My story with Dave, the kids, Cooper, VW's & rugby

Record Sales for Tesco, What does it mean for the rest of us?

How do Tesco do it? Today they announced their annual pre-tax profits of £3.13 billion, with a weekly sales turnover of £1 billion. It is quite staggering the size of the company and the aggressive way that they wade through the market swallowing up every sector in retail world. They already have a big chunk of electrical, music, and clothing sectors and are moving strongly into mobile phone market. Their profit figure, which shows a growth of 10% is a record for a UK retailer.

How do they do it though? They say that they are giving the customers what they want with value ranges and cheaper prices. But they don’t seem to be losing their margin while managing to reduce prices, which means that its the suppliers and farmers who are suffering again, as they are squeezed even further. I saw a programme a while ago about supermarkets which was a real eye opener, showing how we demand perfect fruit and veg so there is lots of wastage on the farm. Also if Tesco for instance do a “buy 1 get 1 free” on strawberries then the farmer has to match that offer to the Tesco buyers. How bad is that! Its all very ruthless and it was a while ago that I started to avoid supermarkets.

I used to be a regular weekend supermarket shopper where I’d go and fill my trolley with things that I thought I needed, but at the end of the week was chucking food out that we never ate. I now try to shop in the local shops like the farm shop or the local co-op and buy just what we need, when we need it. That way there is little waste and you’re guaranteed that its local and fresh produce. Plus you can decide what you fancy to eat, rather than buying the week’s food on a Saturday.

I personally think that the supermarkets like Tesco, especially those with out of town superstores will lead to the total demise of the high street. People need to think what they value when it comes to food and think how does Tesco make their food cheaper than everyone else, while remaining so profitable.

9 Comments

  • Chis

    There seemed to be a point, around 7-8 years ago when Tesco really raised the bar when it came to supermarkets and how they where perceived.

    There is one of those massive Tesco’s only 1 mile away from my girl friends house and I must admit I love it. The other evening I needed a co-axle connector for a TV, low and behold they had a few to choose from. They supply a good selection of motor oil and tools if I need to do anything on my car at the weekend, a good selection of toys if there is a child’s birthday in the family, bar-b-q and garden equipment for these spring months. About the only thing I don’t use them for is food lol. I go to local markets, shops and Sainsburys for that.

    My main gripe is the car parks. Modern building should have nice big bays to stop cars getting bashed! I have to take my GF’s car 🙂

  • Rory

    There almost a modern day Woolworths. If I need say new inner soles for my shoes I would of gone to Woolworths now I’d go to Tesco, problem been its about 20 minutes away for me not a 2 minute drive into town.

  • Dan Harrison

    I personally hate Tesco. Most of the time, food from Tesco goes off quicker than other supermarkets.

    About a year ago, bought some milk that went off 2 days after I purchased it. However, not before it gave me an upset stomach. I wrote a letter of complaint. I was promptly told I was lying, as I had not saved a sample to prove it.

    Since then, I’ve never used them again. Shocking service.

    Similar issues with products that I’ve had with Asda and Sainsburys? Apology, refund, replacement and sometimes a small value gift voucher.

    Dan

  • Chis

    A few times I’ve had corked wine from Tesco, they’ve been more than happy to exchange it, even without a receipt – Which has made me think, you could get away with drinking it then refilling it with cheep bag in box and a bit of vinegar lol

  • Becky

    @Chis what a cunning plan! was it tesco own wine that you took back, as I’m surprised they didn’t need the receipt. Obviously they are making so much money these days that can afford to do it.

  • Chis

    @Becky – It’s happened 2 or 3 times over the last couple of years. It tends to be the more expensive (£10+) wines that it sometimes happens to.

    Well when I said ‘I’ I really meant ‘my Girlfriend’, maybe she looks honest 🙂

  • Claire

    I actually hate but love Tesco at the same time which is an odd feeling. When I was teaching in secondary school I used to tell the kids about how Tesco were ripping off the farmers and causing lots of pollution with their lorries, but to be honest I STILL shop there.

    We have no local shops left near us, no butcher or greengrocer and no time to find the nearest village which still does have one, so it makes it really hard to have principles!

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  • scott harbison

    There are many and diverse reasons why I am fundamentally opposed to the whole concept of Tesco,Asda et al,but unfortunatelly,as is the case in virtually all walks of life in modern Britain,we are all part of it and all trapped by it.I am currently unemployed and it is only possible to eat reasonably by bulk buying from Asda.However,this requires a bus journey that costs four quid,thereby only making it worth my while to go once a week:and the cycle is complete.This centralization of services is of course “on message” with former govt planning,whose scorched earth policies have made it impossible to pull out the knife.A sad state of affairs indeed.