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spyguy

Coop Bank - Still Sucking In The Rest Of The Business

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The quality of the free range chickens, pigs and cattle from their farms is IMPO a core part of their food business so I can only see problems ahead for the shops now.

What a feck up.

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I have noticed that my local Co-op supermarket has reduced the range of goods on sale, and also reduced the range of sizes within a particular commodity.

I asked a member of staff that I know and she said it was all to do with paying off the banking debt.

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I have noticed that my local Co-op supermarket has reduced the range of goods on sale, and also reduced the range of sizes within a particular commodity.

I asked a member of staff that I know and she said it was all to do with paying off the banking debt.

One of my local ones has hardly any fresh meat and veg in at all. The others do but when the stuff is up to its sell by date the discounts are so tiny to no longer be worthwhile.

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Surely it would be better to get rid of the bank rather than of all the other assets!

I agree. Surely everyone will always need food, so couldn't be a bad business to keep a toe in, even if only for the sake of diversification. But I'm sure they know they are doing, as houses in the UK are always a one way bet! (Down :P)

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The retailer has had a farming business since 1896 and has referred to itself as Britain’s biggest farmer in the past.

Is it a good price? I heard tale that some of their lands might have some sites suitable for new housing developments, aside to the farming lands.

I agree. Surely everyone will always need food, so couldn't be a bad business to keep a toe in, even if only for the sake of diversification. But I'm sure they know they are doing, as houses in the UK are always a one way bet! (Down :P)

Everyone needed food in 1930. It didn't stop farm food prices plummetting in the US Great Depression. Depends which way things go to more not-so-funny money easing or not.

In the 1930s, the prices of finished goods fell much less than the prices of meats and other farm products. Bread, for example, fell 20 percent from an average of 8.8 cents a loaf in 1929 to a low of 7 cents in 1932. The price of flour, by contrast, fell 37 percent - about equal to the average fall in wholesale food prices in general. Products from the farm, meanwhile, like butter, milk, eggs, meats, fruits, and vegetables, tumbled almost 60 percent. Officially, the government calculated the price of eating at home fell by 37 percent. Nonetheless, the percentage of personal consumption spending going for food held steady at around 27 percent.
Necessities May Not be Profitable: Surprisingly, luxury goods do better in a depression than basic necessities. This requires some explaining. You might expect that luxury sales would fall away and only necessities would be purchased during a slump. But this is only half-true. The majority whose spending power has fallen will spend the little money they have on necessities. That does not mean the people who sell those necessities are going to make much of a profit. It makes no difference whether the industry makes a product that is "essential." Bread is an essential, but baking has often been less profitable than selling diamonds, which are not necessities.
Edited by Venger

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Is it a good price? I heard tale that some of their lands might have some sites suitable for new housing developments, aside to the farming lands.

Everyone needed food in 1930. It didn't stop farm food prices plummetting in the US Great Depression. Depends which way things go to more not-so-funny money easing or not.

The Welcome Trust is the buyer AFAIK - it's a big medical research charity.

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Extensive investments in UK property and farmland. Just how much of the trust is a people and land farmer ? £1.8bn of property apparently.

http://www.independent.co.uk/news/business/news/the-coop-sells-farming-arm-for-249m-to-wellcome-trust-9646033.html

But Danny Truell, chief investment officer of Wellcome Trust, insisted it “has a strong track record as a long-term investor which values responsible stewardship over quick profits, with extensive and successful interests in UK property and farmland.”

The trust is best known for its investments in pharmaceuticals and health research.

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I have noticed that my local Co-op supermarket has reduced the range of goods on sale, and also reduced the range of sizes within a particular commodity.

I asked a member of staff that I know and she said it was all to do with paying off the banking debt.

So Co-op is moving to a more efficient, higher margin business model? Perhaps they should have done that previously. Although in my experience, the real strategy is rarely shared with lower level staff, so I doubt she really knows.

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One of my local ones has hardly any fresh meat and veg in at all. The others do but when the stuff is up to its sell by date the discounts are so tiny to no longer be worthwhile.

Cutting down on waste.....getting rid of the wasteful stuffing and streamlining the business........bring down the cost of the perishable basics that would sell if allowed to without requiring any discount. ;)

Some places you no longer step foot inside because you know full well you will be paying 20% more for others mistakes. :mellow:

Edited by winkie

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