Tesco Discriminating

jon81uk

High likelihood that its not actually on offer and the online price is correct but someone in store hasn't changed the label yet. Often happens that an offer ends and the labels are changed late.
Do you have a receipt showing it actually being sold at £1.25 in store?

Also its not discrimination even if it was different in store and online.

GmanGee

@Emmia I am sure there £6.99 a month from millions of other people who subscribe on a monthly basis, do you really think they'd be running a delivery system at a loss. and depending on your postcode your food will come from the nearest large Tesco to your postcode, which means using less fuel. and don't forget to add the extra £5 if your basket is under £50

Emmia

GmanGee said:

@Emmia I am sure there £6.99 a month from millions of other people who subscribe on a monthly basis, do you really think they'd be running a delivery system at a loss. and depending on your postcode your food will come from the nearest large Tesco to your postcode, which means using less fuel. and don't forget to add the extra £5 if your basket is under £50

Your £2.49 is less than 15 minutes of staff time for all of your shopping for a month. For £6.99 home delivery you need to factor the staff cost of picking, packing, the driving... Fuel, vehicle wear and tear, insurance. That all costs more than £6.99

Home delivery passes are about loyalty, and are in themselves loss leaders. Tesco is making a loss on that element. The money to cover their costs is made on a markup on the products - that's why the £5 charge exists for orders of less than £50

Edit: To put the delivery charge in context. 
If you drove to and from your local Tesco, how much would that cost in fuel, vehicle wear and tear, insurance etc. how long would it take you to shop? If you cost your time to do the shop at minimum wage (like the Tesco employee doing the picking in the store) how much does that add up to?

And if you do this once a week, how much is this per month? Hopefully you can appreciate that even a charge of £6.99 per month is insanely cheap for what you're getting

GmanGee

@MattMattMattUK I have been delivered by both stores, I have been to both of stores, both are Tesco Extra, but 1 store is larger than other, this is the store I preferred to be delivered from, until a few years ago , my delivery was changed to the Tesco extra slightly more local to me, but this store has less choice in items, now when you log into Tesco you log into your local store. I have tried this method as a experiment. I was checking the stock of an item, the store local to was out of stock, I then changed my delivery, to click and collect but from the larger Tesco extra store, and hey presto the item was in stock, you can also check on pricing of certain items using this method.
 

GmanGee

@Emmia, Tesco's makes billions each year in profits, So pretty sure they aren't running their business at a loss each year. 

Emmia

GmanGee said:

@Emmia, Tesco's makes billions each year in profits, So pretty sure they aren't running their business at a loss each year. 

The business as a whole makes a profit, elements of their business do not in themselves do this. 

Tesco offer delivery as their competitors do this,  if they don't they lose market share, people will shop elsewhere etc. 

Tesco's profit margin last year was 4.5%, and it's about 4% a year over the last 5 years.

Sainsbury's made 7.6% last year.

Primark in comparison makes 12.1%

Next makes 42%.

MyRealNameToo

GmanGee said:

What is the meaning of discrimination?

ok so let me ask you, You buy a product online, £400 but If you had a membership card of that store, from where your item was coming from, if you buy instore with your card you get it for £200. but you can't leave the house, and no one can help you, and you buy this item regularly. how would you feel that I could've got this product for 50% less over a year  if only I could go to the store to use my card.

Discrimination the unjust or prejudicial treatment of different categories of people, companies groups etc based on certain characteristics. 

Most people here however are considering it in relation to the Equalities Act which only covers certain attributes of a person (gender, sexual orientation, religion) and to discriminate on people for those reasons is potentially illegal whereas there are plenty of other characteristics you could discriminate on which arent illegal. 

There can also be an argument over if something is unjust or not, for example an insurer will differentiate premiums for drivers based on their age. They will argue it's not discrimination because they have statistical evidence that shows their claims experience is strongly correlated to the age of drivers and therefore it's just not unjust. 

Where things get complex is where you start considering indirect discrimination, where you dont directly exclude a particular characteristic but some other form of rule that is heavily correlated to it. For example banning all head coverings will disproportionately impact Muslim women and Sikh/Jewish men or saying a shop assistant must have 15 years experience impacts those in their 20s and so unless there is a justification for it you could fall foul. 

Its amusing that you quote the elderly as those who have to shop online, one of the key reasons that the rules on insurance pricing were implemented was because disproportionately the elderly dont shop online and so were more commonly getting worse deals. 

jon81uk

GmanGee said:

@Emmia, Tesco's makes billions each year in profits, So pretty sure they aren't running their business at a loss each year. 

Tesco make a profit but delivery won't. Effectively the people shopping in store are subsidising the ones getting delivery.

molerat

It is known that home delivery is a loss leader across the supermarkets.  One started to do it then they all followed for FOMO.  Once the first one drops it they all will follow, they are all scared to sneeze first.  And no it is not discrimination.

molerat

jon81uk said:

High likelihood that its not actually on offer and the online price is correct but someone in store hasn't changed the label yet. Often happens that an offer ends and the labels are changed late.
Do you have a receipt showing it actually being sold at £1.25 in store?

Also its not discrimination even if it was different in store and online.

Tesco now certainly do have separate in store and on line offers.  On line only offers will be denoted with an "important information" tag.

A while back they had the cleaning buy 5 get 25% off as on line only then a few weeks later it came on as in store only.