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Tesco "cheap Food Era Is Over"


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I think it's for historical reasons. They used to be cheaper, but more recently I'm beginning to doubt that.

I've noticed it getting more expensive there too:

1) Hidden inflation in smaller portions.

2) Red stickers making it appear as if something is cheaper even though it's not

3) Proliferation of multibuy. Meaning you end up paying more for a single item, or buying more than you need to get a decent price.

4) Convoluted offers encouraging you to shop there for a few weeks in a row to get a discount.

The £1.50 iceberg lettuces were the final straw for me.

All true.

And another thing that really annoys me is that when they sell out of an item at Morrisons, instead of leaving a gap on the shelf, they'll often put a similar but differently priced item in its place - so if you're reading the price tag on the shelf it's easy to buy the wrong thing at the wrong price. I don't know whether this is deliberately intended to con shoppers or just to make the shelves look neat.

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Considering such a large proportion of the food we consume in the UK is imported I suspect that the price for most things are going to rise especially as more and more countries become more affluent and want to consume in a similar way to western industrialised countries.

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I think it's for historical reasons. They used to be cheaper, but more recently I'm beginning to doubt that.

I've noticed it getting more expensive there too:

1) Hidden inflation in smaller portions.

2) Red stickers making it appear as if something is cheaper even though it's not

3) Proliferation of multibuy. Meaning you end up paying more for a single item, or buying more than you need to get a decent price.

4) Convoluted offers encouraging you to shop there for a few weeks in a row to get a discount.

The £1.50 iceberg lettuces were the final straw for me.

Luckily there's a good choice of Aldi, Lidl, Iceland & Farmfoods around here. Just need to break the weekly Morrisons's habit, which is proving to be easier said than done.

Morisrisons have discontinued selling their cooking bacon, always a good reason to pop in there, so I have now little reason to shop there.....used to always pick up a few things, now they are getting more of nothing. ;)

Edited by winkie
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Coincidently at 8 on Sky1 (I Think) now good looking American working with a 27 stone lad and he is one of 10 in the series.

Obesity massively on the rise

Evidence points to food being too cheap surely?

Lard and corn syrup sugar is cheap. ;)

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In our local there's a farmer who will sell you a cow. We normally club together and buy an 8th ( and I thought thode days were behind me ;)). That's a surprising amount of beef.

What is the price of a cow these days?

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All true.

And another thing that really annoys me is that when they sell out of an item at Morrisons, instead of leaving a gap on the shelf, they'll often put a similar but differently priced item in its place - so if you're reading the price tag on the shelf it's easy to buy the wrong thing at the wrong price. I don't know whether this is deliberately intended to con shoppers or just to make the shelves look neat.

The trick is to get in early. For instance in Sainsburys the basic range sells out quickly and doesn't get replaced, or get replaced with more expensive substitutions. Their basic mince beef at £1.34 a pack is perfectly OK for me (though Aldi is better for mince).

Edited by aSecureTenant
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For a while we lived in an area where we used the local supermarket as local markets and small shops didn't exist. It's amazing how you can spend £30 on a tiny basket of nothingness in those places. Our food bill went from barely worth thinking about to a sizeable chunk of money in a month. Must be even worse on poor estates where only convenience store mini markets are easily accessible.

Go near the end of the day at one of your our local market and there's great food at virtually giveaway prices.

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Food retailing is hugely competitive. Tescos latest profit margins are 2.14% and falling. Sainsburys (2.63%) and Morrisons (3.57%) look pretty thin too, and Ocado's is negative. The only way you're going to get food cheaper is if you can dispense with all the food safety standards they have to follow, or perhaps get some juicy extra subsidies not available to them.

You've hit the nail on the head. Despite what everyone thinks, Tesco's margins are wafer-thin and their accounts seem to suggest that despite the low prices, people are still struggling/unwilling to pay for their food. If prices can't come down, that only leaves quality that can be compromised on. Despite the attempts of Jamie Oliver and friends, the quality of food will continue to get worse and worse. If you think that a Birdseye chicken nugget is bad, it will look like a prime piece of sirloin compared to the chicken flavoured protein supplement that some scientist will have concocted in a lab in some 10-20 years time.

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In a farm shop near me, the tinned/jarred stuff is often cheaper than the supermarkets, when they have had to buy it from a cash and carry. Even stuff like coffee.

I can see the economies of scale of being a big shed operator but when these organisations are also reliant on cheap/free dole staff as well, I really think that supermarkets are taking the mickey.

Especially when even the Costcutters are cheaper than the supermarkets on some items. For example I buy coconut milk, OK it used to be £1 a tin at Asda, and £1.15 at my local Costcutter, but last time I checked coconut milk had been ratcheted up to a ludicrous price at Asda whilst staying the same in Costcutter.

Ingredients in asian shops are often 1/3 price - get your coconut there.

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Ingredients in asian shops are often 1/3 price - get your coconut there.

Indeed - our big asian supermarket is a joy. Huge bags of spices and pulses for almost nothing, Alphonso mangoes at a reasonable price. Can't remember what the coconut milk cost, but it didn't drain the blood from my face like last time I bought it in Sainsbury's.

That aside, and given much of our food is imported, they're probably right, aren't they? Lucky we've all got so much disposable income, or something flexible like housing costs might have to take a hit.

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You've hit the nail on the head. Despite what everyone thinks, Tesco's margins are wafer-thin and their accounts seem to suggest that despite the low prices, people are still struggling/unwilling to pay for their food. If prices can't come down, that only leaves quality that can be compromised on. Despite the attempts of Jamie Oliver and friends, the quality of food will continue to get worse and worse. If you think that a Birdseye chicken nugget is bad, it will look like a prime piece of sirloin compared to the chicken flavoured protein supplement that some scientist will have concocted in a lab in some 10-20 years time.

As a supplier into the retailers, their markup is usually about 50% of the factory gate price. Out of this margin they have to run their supply chain, pay rent & rates, pay those staff not on workfare, marketing (Jamie don't work for free), public liability insurance, light and fit out their stores, and maintain their bloated head office. Oh, and waste on short shelf-life products sits between 4% and 8%.

No wonder the guy that comes to my sleepy little village 3 times a week can deliver fresher produce at cheaper prices. If more people followed his example, the multiples would be instantly out of the fresh produce game.

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As a supplier into the retailers, their markup is usually about 50% of the factory gate price. Out of this margin they have to run their supply chain, pay rent & rates, pay those staff not on workfare, marketing (Jamie don't work for free), public liability insurance, light and fit out their stores, and maintain their bloated head office. Oh, and waste on short shelf-life products sits between 4% and 8%.

No wonder the guy that comes to my sleepy little village 3 times a week can deliver fresher produce at cheaper prices. If more people followed his example, the multiples would be instantly out of the fresh produce game.

so the big boys once priced out the small fry....now the small fry can price out the big boys.....less is more and the tables have turned. ;)

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Related to this thread is the disgusting process of modern slavery, from which we get our cheap Spanish vegetables & fruit.

Good short documentary report on it...

http://www.youtube.com/watch?v=wrIzMUBAqZ4

If you put " Roquetas de Mar, Spain " into google maps, you will see what looks like a 350 square miles + block of plastic greenhouses.

No nimbys in spain huh ? it's not in the poorest area for nothing... as are waste incinerators in London

Edited by Saving For a Space Ship
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If more people followed his example, the multiples would be instantly out of the fresh produce game.

Guessing here as to exactly what you're on about ...

If more people followed his example, his suppliers would be faced with a whole lot more administration (lots of small customers) and harder-to-manage demand patterns. They'd have to take on extra managerial staff to cope, and someone would have to pay that cost.

Then a big buyer offers to relieve them of that burden, so they jump at the chance.

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As a supplier into the retailers, their markup is usually about 50% of the factory gate price. Out of this margin they have to run their supply chain, pay rent & rates, pay those staff not on workfare, marketing (Jamie don't work for free), public liability insurance, light and fit out their stores, and maintain their bloated head office. Oh, and waste on short shelf-life products sits between 4% and 8%.

No wonder the guy that comes to my sleepy little village 3 times a week can deliver fresher produce at cheaper prices. If more people followed his example, the multiples would be instantly out of the fresh produce game.

I've started buying from my local independant butcher - the bacon doesn't melt into a pool of watery fat when it's grilled. And I don't chip into Jamie's holiday fund.

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As a supplier into the retailers, their markup is usually about 50% of the factory gate price. Out of this margin they have to run their supply chain, pay rent & rates, pay those staff not on workfare, marketing (Jamie don't work for free), public liability insurance, light and fit out their stores, and maintain their bloated head office. Oh, and waste on short shelf-life products sits between 4% and 8%.

No wonder the guy that comes to my sleepy little village 3 times a week can deliver fresher produce at cheaper prices. If more people followed his example, the multiples would be instantly out of the fresh produce game.

I do not think this model would work in London with 10 millions to be fed every day ...

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Related to this thread is the disgusting process of modern slavery, from which we get our cheap Spanish vegetables & fruit.

Good short documentary report on it...

http://www.youtube.c...h?v=wrIzMUBAqZ4

If you put " Roquetas de Mar, Spain " into google maps, you will see what looks like a 350 square miles + block of plastic greenhouses.

No nimbys in spain huh ? it's not in the poorest area for nothing... as are waste incinerators in London

Well worth a watch. What a mess.

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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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