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Tesco working to shield customers from inflation

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The Guardian: Tesco says price rises are last resort as UK growth hits seven-year high

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Tesco is avoiding passing on the full impact of price rises to consumers, the supermarket group has said, as it reported its best UK quarterly sales growth for seven years.

Household budgets are being stretched by inflation, which hit a four-year high of 2.9% in May, but Tesco’s chief executive, Dave Lewis, said food price inflation in its stores was just 1.4%. “In tough market conditions, we have stayed true to our commitment to helping customers, working closely with our supplier partners to keep prices low,” he said.

His comments came as the retailer reported a 2.3% increase in like-for-like UK sales for the first quarter, beating analysts’ estimates of a 1.9% rise. The retailer said its first-quarter performance was boosted by a 2.7% increase in food sales as it won back shoppers from rivals.

Is BOE reading this? When are the remaining members voting for IR rise?

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IMO we eat far too much, far too much of the wrong foods....eating more than what our body needs to live healthily.....cutting back on fancy foods and extras will do us all lots of good, growing and eating more locally, cooking smarter and eating smarter will benefit most of us......doing things and spending on food more wisely will be a benefit.....much of what we eat is expensive and not good for us anyway. ;)

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22 minutes ago, winkie said:

IMO we eat far too much, far too much of the wrong foods....eating more than what our body needs to live healthily.....cutting back on fancy foods and extras will do us all lots of good, growing and eating more locally, cooking smarter and eating smarter will benefit most of us......doing things and spending on food more wisely will be a benefit.....much of what we eat is expensive and not good for us anyway. ;)

I agree with you but I also think it is an outcome of the lifestyle we live. Don't want to start a SAHM/working mum debate here. However, till some decades ago housework, bringing up children was considered full time job. Nowadays both parents have to work to keep a roof over their heads. After coming back from work there are so many chores to do - entertain children, help with their studies, washing, cleaning, keeping up with socialisation, children's extracurricular activities ...  it is difficult to have a cooking routine where you start everything from scratch. This creates an increased demand for pre cooked, prepared meals, fast foods, takeaways, tinned and frozen foods ...

I think we all have to do too much in too less time.

Edited by Fairyland

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9 minutes ago, Fairyland said:

I agree with you but I also think it is an outcome of the lifestyle we live. Don't want to start a SAHM/working mum debate here. However, till some decades ago housework, bringing up children was considered full time job. Nowadays both parents have to work to keep a roof over their heads. After coming back from work there are so many chores to do - entertain children, help with their studies, washing, cleaning, keeping up with socialisation, children's extracurricular activities ...  it is difficult to have a cooking routine where you start everything from scratch. This creates an increased demand for pre cooked, prepared meals, fast foods, takeaways, tinned and frozen foods ...

I think we all have to do too much in too less time.

Could be that is the plan.....pay others to clean for us, iron for us, cook for us, care for our children for us.....do almost everything for us because we no longer have the time because we are to busy working to earn the money to pay all the people doing  stuff we would ordinarily do for ourselves for free.......good for gdp,growth, progress,tax collection....some jobs are worth more as long as paid to do them, or are they?.;)

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1 hour ago, Noallegiance said:

So..... The measured 'inflation' could be incorrectly low as retailers aren't passing on the full rises?????

Scratchy chin.

I've had a mixed bag. Sainsbury's took a massive chunk of extra margin when we put prices up earlier in the year, Tesco and the others held it (tesco was a big battle to get it through) could just be our buyers but in years gone by they would always have passed it on and normally taken a bit extra for themselves 

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1 hour ago, FIGGY said:

I've had a mixed bag. Sainsbury's took a massive chunk of extra margin when we put prices up earlier in the year, Tesco and the others held it (tesco was a big battle to get it through) could just be our buyers but in years gone by they would always have passed it on and normally taken a bit extra for themselves 

Scottish Salmon in Sains has gone up by circa 30% in the past couple of months. The cost price of Scottish Salmon cannot have changed, so they are obviously trying to balance things across the whole range, maybe more on premium product.

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I buy quite a bit of fish and I find Morrison's much cheaper than sainsburys and the quality identical. I usually wait until salmon is on offer for something like a tenner for the whole fish then chip it up and freeze it. Time you would have finished it then another supermarket will have a similar offer on. A trip to Morrison's late in the day can yield some fishtastic bargains.

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http://www.bbc.co.uk/news/business-40306099

 

Quote

Online retail giant Amazon is buying Whole Foods in a $13.7bn (£10.7bn) deal that marks its biggest push into traditional retailing yet.

Amazon, which has long eyed the grocery business, will buy the upmarket supermarket for $42 a share.

Investors greeted the deal as game-changing for the industry, sending shares of rival grocers plunging.

 

huge news from the US. I imagine UK supermarket share prices also took a hit today. Not looking good long term ?

Edited by Ash4781

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10 hours ago, Digsby said:

Scottish Salmon in Sains has gone up by circa 30% in the past couple of months. The cost price of Scottish Salmon cannot have changed, so they are obviously trying to balance things across the whole range, maybe more on premium product.

Massive production problems in Scotland pushed up prices a few months ago.

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16 hours ago, Fairyland said:

The Guardian: Tesco says price rises are last resort as UK growth hits seven-year high

Is BOE reading this? When are the remaining members voting for IR rise?

The BOE won't put up rates because of inflation, that would be incredibly stupid (although that is what they have done for the last 40 years).

Inflation is not being driven by demand it is driven by supply, not lack of supply, but supply costs.

Restricting demand would result in more visitors to food banks and some suppliers going bust.

On the other hand the BOE have allowed low rates to become entrenched in the economy for far too long, in fact reducing rates after the brexit vote was one of the dimmest things ever done by a central bank. They need to start seriously talking rates up at least, a small rise would do no harm. Primarily this would be to change behaviours, not to control inflation which can only be done by propping up the pound. Propping up the pound would require money they haven't got and make exporting more difficult, reducing productivity.

So in summary, catch 22 no easy answers. The longer it's left the worse it gets.

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21 hours ago, Fairyland said:

I agree with you but I also think it is an outcome of the lifestyle we live. Don't want to start a SAHM/working mum debate here. However, till some decades ago housework, bringing up children was considered full time job. Nowadays both parents have to work to keep a roof over their heads. After coming back from work there are so many chores to do - entertain children, help with their studies, washing, cleaning, keeping up with socialisation, children's extracurricular activities ...  it is difficult to have a cooking routine where you start everything from scratch. This creates an increased demand for pre cooked, prepared meals, fast foods, takeaways, tinned and frozen foods ...

I think we all have to do too much in too less time.

I don't buy this. I've recently cut back on the number of meals I have. Most days I have two, some three. The occasional blowout.

I eat a lot of fruit, which is easy (no prep, very cheap, good quality at Tesco). Cooking meals can be done simply and quickly if you buy good quality basics. Pasta and pesto, for example. Sugar-free baked beans and home made bread. The result is actually _less_ spent on better quality stuff, and less time thinking about food.

If you're working, then use the money to buy better quality food. Processed crap does not fill you up. And accept the feeling of occasionally being a bit hungry.

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25 minutes ago, the_duke_of_hazzard said:

Two.

And they are fine with two meals a day with a lot of fruit?

I have two kids and although I can eat almost anything, fitting food around what they've already had at school or nursery and also delivering a balanced diet low in added sugar and salt is neither quick, nor cheap.

Taking your example of fruit for example - most supermarket fruit won't keep for more than 3 days so I would be making constant trips to the supermarket to stock up on berries, etc. 

I'd love for you to share your recipes - with the ingredients costed out - so we can all pick up some tips!

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Buy fruit and veg at the markets, or after the supermarkets have reduced usually the third time throughout the best price at day at the end of the day.....buy pasta and rice in bulk, easy to keep for months.....use vegetables to make a spicy curry with rice or mince to make chili with rice or spag bol with pasta, macaroni cheese is a great favorite or pasta bake with any leftovers....pizza is really easy to make, cheap and tasty, nice cold also ..... no end of easy and tasty, healthy meals to make....cook in bulk and eat following day or freeze to save on time and fuel.;)

 

Edit to say, don't waste money on buying branded sauces in jars.....instead buy tinned tomatoes and a garlic clove, and reduce on hob to make good sauce with an onion cooked in a little oil.....herbs easy to grow from seed on any window sill seasoning for extra flavoring or no fresh dried or frozen.....fresh herbs freeze really well, coriander parsley and basil never need be wasted nor ginger.

Edited by winkie

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23 hours ago, Fairyland said:

I agree with you but I also think it is an outcome of the lifestyle we live. Don't want to start a SAHM/working mum debate here. However, till some decades ago housework, bringing up children was considered full time job. Nowadays both parents have to work to keep a roof over their heads. After coming back from work there are so many chores to do - entertain children, help with their studies, washing, cleaning, keeping up with socialisation, children's extracurricular activities ...  it is difficult to have a cooking routine where you start everything from scratch. This creates an increased demand for pre cooked, prepared meals, fast foods, takeaways, tinned and frozen foods ...

I think we all have to do too much in too less time.

Difficult but not impossible if organised, worked full time for over thirty years with kids.....it takes less time to cook than to shop, can cook whilst clothes are washing and drying....cut up a few vegies, add a bit of this and that and chuck it all in....put your feet up, then serve up......quicker than to order a takeaway and await delivery, fraction of the cost and better for you......get the kids to help and or wash up.;)

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Being a couple, full time workers,  in their mid 40s with three kids under 8, the slow cooker, and occasional weekend huge batch cook of sugo / chili / shepherds or cottage pie sauce dispatched into containers in the chest freezer, combined with serving it with basmati / pasta over which carrots / broccoli / mangetout/ peas are steamed ensures home made food for a family of 5 can be on the table rapidly, simply, healthily and for around £100 a week from lidl. 

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5 hours ago, Futuroid said:

And they are fine with two meals a day with a lot of fruit?

I have two kids and although I can eat almost anything, fitting food around what they've already had at school or nursery and also delivering a balanced diet low in added sugar and salt is neither quick, nor cheap.

Taking your example of fruit for example - most supermarket fruit won't keep for more than 3 days so I would be making constant trips to the supermarket to stock up on berries, etc. 

I'd love for you to share your recipes - with the ingredients costed out - so we can all pick up some tips!

For example: 6 apples are like 63p in tesco, bananas 10p. I get them next to work.

A jar of good quality pesto is about 2.50. Good for a few meals with some pasta. Porridge is cheap. Yes, they are fine with it, tho they have three meals a day, one of them is a piddly little school one. We make tubs of ice cream with yoghurt, berries and honey.

I make seedy bread in the breadmaker for less than quid for a loaf that's about 800g - and fresh. Stuff like that.

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Have found noticeable shrinkflation recently.. 1kg Greek yoghurt at £1.09 is now only available as 500g at 75p. Unsalted Butter used to be £0.95, a month ago.. Now £1.18. Small but large changes. When will the boiled frogs notice?

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8 hours ago, hp72 said:

Have found noticeable shrinkflation recently.. 1kg Greek yoghurt at £1.09 is now only available as 500g at 75p. Unsalted Butter used to be £0.95, a month ago.. Now £1.18. Small but large changes. When will the boiled frogs notice?

Personally my favourite is the kitchen towel rolls. Still get two in a pack; first they got thinner with less sheets, and now they have become shorter so the sheets have a smaller area!

I should add that in my experience the retailers have put through significant price rises recently . Though this weekend I saw a number of them slashed petrol prices presumably to try to get people in their shops. Unfortunately I could not get to the shop for the motorists filling up!

I personally think one of Walmart:Asda or Morrisons will be sold. The press seem to be speculating Amazon will move for Morrisons. 

Edited by Ash4781

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