every little had better help... Tesco massive loss

kabayiri

Generali wrote: »

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.
...

The end-aisles of product in Tesco big stores get tremendous discounting from the suppliers on the basis they offer a premium presence. These are good profit centres for Tesco, but crucially you need high footfall.

High footfall is not characterised by "I'll pop in once a month for nappy stocking up or cleaning products".

I do think some of the pricing model will be challenged.

Generali

kabayiri wrote: »

The end-aisles of product in Tesco big stores get tremendous discounting from the suppliers on the basis they offer a premium presence. These are good profit centres for Tesco, but crucially you need high footfall.

High footfall is not characterised by "I'll pop in once a month for nappy stocking up or cleaning products".

I do think some of the pricing model will be challenged.

Unilever, P&G and Gillette I'm sure would happily dance a jig on Tesco's grave. If a 'Webvan' operation paying a consistent if low price came along I'm sure they'd be happy to oblige.

cells

Its simply about more competition.

Aldi and lidl are going to open hundreds more stores and each billion in sales they make is a billion less in the sales of the other supermarkets

the existing players can try to accommodate the new guys by stopping expanding or closing stores and allowing a growing population to make room for the new guys

IronWolf

wymondham wrote: »

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!

Well I disagree, I used to use Tesco and they were always late and with frequent substitutions.

I now use Ocado, they are never late, I have never had a substitution, and delivery is free. Moreover, they price match to Tesco so Im not paying any more.

ruggedtoast

Would cross the road to avoid Tesco. Grubby overpriced stores, unhappy staff and substandard food. Made a lot worse by outrageous 'buy 2 for the price of 3 offers' like they think their customers are complete idiots.

According to staff I know who work there the company has changed completely. They only employ people on zero hours contracts now and don't treat them well, which shows in the store. Wouldn't miss Tesco if it went bust tomorrow. I think a lot of their customers go there out of habit.

michaels

I do a core shop based on a price/quality trade off then shop the offers across all stores for branded goods. I therefore much prefer the Morrisons style deep discount end of aisle offers to the Asda 'we are generally cheaper overall but don't do the silly discounts'; I am noticeably spending much less in Tesco than of late as there is less deep discounting and less giving away money via vouchers than of late.

Then again I am probably the sort of customer they would rather be without and presumably they have got clever enough with their data-mining to realise that.

wymondham

IronWolf wrote: »

Well I disagree, I used to use Tesco and they were always late and with frequent substitutions.

I now use Ocado, they are never late, I have never had a substitution, and delivery is free. Moreover, they price match to Tesco so Im not paying any more.

The substitutions are the best part! I always order cheap items and often get branded instead!

kabayiri

wymondham wrote: »

The substitutions are the best part! I always order cheap items and often get branded instead!

So the loss is your fault?!!!!!

wymondham

kabayiri wrote: »

So the loss is your fault?!!!!!

I think it might be, sorry Tesco!


so many times I order knats pee larger only to get Fosters for the same price!

Graham_Devon

wymondham wrote: »

so many times I order knats pee larger only to get Fosters for the same price!

Seems you got what you ordered?