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Tesco Gives Staff A £55M Christmas 'present' - If They Spend In Store

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http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8147797/Tesco-gives-staff-a-55m-Christmas-present.html

All 280,000 employees have instead been given a voucher, worth up to £20, as well as a discount booklet worth a further £120, to spend at a Tesco store.

The £20 voucher is only redeemable on a "spend £5 and get £1 off" basis, meaning staff would have to buy £100 worth of groceries to get the full benefit. The discount booklet, which cannot be used towards food or alcohol, offers a small amount of money off products including electrical goods or Tesco clothing. With the exception of a £5 voucher to spend at the sports store Umbro, the discount vouchers must be spent at Tesco, which said staff could redeem the vouchers on top of their 10pc staff discount.

The voucher package will cost the retailer £40m, with the remaining £15m spent on giving staff an extra day's holiday over the festive period.

If staff mostly buy from Tesco it's a nice discount, are there tax advantages to Tesco for doing this? I can see a slight boost in the overall bottom line if they can get staff to spend the maximum and use all their vouchers.

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Pretty good way to reward employees imo. The things they sell are so broad that I would think for every employee will get the full benefit. At minimum they could do their grocery shopping there.

That 10% discount itself is quite significant. For a family of 4 with one working at Tesco, they can do all their shopping through the one person.

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Pretty good way to reward employees imo. The things they sell are so broad that I would think for every employee will get the full benefit. At minimum they could do their grocery shopping there.

That 10% discount itself is quite significant. For a family of 4 with one working at Tesco, they can do all their shopping through the one person.

its £100 with £20 off, I beleive I read...

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Tesco keep sending me £6 off £30 vouchers. The trick is to shop at aldi, they track my disloyalty and send out the vouchers. I use them to stock up on things aldi doesn't sell, then don't go in tesco again. Rinse and repeat.

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Pretty good way to reward employees imo. The things they sell are so broad that I would think for every employee will get the full benefit. At minimum they could do their grocery shopping there.

That 10% discount itself is quite significant. For a family of 4 with one working at Tesco, they can do all their shopping through the one person.

We get 10% off Co-op food and holidays due to a commercial relationship I have with them. Its a valuable perk.

Lots of hostility to Tesco on here, probably due in good part to their shabby treatment of suppliers.

However, when my Mum had cancer (now in remission for 10yrs) Tesco paid her in full for many months while off sick, had a manager visit her at home regularly (she brought flowers but that might have been a personal gesture), continued her free share allocation and boosted her pension rights.

Its a bugger isn't it when you can't rely on the baddies to be properly bad.

Edited by xux42

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Are the vouchers related to overall pay? If they are you would have to feel sorry for such as CEO Terry Leahy who reportedly earned £15.6m in 2009/10 up from £9.1m in 2008/09 a lovely 71.4% rise!!

http://www.thisismoney.co.uk/news/article.html?in_article_id=517324&in_page_id=2

How long would it take him to spend his vouchers? Think of the number of trolleys he would have to have push round!

Reading their Annual Report

http://www.tescoplc.com/annualreport09/downloads/

annual bonus payouts ranged from 60% to 90% of maximum.

The maximum potential bonus was 250% of salary for the Group

CEO , 300% of salary for the US CEO and 200% of salary for other

Executive Directors;

• long-term incentive payout was 90% of a potential maximum of

100% of salary;

• no material changes to policy, remuneration mix or scale of incentives;

• deferred awards, already earned from prior years, representing

4.6 million shares became available to Directors;

• minor changes are being proposed to remuneration arrangements

relating to leaving conditions; and

• continuing high level of share ownership by Executive Directors.

We have the usual market rate argument that is wildly inflating salaries because once one FTSE firm overpays they all have to do the same - or people might leave!!

We examine salary levels at the major retailers, the leading FTSE companies and ensure

consideration is given to international competitors. We also take into account

pay conditions throughout the Group in deciding executive annual salary

increases.

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Once upon a time staff discount schemes were often 20-25% at some of the grocers and 33%, or more, at some non-food retailers.

Most of them were pared back due to widespread abuse. Stil 10% is certainly not to be sniffed at as a saving on your annual food spend but, it's actually surprising how low take up of staff discount schemes/vouchers usually is.

Years ago we used to give luncheon type vouchers as a Christmas bonus as we could get them at a very good rate. The voucher sales rep would openly admit they could do the rate because they knew such a good percentage will never be redeemed.

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It is worth bearing in mind that when you spend money in Tesco you get more than the discount for what you spend, you still get the groceries too.

The staff perks at Tesco go well beyond the staff discount card as well. They have a pretty good pension scheme (best of the retailers certainly), they pay the best out of the big supermarkets and the share schemes are very good value as well. I know of several people who have never got beyond working as a shop assistant who are sitting on high six figure savings pots.

Given they are expanding into banking and broadband and phones etc etc, all of those things are available on a discount too.

They do strong arm the suppliers - no question - but how fast do people go across the road when the prices are cheaper over there?

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  • 189 Brexit, House prices and Summer 2020

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