How come tescos are making so much money?

[adrian29uk]

I cannot believe what I am hearing today about Tesco saying how fantastic the amount of profit they have made. Why has no one mentioned about the poor old suppliers especially Farmers who are being screwed day in and day out by these large supermarkets.

Its industry / manufacturing that we need in this country not poxy supermarkets.

 

[Dover]

Tescos have made this vast amout of money as it seems the public want to shop there.

Prior to Tesco, Sainsbury, were the leader, and the same people were shouting them down.

 

[Gwylan]

Tescos have made this vast amout of money as it seems the public want to shop there.

No, the public have to shop there (or some other supermarket) but they don't necessarily want to.

In fact, several surveys have suggested that most of the public are not happy with supermarkets and don't feel that they get value for money from them.

But for the vast majority of people in this country, the choice is between Tesco or Asda; Sainsbury's or Morrison's and so that's where they.

Nearly everyone pays taxes but that doesn't mean to say that people want to pay.

 

[Dover]

Gwylan, I for one belive that people do have choices, but choose not to take them, especially in big cities.

It appears that most people choose to shop in the large out of town retail outlets due to thier relutance to leave the car at home. I can, and do shop locally for the majority of my monthly shop, but then I do not drive.

 

[Gwylan]

Gwylan, I for one belive that people do have choices, but choose not to take them, especially in big cities.

Just not true. When I arrive in Brighton station at 7.00 this evening, can you tell me what shops (apart from supermarkets are open). And I'm scarcely unique being a commuter.

Even when I lived in London, I invariably arrived home after the market was shut.

The fact is that, thanks to the long working hours we do in Britain (and also the longest commuting time), we have no choice but to shop at supermarkets. I get veggies from the market on Saturday but they won't last all week, so I have to top it up with supermarket visits - I'd rather not but there's nowhere else to go.

 

[Dover]

Fair comment. I do forget that I do shift work, and have time off during the week.

 

[Seagull over NZ]

Ultimately it comes down to us willing to shop there.

For instance a friend of mine promotes a load of the fair trade products. It basicallymeans people pay a bit more than for the other products but it ensures the prooducers (usually 3rd world) get a fair wage.

We had this guy come along who sells fair trade footballs made in Pakistan (where about 80% of all footballs are made). They set up a factory with certain minimum standards for the workers and found that at the prices they were selling the balls (comparative to Nike and Mitre) they were stillmaking a lot of profit. So they did things like building a school for the workers children, health centres etc yet still made a significant profit.

Ultimately Tescos sell products the public is willing to buy - people need to change their minds about what to buy, don't blame Tescos.

Part of me actually admires Tescos, they are very entrepreneurial in what they do.

 

[Rangdo]

I shop in Tesco because they have everything I want in one place at the cheapest price you can get it. Simple as that. I'm sure thats the reason most other people do too. As a hater of all forms of shopping it means I can get everything I need for the week in 30-60 mins and not have to go near a shop for another week.

 

[perseus]

They have rip-off prices.

 

[bhaexpress]

I shop in Tesco because they have everything I want in one place at the cheapest price you can get it. Simple as that. I'm sure thats the reason most other people do too. As a hater of all forms of shopping it means I can get everything I need for the week in 30-60 mins and not have to go near a shop for another week.

I'll go with that.

 

[fatboy]

I spent £22.96 on CD's in Asda last night including the new Girls Aloud album which is shit but has nice pictures, and 79p on a can of red bull.

 

[Gwylan]

I shop in Tesco because they have everything I want in one place at the cheapest price you can get it.

It might be convenient but it's certainly not the cheapest. Supermarkets are more expensive than independent stores (as demonstrated on the Trevor MacDonald prog last night).

 

[Rangdo]

It might be convenient but it's certainly not the cheapest. Supermarkets are more expensive than independent stores (as demonstrated on the Trevor MacDonald prog last night).

Depends what you buy. I didn't see it but I suspect they were comparing branded products. I don't know any local store where I can get a tin of tomatoes for 17p or a bag of flour for 27p. My local shop charges 90p for a pack of pitta bread!!!! Almost 3 times what I pay at Tesco.

 

[Spiros]

Just not true. When I arrive in Brighton station at 7.00 this evening, can you tell me what shops (apart from supermarkets are open). And I'm scarcely unique being a commuter.

Even when I lived in London, I invariably arrived home after the market was shut.

The fact is that, thanks to the long working hours we do in Britain (and also the longest commuting time), we have no choice but to shop at supermarkets. I get veggies from the market on Saturday but they won't last all week, so I have to top it up with supermarket visits - I'd rather not but there's nowhere else to go.

You could do you a veggie shop at lunchtime, or if you have to shop after 7pm go somewhere like Co-op instead who operate on a fairer trade basis and are not slaves to shareholders

 

[Easy 10]

One of the main reasons why Tesco are shitting on the opposition supermarkets is their sheer diversity now. Through Tesco you can now get loans, mortgages, car insurance, life insurance, broadband, mobile networks, holidays, online banking, savings and investments etc etc. They've successfully branched out into these other areas, and because they are a large, successful company, people trust them with this stuff.

Mind you, when I was a shelf-stacker in their Portslade branch, the wages were SHIT. I only stayed their cos I could skive in the warehouse (round the corner by the nappys), sampling various cheeses stolen from the deli.

 

[Gwylan]

Depends what you buy. I didn't see it but I suspect they were comparing branded products. I don't know any local store where I can get a tin of tomatoes for 17p or a bag of flour for 27p. My local shop charges 90p for a pack of pitta bread!!!! Almost 3 times what I pay at Tesco.

Nope. No branded products. Meat, cheese, vegetables,bread and fruit,

Of course, some items will be cheaper at Tesco, but people don't just live on tinned tomatoes.

In survey on the programme, there were 14 items, 5 were cheaper at Tesco, 9 were cheaper from the stores.
But the ones that were more expensive in Tesco were much more expensive. Tesco ended up several pounds more expensive.

This programme said nothing new. Private Eye and the Spectator have both run articles in the past year looking at the high cost of Tesco. And Joanna Blythman's book, Shopped, looks critically at the higher prices that supermarkets charge.

I certainly notice the difference when I do a supermarket shop compared to a small store shop - the supermarket is always about £5 more expensive.

 

[clapham_gull]

I've found its a myth about cheaper prices.

I've got a lot of choice in London and can usually find things cheaper.

Except ASDA - they have organic meat at incredibly low prices.

 

[clapham_gull]

As I posted on here before Sainsburys have built a Sainsbury's local 100 yards away from the main Sainsburys in Clapham.

Incredible really...

... and things at different prices. I've noticed that they are now opening the little store, when the big store is closed on certain bank holidays - thus completely screwing the little local stores.

 

[Vankleek Hill Seagull]

Their profit is not just for the UK. They have extensive overseas operations which contribute to the bottom line.

And there's a Tesco Express five minute walk up the road from where I live, so convenience is a factor with me.

 

[beorhthelm]

Just not true. When I arrive in Brighton station at 7.00 this evening, can you tell me what shops (apart from supermarkets are open). And I'm scarcely unique being a commuter.

Even when I lived in London, I invariably arrived home after the market was shut.

The fact is that, thanks to the long working hours we do in Britain (and also the longest commuting time), we have no choice but to shop at supermarkets. I get veggies from the market on Saturday but they won't last all week, so I have to top it up with supermarket visits - I'd rather not but there's nowhere else to go.

What a crap argument: We're forced to shop at Tescos because of long working hours. If Tesco can open late so can any other shop. And if you shorten the working day, thats going to effect the openeing times of shops too. What did people do 20 years ago?

Fact is that Tesco et al (lets not blame one company) have pushed out the traditional shop and the markets precisely because they are more flexible in their opening times and the range of goods they provide.