Tesco report losses of £6.37Bn

[pigbite]

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!

Why does this whole post sound like some kind of double entendre filled, innuendo loaded Carry On script?

Carry On Up The Aisle....

 

[BLOCK F]

That's pretty awful. So much for David Cameron's buoyant economy if a big company can lose billions in a year.

Ha-ha; with that kind of insight,I don't think even Ed would want you on his Treasury team!

 

[HawkTheSeagull]

Its not all that bad. Yes, the losses are bad - but they do take into account a lot of one-off losses (such as the value of Tesco property decreasing). Tesco share prices are reflecting this as they have actually increased today. Tesco too quickly expanded without actually knowing what it actually was with numerous ventures and operations. It didnt know if it was targeting the high-end market, dominated by Waitrose, or the low-price market currently dominated by Aldi and Lidl, as a result they lost focus with the real world which culminated in last year the overstated profits scandal.

In steps Dave Lewis with one of the biggest challenges in UK history to try and turn the ship around, despite it already pretty much already hitting every iceberg in the Arctic. He has already made some huge changes which will save millions and has sold/is selling off parts of Tesco which they really dont and shouldnt have (IE Blinkbox and Broadband). A clear strategy is now also in place with Tesco firmly targeting the "low-price" market as simply that is what people want. The way Tesco handled it business was totally wrong and arrogant too, so that is also massively changing. They didnt put the customer first - one of the biggest and most stupid things you shouldnt do in retail !!

Another thing people are missing today is that customer numbers are actually up and customers are actually buying more things, predominantly the case with the Express stores as simply that is the way people like to shop these days. Superstore customer numbers are falling across all supermarkets - a BBC article today says that on average 20% of a Tesco Extra store is underused, so finding a way to fully utilise 100% of the store would increase more money.

I fully expect it to be back to business as usual next year, with profits announced again, this is a case of having to go through hell and cut-away all the issues first.

 

[BLOCK F]

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

I think there is a teeny weeny bit more involved in the loss than that, Greg !

 

[Vegas Seagull]

What has gone so wrong for them? The highest retailer loss ever, and 5th highest loss of a British company ever.

They dropped Epoisses cheese & packed my 'Direct' shop with all suff that expired that day, so I dropped my £160 a fortnight shop

 

[Notters]

Why does this whole post sound like some kind of double entendre filled, innuendo loaded Carry On script?

Carry On Up The Aisle....

Pigbite, El Presidente. El Presidente, Pigbite!

(It's how he is)

 

[willyfantastic]

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

from what i can remember the last time i went to tescos, their cuts of meat are shit, but their fish is good

when i lived in H. Heath i used sainsburys and was pleasantly surprised

 

[Lower West Stander]

Its not all that bad. Yes, the losses are bad - but they do take into account a lot of one-off losses (such as the value of Tesco property decreasing). Tesco share prices are reflecting this as they have actually increased today. Tesco too quickly expanded without actually knowing what it actually was with numerous ventures and operations. It didnt know if it was targeting the high-end market, dominated by Waitrose, or the low-price market currently dominated by Aldi and Lidl, as a result they lost focus with the real world which culminated in last year the overstated profits scandal.

In steps Dave Lewis with one of the biggest challenges in UK history to try and turn the ship around, despite it already pretty much already hitting every iceberg in the Arctic. He has already made some huge changes which will save millions and has sold/is selling off parts of Tesco which they really dont and shouldnt have (IE Blinkbox and Broadband). A clear strategy is now also in place with Tesco firmly targeting the "low-price" market as simply that is what people want. The way Tesco handled it business was totally wrong and arrogant too, so that is also massively changing. They didnt put the customer first - one of the biggest and most stupid things you shouldnt do in retail !!

Another thing people are missing today is that customer numbers are actually up and customers are actually buying more things, predominantly the case with the Express stores as simply that is the way people like to shop these days. Superstore customer numbers are falling across all supermarkets - a BBC article today says that on average 20% of a Tesco Extra store is underused, so finding a way to fully utilise 100% of the store would increase more money.

I fully expect it to be back to business as usual next year, with profits announced again, this is a case of having to go through hell and cut-away all the issues first.

This.

Although I think its in Dave Lewis' interests to kitchen sink the accounts as much as he possibly can, the lower the base he creates the more he can emphasise what a great job he's done in its recovery. Tesco still has far and away the largest market share of any of the UK grocers and he still has a lot of financial firepower to put things right. Shareholders will be happy so long as they don't have to pony up any more cash - a fair few equity analysts have been saying this and its in Lewis interests to overplay the possibility even though he probably won't need to ask them.

Don't forget that Tesco is an international business as well - the Asian operation is very profitable and valuable, whilst they spunked an absolute fortune on the US which all got written off - so its not just about the UK.

I think a good analogy is with Man Utd. Both had a long running guy in charge who was very successful, both replaced them with guys who weren't up to it and were sacked and both now have new men in charge who are making a big thing of having to start all over again.

 

[seagullsovergrimsby]

With a £4Bn black hole in the pension scheme it looks very much like they'll close that scheme to existing and future employees in order to make good with overpayments and start off with a new scheme which will have far less attractive benefits.

 

[HawkTheSeagull]

With a £4Bn black hole in the pension scheme it looks very much like they'll close that scheme to existing and future employees in order to make good with overpayments and start off with a new scheme which will have far less attractive benefits.

The current pension scheme will be scrapped and replaced, a consultation began with staff on a new one this week.

 

[Mo Gosfield]

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.

No assumptions from me. I've known these operations from the late 1980's when I visited Germany a lot and I shop in them myself.
They will only ever be a selective/few item shop for me as I know what they do re pack sizes and I suggest that you do some like for like comparisons if you think that Lidl is 1/3 of the price of the others.

 

[Cian]

No assumptions from me. I've known these operations from the late 1980's when I visited Germany a lot and I shop in them myself.
They will only ever be a selective/few item shop for me as I know what they do re pack sizes and I suggest that you do some like for like comparisons if you think that Lidl is 1/3 of the price of the others.

Are you confusing Lidl/Aldi and Poundland?

The Germans sell the same pack sizes of branded products (those they sell) as the majors. Their own brands generally match too

Have you any solid examples at all here?

 

[Mo Gosfield]

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.

Glad to know I'm not talking complete nonsense then.

 

[glasfryn]

cottage cheese
sainsbury £1.44p
tesco 64p
lidl 44p
asda 60p?
44p AND BETTER BY FAR THAN THE OTHERS

 

[Mo Gosfield]

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?

Fair point. I was thinking more of their presence in the UK.
If you are looking at them globally, then Wal-Mart/Asda ( 485bn ) does make them minnows but not Tesco, Sainsburys and Morrisons.

 

[Thunder Bolt]

Are you confusing Lidl/Aldi and Poundland?

The Germans sell the same pack sizes of branded products (those they sell) as the majors. Their own brands generally match too

Have you any solid examples at all here?

Glad to know I'm not talking complete nonsense then.

Yes you are, as Cian's post shows.

 

[Notters]

No assumptions from me. I've known these operations from the late 1980's when I visited Germany a lot and I shop in them myself.
They will only ever be a selective/few item shop for me as I know what they do re pack sizes and I suggest that you do some like for like comparisons if you think that Lidl is 1/3 of the price of the others.

I don't think they do with most things. I'm pretty careful with checking labels and stuff. The key point for me is I can do a weekly shop for around £50, with a bulging trolley load. Certainly not doable in Sainsburys.

Actually, I'm pretty sure a lot of their stuff is bigger. The own brand Nutella (which is the same, EXACTLY the same as Nutella), is about 50p cheaper and comes in a massive tub.

The compost they've got at the moment is cracking too. I think it's £1.69 for 50L, compared to around £5 in the garden centre.

 

[seagullsovergrimsby]

The current pension scheme will be scrapped and replaced, a consultation began with staff on a new one this week.

Its the only way to safeguard the accrued benefits for existing employees.

 

[Bombadier Botty]

Tesco is a dreadful supermarket and woefully overpriced on many items in my experience.

 

[Megazone]

Does anyone use Ocado when they do their shopping?

I heard they deliver Waitrose products at Tesco price. Might have to give it ago.