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Sancho Panza

Tesco Reports Sharp Drop In Profits As It Fights The Rise Of Aldi/lidl

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BBC 2/10/13

'The UK's biggest supermarket chain, Tesco, has reported a 23.5% drop in profits during the first half of its financial year.

Tesco's pre-tax profits in the six months to 24 August were £1.39bn, which the firm blamed on a challenging retail environment, particularly in Europe.

UK like-for-like sales - which exclude new store openings - fell by 0.5%.

Tesco said profits fell 67% in Europe to £55m, while Asian profits, excluding China, dropped 7.4% to £314m. UK trading profits rose 1.5% to £1.13bn.

Tesco also saw margins being squeezed, in what is already a notoriously competitive retail environment. Group profit margins fell from 5.4% to 4.9%.

The company's shares were down 4.4% an hour after UK markets opened.

The firm, while still the UK's biggest supermarket chain, is fighting an increasingly tough battle with discount supermarkets like Aldi and Lidl.

Aldi saw UK pre-tax profits surge 124% to £157.9m in 2012, with the company saying it attracted a million more shoppers through its doors.'

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BBC 2/10/13

'The UK's biggest supermarket chain, Tesco, has reported a 23.5% drop in profits during the first half of its financial year.

Tesco's pre-tax profits in the six months to 24 August were £1.39bn, which the firm blamed on a challenging retail environment, particularly in Europe.

UK like-for-like sales - which exclude new store openings - fell by 0.5%.

Tesco said profits fell 67% in Europe to £55m, while Asian profits, excluding China, dropped 7.4% to £314m. UK trading profits rose 1.5% to £1.13bn.

Tesco also saw margins being squeezed, in what is already a notoriously competitive retail environment. Group profit margins fell from 5.4% to 4.9%.

The company's shares were down 4.4% an hour after UK markets opened.

The firm, while still the UK's biggest supermarket chain, is fighting an increasingly tough battle with discount supermarkets like Aldi and Lidl.

Aldi saw UK pre-tax profits surge 124% to £157.9m in 2012, with the company saying it attracted a million more shoppers through its doors.'

Tesco lost me as a customer over their employment practices

The Giant crumbles

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Have their shares gone down?

The Co-Op has gone very expensive since their financial troubles started. I was with a friend in one last Saturday, which is normally heaving, and she commented on how expensive it had gone and also how empty the store was. I hadn't noticed.

Even their discounted food because of today's sell-by date has gone from being give away prices to now just a few percent off the full price. Not worth it mostly.

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Have their shares gone down?

The Co-Op has gone very expensive since their financial troubles started. I was with a friend in one last Saturday, which is normally heaving, and she commented on how expensive it had gone and also how empty the store was. I hadn't noticed.

Even their discounted food because of today's sell-by date has gone from being give away prices to now just a few percent off the full price. Not worth it mostly.

The co-op stores near me are always very quiet, and the food is expensive......you would think they would lower their prices to match other shops in the area, I can't see how they can make much of a profit to be viable.

Have noticed walking about stores how there is a growing section of people looking closely at the offers (first working out if the offer is really an offer) working out prices by the weight, checking products against each other and no longer just picking up the brand they always used without looking at the price compared to a similar product, both in that store and other nearby stores, markets and alternative shops. ;)

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Have their shares gone down?

The Co-Op has gone very expensive since their financial troubles started. I was with a friend in one last Saturday, which is normally heaving, and she commented on how expensive it had gone and also how empty the store was. I hadn't noticed.

Even their discounted food because of today's sell-by date has gone from being give away prices to now just a few percent off the full price. Not worth it mostly.

Have also noticed this.

The Chilean red is still quite competitive though.

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The Irish I know don't like Tesco, I can tell you that.

I try and avoid it like the plague and do the regular shop a LIDIL as the selection is much better than in ALDI. The local Irish owned supermarkets here can also be quite good.

There also many small small shops like Centra, Mace and SPA which can be quite competitive against Tesco.

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Have their shares gone down?

The Co-Op has gone very expensive since their financial troubles started. I was with a friend in one last Saturday, which is normally heaving, and she commented on how expensive it had gone and also how empty the store was. I hadn't noticed.

Even their discounted food because of today's sell-by date has gone from being give away prices to now just a few percent off the full price. Not worth it mostly.

The Tesco discounted food section has that as well.. £3.50 reduced to £2.99.

We stopped bothering because -

- Their fruit and veg is 'for cosmetic purposes only'

- Their fresh meat is somehow unpleasant. Not sure how they manage it.

- Their ready means are just nasty.

Apart from that, they are fine.

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The Tesco discounted food section has that as well.. £3.50 reduced to £2.99.

We stopped bothering because -

- Their fruit and veg is 'for cosmetic purposes only'

- Their fresh meat is somehow unpleasant. Not sure how they manage it.

- Their ready means are just nasty.

Apart from that, they are fine.

You are just being nice. ;)

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The Tesco discounted food section has that as well.. £3.50 reduced to £2.99.

We stopped bothering because -

- Their fruit and veg is 'for cosmetic purposes only'

- Their fresh meat is somehow unpleasant. Not sure how they manage it.

- Their ready means are just nasty.

Apart from that, they are fine.

Yes, my local Tesco Express started doing the same a few months ago.

Things went from bargains on the discounted shelf to just not worth it. As a single person it used to make sense to buy stuff daily from the discounted shelves in Tesco, Co-Op or M&S. No longer.

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The co-op stores near me are always very quiet, and the food is expensive......you would think they would lower their prices to match other shops in the area, I can't see how they can make much of a profit to be viable.

Have noticed walking about stores how there is a growing section of people looking closely at the offers (first working out if the offer is really an offer) working out prices by the weight, checking products against each other and no longer just picking up the brand they always used without looking at the price compared to a similar product, both in that store and other nearby stores, markets and alternative shops. ;)

As a business I've often wondered how they survive with whatever they do be it vegetables,funerals or banking.They always seem woefully poor in terms of customer service.

I think the key to their success is that they own a lot of property outright which allows them to shield inefficiency in a way normal firms with shareholders can't.Also,they possess some excellent sites particualrly in 'middle England' type villages,where there just isn't enough to tempt a new player to the local market.Where there is competition,they generally get hammered.

Edited by Sancho Panza

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As a business I've often wondered how they survive with whatever they do be it vegetables,funerals or banking.They always seem woefully poor in terms of customer service.

I think the key to their success is that they own a lot of property outright which allows them to shield inefficiency in a way normal firms with shareholders can't.Also,they possess some excellent sites particualrly in 'middle England' type villages,where there just isn't enough to tempt a new player to the local market.Where there is competition,they generally get hammered.

There are loads of Co-Op shops in suburbs where there is no other shop or Somerfield was right opposite. So they bought out the competition and turned them into Somerfields.

There are two such shopping centres near me, Mumbles and Killay, and both now have two Co-Ops as the only shops. They have no competition. Between the two shopping centres there is another one, Sketty, which has a small Sainsburys and Tesco which compete with one another.

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Guest eight

Yes, my local Tesco Express started doing the same a few months ago.

Things went from bargains on the discounted shelf to just not worth it. As a single person it used to make sense to buy stuff daily from the discounted shelves in Tesco, Co-Op or M&S. No longer.

But how will you meet women?

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But how will you meet women?

You don't have to actually buy anything in these shops. You just loiter holding some grapes or crusty rolls.

Edit:

Actually, I have got myself in a bit of a pickle as I found myself going from zero in the past fortnight to dating 3 ladies and they all are very keen. I think I need a new plan.

Edited by The Masked Tulip

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You don't have to actually buy anything in these shops. You just loiter holding some grapes or crusty rolls.

Edit:

Actually, I have got myself in a bit of a pickle as I found myself going from zero in the past fortnight to dating 3 ladies and they all are very keen. I think I need a new plan.

Will they still be keen after seeing you HPC avatar?

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Tesco food is mostly shit and overpriced. The non food items are almost all very cheap and nasty Chinese tat sold at big markup.

Someone up high reckoned they'd get away with it and perhaps now they will realise this wasn't going to work long term.

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This cant be right.Tesco were cheerleaders for a low wage economy?.Every time a factory paying £11 an hour for 40 hours closed they opened a shop on the land paying people £6.20 for 16 hours.

Why would all these people instead go to Aldi.

Ok the prices are mostly half of Tescos and on the whole better quality but really.

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This cant be right.Tesco were cheerleaders for a low wage economy?.Every time a factory paying £11 an hour for 40 hours closed they opened a shop on the land paying people £6.20 for 16 hours.

Why would all these people instead go to Aldi.

Ok the prices are mostly half of Tescos and on the whole better quality but really.

People I knew had hardly heard or Aldi or Lidl.

Some people were embarrassed you even thought they went there.

Now, it's changed a lot. People who would never have thought to go to Aldi are there.

Tesco is awful.

Sainsbury's is better than Tesco.

Asda is cheaper than Tesco.

Tesco brand in decline, mostly because of taking their customers for granted and thinking they were clever and customers were dumb.

Eventually they got found out. Not sure how Tesco recover?

Sell a few land banks?

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The co-op stores near me are always very quiet, and the food is expensive......you would think they would lower their prices to match other shops in the area, I can't see how they can make much of a profit to be viable.

My local co-op is appalling, expensive, poor quality and frequently out of stock of basic staple items (Potatoes, bread, milk!).

With far less people in it than than the next door ethnic mini-market, which is a much smaller property, I've no idea how the co-op survives either. I often make a 15 minute detour to avoid the place now.

Tesco's quality seems to be dropping as the prices rise, so I wonder if it's on a similar path to the co-op.

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Have noticed walking about stores how there is a growing section of people looking closely at the offers (first working out if the offer is really an offer) working out prices by the weight, checking products against each other and no longer just picking up the brand they always used without looking at the price compared to a similar product, both in that store and other nearby stores, markets and alternative shops. ;)

Which is what I do at write down time, but its been months since I've seen decent offers at the Coop.

Just quicker to go Aldi/Lidl and check out the markets.

On the other hand Sainsbury have done rather well. Their 'basics" range is in fact very good

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Which is what I do at write down time, but its been months since I've seen decent offers at the Coop.

Just quicker to go Aldi/Lidl and check out the markets.

On the other hand Sainsbury have done rather well. Their 'basics" range is in fact very good

Tesco did well because most of their competition wasn't actually competing that well for about decade. Now that Sainsburys, Lidl, Aldi and even Waitrose have got their acts sorted...

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Tesco brand in decline, mostly because of taking their customers for granted and thinking they were clever and customers were dumb.

Eventually they got found out.

I think you've summed it up very well.

Uninspiring overpriced food, and a nasty dynamic pricing policy which takes us all for fools.

I shop there for a very few items that LIDL don't do as well or as cheaply. 6pt milk bottles, Lettuce, tins of bread yeast and linghams chillis sauce.

They need some clear thinking at the highest level - I heard their CEO on radio 4 this morning talking excitedly about their expansion plans into China etc. They need to get the basics right rather than going on some Fred Goodwinesque quest for world domination. Unfortunately he didn't seem to acknowledge that they have a problem.

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Which is what I do at write down time, but its been months since I've seen decent offers at the Coop.

Just quicker to go Aldi/Lidl and check out the markets.

On the other hand Sainsbury have done rather well. Their 'basics" range is in fact very good

Some of the value ranges at supermarkets are identical to their full price product but at half the price - our country is so messed up.

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