Aldi prices creeping up
Options
Comments
-
I do a mix of shopping between lidl/Tesco/aldi/home bargains/b&m. I am very lucky that they are all within a five minute drive of each other (apart from aldi, but I drive past there once a week).
I have found myself shopping less at tescos as their value range is constantly decreasing, and I'm a skinflint and not very well off. Lidl et al often offer better value for money on fruit/veg/eggs than Tesco, but as im only cooking for myself I can only really get the very little fruit and veg I need from tescos loose, and their value eggs are the cheapest ones (a pack of ten is no use to me!)0 -
-
That's utter nonsense, though the Brexit lobby are doubtless still peddling all the lies they pushed out pre-referendum.
The fall in the pound was a direct and immediate result of the referendum outcome, simply because currency markets always look to the future. The markets just reflect a world view of the value of the pound, and the referendum outcome damaged that value irrevocably. Hardly surprising, given that this small, relatively unimportant, country now has to fight for a trade deal to keep us afloat against 27 other countries, all keen to defend the EU. If we get a deal it will be inferior to what we have now, and if we don't we're sunk.
Madness - and the rising price of food and everything else is just an inevitable consequence. You may not like being told that, but the dire predictions are now being fulfilled, and that's one of the reasons Theresa May's just proved herself to be the second incompetent Prime Minister in a row.
Whilst i dont like the effect that the brexit is having currently on our currency, i think taking the view that we will get an inferior deal and if we dont get that deal we are sunk.
should the EU impose tarriffs then they shoot them selves in the foot, all these price rises on food, where do we think this food gets manufactured or ingredients obtained from? EU countries! so if taffifs cause further price hikes then it will cost jobs in EU countries as what we import will get less.
On the other hand investment has grown considerably in the UK i read in a paper the other day since brexit was launched. It is now cheaper to export manufactured goods from the UK. exiting Europe will also open up a world market that we have been unable to negotiate deals with due to being locked into the EU.
The EU dont want us to leave as we have been a huge cash cow for them so they will make it as painful as they can until they realise its hurting them as much.
Going back to the topic of price rises. If you believe Tescos ASDA etc cannot negotiate the same cost prices for goods as lidls and Aldi then your wrong, they can. However the real saving for lidls and Aldi which allows it to pump out these prices is labour cost.
When you look at how lidls and aldi bullies it staff to work at 100% all the time, how fast they scan the products through the till etc. and generally how few staff you see in those stores and compare them to the big supermarkets then you see where they get their cost saving from. The biggest factor affecting supermarket profits is the cost of staffing them."Save the cheerleader - Save the world"0 -
Going back to the topic of price rises. If you believe Tescos ASDA etc cannot negotiate the same cost prices for goods as lidls and Aldi then your wrong, they can. However the real saving for lidls and Aldi which allows it to pump out these prices is labour cost.
When you look at how lidls and aldi bullies it staff to work at 100% all the time, how fast they scan the products through the till etc. and generally how few staff you see in those stores and compare them to the big supermarkets then you see where they get their cost saving from. The biggest factor affecting supermarket profits is the cost of staffing them.
I'm not sure you've got that right. Aldi and Lidl advertise starting rates of £8.53 and £8.45 per hour for store assistants compared with £8 at our local Sainsbury's. I'm not surprised as only this week I had a conversation with someone in Sainsbury's who told me that they were short staffed because people keep leaving.
Recently I've found the checkouts a little less manic but I've got used to the system so it doesn't bother me. At least Aldi still has friendly, efficient people at the checkouts rather than the increasing number of self check out machines at Asda and Sainsbury's.
Personally, if I was to work there I'd rather be kept busy.
I think where they do save is on the general warehouse style of the shops but if you want to pay more for a 'shopping experience' in Waitrose then that's your choice. I'm happy with Aldi.:)0 -
Not sure if its relevant but Lidl and maybe Aldi are private companies against Tesco having to please shareholders.0
-
I'm not sure you've got that right. Aldi and Lidl advertise starting rates of £8.53 and £8.45 per hour for store assistants compared with £8 at our local Sainsbury's. I'm not surprised as only this week I had a conversation with someone in Sainsbury's who told me that they were short staffed because people keep leaving.
so which bit havent i got right?
Lidls and Aldi need to pay more to attract the workers because unlike sainsburys etc they dont let them stand around chatting its on the go all shift no stopping or slacking!
But yes i think what your assuming is lidls/aldi and sainsburys use exactly the same number of man hours to achieve the same result.
nope. they use far less man hours and these is where their labour saving comes from. your looking at less than 50% man hours used compared to say Sainsburys.
Quite easy to start working out some of the savings, No cigarrette kiosk needing to be staffed! no customer complaints desk! no department heads. (very flat management structure) minimum checkouts (no checkouts just siting there waiting for customers) thats just a start!!!
the following example is loose maths just to give you an idea of the savings that can be made.
Assume the sales in both Aldi and and Sainburys are the same.
Aldi use 500 man hours for the week average cost £9 total labour cost £4500 per week
sainsburys use 1500 man hours at £8 total weekly cost total £12000 per week, difference £7500
so over 52 weeks £390,000 saved in wages,
now maybe your starting to see the efficiencies employed to reduce costs and make the retail price cheaper.
All the big supermarkets buy goods at a very similar cost price.
This is why a couple of years ago you saw morrisons remove middle management in their stores. Tescos cutting head office staff. Labour cost are the easiest saving to make.Sainsbury's.
I think where they do save is on the general warehouse style of the shops but if you want to pay more for a 'shopping experience' in Waitrose then that's your choice.
Do you not think that this is a labour save? So by operating a warehouse style you need less staff/labour ? So cost less? Which is my point! There are no real savings from purchasing from the supplier as all the supermarkets are now so big they all have the same buying power. but the less staff you have to use well thats huge! Which goes nicely with your observation of increasing number of self checkout units."Save the cheerleader - Save the world"0 -
Does anybody think Aldi will start online shopping and delivery? To me that's essential and Sainsbugs is far more reliable than Asda so I don't mind paying more.0
-
so which bit havent i got right?
Lidls and Aldi need to pay more to attract the workers because unlike sainsburys etc they dont let them stand around chatting its on the go all shift no stopping or slacking!
But yes i think what your assuming is lidls/aldi and sainsburys use exactly the same number of man hours to achieve the same result.
nope. they use far less man hours and these is where their labour saving comes from. your looking at less than 50% man hours used compared to say Sainsburys.
Quite easy to start working out some of the savings, No cigarrette kiosk needing to be staffed! no customer complaints desk! no department heads. (very flat management structure) minimum checkouts (no checkouts just siting there waiting for customers) thats just a start!!!
the following example is loose maths just to give you an idea of the savings that can be made.
Assume the sales in both Aldi and and Sainburys are the same.
Aldi use 500 man hours for the week average cost £9 total labour cost £4500 per week
sainsburys use 1500 man hours at £8 total weekly cost total £12000 per week, difference £7500
so over 52 weeks £390,000 saved in wages,
now maybe your starting to see the efficiencies employed to reduce costs and make the retail price cheaper.
All the big supermarkets buy goods at a very similar cost price.
This is why a couple of years ago you saw morrisons remove middle management in their stores. Tescos cutting head office staff. Labour cost are the easiest saving to make.
Do you not think that this is a labour save? So by operating a warehouse style you need less staff/labour ? So cost less? Which is my point! There are no real savings from purchasing from the supplier as all the supermarkets are now so big they all have the same buying power. but the less staff you have to use well thats huge! Which goes nicely with your observation of increasing number of self checkout units.
Your argument explains why Aldi and Lidl can make a profit while paying their staff more per hour than, for example, Sainsbury's. I'd expect that, they're businesses not charities.
The stores are small relative to other supermarkets so why would they need several layers of management? I like the hands on approach. It's good to see a manager helping to stack shelves or take a turn at the checkout.
So, in my example, a retail assistant is attracted to Aldi because they'll earn more but the deal is they'll keep working for the whole shift and won't be able to stand around and chat. Is this a problem? I've worked in shops and much preferred being kept busy.
The customer doesn't have the same shopping experience because it's warehouse style. Is it a huge inconvenience to go to the (fast moving) checkout queue or speak to one of the helpful staff on the shop floor for a refund rather than a Customer Services desk? I'd say that Aldi's increasing number of customers don't think so.
Your argument seems to be that Aldi saves money by bullying staff and giving customers poor service. I disagree. I think they have a more successful business model, particularly for the current climate.0 -
Does anybody think Aldi will start online shopping and delivery? To me that's essential and Sainsbugs is far more reliable than Asda so I don't mind paying more.
Nope I don't think that either Aldi or Lidl will start online delivery.
I remember reading ( can't recall where ) that all the major supermarkets make a loss on home delivery of around £7 per delivery.
HTH0 -
I agree - setting it up would be enormously costly, and it would be well nigh impossible to make it profitable.
The only extremely faint possibility I could see would be some sort of link with Ocado if Ocado itself became so desperate for additional business that it cut Aldi or Lidl a particularly competitive and only marginally profitable deal.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards