz' at the results. The standout thing for me is that they make a margin a little over 1%. That's horrible.

Tesco do have a bit of a stench about them of being yesterday's company. IMHO, people either want cheap, clear pricing or something a bit fancy. The middle market is dead: M&S were screwed by the same thing.

Interestingly for any whizzy interwebs startup that wanted to compete with Tesco and destroy them once and for all, Tesco have over £20,000,000,000 of physical assets (stores, warehouses, fridges, tills, shelves) sitting on the balance sheet. Twenty billion squids!!!! The cost of carrying that lot must be absolutely immense.

Surely apart from the stores you do actually need all that infrastructure if you want to compete with them even just online plus the traffic through the stores gives them major economis of scale. I haven't seen Ocado making huge retrns operating only as a virtual supermarket even though they aim to be in the higher margin part of the market.

I know the story is the mid-market is dead but I think at least in the short / medium term when real disposable income increases start being felt in the pockets of the midmarket consumers they will be back to adding a few luxuries/non-foods to their trolleys each week.

Generali

michaels wrote: »

Surely apart from the stores you do actually need all that infrastructure if you want to compete with them even just online plus the traffic through the stores gives them major economis of scale. I haven't seen Ocado making huge retrns operating only as a virtual supermarket even though they aim to be in the higher margin part of the market.

I know the story is the mid-market is dead but I think at least in the short / medium term when real disposable income increases start being felt in the pockets of the midmarket consumers they will be back to adding a few luxuries/non-foods to their trolleys each week.

Without wishing to sound all, 'this time it's different' I really do think that retail is stratifying. People want basic stuff at cheap prices, I mean how much value can you honestly add to a raw spud in a bag? They are then willing to splash out on some nice bits, maybe a nice organic leg of lamb for the Sunday roast for example, but they simply aren't going to get that from Tesco. They want to go to the farmer's market and get that 'authentic' Jamie 'n' Hugh experience or at the very least get it from Waitrose or a local butcher.

Ocado (or Webvan as the FT likes to call them in rather snide fashion) probably isn't the answer for mass market consumption either but there is a non-store solution to grocery shopping out there, at the very least for all those packets and tins that don't rot, don't need refrigerating and have a very long shelf-life.

kabayiri

Have customer expectations changed though ?

The likes of Aldi have demonstrated to us that you can buy quality product in a local store in the village, negating the need to travel further to the massive Tesco store.

Then there is the ability to collect ebay purchases at the local Argos. This merges internet shopping with local convenience.

Are Tescos a victim of changing consumer trends?

audigex

At the end of the day Tesco supermarkets are still full of people, they're still making an operating profit and if they'd stop fannying about so much their core business still makes money

They just need to focus on the areas that matter, not waste all their energy on crap: I mean seriously, the Hudl tablet? What nonsense.

Also bring back non-sugar-free Orange and Pineapple Squash. The sugar free stuff is crap.