Tesco prices online leaps and bounds

diystarter7

p00hsticks said:

diystarter7 said:

p00hsticks said:

diystarter7 said:

wolvoman said:

diystarter7 said:

IMO, these retailers are profiteering from us.

thanks

They're really not.
They're getting some increased trade from people trading down from going for meals, but their margins are still wafer thin.

Is doubling ones profit during these times acceptable? EG from a billion to about over 2 billion?

Tesco's Financial year end is at the end of February.

So the 'doubling ones' profits you refer to was the increase from financial year 2020-1 (which was strongly impacted by the pandemic and so saw a significant reduction in profit from the previous year) to finanical year 2021-22. It did not occur during 'these times' but was mainly due to the re-emergence of the world from the pandemic.  

It's half year profits in August 2022 were down 30% and their current full year forecast is for only a slight rise in profits from the previous year - which may or may not actually happen. 

https://www.voxmarkets.co.uk/articles/tesco-half-year-results-low-everyday-prices-and-that-s-just-the-shares-bf9f863/

So if by 'these times' you are referring to the current cost of living crisis, which was largely precipitated by the escalation of the War in Ukraine in February 2022, then the hard figures would not indicate that Tesco is 'profiteering' by your definition - that is 'making or seeking to make an excessive or unfair profit, especially illegally or in a black market'

Hi

Not to worry as it was "doubling profits" and I was clear on that. As you are doubting me, I will post a very credible link
(I am fully aware they are there to make profits like others but to bleat on about they care during covid and doubling profits leaves me a bit sceptical )

Quot from link

Total revenues for the UK’s biggest supermarket, which proved to be a pandemic winner by taking a share from rivals and boosting online sales, rose by 6% to £61.3bn as pre-tax profits jumped from £1.1bn to £2.2bn in the year to the end of 26 February.

https://www.theguardian.com/business/2022/apr/13/tesco-profits-double-but-supermarket-warns-of-impact-of-soaring-inflation

/

so profits certainly won't be doubling when they announce this years figures (their year end is at the end of next month, I'm not sure when they'll announce the figures.)

I hope not.
If they do make a loss and many companies do when they reorganise etc etc, it is not big deal but 2 billion plus in profits, not right

Compaines have to make big profits to pay shareholders, why not share that some of it with customers?

However, I hear you and you have a point

Thanks

Altior

If Tesco reduced prices enough to allow it to only break even, you would hardly even notice at the till.

Altior

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

diystarter7

Altior said:

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

and in the process kill off the competition corner shops/stores etc but willfully selling at a loss to kill off the competition then bang, markets are cornered and you are hardly left with a choice.
Thanks

Altior

diystarter7 said:

Altior said:

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

and in the process kill off the competition corner shops/stores etc but willfully selling at a loss to kill off the competition then bang, markets are cornered and you are hardly left with a choice.
Thanks

Not really, a corner shop competes on convenience, not economies of scale. Competition in food retail makes it cheaper for everyone. I can see why lots of people want to give the big retailers a good kicking when the prices are flying up, as they are at the pointy end. But there are many elements along the way before a grocery item arrives in your shopping bag, and they will nearly all be ratcheting their share. I'm extremely certain that the head honchos are not sitting around the boardroom discussing how much can we get away with charging for this item. Quite the opposite. But a large supermarket chain does have many stakeholders to satisfy, and one of them is the major shareholders, as it's not a not for profit either. 

strawb_shortcake

@diystarter7 as a self professed successful landlord in London with multiple mortgage free (as I believe was previously stated) in percentage terms what's your net profit on your LL business?

I'm curious how those and Tesco compare

Tucosalamanca

diystarter7 said:

Altior said:

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

and in the process kill off the competition corner shops/stores etc but willfully selling at a loss to kill off the competition then bang, markets are cornered and you are hardly left with a choice.
Thanks

Why would Tesco want to kill off the corner shop?
Since they acquired Bookers, Tesco are now the biggest independent retail supplier, the corner shops are literally an extension of Tesco's business.

diystarter7

Tucosalamanca said:

diystarter7 said:

Altior said:

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

and in the process kill off the competition corner shops/stores etc but willfully selling at a loss to kill off the competition then bang, markets are cornered and you are hardly left with a choice.
Thanks

Why would Tesco want to kill off the corner shop?
Since they acquired Bookers, Tesco are now the biggest independent retail supplier, the corner shops are literally an extension of Tesco's business.

Tesco was not happy with their stores so they made mega stroes, then to really stick the knife in the corner and local shopping pricints they made Tesco Express. That was not enough to battle the die-hard corner shops so then came Tesco Metro stores =

They are cheaper than the conrer shops and open for almost as long. One of my cousins has a thriving shop up north they called it a gold mine, they expanded it and a mile or so up the road a Tescos arrive then others and then a Tesco Express 50 yards up the road closed them as it was not worth it

If you seriously thing Tesco Epress and now Metro stores have not had a massive impact on local shops, then there is nothing more I can say

Thnaks

diystarter7

Tucosalamanca said:

diystarter7 said:

Altior said:

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

and in the process kill off the competition corner shops/stores etc but willfully selling at a loss to kill off the competition then bang, markets are cornered and you are hardly left with a choice.
Thanks

Why would Tesco want to kill off the corner shop?
Since they acquired Bookers, Tesco are now the biggest independent retail supplier, the corner shops are literally an extension of Tesco's business.

You mean the likes of Tesco Express and Tesco Metro? lol

Tucosalamanca

diystarter7 said:

Tucosalamanca said:

diystarter7 said:

Altior said:

The majority of brand 'deals' at the big supermarkets are supplier subsidised, and are actually sold at a loss. Therefore the lowest cost way to shop in a regular supermarket if you like branded purchases is to be extremely pragmatic, and only purchase such subsided promotions. The individual stores aren't charged the loss, as the supplier funding goes into the central pot. They are far more interested in yoy turnover, so they are equally keen to sell a lot of the subsidised promos.  

and in the process kill off the competition corner shops/stores etc but willfully selling at a loss to kill off the competition then bang, markets are cornered and you are hardly left with a choice.
Thanks

Why would Tesco want to kill off the corner shop?
Since they acquired Bookers, Tesco are now the biggest independent retail supplier, the corner shops are literally an extension of Tesco's business.

Tesco was not happy with their stores so they made mega stroes, then to really stick the knife in the corner and local shopping pricints they made Tesco Express. That was not enough to battle the die-hard corner shops so then came Tesco Metro stores =

They are cheaper than the conrer shops and open for almost as long. One of my cousins has a thriving shop up north they called it a gold mine, they expanded it and a mile or so up the road a Tescos arrive then others and then a Tesco Express 50 yards up the road closed them as it was not worth it

If you seriously thing Tesco Epress and now Metro stores have not had a massive impact on local shops, then there is nothing more I can say

Thnaks

I know exactly what happened. I was an independent retailer for twenty years and had several of these gold mines (National top ten Nurdin & Peacock customer for over a decade).
I sold out, as retail no longer offered me what I wanted out of life. My purchaser continues to run a successful business, now mostly under the Premier Store banner (so effectively Tesco).
Corner shops are thriving, just look at the Booker / Bestway figures. Changes to our lifestyles, on-the-go 24hr living, have been an absolute gift for the savvy shopkeeper.
The failed businesses are the the ones who couldn't adapt to change, didn't have the necessary skills or vision or never had a credible business to begin with.