Tesco - £5bn loss
Discussion
NoNeed said:
Defcon5 said:
How is that even possible?
Over cooked the books for a very long time I suspect.
k off into the sunset.As a start, locking bonuses into equity over a longer period is going to have to become a standard part of corporate governance.
Adrian W said:
surely to appreciate what that meant you would need a detailed understanding of the detail between their top and bottom lines.
It's already fairly well described - the decline in profit was 'in line with expectations'. My point is that it's more than just a one-off kitchen sinking writedown, it's inherently troubled. Last year profit was over £3bn and so if the rot isn't stopped they're going to have some dark days ahead.I am not a fan of Tesco, I know several people who work at Cheshunt and how they are treated, but surely one of their biggest problems is the UK media, Tesco are rubbish wahooo look at Aldi and Lidl I don't think this would happen in any other country, most media would support the home company against the foreign competition.
Adrian W said:
I am not a fan of Tesco, I know several people who work at Cheshunt and how they are treated....
I thought they were getting rid of the HQ - the new boss sees the top-down, empire mentality as being part of the problem and is trying to force people out onto the shop floor.I have a friend of a friend (we go on mountain bike trips) who runs a region of the Tesco express stores who speaks highly of the way things are now being done and thinks they are going back to a more consumer and store-based hierarchy and ethos.
Adrian W said:
...but surely one of their biggest problems is the UK media, Tesco are rubbish wahooo look at Aldi and Lidl I don't think this would happen in any other country, most media would support the home company against the foreign competition.
In part, with perhaps past treatment of staff and also their very aggressive land-grab in the early noughties, maybe the press was right to put them under scrutiny. Certainly, it now seems there should have been a bit more forensic examination of accounting practices.Adrian W said:
I am not a fan of Tesco, I know several people who work at Cheshunt and how they are treated, but surely one of their biggest problems is the UK media, Tesco are rubbish wahooo look at Aldi and Lidl I don't think this would happen in any other country, most media would support the home company against the foreign competition.
Should it?If a company is performing badly and another is performing well, are you suggesting that the media shouldn't report this because the badly performing company happens to be British?
Adrian W said:
I am not a fan of Tesco, I know several people who work at Cheshunt and how they are treated, but surely one of their biggest problems is the UK media, Tesco are rubbish wahooo look at Aldi and Lidl I don't think this would happen in any other country, most media would support the home company against the foreign competition.
I personally think Tesco deserve a lot of the st thrown at them by the media as it isn't just baseless mud-slinging.Just as one example, go and ask any farmer, grower or producer what they think of Tescos and be ready to hear an enormous string of expletives.
Tesco perfected the whole concept of utterly, utterly shafting the UK supplier beyond belief. Producers lived in fear of being a supplier to Tesco but pretty much had no alternative as they were so big.
You know the up market brand of crisps 'Tyrrells'? Well once they started to become popular in smaller food stores, Tescos approached William Chase the farmer who started the brand and told him they wanted his crisps in all their stores and they would become huge, the next Kettle crisps if you like.
He turned round and told them in no uncertain terms, to Go f
k themselves. Despite offering to make him extremely rich, he was having none of it. Such is the hatred for Tesco.http://www.telegraph.co.uk/finance/2947463/Tesco-b...
I'm friends with a guy locally who grows plants and flowers on a huge scale in greenhouses to supply to UK garden centres and supermarkets, and he almost got bankrupted by Tesco about 3 years ago. They put in an order with him for tens of thousands of Christmas Pointsetta plants, which he duly grew. 2 weeks before Christmas, when all the plants were ready, they phoned him up and just basically said "yeah I know we said we ordered 50,000 pointsetta, but we've changed our mind. Sorry"
That's how they do business, and I don't think many suppliers will shed a tear if they ever go under.
My point is that everyone is well aware of how supermarkets treated farmers and suppliers (most of the people being outraged by it still shop at said supermarkets) and it's partly why Tesco has fked up.
All the st is changing because Tesco know its not moral or workable in the long term for them and short term for suppliers. You'll find that any supplier to any large entity have to work within tight guidelines and profit margins but long term they make a higher % profit than they would selling direct to consumers. It's always been like that for any small business supplying larger corporates, 60 day credit being one example.
These small companies know the risks and rewards.
ked up. All the s
t is changing because Tesco know its not moral or workable in the long term for them and short term for suppliers. You'll find that any supplier to any large entity have to work within tight guidelines and profit margins but long term they make a higher % profit than they would selling direct to consumers. It's always been like that for any small business supplying larger corporates, 60 day credit being one example. These small companies know the risks and rewards.
You wake up and so often have to hear about all the misery, horror, death; it comes as some relief to hear a genuine good news story which brings a ray of sunshine into everyone's life. You could see the spring in the step of people getting off the train, and I saw drivers falling over themselves to let traffic out of side roads. It's like we've just won the World Cup - no doubt there will be the resultant baby boom in 9 month's time.
NinjaPower said:
I personally think Tesco deserve a lot of the st thrown at them by the media as it isn't just baseless mud-slinging.
Just as one example, go and ask any farmer, grower or producer what they think of Tescos and be ready to hear an enormous string of expletives.
Tesco perfected the whole concept of utterly, utterly shafting the UK supplier beyond belief. Producers lived in fear of being a supplier to Tesco but pretty much had no alternative as they were so big.
You know the up market brand of crisps 'Tyrrells'? Well once they started to become popular in smaller food stores, Tescos approached William Chase the farmer who started the brand and told him they wanted his crisps in all their stores and they would become huge, the next Kettle crisps if you like.
He turned round and told them in no uncertain terms, to Go fk themselves. Despite offering to make him extremely rich, he was having none of it. Such is the hatred for Tesco.
http://www.telegraph.co.uk/finance/2947463/Tesco-b...
I'm friends with a guy locally who grows plants and flowers on a huge scale in greenhouses to supply to UK garden centres and supermarkets, and he almost got bankrupted by Tesco about 3 years ago. They put in an order with him for tens of thousands of Christmas Pointsetta plants, which he duly grew. 2 weeks before Christmas, when all the plants were ready, they phoned him up and just basically said "yeah I know we said we ordered 50,000 pointsetta, but we've changed our mind. Sorry"
That's how they do business, and I don't think many suppliers will shed a tear if they ever go under.
Sorry but you need to get the full details of that one, they run a min-max supply contract so your friend knew exactly what he was in for, a lot of large UK companies use this system, I manufacture electronics with very long long lead times but have to manage this type of contract without getting burnt.t thrown at them by the media as it isn't just baseless mud-slinging.Just as one example, go and ask any farmer, grower or producer what they think of Tescos and be ready to hear an enormous string of expletives.
Tesco perfected the whole concept of utterly, utterly shafting the UK supplier beyond belief. Producers lived in fear of being a supplier to Tesco but pretty much had no alternative as they were so big.
You know the up market brand of crisps 'Tyrrells'? Well once they started to become popular in smaller food stores, Tescos approached William Chase the farmer who started the brand and told him they wanted his crisps in all their stores and they would become huge, the next Kettle crisps if you like.
He turned round and told them in no uncertain terms, to Go f
k themselves. Despite offering to make him extremely rich, he was having none of it. Such is the hatred for Tesco.http://www.telegraph.co.uk/finance/2947463/Tesco-b...
I'm friends with a guy locally who grows plants and flowers on a huge scale in greenhouses to supply to UK garden centres and supermarkets, and he almost got bankrupted by Tesco about 3 years ago. They put in an order with him for tens of thousands of Christmas Pointsetta plants, which he duly grew. 2 weeks before Christmas, when all the plants were ready, they phoned him up and just basically said "yeah I know we said we ordered 50,000 pointsetta, but we've changed our mind. Sorry"
That's how they do business, and I don't think many suppliers will shed a tear if they ever go under.
Eric Mc said:
Adrian W said:
I am not a fan of Tesco, I know several people who work at Cheshunt and how they are treated, but surely one of their biggest problems is the UK media, Tesco are rubbish wahooo look at Aldi and Lidl I don't think this would happen in any other country, most media would support the home company against the foreign competition.
Should it?If a company is performing badly and another is performing well, are you suggesting that the media shouldn't report this because the badly performing company happens to be British?
Puggit said:
Sky reporting that Tesco will announce an annual loss of over £5bn tomorrow!
That is not possible!! So many in PH were bleating on about how Tesco management are so brilliant only six months or so back. 
Then again I was bleating on about how good the Co-op Bank was with its ethical trading and down to earth honesty.
iambeowulf said:
These small companies know the risks and rewards.
Yes, and no. If a few big players control a disproportionate share of the demand side of the market, they can, without collusion, exercise negative oligopoly behaviours. Put more simply, few buyers and many sellers can distort the market and make it fundamentally unfair.
Adrian W said:
I am not a fan of Tesco, I know several people who work at Cheshunt and how they are treated, but surely one of their biggest problems is the UK media, Tesco are rubbish wahooo look at Aldi and Lidl I don't think this would happen in any other country, most media would support the home company against the foreign competition.
Agree about how Tesco have treated their staff and I'm sure I can hear a cheer every time bad news seeps out from the Company. Support of home business is fine, but it has to be earn't both sides of the fence, by fair means imo. Just as respect has to be earn't.
Vaud said:
Yes, and no. If a few big players control a disproportionate share of the demand side of the market, they can, without collusion, exercise negative oligopoly behaviours.
Put more simply, few buyers and many sellers can distort the market and make it fundamentally unfair.
isn't that why in other European countries and the US they have farmers co-operatives? Put more simply, few buyers and many sellers can distort the market and make it fundamentally unfair.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff