Tesco report losses of £6.37Bn

[jakarta]

It's karma for sacking me in 1979

Were you, shall we say, otherwise engaged when you should have been Shelf Stacking?

 

[willyfantastic]

their food is shit and not as cheap as aldi - and the food is better at waitrose and sainsburys

their positioning in the supermarket wars is ****ed

 

[WonderingSoton]

But did they pass FFP - that's the question.

 

[Biscuit Barrel]

It's an example because wage growth has been stagnant, people have cut back.

If Tesco's had made a profit of £6.37BN you would have said "This just shows the rich are getting richer and the poor are staying poor". Now that a massive company has made a loss of £6BN this is also the fault of the nasty Tories because wages have not risen very much during the worst economic crises in living memory. Just the 2 million more people employed in this country since they came to power.

Woolworth's went bust because it sold items that nobody wanted to buy, not because of how the country was being run at the time.

Tesco's are failing due to poor business decision and other super markets are doing very well because of good business decisions. Success and failure of a business has much more to do with how a company is run, than how the government governs.

Why does anyone's success or failure in life have to be down to how the country is run. Why can't people just take responsibility for their own life. Whatever the outcome of next moths election, I will just get on with my life and make any necessary changes to keep myself and my family in a decent financial situation.

 

[narly101]

It is just an accounting adjustment to set them up for the future. They have an increase in trading profit but have decided to say that their stores and property have a lower value. It will help them for the future to adjust these values now.

Very much this. They've been inflating their accounts for years based on property values of their assets which are unrealistic. This way they do it all in one hit, on the back of previous bad press, and then they bounce back next year. Capitalism at it's best.

 

[Triggaaar]

their food is shit and not as cheap as aldi - and the food is better at waitrose and sainsburys

Really? I've always preferred their food over Sainsburys.

 

[jimbob5]

stopped doing what da punter want init. Simples!

 

[Thunder Bolt]

They have just got a new CEO in and by all accounts he is trying to get all the bad news out into the open now and say here you go this is how dire it really is. The major problems for Tesco's are Lidl and Aldi (to put it in a nutshell). Since the financial crash people are much more savvy about the prices they pay for goods.

Also their business model from 10 years or so ago had them building lots of out of town huge stores (they visualised people would come in their car and do one large shop a week).

When what the people want are internet shopping and smaller in town convenience stores (where they may pop into multiple times in a week).

They own a lot of land where future supermarkets were going to be built, but plans have had to be shelved.

 

[beorhthelm]

Most of them subsidised by the Taxpayer through Tax Credits.

as Tax Credits go to the person, not the company, what you're actually saying is Tax Credits suppress wage demands.

 

[Mo Gosfield]

their food is shit and not as cheap as aldi - and the food is better at waitrose and sainsburys

their positioning in the supermarket wars is ****ed

A lot of people haven't worked out the likes of Aldi and Lidl yet. At the moment, punters are being seduced by shelf price. Look below the surface and you will find slightly smaller pack sizes and downgrading of product quality on certain key lines. Its not rocket science. Its the only way they can compete against the giants of the industry, with bigger buying power. Don't get me wrong, you can find some very good products in these discounters. You just have to be selective.
They are enjoying a honeymoon period at the moment but eventually trade will swing back to the big boys, when recessive pressures ease.

 

[glasfryn]

first to start home deliveries, took their eye off the ball, took people for granted,do not police the disabled spaces, that poxy plannogramme, disinterested staff, untidy stores.
nobody to get a grip

 

[Thunder Bolt]

A lot of people haven't worked out the likes of Aldi and Lidl yet. At the moment, punters are being seduced by shelf price. Look below the surface and you will find slightly smaller pack sizes and downgrading of product quality on certain key lines. Its not rocket science. Its the only way they can compete against the giants of the industry, with bigger buying power. Don't get me wrong, you can find some very good products in these discounters. You just have to be selective.
They are enjoying a honeymoon period at the moment but eventually trade will swing back to the big boys, when recessive pressures ease.

Complete nonsense. I haven't had any rubbish from Lidl. The Germans don't do rubbish. I wouldn't do a complete shop in Lidl's as they don't carry a full range, but use two supermarkets, the other being Morrison's, as Sainsbury is too pricey.

 

[vegster]

Couldn't happen to a nicer company. A friend worked in their Buying Dept for a year or so and was shocked by the way they do business. Staff were encouraged to undercut each others deals with suppliers in order to get bonus and promotions. After he told me what they were like I have barely set foot in a Tesco for 12 years odd.

 

[Creaky]

It is just an accounting adjustment to set them up for the future. They have an increase in trading profit but have decided to say that their stores and property have a lower value. It will help them for the future to adjust these values now.

Precisely, and investors realise that - their share price has risen on the announcement.

Revaluing their property portfolio has given them a 'healthy' loss to offset against future profits and reduce tax liabilities.

 

[Notters]

A lot of people haven't worked out the likes of Aldi and Lidl yet. At the moment, punters are being seduced by shelf price. Look below the surface and you will find slightly smaller pack sizes and downgrading of product quality on certain key lines. Its not rocket science. Its the only way they can compete against the giants of the industry, with bigger buying power. Don't get me wrong, you can find some very good products in these discounters. You just have to be selective.
They are enjoying a honeymoon period at the moment but eventually trade will swing back to the big boys, when recessive pressures ease.

I couldn't disagree any more, I do nearly all of my shopping at Lidl now and most of it (meat, veg, tinned goods, dairly, etc.) is fresher, tastier and of better quality than all of the big supermarkets, and about 1/3rd of the price. The only thing they downgrade on is choice.

I did assume the same as you - until I started shopping there.

 

[Notters]

Precisely, and investors realise that - their share price has risen on the announcement.

Revaluing their property portfolio has given them a 'healthy' loss to offset against future profits and reduce tax liabilities.

Exactly, their underlying profit is £3bn.

 

[beorhthelm]

... is fresher, tastier and of better quality than all of the big supermarkets, and about 1/3rd of the price.

fresher is doubtful as most stuff is the same farm to shop. tastier is subjective - i recall the early days of Lidl with German products for german tastes, i did not like and has marred my impression ever since. quality is variable, it normally turns out different products are made in the same factory with different label put on. the quality of ingredients does change from company to company, line to line, but at a given price point its generally the same stuff going in (from someone who's worked as QA in the industry). smaller pack sizes is generally how Lidl/Aldi/£ shops get their pricing down without lowering quality of the actual product.

 

[JJ McClure]

I simply refuse to believe they've lost that much money considering how much my wife spends in there each week.

 

[Cian]

Its the only way they can compete against the giants of the industry, with bigger buying power.

So Aldi Sud (roughly 60% of the overall Aldi revenue €67bn in 2013) and Lidl (revenue €63bn in 2013) are minnows with poor buying power then?

 

[El Presidente]

Were you, shall we say, otherwise engaged when you should have been Shelf Stacking?

For once no. I used to do shifts in the Tesco bakery. I got bored one day, as I was working on doughnuts for six hours, and instead of injecting them with one portion of jam, I put FOUR portions into each doughnut, and there were a few thousand of them produced each shift.

They all went out on the morning wagons to the different branches, and over the course of the next 24-48 hours, loads of complaints came in from customers who had bought them, as they exploded like GRENADES and splattered strawberry slop over clothes, carpet, wallpaper etc.

HR launched an investigation and it was traced back to me, and I was given my P45 immediately along with a letter stating that I had been dismissed due to 'the inappropriate use of jam in a manner not up to the standards expected by Tesco'.

Revenge, today, is mine!