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    • worldtraveller
    • By worldtraveller 11th Feb 18, 3:43 PM
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    worldtraveller
    0 WOW
    Tesco 'planning' new discount chain
    • #1
    • 11th Feb 18, 3:43 PM
    0 WOW
    Tesco 'planning' new discount chain 11th Feb 18 at 3:43 PM
    Britainís biggest supermarket group is understood to be working on a secret plan to develop a new discount grocery chain to take on cut-price chains Aldi and Lidl at their own game.

    Tesco is said to be developing a separate brand that would match the German discounters on price, offering a far more limited range of products than the average Tesco store, at around 3,000 compared with 30,000 in a Tesco Extra.

    The retailer is reported to have hired advisers from Boston Consulting Group to work on the plans. It has asked a number of key own-label suppliers to sign non-disclosure agreements before contributing to a new project, according to a report in The Sunday Times.

    The Guardian
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Page 1
    • unforeseen
    • By unforeseen 11th Feb 18, 4:44 PM
    • 2,663 Posts
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    unforeseen
    • #2
    • 11th Feb 18, 4:44 PM
    • #2
    • 11th Feb 18, 4:44 PM
    Maybe that explains why my local Tesco has very little choice these days. They've stopped stocking so many brands in favour of their own that it's not worth using them any more.
    • robin58
    • By robin58 11th Feb 18, 5:53 PM
    • 2,418 Posts
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    robin58
    • #3
    • 11th Feb 18, 5:53 PM
    • #3
    • 11th Feb 18, 5:53 PM
    No doubt they will be given a discounted name like 'Tes'
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!!
    • Cornucopia
    • By Cornucopia 11th Feb 18, 6:01 PM
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    Cornucopia
    • #4
    • 11th Feb 18, 6:01 PM
    • #4
    • 11th Feb 18, 6:01 PM
    It'll be interesting to see how this turns out, but at the moment, I see Aldi and Lidl as being so good at what they do, and so focused that I cannot see anyone else making an impact without a lot of time, money and effort.

    Every lidl helps, though.
    I'm a Board Guide on the Phones & TV, Techie Stuff, In My Home,
    The Money Savers Arms and Food Shopping boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views (especially those on the UK TV Licence) are mine and not the official line of moneysavingexpert.com.

    Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • martinthebandit
    • By martinthebandit 11th Feb 18, 6:11 PM
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    martinthebandit
    • #5
    • 11th Feb 18, 6:11 PM
    • #5
    • 11th Feb 18, 6:11 PM
    Perhaps if Tesco went back to basics and concentrated on offering value for money instead of concentrating on squeezing as much money as possible out of anyone gullible to pass through their doors they may be able to compete with other retailers better?

    Just a thought.
    Politics -
    from the words Poli, meaning many
    and tics meaning blood sucking parasites


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    • adonis
    • By adonis 11th Feb 18, 6:11 PM
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    adonis
    • #6
    • 11th Feb 18, 6:11 PM
    • #6
    • 11th Feb 18, 6:11 PM
    Perhaps they could use their Express stores, they have a limited range of products and instead of charging a premium over a normal Tesco they could charge less.
    • jon81uk
    • By jon81uk 12th Feb 18, 10:08 AM
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    jon81uk
    • #7
    • 12th Feb 18, 10:08 AM
    • #7
    • 12th Feb 18, 10:08 AM
    Perhaps they could use their Express stores, they have a limited range of products and instead of charging a premium over a normal Tesco they could charge less.
    Originally posted by adonis
    Except the longer hours and smaller store make it more expensive to run the Express stores, hence the higher price. I wouldn't expect Express stores to change as many people are also willing to pay extra for the convenience of not having to go to the large store.
    • Robots
    • By Robots 12th Feb 18, 1:33 PM
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    Robots
    • #8
    • 12th Feb 18, 1:33 PM
    • #8
    • 12th Feb 18, 1:33 PM
    Doesn't surprise me, Tesco is pretty good at this supermarket thing.
    Veteran gamer and clean freak
    • DCFC79
    • By DCFC79 12th Feb 18, 5:12 PM
    • 31,912 Posts
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    DCFC79
    • #9
    • 12th Feb 18, 5:12 PM
    • #9
    • 12th Feb 18, 5:12 PM
    Maybe that explains why my local Tesco has very little choice these days. They've stopped stocking so many brands in favour of their own that it's not worth using them any more.
    Originally posted by unforeseen
    Maybe Tesco and suppliers couldn't agree on the price to charge eg the Branston beans, brands from the Princes group were off the shelves as the 2 parties couldn't agree on the price.
    Last edited by DCFC79; 12-02-2018 at 5:17 PM.
    • worried jim
    • By worried jim 12th Feb 18, 5:16 PM
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    worried jim
    So an expensive Tesco and a cheap Tesco- you'd be a mug to continue shopping at expensive Tesco when you know down the road the same product is cheaper. A complete mug.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Doc N
    • By Doc N 13th Feb 18, 6:23 AM
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    Doc N
    Sainsbury tried this a couple of years back by recreating Netto. It was an abject failure and lost them a lot of money.

    Aldi and Lidl have been using this business model for around 70 years. They're both very good indeed at what they do.

    Tesco are very good at what they do too, but they don't understand this particular sector - which is why they ignored it for so long, to their cost.

    They haven't made the decision to go ahead yet, and I doubt they will. If they do, it's going to lose them a lot of money. How happy are Tesco shoppers going to be when they realise the same goods can be had down the road for 25% less? And if they aren't the same goods, but some cheapo 'Tesco Value' version, who's going to want to buy them when they can buy the full-fat genuine version from Aldi or Lidl for the same price?

    Doomed to fail.
    • B_M
    • By B_M 13th Feb 18, 2:24 PM
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    B_M
    I'm not a fan of Tesco, but if one of the Big 4 supermarkets could achieve this, then I'd back Tesco.
    To late? Who knows, but Lidl and Aldi aren't as cheap as they once were, so maybe a good time to try it out.
    As long as the range is different from the normal Tesco range (ie similar to Aldi and Lidl), I can see it working.
    Locations could be a major bearing though. Are they going to build nice new Lidl-type supermarkets?
    We'll see, but I wouldn't dismiss it.
    No payments from financial products from cash back sites? Put in a complaint direct and if they don't resolve your issue, head straight to the financial ombudsman - it costs the company £550 in referral fees, win or lose.
    • B_M
    • By B_M 13th Feb 18, 7:59 PM
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    B_M
    If this was suggested a year or so ago, I would have said too late.
    But, now may well be the right time. They may not initially hit Aldi and Lidl hard, but I can see them taking away custom from the other large supermarkets.
    I know the BIG BOYS have copied Aldi and Lidl to a degree, competing sometimes with the Aldi 'Super 6'. The Super 6 isn't as cheap as it once was (taking Xmas out of the equation) and Lidl's 'Weekend' offers aren't nearly as good as when it was their 'Half Price Weekend'.
    I do think the large supermarkets underestimated Aldi and Lidl and no doubt the financial crisis of 2007!!!8211;2008 helped the smaller discounters. At the bottom end, many families are still struggling, so getting them to change may be difficult.
    Just my thoughts and I may well be well off the mark. I'd welcome the competition though and hope it comes off.
    Last edited by MSE ForumTeam3; 17-02-2018 at 10:11 AM. Reason: Quoting deleted post
    No payments from financial products from cash back sites? Put in a complaint direct and if they don't resolve your issue, head straight to the financial ombudsman - it costs the company £550 in referral fees, win or lose.
    • RHemmings
    • By RHemmings 14th Feb 18, 10:52 PM
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    RHemmings
    Isn't this what Iceland is doing with Food Warehouse?
    • PasturesNew
    • By PasturesNew 14th Feb 18, 11:04 PM
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    PasturesNew
    I used to buy a lot of the Tesco cheap brands years ago - but, over time, they've dropped them... until there are none left that I buy, so I don't go in there.

    Why go to all the expense of new stores/branding etc etc when all they needed to do was roll out their old cheaper brands again?!

    They did a great 20p tinned spag bol (now 38p), cheap meatballs in tomato sauce (now 60p), and a chilled chicken curry for 95p (disappeared completely) - and they used to sell long-life bread ....and all sorts of exciting food.... but they dropped them all .... bit by bit.
    • B_M
    • By B_M 15th Feb 18, 9:14 AM
    • 713 Posts
    • 528 Thanks
    B_M
    Hopefully it's not a return to those days as it was messy. The new Lidl stores are very good now, even with self-service tills.
    What I would like to see if more bulk buying offers, on basics etc.
    I've seen Aldi do 24 tins of tomatoes at a discounted price, so I'll like to see something along those lines. Obviously an opportunity to buy single or smaller packs, but also bulk buying discounts.
    'Pile it high, sell it cheap' - now where have I heard that before?
    Last edited by MSE ForumTeam3; 17-02-2018 at 10:12 AM. Reason: Quoting deleted post
    No payments from financial products from cash back sites? Put in a complaint direct and if they don't resolve your issue, head straight to the financial ombudsman - it costs the company £550 in referral fees, win or lose.
    • Cornucopia
    • By Cornucopia 15th Feb 18, 10:26 AM
    • 10,106 Posts
    • 10,031 Thanks
    Cornucopia
    Isn't this what Iceland is doing with Food Warehouse?
    Originally posted by RHemmings
    We're getting a new Food Warehouse - I wondered what it was.
    I'm a Board Guide on the Phones & TV, Techie Stuff, In My Home,
    The Money Savers Arms and Food Shopping boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views (especially those on the UK TV Licence) are mine and not the official line of moneysavingexpert.com.

    Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • Nick_C
    • By Nick_C 15th Feb 18, 8:42 PM
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    Nick_C
    Doesn't surprise me, Tesco is pretty good at this supermarket thing.
    They used to be. Not any more.

    Their pre-tax profits were over two billion in in 2013 and 2014.

    They made a six billion loss in 2015, and have made very small profits for the last two years.

    Current revenue is still 10% down on 2013, and shareholder dividends are just 1.5%,compared to a historic 4%.

    The company has lost almost half its value in five years.

    https://uk.webfg.com/equity/Tesco
    • Doc N
    • By Doc N 15th Feb 18, 10:50 PM
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    Doc N
    Likewise. I've visited one a few times just out of curiosity, but it's just a big Iceland in reality, with easier parking. No real difference in prices, or anything else, and the same abysmal level of customer service which 'Which?' picked up on this month.
    Last edited by MSE ForumTeam3; 17-02-2018 at 10:14 AM. Reason: Quoting deleted post
    • Kantankrus Mare
    • By Kantankrus Mare 15th Feb 18, 11:02 PM
    • 5,191 Posts
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    Kantankrus Mare
    If Tesco concentrated on utilising their floor staff better, their costs would drop dramatically! Im sick of going into my local tesco (which I tend to avoid more and more these days) and seeing several staff, often supervisors, stood around nattering. If this is happening in all of their stores then thats a huge cost to the company!

    Lidl and Aldi at least keep their staff on the go!
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