Tesco - another fail
Discussion
Fun Bus said:
An interesting thread.
Tesco are well aware that their market share is slipping and profits falling. As a result, they are doing a lot about it - but what they're doing won't be noticeable to the customer as it is all back room. They're engaging with suppliers and hauliers more than ever in order to drive savings. To be fair to Tesco, the savings benefit both parties from what I've seen. There was one project which is still early days and will benefit the customer but most would never notice that on shelf availability is better as they'll just take it for granted the products they want are a available,
In light of all this 'failing' the projected Express format expansion over the next five years is staggering.
Yup Tesco have always been good at driving down prices from their suppliers chain. Its just one of the aspects of the business that has annoyed ordinary shoppers, rightly or wrongly. How the business is perceived by customers has to be one of the top priorities imo. The outlets that I have had a shopping trip around are very drab and unappealing, with little choice in so many lines. Tesco are well aware that their market share is slipping and profits falling. As a result, they are doing a lot about it - but what they're doing won't be noticeable to the customer as it is all back room. They're engaging with suppliers and hauliers more than ever in order to drive savings. To be fair to Tesco, the savings benefit both parties from what I've seen. There was one project which is still early days and will benefit the customer but most would never notice that on shelf availability is better as they'll just take it for granted the products they want are a available,
In light of all this 'failing' the projected Express format expansion over the next five years is staggering.
Looking forward to see how the incoming C.E.O. fares, one thing for sure the customer is now far less loyal and forgiving than years gone by, some may use the word sophisticated as well.
Pesty said:
It's a f
king supermarket you go in and you buy food. I go to the closest one to me because they are all the same. Does anybody actually drive past a tesco to go to a morrisons?
Wow, people actually go to a supermarket other than the one that's the very closest to them? The shear audacity of them! As if someone might find one store preferable to another! They should all just succumb to the might of the global retail monster, and think themselves lucky.king supermarket you go in and you buy food. I go to the closest one to me because they are all the same. Does anybody actually drive past a tesco to go to a morrisons?HoHoHo said:
Unfortunately it would appear some do.
I know a chap who will drive past Tesco and shop at Waitrose because he doesn't like the fact they take £1 in every £9 on the high street.
And again. Thank god we live in a free country where people shop based on principle and business ethics, rather than which store is closest.I know a chap who will drive past Tesco and shop at Waitrose because he doesn't like the fact they take £1 in every £9 on the high street.
I have a friend who comes from a farming family, and hear the stories about the difference between the way Tesco and Waitrose treat their suppliers. I'd quite happily support Waitrose alone for that.
SimonD said:
Wow, people actually go to a supermarket other than the one that's the very closest to them? The shear audacity of them! As if someone might find one store preferable to another! They should all just succumb to the might of the global retail monster, and think themselves lucky.
I'm with Pesty - I've moved around a lot in the last 10 years and in each place I've lived, my regular supermarket has been the one that's been closest to me. ASDA, Tesco, Lidl, Morrissons and now Aldi or ASDA again. It's never occurred to me that I might want to drive further to visit one in preference to another.I really couldn't give a tuppeny f**k about what the colour scheme, decor or their 'brand values' (or whatever) are. I'm not even worried about saving 3p on a tin of beans by going to X instead of Y.
Edited by Nealio on Thursday 24th July 12:23
Fun Bus said:
An interesting thread.
Tesco are well aware that their market share is slipping and profits falling. As a result, they are doing a lot about it - but what they're doing won't be noticeable to the customer as it is all back room. They're engaging with suppliers and hauliers more than ever in order to drive savings. To be fair to Tesco, the savings benefit both parties from what I've seen. There was one project which is still early days and will benefit the customer but most would never notice that on shelf availability is better as they'll just take it for granted the products they want are a available,
In light of all this 'failing' the projected Express format expansion over the next five years is staggering.
Tesco has a bad image to me. Its feels cheap and low quality, and not where. I want to spend my money. And the comment above about engaging with suppliers makes me feel they are going to squeeze those businesses evenmore. 90 days credit? How about 120 from now on. Backdated, of course.Tesco are well aware that their market share is slipping and profits falling. As a result, they are doing a lot about it - but what they're doing won't be noticeable to the customer as it is all back room. They're engaging with suppliers and hauliers more than ever in order to drive savings. To be fair to Tesco, the savings benefit both parties from what I've seen. There was one project which is still early days and will benefit the customer but most would never notice that on shelf availability is better as they'll just take it for granted the products they want are a available,
In light of all this 'failing' the projected Express format expansion over the next five years is staggering.
Labour could just have easily have said a supermarket levy, rather then a bankers levy and got the public against them.
Fun Bus said:
What if I told you that the main project I'm on will save both Tesco, and the haulier money with the increased efficiency?
You're going to have to define 'the haulier' as I am a haulier & Tesco have done nothing but cost me whenever I've come across them. I would be considerably better off financially without their practices impinging on my professional life.sleep envy said:
Fun Bus said:
What if I told you that the main project I'm on will save both Tesco, and the haulier money with the increased efficiency?
It's definitely 2008 again.IME these sorts of cosy interventions between big business and suppliers are always based on the "won't you come into my parlour" spider and fly fable.
It doesn't matter what your project is, it is the same old Tesco, squeezing better margins through lowering their cost base.
The trouble is, they can't compete with Aldi and Lidl, with their tiny product range and low prices and they can't compete with Sainsbury and Waitrose with their better trained staff, retail environment and customer engagement.
What Tesco need to realise is that they have squeezed their model to the point of breaking it, and that they should invest in their customers, stores and staff, even though it will cost them margin.
loafer123 said:
It doesn't matter what your project is, it is the same old Tesco, squeezing better margins through lowering their cost base.
Well put. Couldn't agree more and ultimately, Tesco will always ensure they establish a saving before anyone else. Always have, always will.I'm ex-Tesco myself so have seen both sides of it.
SimonD said:
HoHoHo said:
Unfortunately it would appear some do.
I know a chap who will drive past Tesco and shop at Waitrose because he doesn't like the fact they take £1 in every £9 on the high street.
And again. Thank god we live in a free country where people shop based on principle and business ethics, rather than which store is closest.I know a chap who will drive past Tesco and shop at Waitrose because he doesn't like the fact they take £1 in every £9 on the high street.
I have a friend who comes from a farming family, and hear the stories about the difference between the way Tesco and Waitrose treat their suppliers. I'd quite happily support Waitrose alone for that.
He's a total snob and Tesco's isn't good enough and only Waitrose will do, he uses their dominance as an excuse!
crankedup said:
heppers75 said:
crankedup said:
Dracoro said:
crankedup said:
Dracoro said:
crankedup said:
Good to see humour alive and well on PH, wonderfully amusing to read a post advocating the merits of a failed C.E.O. How he worked his way up from a shelf stacker to C.E.O. over a forty year period within the Company. Its admirable for such sensitivity to be openly displayed and heart warming to read such posts. Honestly I took Heppers to be a rather hard nosed character, clearly he is not, how sweet.
It's the "He's more successful than me so I must not like him" mentality.Ultimately driven by envy.
If the CEO was on £25k a year, would he still receive the same vitriol? I somehow doubt it. He gets paid a fortune because that's what the shareholders/board think he's worth when employing him.
Whether or not the chief was any good or not is determined by his qualities as a CEO. That's not in question, however for a lot they are simply easy targets. Who put them there is then the real question. The "game" is broken yet everyone still blames the players.
Yes I am being flippant d**k... Because so are you by criticising someone who has run a company that has made a £3bn profit and received a tiny fraction of that as reward. You only care about the fact he got a certain number, you have a problem with that because you can't do it and you think it is by some moral compass you hold wrong. You are f**king boring to be honest and you need to just wind your neck in and understand that people do things you neither understand or think are valuable because you don't understand them.
Surely retail is a bit like airlines, in that if you want to be a low cost player, you have to start out with that intention.
Trying to change from full service to low cost is rarely possible due to legacy costs - pensions, staff on silly money compared to people doing the same job in low cost competitors, expensive head office. That stuff all adds up to make it nearly impossible for Tesco to compete with Aldi on cost, just as it would be nearly impossible for BA to compete with Ryanair on cost.
Trying to take out cost in easy to address areas simply leaves the customer bewildered. I recall taking a BA flight at the time that BA was trying to compete on price with Easyjet. As plain as day the BA stewardesses' uniforms were obviously about 4x the cost of the orange and grey 'smocks' that the easyjet staff were wearing. It just wasn't going to work. And it didn't.
At the commodity end of the market (shorthaul flights / the weekly shop) it is more and more about price. Unless that changes, companies that set out to be low cost from the start and at their core have an advantage.
Trying to change from full service to low cost is rarely possible due to legacy costs - pensions, staff on silly money compared to people doing the same job in low cost competitors, expensive head office. That stuff all adds up to make it nearly impossible for Tesco to compete with Aldi on cost, just as it would be nearly impossible for BA to compete with Ryanair on cost.
Trying to take out cost in easy to address areas simply leaves the customer bewildered. I recall taking a BA flight at the time that BA was trying to compete on price with Easyjet. As plain as day the BA stewardesses' uniforms were obviously about 4x the cost of the orange and grey 'smocks' that the easyjet staff were wearing. It just wasn't going to work. And it didn't.
At the commodity end of the market (shorthaul flights / the weekly shop) it is more and more about price. Unless that changes, companies that set out to be low cost from the start and at their core have an advantage.
heppers75 said:
crankedup said:
heppers75 said:
crankedup said:
Dracoro said:
crankedup said:
Dracoro said:
crankedup said:
Good to see humour alive and well on PH, wonderfully amusing to read a post advocating the merits of a failed C.E.O. How he worked his way up from a shelf stacker to C.E.O. over a forty year period within the Company. Its admirable for such sensitivity to be openly displayed and heart warming to read such posts. Honestly I took Heppers to be a rather hard nosed character, clearly he is not, how sweet.
It's the "He's more successful than me so I must not like him" mentality.Ultimately driven by envy.
If the CEO was on £25k a year, would he still receive the same vitriol? I somehow doubt it. He gets paid a fortune because that's what the shareholders/board think he's worth when employing him.
Whether or not the chief was any good or not is determined by his qualities as a CEO. That's not in question, however for a lot they are simply easy targets. Who put them there is then the real question. The "game" is broken yet everyone still blames the players.
Yes I am being flippant d**k... Because so are you by criticising someone who has run a company that has made a £3bn profit and received a tiny fraction of that as reward. You only care about the fact he got a certain number, you have a problem with that because you can't do it and you think it is by some moral compass you hold wrong. You are f**king boring to be honest and you need to just wind your neck in and understand that people do things you neither understand or think are valuable because you don't understand them.
wolves_wanderer said:
heppers75 said:
crankedup said:
heppers75 said:
crankedup said:
Dracoro said:
crankedup said:
Dracoro said:
crankedup said:
Good to see humour alive and well on PH, wonderfully amusing to read a post advocating the merits of a failed C.E.O. How he worked his way up from a shelf stacker to C.E.O. over a forty year period within the Company. Its admirable for such sensitivity to be openly displayed and heart warming to read such posts. Honestly I took Heppers to be a rather hard nosed character, clearly he is not, how sweet.
It's the "He's more successful than me so I must not like him" mentality.Ultimately driven by envy.
If the CEO was on £25k a year, would he still receive the same vitriol? I somehow doubt it. He gets paid a fortune because that's what the shareholders/board think he's worth when employing him.
Whether or not the chief was any good or not is determined by his qualities as a CEO. That's not in question, however for a lot they are simply easy targets. Who put them there is then the real question. The "game" is broken yet everyone still blames the players.
Yes I am being flippant d**k... Because so are you by criticising someone who has run a company that has made a £3bn profit and received a tiny fraction of that as reward. You only care about the fact he got a certain number, you have a problem with that because you can't do it and you think it is by some moral compass you hold wrong. You are f**king boring to be honest and you need to just wind your neck in and understand that people do things you neither understand or think are valuable because you don't understand them.
You mean knob not nob!!
ETA - Just because as much of a knob as I am sure I am it is worth making a stand where you can.
The left wing nutter that started this thread just hates the world, he thinks that there is some daft ceiling on earnings that is derived from some arbitrary fraction he alone possess based on a calculation that he alone should arbitrate and never really share.
I will tell you all right now if crankedup can give us his "fair equation" with regards to CEO pay and we can all understand and agree it I will personally donate £1000 the charity of his choice.
Edited by heppers75 on Thursday 24th July 22:28
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