every little had better help... Tesco massive loss

antrobus

Generali wrote: »

Unilever, P&G and Gillette I'm sure would happily dance a jig on Tesco's grave....

I doubt it.

The 'limited assortment grocery' business model is based on only selling private label products. If the likes of Aldi take over the world, how are the likes of Unilver going to sell anything?

ruggedtoast wrote: »

...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. ....

Tesco don't use zero hours contracts.

kabayiri wrote: »

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

No, it's my fault for exploiting their 25% off wine offer, and (for example) screwing down the price of prosecco to £3.75 a bottle.:)

Mind you, I did something similar to Waitrose last weekend, so it's not like I'm picking on them.

the_flying_pig

vivatifosi wrote: »

...£5bn loss tomorrow, one of the largest ever in UK corporate history...

one of the largest, yes.


as much as anything this story has reminded me about RBS and what a skyscraper sized fvck-up that was. I wonder how many years it'll be before that record is passed.

Generali

the_flying_pig wrote: »

one of the largest, yes.


as much as anything this story has reminded me about RBS and what a skyscraper sized fvck-up that was. I wonder how many years it'll be before that record is passed.

Lest we forget, RBS made a loss before tax of £40,700,000,000 in 2008.

That really is a tremendous effort.

the_flying_pig

Generali wrote: »

Lest we forget, RBS made a loss before tax of £40,700,000,000 in 2008.

That really is a tremendous effort.

yes, I mean... serious question, how long do you think it will be before that record is passed, in money-of-the-day or especially real terms? 20? 30? never [only in real terms, obviously - and even then, assuming some level of compound real income growth, it's implausible. i suppose the likeliest version of 'never' seems to be that we'll at some point stop using sterling & that the record won't be broken before then]????


I suppose the specifics of RBS included: (a) scale/reach that extended quite far beyond the UK, in large part due to disastrous acquisitions of other 'overseas' companies; and (b) being part of a sector with very particular features, namely a proneness to contagion & characterized 'profits' that were driven by factors a lot more complicated than how say many cabbages you can sell to UK households.

Generali

the_flying_pig wrote: »

yes, I mean... serious question, how long do you think it will be before that record is passed, in money-of-the-day or especially real terms? 20? 30? never [only in real terms, obviously - and even then, assuming some level of compound real income growth, it's implausible. i suppose the likeliest version of 'never' seems to be that we'll at some point stop using sterling & that the record won't be broken before then]????


I suppose the specifics of RBS included: (a) scale/reach that extended quite far beyond the UK, in large part due to disastrous acquisitions of other 'overseas' companies; and (b) being part of a sector with very particular features, namely a proneness to contagion & characterized 'profits' that were driven by factors a lot more complicated than how say many cabbages you can sell to UK households.

No idea TBH. Best guess? Never. Never being 20 years.

RBS wanted to buy market share. That's going to be very expensive.

Thrugelmir

cells wrote: »

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

Going to get harder and harder to gain traction. In Germany many discount stores are adjacent to a store more akin to Waitrose. So people spread their purchasing between the stores.

The large supermarkets have the ability to roll out a new format very quickly too.

Aldi's check out process is antiquated. I've given up on the one near us. As the queues at peak time are horrendous. Whereas the small Tesco I'm in and out in a matter of minutes using self service checkout.

downshifter98

And what a coincidence that until not long ago Tesco banking was supplied by.....RBS - a match made in hell if ever there was one. 10 years ago these 2 were looking like masters of the universe, what a change now. I'm sure tescos will turn things around but it will be a mountain to climb - the brand seems to be seriously tainted and untrusted.

antrobus

downshifter98 wrote: »

And what a coincidence that until not long ago Tesco banking was supplied by.....RBS - a match made in hell if ever there was one. 10 years ago these 2 were looking like masters of the universe, what a change now. ...

Oddly enough, Tesco Bank is chugging away quite happily at the moment.

downshifter98 wrote: »

...I'm sure tescos will turn things around but it will be a mountain to climb - the brand seems to be seriously tainted and untrusted.

So far in 2015, Tesco has been performing better than any of the other big four - it's the only one that's been consistently increasing sales. So I don't see much support for that contention.