Tesco profits fall by 90%
Discussion
Pwig said:
unrepentant said:
Foliage said:
unrepentant said:
Sales down 5% is massive in an industry where margins are skinny.
The chairman is rightly resigning, his eye was off the ball. They shouldn't be paying severance to any of the directors or senior people who leave over this business but I bet they do.
Margins aren't skinny the massive drive to drowned the store in own brand has seen to that (which could be part of the problem), its not margins that are the issue. Its market share, they are losing out massively to Aldi and Lidl, Morrison are now weighing in with massive price reductions that is causing them massive issue with share price I believe as their profits are down, Sainsbury's continue their push with a new price reduction campaign and continued store modernisation.The chairman is rightly resigning, his eye was off the ball. They shouldn't be paying severance to any of the directors or senior people who leave over this business but I bet they do.
Luxury car GM's are not so bad.
Bradgate said:
Indeed. The ordinary staff will be absolutely shafted by the drop in the share price.
The directors won't care, though. They will still get their multi-million pound payouts.
I assume you mean SAYE in which case unless there a scheme ends this year then the employees would elect if its less than they paid in to take the cash - SAYE is utterly risk free especially with 0.5% interest rates. The directors won't care, though. They will still get their multi-million pound payouts.
Is a "Buyer" one of those ppl in the "business" side of things with no actual knowledge of anything vaguely useful in life except business admin?
You know, when you look around your project and ask your colleagues "WTf are the nobbers in the burton suits?" And you get told " oh them, I think they are part of the business function or admin or something" ...
You know, when you look around your project and ask your colleagues "WTf are the nobbers in the burton suits?" And you get told " oh them, I think they are part of the business function or admin or something" ...
Sir Humphrey said:
Poor products and poor sales lead to poor profits.
Good to see the free market moving to companies which provide either a better service or better prices.
Poor products? I'd would say the vast majority of all the brands are present in every big player some with more or less SKUs Good to see the free market moving to companies which provide either a better service or better prices.
However lets take fresh sausages - premium ones. They have countless finest ones then Harrogates one SKU one sku black farmers and that's it - from the stores I've been in of late. Compare and contrast to Waitrose.... Gourmet fresh sausages easily 5 brands will multiple SKUs and the bigger stores even more very little own label.
Ali G said:
http://www.theguardian.com/commentisfree/2014/oct/...
http://www.telegraph.co.uk/finance/newsbysector/ep...
http://www.theguardian.com/commentisfree/2014/sep/...
Surprising?
Or 'expectations gap' re (very well remunerated) audit firms.
Gosh, another case of big accountants 'surprised' by firms they've audited for years actually having been cooking the books. A tedious repeat of the banking crisis, yet 'lessons will be learned'.http://www.telegraph.co.uk/finance/newsbysector/ep...
http://www.theguardian.com/commentisfree/2014/sep/...
Surprising?
Or 'expectations gap' re (very well remunerated) audit firms.
hidetheelephants said:
Ali G said:
http://www.theguardian.com/commentisfree/2014/oct/...
http://www.telegraph.co.uk/finance/newsbysector/ep...
http://www.theguardian.com/commentisfree/2014/sep/...
Surprising?
Or 'expectations gap' re (very well remunerated) audit firms.
Gosh, another case of big accountants 'surprised' by firms they've audited for years actually having been cooking the books. A tedious repeat of the banking crisis, yet 'lessons will be learned'.http://www.telegraph.co.uk/finance/newsbysector/ep...
http://www.theguardian.com/commentisfree/2014/sep/...
Surprising?
Or 'expectations gap' re (very well remunerated) audit firms.
greygoose said:
hidetheelephants said:
Ali G said:
http://www.theguardian.com/commentisfree/2014/oct/...
http://www.telegraph.co.uk/finance/newsbysector/ep...
http://www.theguardian.com/commentisfree/2014/sep/...
Surprising?
Or 'expectations gap' re (very well remunerated) audit firms.
Gosh, another case of big accountants 'surprised' by firms they've audited for years actually having been cooking the books. A tedious repeat of the banking crisis, yet 'lessons will be learned'.http://www.telegraph.co.uk/finance/newsbysector/ep...
http://www.theguardian.com/commentisfree/2014/sep/...
Surprising?
Or 'expectations gap' re (very well remunerated) audit firms.
Welshbeef said:
Poor products? I'd would say the vast majority of all the brands are present in every big player some with more or less SKUs
However lets take fresh sausages - premium ones. They have countless finest ones then Harrogates one SKU one sku black farmers and that's it - from the stores I've been in of late. Compare and contrast to Waitrose.... Gourmet fresh sausages easily 5 brands will multiple SKUs and the bigger stores even more very little own label.
A really interesting point.However lets take fresh sausages - premium ones. They have countless finest ones then Harrogates one SKU one sku black farmers and that's it - from the stores I've been in of late. Compare and contrast to Waitrose.... Gourmet fresh sausages easily 5 brands will multiple SKUs and the bigger stores even more very little own label.
Tescos have obviously shifted more premium volume to the 'finest' range from branded as Tesco owns the brand and can switch ( or beat up) suppliers of 'finest' range to keep up margins.
Only works as long as your consumers want it - and you can get suppliers.
A few years back I worked for a major UK brewer - fortunately we had the no. 1 'must stock' premium lager brand and ale brand. Tesco are viscious with even branded suppliers- we had a policy of never brewing 'own label' - it's like signing your own death sentence....
On another note : when back in the UK this summer - the Tesco stores I went in seemed rather dismal and empty compared to 3 years ago when I left the UK .
greygoose said:
I am not sure of the point of auditors if they can't spot such things, seems to be just a small group of big firms charging a lot of money for a service that is pointless, may be I am missing something.
The accounting screw up seems to me that either :1/ their internal accounting policy allowed the timing mismatch ... In which case it should have been picked up by their corp governance processes / and their audit committee ( which has independent directors )- IDs should resign ...
2/ their accounting policy was fine : but the accounts / P+L not stated in accordance with policy. In which case the CFO , FD and controller should all go.
....funnily their UK FD left for another FD job about 6 months ago - before the st hit the fan
BIANCO said:
Adrian W said:
while Tesco adopt a policy of promoting young graduates over experienced staff things can only deteriorate, of course they can't fail as it was someone more seniors idea, and so on and so on, basically the directors (senior managers) are so far up their own arses there were always heading for a fall. That is when they are not out being lavishly and expensively entertained by suppliers who dare not participate.
This I worked for Tesco a few years and witnessed this a number of times, gormless graduates walking straight into manager jobs with no life skills or experience what so ever. A few times within just a few years they where store manager level. And not surprisingly many made a complete tit of it and then they where normally then transferred to head office jobs. Edited by Adrian W on Thursday 23 October 14:04
I’m not surprised its going up st creak the way they treat their experienced long term staff who made Tesco so successful in the first place.
crankedup said:
BIANCO said:
Adrian W said:
while Tesco adopt a policy of promoting young graduates over experienced staff things can only deteriorate, of course they can't fail as it was someone more seniors idea, and so on and so on, basically the directors (senior managers) are so far up their own arses there were always heading for a fall. That is when they are not out being lavishly and expensively entertained by suppliers who dare not participate.
This I worked for Tesco a few years and witnessed this a number of times, gormless graduates walking straight into manager jobs with no life skills or experience what so ever. A few times within just a few years they where store manager level. And not surprisingly many made a complete tit of it and then they where normally then transferred to head office jobs. Edited by Adrian W on Thursday 23 October 14:04
I’m not surprised its going up st creak the way they treat their experienced long term staff who made Tesco so successful in the first place.
The way the staff see it is, this is 50000 hours per year, so if they can do it he can get rid of people, so yet another boss who does not understand the business he is running.
Adrian W said:
crankedup said:
BIANCO said:
Adrian W said:
while Tesco adopt a policy of promoting young graduates over experienced staff things can only deteriorate, of course they can't fail as it was someone more seniors idea, and so on and so on, basically the directors (senior managers) are so far up their own arses there were always heading for a fall. That is when they are not out being lavishly and expensively entertained by suppliers who dare not participate.
This I worked for Tesco a few years and witnessed this a number of times, gormless graduates walking straight into manager jobs with no life skills or experience what so ever. A few times within just a few years they where store manager level. And not surprisingly many made a complete tit of it and then they where normally then transferred to head office jobs. Edited by Adrian W on Thursday 23 October 14:04
I’m not surprised its going up st creak the way they treat their experienced long term staff who made Tesco so successful in the first place.
The way the staff see it is, this is 50000 hours per year, so if they can do it he can get rid of people, so yet another boss who does not understand the business he is running.
Sharted said:
Good.
The CEO of a previous employer (who hated me) used to bang on about TESCO and how brilliantly run they are - now we know that they are st just like he was!
I'm glad.
it sounds entirely possible we have some shared employment history, if so he hated me too and bought some extremely dubious practices to the trading team! Said CEO had also been in ASDA too as I recall?The CEO of a previous employer (who hated me) used to bang on about TESCO and how brilliantly run they are - now we know that they are st just like he was!
I'm glad.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff