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Eyewatering Drop In Tesco Profits
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Pre-tax profit slumped to £112m, down more than 90% on the same period in the previous year. When you consider how much the profits have been overstated, possibly for years, by a combination of fraud and mismanagement, how much longer can this ailing company hold off any take-over attempts ?
Pre-tax profit slumped to £112m, down more than 90% on the same period in the previous year. When you consider how much the profits have been overstated, possibly for years, by a combination of fraud and mismanagement, how much longer can this ailing company hold off any take-over attempts ?
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Mickey, ASDA has been owned by Walmart for some time now so 'now owned' is stretching it a bit.
Tesco's real problems came from their ventures abroad not really in the UK. Although you say there are many around most of them will be TESCO LOCAL, rather than a big hypermarket. Their other problem is where they pitch tehmselves, they are currently a long way away from Mr Cohens principle of pil it high sell it cheap but they dont have the brand name of Waitrose to enable them to command premium prices.
//How many of us had a groceries delivered to our own home, by a refrigerated van 10 years ago ?//
Very few I suspect, but think of all the polution saved. £1.00 delivery charges from ASDA, you can't go wrong!
I still say the threat to TESCO is from asset strippers not from other supermarkets. The timing is all wrong for another supermarket - unless they too asset strip it.
Tesco's real problems came from their ventures abroad not really in the UK. Although you say there are many around most of them will be TESCO LOCAL, rather than a big hypermarket. Their other problem is where they pitch tehmselves, they are currently a long way away from Mr Cohens principle of pil it high sell it cheap but they dont have the brand name of Waitrose to enable them to command premium prices.
//How many of us had a groceries delivered to our own home, by a refrigerated van 10 years ago ?//
Very few I suspect, but think of all the polution saved. £1.00 delivery charges from ASDA, you can't go wrong!
I still say the threat to TESCO is from asset strippers not from other supermarkets. The timing is all wrong for another supermarket - unless they too asset strip it.
Youngmafbog, I beg to differ - whilst their foreign ventures into the US and China have not been good, their problem is that they have over-invested in out-of-town stores and, even more fundamentally, lost their way in the store. The current design is terrible and underperforming, walk into any Tescos and there in the middle, the prime real estate, is clothing and household items like cookware and stationery and it's a disaster, there's hardly anyone in there and the return on the dirt as they say (revenue/margins/cashflow per m2) must be appalling. Then, on the food shelves, many of the stores are squeezed in space and do not have the number of items or brands that say a Sainsbury's, Waitrose or Aldi/Lidl have.
Complete and utter shambles IMO and I am ready to offer my retail marketing advice, if they so wish.
Complete and utter shambles IMO and I am ready to offer my retail marketing advice, if they so wish.
Why do people in the UK despise profitable companies:
"Their profits down by over 90%.. oh dear how sad never mind !! "
For all its faults Tesco is a huge employer and, until recently, a very popular shopping destination for many people. Yes, it makes (or rather made) a few bob. That's what businesses do. I suppose it would be better if we had no choice and shops with a few meagrely stacked shelves of stuff nobody wanted to buy. Success most certainly is a dirty word for some people.
DTC has hit the nail on the head. Tesco had declined because it has failed to recognise a change in shopping habits, has devoted far too much space to non-core goods such as televisions, mobile phones and clothes and has neglected its core business by failing to provide what people want, making it available when people want it and providing facilities for them to pay for their goods with little delay.
Actually their underlying profits are not down by 90% but "only" 47%. But this is still a huge drop and somebody needs to pick up the reins and pull the beast back onto the track.
"Their profits down by over 90%.. oh dear how sad never mind !! "
For all its faults Tesco is a huge employer and, until recently, a very popular shopping destination for many people. Yes, it makes (or rather made) a few bob. That's what businesses do. I suppose it would be better if we had no choice and shops with a few meagrely stacked shelves of stuff nobody wanted to buy. Success most certainly is a dirty word for some people.
DTC has hit the nail on the head. Tesco had declined because it has failed to recognise a change in shopping habits, has devoted far too much space to non-core goods such as televisions, mobile phones and clothes and has neglected its core business by failing to provide what people want, making it available when people want it and providing facilities for them to pay for their goods with little delay.
Actually their underlying profits are not down by 90% but "only" 47%. But this is still a huge drop and somebody needs to pick up the reins and pull the beast back onto the track.
Clothes/TV's etc have a much higher mark-up then the 1p profit on a tin of beans. You would need to see the stores overall performance over a period of time as undoubtedly some will go specifically for those items; Not easy to balance a washing machine on your weekly shop. These items used to be sold through separate 'home and wear' stores that must have cost a fortune to run in comparison.
Other stores seem to manage it, for instance try the ASDA in Milton Keynes, massive amount of floor space to 'home and wear'.
We have all had our idea's on this and all seem valid so the problem would appear to be multiple issues they need to get to grips with. Does anyone use their website for purchases? Must admit I do a lot of online and have done for many years now but I have never used them.
Other stores seem to manage it, for instance try the ASDA in Milton Keynes, massive amount of floor space to 'home and wear'.
We have all had our idea's on this and all seem valid so the problem would appear to be multiple issues they need to get to grips with. Does anyone use their website for purchases? Must admit I do a lot of online and have done for many years now but I have never used them.
I get my Tesco shopping delivered each week - it is supposed to be just the heavy stuff (cat stuff) but it is easy to search for bargains/special offers.
If I need to buy something for the house they are my first stop - but their site has changed recently and isn't so much fun to browse.
We have a Metro down the road from my home and the staff are great.
If I need to buy something for the house they are my first stop - but their site has changed recently and isn't so much fun to browse.
We have a Metro down the road from my home and the staff are great.
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