Saving For a Space Ship Posted October 23, 2014 Share Posted October 23, 2014 (edited) We used to do 80% of our shopping in Tesco back in '11. These days it's 20% LIDL and 69% ASDA, 5% TESCO, 4% Morrisons and 1% Sainsbury's, 1% Farm Foods. Excluding the basics of milk and bread, I tend to look at my supermarket and then pop in and pick up the offers whilst passing. Very scientific, I am led by what is available on the reduced shelf, providing it's not too processed Edited October 23, 2014 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted October 23, 2014 Share Posted October 23, 2014 It would appear Terry wasn't the retail genius everyone thought he was at the time... His genius was doing a Blair and getting out at the very top while leaving the next guy to be the patsy. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted October 23, 2014 Share Posted October 23, 2014 Very scientific, I am led by what is available on the reduced shelf, providing it's not too processed I work, so I don't get a look in on the reduced items. Quote Link to comment Share on other sites More sharing options...
andygivenup Posted October 23, 2014 Share Posted October 23, 2014 Try again, Have the W*****'s in Westminster said they will stump up the 260 odd million to get them out of this fix yet? Quote Link to comment Share on other sites More sharing options...
koala_bear Posted October 23, 2014 Share Posted October 23, 2014 Have been too busy to post lots on HPC for a while but though I you add my 2 cents worth on this. In 2008 and 2009 several of the large FMCG suppliers worldwide started a big clamp don't on trade spend not just in the UK but across most of western europe too. The aim was that all individual items of trade spend* (the accounting problem for Tesco) would have to be profitable for the supplier calculation included factory variable costs (not 100% achievable but that was the starting point). This will have hurt the UK supermarkets by hundread of million a year if all the big FMCG player followed suit. But amazingly some supermarkets profits didn't fall (ie. Tescos) but some did i.e. Sainsburys. I simply don't belive that this only goes back no more than 3 years in Tescos case. *i.e. an individual special offer ie. 2 for £2 offer on product X pack size Y for 2 weeks. From what i found on the continent the offers the suppliers ran in Lidl already got as near as practicable to the meeting the 100% of spend items profitable for the supplier target which might be why Aldi/Lidl are doing so well at the moment. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted October 23, 2014 Share Posted October 23, 2014 I've always made a concerted effort not to shop in Tesco There was a time a few years ago when 20% of all retail sales was spent in tesco...........1/5th of ALL money spent in UK retailing generated by one single corporation. How anyone can imagine that is a healthy situation is beyond me. Tesco reminds me of OCP (Omni Consumer Products) in the movie RoboCop Corporatism gone mad. Good riddence to Tesco. Hopefully Sainsbury will be next. Overpriced and utterly rubbish food. RoboShop Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted October 23, 2014 Share Posted October 23, 2014 How are Mike Ashley's options looking ? What were was the price and buyback dates? Quote Link to comment Share on other sites More sharing options...
Ulfar Posted October 23, 2014 Share Posted October 23, 2014 Tescos have problems and they are all obvious to anyone who shops there. Cheap low quality products for expensive prices. The staff couldn't give a toss so service is diabolical. However I don't blame the staff, they are either getting paid shit or are there for "work experience", they also have to deal with asshole managers. I stopped shopping in Tesco when the workfare issue hit the headlines, I will not shop with any retailer or business that is party to what amounts to slave labor if I can possibly avoid it, which I usually can. I also have to say LIDL has come on leaps and bounds in the last two years, there quality of products is way better than Tesco and prices are great. For things like Bread and Milk I use farmfoods. Meat is from the local butcher, which surprisingly is also cheaper than Tesco. Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted October 23, 2014 Share Posted October 23, 2014 I heard some analyst advising today that Tesco needed to "invest in lower prices". Does that simply mean charging less? - or is there more to it than that? Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted October 23, 2014 Share Posted October 23, 2014 (edited) Tescos have problems and they are all obvious to anyone who shops there. Cheap low quality products for expensive prices. The staff couldn't give a toss so service is diabolical. However I don't blame the staff, they are either getting paid shit or are there for "work experience", they also have to deal with asshole managers. I stopped shopping in Tesco when the workfare issue hit the headlines, I will not shop with any retailer or business that is party to what amounts to slave labor if I can possibly avoid it, which I usually can. I also have to say LIDL has come on leaps and bounds in the last two years, there quality of products is way better than Tesco and prices are great. For things like Bread and Milk I use farmfoods. Meat is from the local butcher, which surprisingly is also cheaper than Tesco. I avoid Tesco as much as possible but they had a bottle of wine I wanted to try on offer. I went to our huge local superstore mid afternoon during the week. There were two serviced tills in operation with queues of trolleys about 8 deep. There were long queues at the self service tills and a backlog of issues for the attendant to deal with - as I was buying alcohol I'd need age verification so this would entail a long wait at self service becasue of the problems ahead of mine. There was a manager on the floor with a headset trying to find out if more staff were available. I decided to give up and was setting off to put the bottle back on the shelf when I glanced at the manager and without thinking I shook my head and mouthed "It's a total joke". He noticed and as I passed he offered to open another till to serve me himself. I was hugely embarrassed but I accepted his offer! Edited October 23, 2014 by oldsport Quote Link to comment Share on other sites More sharing options...
The Preacherman Posted October 23, 2014 Share Posted October 23, 2014 Have been too busy to post lots on HPC for a while but though I you add my 2 cents worth on this. In 2008 and 2009 several of the large FMCG suppliers worldwide started a big clamp don't on trade spend not just in the UK but across most of western europe too. The aim was that all individual items of trade spend* (the accounting problem for Tesco) would have to be profitable for the supplier calculation included factory variable costs (not 100% achievable but that was the starting point). This will have hurt the UK supermarkets by hundread of million a year if all the big FMCG player followed suit. But amazingly some supermarkets profits didn't fall (ie. Tescos) but some did i.e. Sainsburys. I simply don't belive that this only goes back no more than 3 years in Tescos case. *i.e. an individual special offer ie. 2 for £2 offer on product X pack size Y for 2 weeks. From what i found on the continent the offers the suppliers ran in Lidl already got as near as practicable to the meeting the 100% of spend items profitable for the supplier target which might be why Aldi/Lidl are doing so well at the moment. The problem with screwing your supplier is that they need to turn a profit. All they will do is reduce the quality of the item that they are supplying to you. However, where I think things got badly out of hand was that Tesco carried on dreaming up new ways of screwing suppliers like paying for which shelf you are on. Eventually the rebates got so complex that the suppliers could game Tesco and their buyers couldn't really understand if they were getting good value and just concentrated on extracting rebates. Rather like a mirror image of what Tesco were doing in their stores with random nonsensical offers which eventually made their customer feel like they were been ripped off. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 23, 2014 Share Posted October 23, 2014 It is too late for Tesco - they have p*ssed off their customers. The arrogance, over-pricing and poor service has seen customers walk away apprently in their millions. Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted October 23, 2014 Share Posted October 23, 2014 (edited) Trouble with Tesco is that they literally have no friends. They represent the worst of the last couple of decades of corporate philosophy; manipulate and treat employees, shareholders, customers and suppliers with utter contempt on the grounds that you're the smartest guy in the room. I suspect even politicians regard them as rather toxic nowadays. To be fair they aren't quite Enron bad, but they've got an awful lot of work to do to bring it back. Edited October 23, 2014 by StainlessSteelCat Quote Link to comment Share on other sites More sharing options...
honkydonkey Posted October 24, 2014 Share Posted October 24, 2014 People prefer consistently low prices, not the lottery of 'offers'. Plus why spend an hour to do 15 mins of shopping. Aldi & Lidl are going to slowly destroy them unless they change. Quote Link to comment Share on other sites More sharing options...
sPinwheel Posted October 24, 2014 Share Posted October 24, 2014 Time to invest in Tesco? Quote Link to comment Share on other sites More sharing options...
The Preacherman Posted October 24, 2014 Share Posted October 24, 2014 Time to invest in Tesco?Wait until the dust settles. There is a rights issue in the pipeline and there may further skeletons to unearthed. Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted October 24, 2014 Author Share Posted October 24, 2014 (edited) £1 target http://www.fool.co.uk/investing/2014/10/22/how-tesco-plc-could-drop-to-100p/ 'How Tesco PLC Could Drop To 100p!' You read it here first. 168 to day Edited October 24, 2014 by Sancho Panza Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 24, 2014 Share Posted October 24, 2014 Surely the full dividend will be cut in some way? If they end up borrowing money/doing a rights issue but still paying the dividend that would be a tad odd wouldn't it? Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 24, 2014 Share Posted October 24, 2014 The most serious problem Tesco have is having monster stores in close proximity to each other. On the West side of Nottingham they have four Tesco extras all within four miles of each other.......Ilkeston, Beeston, Toton and Long Eaton. Toton in the middle, always feels like the Marie Celeste. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 24, 2014 Share Posted October 24, 2014 Just piled in for the 2nd time. Expecting a small bounce today, then I will sell with a plan to buy back in below 150....maybe below 100. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 24, 2014 Share Posted October 24, 2014 (edited) Just piled in for the 2nd time. Expecting a small bounce today, then I will sell with a plan to buy back in below 150....maybe below 100. A bit of a big beast to try and understand what its worth...the market capitalisation is 13.6 billion pounds it has 7.5 billion pound worth of debt and a 3.4 billion pension deficit...not sure if this pension debt is included in that 7.5 billion. Can't be bothered to try and look at the balance sheet.......a balance sheet can be simplified into a short column of numbers but that would be to easy to follow. But I guess it has land banks which it would no doubt happily convert to housing if allowed. Edited October 24, 2014 by crashmonitor Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 24, 2014 Share Posted October 24, 2014 A bit of a big beast to try and understand what its worth...the market capitalisation is 13.6 billion pounds it has 7.5 billion pound worth of debt and a 3.4 billion pension deficit...not sure if this pension debt is included in that 7.5 billion. But I guess it has land banks which it would no doubt happily convert to housing if allowed. Yeah, there is money/value in there somewhere. I'm hopeful I'll make my 3% on my investment today, then wont have to worry about it in a bank for the next 12 months Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 24, 2014 Share Posted October 24, 2014 Yeah, there is money/value in there somewhere. I'm hopeful I'll make my 3% on my investment today, then wont have to worry about it in a bank for the next 12 months I thought you sold out last week. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 24, 2014 Share Posted October 24, 2014 I thought you sold out last week. I did, at 1.80 something or other. Bought back in today at 166 expecting a bit of a bounce today, it's up to 168ish at the mo and i'd expecting 170 by the close of play....i'll sell then and take the profit. Better than what i'd see from the bank. Quote Link to comment Share on other sites More sharing options...
brunobald Posted October 24, 2014 Share Posted October 24, 2014 Tescos haven't changed. They are just failing to adapt to Aldi and Lidle. Quote Link to comment Share on other sites More sharing options...
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