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Tesco Uk Sales: Further Fall Blamed On Economy----------Merged Thread


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HOLA441

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11315342/Big-Four-supermarkets-face-more-pain-over-business-rates.html

'Britain's biggest supermarkets have been hit by increasingly disproportionate hikes in business rates that will spell more pain for the grocery giants next year as sales decline, new analysis shows.

Tesco, Sainsbury’s, Asda and Morrisons face an additional bill of more than £110,000 per superstore in 2015-16 compared with when the Coalition came to power in 2010-11.

Paul-Turner Mitchell, a business rates campaigner who has advised the British Property Federation, said this represented a 19pc increase over the period.

It means the “Big Four” face paying £693,651 more in property tax for each of their bigger stores, while small businesses have seen their bills reduced.

This comes as retail specialists Kantar project that income for Tesco’s largest “Extra” stores will fall by 13pc to an estimated £66.8m per store in 2016, from £76.9m in 2011, under increasing pressure from discounters Aldi and Lidl.

Mr Turner-Mitchell said just under 2,000 of the biggest stores, which represent less than 0.5pc of all shops and retail warehouses in the UK, now pay a fifth of the business rates bill for retail premises. Tesco has already abandoned plans to open a superstore in Margate after fighting for years to get planning permission, and is considering selling off property assets.'

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HOLA442

Venger what's the source on that one?Looks very interesting.

Sent you pm SP, with links to possible sources that may still have it in stock - old business book, and thanks for the pm reply.

As pensions being discussed, that was a long piece in ST yesterday. Just a snippet below... will dividends be cut?

Sunday Times 28.12.2014

Tesco faces new blow with £3bn hole in pensions

Supermarket giant could be forced to pay an extra £300m a year to make up shortfall in retirement fund

[snip]The last full assessment of the fund's finances was complete in 2011. That showed a deficit of £934m. Tesco made an extra payment of £180m in 2013 to help full the gap - but set aside only £3m last year. These payments were on top of its routine contributions. The scheme's assets include property that is used by the group. On top of that, the pension fund has a claim over £416m of Tesco property: it is "held as security in favour of the scheme" according to the report. Tesco said its pension scheme "has a diversified portfolio. It does not invest directly in Tesco shares." The Tesco property assets "represent less than 2% of the scheme's assets".[/snip]

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HOLA443
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HOLA444

Heads up! Date for your diaries!

Mon 12th Jan 20:30

Panorama: Trouble at Tesco
Tesco is losing customers, its share price is down and profits have taken a tumble. As it faces a criminal investigation over accounting practices, the BBC's business editor Kamal Ahmed investigates what's gone wrong inside the supermarket.
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HOLA445

Tesco, Sainsbury's and Marks & Spencer to report Christmas sales slump

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11322723/Tesco-Sainsburys-and-Marks-and-Spencer-to-report-Christmas-sales-slump.html

Share price to take more knocks this week?

Edited by The Masked Tulip
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HOLA446
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HOLA447

Landbankers masquerading as supermarkets. Probably get rezoned for housing or offices and even more uplift. Nice (lack of) work if you can get it.

LVT would have sorted that out.

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HOLA4410

My experience of Tesco over the Christmas period was that they significantly raised their prices relative to others. One £18 shop generated a £2.93 more expensive voucher. I had to get authorisation to use that 'voucher' on their self service tills so even their own systems were shocked.

It's out of location convenience I shop there but their prices are still too high. I really should make the effort in 2015 to shop elsewhere.

Edited by Ash4781
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HOLA4411

Customer perception is very important when it comes to value and price...for example went to a store one of the smaller independent British discounters saw a branded product washing aid cost £4.99 exactly the same product size and weight in tesco £12......that gives the customer the impression, if that is the mark up on just that one product what else are they selling with the same mark up even if other things might be less......that is why people now shop around.

Edited by winkie
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HOLA4412

My experience of Tesco over the Christmas period was that they significantly raised their prices relative to others. One £18 shop generated a £2.93 more expensive voucher. I had to get authorisation to use that 'voucher' on their self service tills so even their own systems were shocked.

It's out of location convenience I shop there but their prices are still too high. I really should make the effort in 2015 to shop elsewhere.

My local Tesco Express has put up prices since last week but the local Sainsburys has put up prices so much that I found myself shocked looking at the prices.

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HOLA4413

My local Tesco Express has put up prices since last week but the local Sainsburys has put up prices so much that I found myself shocked looking at the prices.

Everything goes up at Christmas people have to eat.....the way to beat it is buy from the stores that didn't judge the market well and purchased too much supply...January Christmas discounts.

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HOLA4414

Everything goes up at Christmas people have to eat.....the way to beat it is buy from the stores that didn't judge the market well and purchased too much supply...January Christmas discounts.

I have enough potatoes for the next 2 months for a saving of 88% - thanks to Sainsbury's overstocking and a 27th Dec 'sell by date' :blink:

And the potatoes I've been eating since October all fell off the back of a lorry - literally :)

Edited by LiveinHope
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HOLA4415

I met up with an old schoolfriend over Christmas who worked at Tesco as a store manager up until about 3 years ago.

He isn't surprised at all about their demise.

In his opinion it all went downhill when they decided that because sales weren't increasing then they had to reduce costs - because profits always have to go up for some reason.

They reduced costs by slashing terms and conditions for staff. So all the good ones left to work for competitors (Aldi/Lidl pay much better) and the stores went downhill. So people stopped shopping there.

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HOLA4416

growth by any means...even if it kills your customer base.

I think people are starting to get peed off with all the hidden inflation and loss of quality...I beleive a push to quality is in the air.

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HOLA4417

growth by any means...even if it kills your customer base.

I think people are starting to get peed off with all the hidden inflation and loss of quality...I beleive a push to quality is in the air.

Air....funny you should mention that, that is one new ingredient that is entering products big time, food and non-food.....from dips,ice cream,deserts,soft cheese...new whipped products more air than substance.....cleaning aerosol products, just to mention a few....air and water to bulk up mass.

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HOLA4418

growth by any means...even if it kills your customer base.

I think people are starting to get peed off with all the hidden inflation and loss of quality...I beleive a push to quality is in the air.

Well, that already appears to have begun re Waitrose and M&S food in 2014. Also John Lewis, who traditionally cost a bit more than most companies, has been doing very well. People seem happy to pay an extra £50 or £100 to buy their fridge or TV from JL than from others it would seem.

Having said that, JL now have a quite aggressive price match system but, as you have to call them, I wonder how many people actually even know about it.

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HOLA4419

I met up with an old schoolfriend over Christmas who worked at Tesco as a store manager up until about 3 years ago.

He isn't surprised at all about their demise.

In his opinion it all went downhill when they decided that because sales weren't increasing then they had to reduce costs - because profits always have to go up for some reason.

They reduced costs by slashing terms and conditions for staff. So all the good ones left to work for competitors (Aldi/Lidl pay much better) and the stores went downhill. So people stopped shopping there.

All execs have to believe in blue sky growth. If the business isn't growing every day, it is dying.

A company must capture all the money today, the past and the future...........muahaha...........!!!!! :wacko: (madness)

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HOLA4423

Closing some stores and sales down again: http://www.bbc.co.uk/news/business-30712762

The beleaguered supermarket Tesco has said it will close 43 unprofitable stores across the UK - a "significant proportion" of which will be local convenience shops.

The firm is also shelving plans to open a further 49 new "very large" stores.

Additionally, Tesco is closing its staff pension scheme, will make cuts of £250m, and reduce overheads by 30%.

and

Overall, comparable sales for the three months to the beginning of January were down by 2.9%
Edited by GeordieAndy
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HOLA4424
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HOLA4425

Closing some stores and sales down again: http://www.bbc.co.uk/news/business-30712762

and

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11332130/Tesco-to-close-headquarters-and-43-stores.html

'Dave Lewis, the new chief executive, also said that he intends to close Tesco’s defined benefit pension scheme - one of the most generous in the country – sell the analytics business behind Clubcard, scrap the dividend payout to shareholders, and slash 30pc of the retailer's central costs.'

Divi gone.

I also see they're touting the 0.3% drop in sales in the 6 weeks to Christmas,which does make you ponder how bad the previous 6 weeks must have been if QoQ like for like is down 2.9%

Shares up 6% to 192.....buy buy buy.

Edited by Sancho Panza
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