Tesco Announce Record profits!

[313103]

Good to see that private enterprise thriving in Austere Britain. Tesco announce £3.9b profit. I wonder if they will do the decent thing and give their employees (like my wife) a decent pay rise. Sadly i dont think they will.

For the lefties of the group here is the Guardians take on it.
http://www.guardian.co.uk/business/2011/apr/19/tesco-reports-record-profits

For the righties here is the Telegraph version.
http://www.telegraph.co.uk/finance/...sco-profits-jump-as-Asia-offsets-weak-UK.html

Just a pity that the profit is from overseas, but what do you expect when my local tesco branch has deliberatly kept staffing levels down and expecting staff to do unreasonable amounts of overtime to cover. I wonder if Sir Terry Leavy even cares!

 

[junglejames]

Ha, Tesco give a payrise to the decent workers? Not a chance. They will blame the recession still. Treat the staff badly, and sell cheap tat on the shelves.

 

[atomicdanny]

Just a pity that the profit is from overseas, but what do you expect when my local tesco branch has deliberatly kept staffing levels down and expecting staff to do unreasonable amounts of overtime to cover. I wonder if Sir Terry Leavy even cares!

Could be worse, the company that I used to work for (Netto - although the UK Stores are now part of Asda so its hopefully improved by now), the stores had a set amount of hours for the staff and for most of the time there weren't enough staff to do the work in the store (when I was a deputy manager, I had to do up to 100 hours a week just to ensure things were done properly!).

Its not always the management of the store that causes the problems though, at least think of it this way though those staff are paid by the hour and would get a lot more money for those extra hours where as the salaried staff aren't! (I wasn't, but then again I wouldn't know how Tesco worked in that regard!)

Ha, Tesco give a payrise to the decent workers? Not a chance. They will blame the recession still. Treat the staff badly, and sell cheap tat on the shelves.

Isn't that the same as petrol stations though?, if the price of oil goes up the petrol / diesel goes up, but if the price of oil goes down petrol / diesel stays the same price!. Although saying that the minimum wage has gone up almost every year so in most cases it would have to improve (although I doubt that tesco hire people at minimum wage though, 50p - 80 over it perhaps?)

 

[junglejames]

Could be worse, the company that I used to work for (Netto - although the UK Stores are now part of Asda so its hopefully improved by now), the stores had a set amount of hours for the staff and for most of the time there weren't enough staff to do the work in the store (when I was a deputy manager, I had to do up to 100 hours a week just to ensure things were done properly!).

Its not always the management of the store that causes the problems though, at least think of it this way though those staff are paid by the hour and would get a lot more money for those extra hours where as the salaried staff aren't! (I wasn't, but then again I wouldn't know how Tesco worked in that regard!)



Isn't that the same as petrol stations though?, if the price of oil goes up the petrol / diesel goes up, but if the price of oil goes down petrol / diesel stays the same price!. Although saying that the minimum wage has gone up almost every year so in most cases it would have to improve (although I doubt that tesco hire people at minimum wage though, 50p - 80 over it perhaps?)

Dont start me on petrol stations!! Or the oil companies full stop.
Its rediculous how oil can rise so much. That must purely just be an excuse to raise profits. So what if oil is in great demand. Does that mean oil costs more to drill/ produce? Of course not. If anything a greater demand should lead to efficiences and lower costs, but instead they use it as an excuse to make larger profits.

 

[ralphchadkirk]

Dont start me on petrol stations!! Or the oil companies full stop.
Its rediculous how oil can rise so much. That must purely just be an excuse to raise profits. So what if oil is in great demand. Does that mean oil costs more to drill/ produce? Of course not. If anything a greater demand should lead to efficiences and lower costs, but instead they use it as an excuse to make larger profits.

They're a business. Businesses exist to make money.

 

[SS4]

Dont start me on petrol stations!! Or the oil companies full stop.
Its rediculous how oil can rise so much. That must purely just be an excuse to raise profits. So what if oil is in great demand. Does that mean oil costs more to drill/ produce? Of course not. If anything a greater demand should lead to efficiences and lower costs, but instead they use it as an excuse to make larger profits.

I guess it's what happens when you let essential goods and services leave public control.

That being said the government themselves aren't blameless since tax and duty cost more than the actual fuel and they then congratulate themselves on removing 1p when more often than not it's not taken off at the pumps :roll:
In addition fuel is sold by the litre instead of by the kilogram and since the typical density is about 750kg/m^3 you pay more for an equivalent mass.

As for Tesco I'd guess their profits came from either low staff costs or shafting suppliers

 

[jon0844]

In the last year, I've started to take a stand against Tesco and stop using them for all but petrol - although switching to Waitrose might be a case of cutting off my nose to spite my face.

I've done that simply for the self scan facility which has totally transformed shopping. Walk in, scan items, put them in my bags, go to self scan checkout, pay, walk out.

No queuing ever, and the bags are already packed.

I've given up on Tesco where you either queue for a long time (the 'one in front' thing seems to have all but disappeared) or are asked to self-checkout, which is only any good if you've gone with someone else who packs as you scan. Otherwise you've scanned everything and NOW have to pack after paying.. to the annoyance of those behind you.

Now, self scanning isn't great for staffing, but I must admit that when I do shop at Tesco or Sainsbury's, I do try and go to a real person as I don't think they all realise that when they're trying to get you to self-checkout, they're helping move towards a time when they'll be made redundant.

First they had one member of staff to two self-checkouts, then it was four. It may now be more, and I've even heard rumours that at certain times they could be monitored remotely by CCTV so you could have someone in another country (in theory) monitoring a group of checkouts all over the UK!

What really annoyed me too was that Tesco went 24 hours, making it convenient to shop at night, then had no staff and you HAD to self-checkout between 11pm and 5 or 6am. I don't know if they ever changed that, but I stopped going through the night after that.

 

[junglejames]

They're a business. Businesses exist to make money.

Oh i know why they do it. But its still taking the pee. Any little excuse.

Taking your comment literally though. They make money when oil is at a decent price.

 

[mumrar]

Dont start me on petrol stations!! Or the oil companies full stop.
Its rediculous how oil can rise so much. That must purely just be an excuse to raise profits. So what if oil is in great demand. Does that mean oil costs more to drill/ produce?

Fuel isn't in greater demand, well at least not for our own vehicles. The AA have shown that versus 2 years ago people are buying 14% less fuel now, so demand is lower. It's the same line for energy companies when they say bills have to go up due to the rising cost of wholesale gas. When the price of wholesale gas drops, nobody's bills drop.

We as consumers are responsible for anything we don't like. If you think a business is making a bad practise, then don't use them. If enough stop they will have to listen. The trouble is too many Brits like to have a good moan but will stay and put up with the status quo.

 

[SS4]

I think you're doing a discredit to self service there, it's incredibly efficient if you all have is a paper and some milk. Scanning is quick and you don't need a bag, how much business would be lost if all those customers who had to queue for ten minutes to get a loaf of bread simply decided to go elsewhere and save time?

The problems with self service come when some people don't know how to use it properly either putting dozens of items in there (I'd not use self service with more than 6-8 items) and as I understand it you can put them in a bag after scanning although I do concede it's impossible when using your own bags. Alternatively they put produce which is either age restricted or needs to be weighed individually often requiring an assistant, whom as you say oversee many self service checkouts. I can see a member of staff having to look after more self service with time as plausible as their operations and issues are understood (a 1:1 ratio may as well just be a checkout!), definitely not impressed with CCTV though.

All in all a balance between the two is needed, I prefer to think of self-service as a "fast lane" to get shopping done and done quickly whereas manned checkouts are for those who have a lot of items, have age restricted items or for whatever reason are not au fait with self-service. The two needn't be mutually exclusive
--- old post above --- --- new post below ---

Fuel isn't in greater demand, well at least not for our own vehicles. The AA have shown that versus 2 years ago people are buying 14% less fuel now, so demand is lower. It's the same line for energy companies when they say bills have to go up due to the rising cost of wholesale gas. When the price of wholesale gas drops, nobody's bills drop.

We as consumers are responsible for anything we don't like. If you think a business is making a bad practise, then don't use them. If enough stop they will have to listen. The trouble is too many Brits like to have a good moan but will stay and put up with the status quo.

Who do you switch to? Petrol costs largely the same across the country whereas utilities use bait and switch on long contracts and goodness help you if you're poor and need a meter.

Consider the mobile phone market as an example, to get a good phone you're signed up to a relatively poor deal for 24 months without being able to change when a better deal comes along.

 

[junglejames]

In the last year, I've started to take a stand against Tesco and stop using them for all but petrol - although switching to Waitrose might be a case of cutting off my nose to spite my face.

I've done that simply for the self scan facility which has totally transformed shopping. Walk in, scan items, put them in my bags, go to self scan checkout, pay, walk out.

No queuing ever, and the bags are already packed.

I've given up on Tesco where you either queue for a long time (the 'one in front' thing seems to have all but disappeared) or are asked to self-checkout, which is only any good if you've gone with someone else who packs as you scan. Otherwise you've scanned everything and NOW have to pack after paying.. to the annoyance of those behind you.

Now, self scanning isn't great for staffing, but I must admit that when I do shop at Tesco or Sainsbury's, I do try and go to a real person as I don't think they all realise that when they're trying to get you to self-checkout, they're helping move towards a time when they'll be made redundant.

First they had one member of staff to two self-checkouts, then it was four. It may now be more, and I've even heard rumours that at certain times they could be monitored remotely by CCTV so you could have someone in another country (in theory) monitoring a group of checkouts all over the UK!

What really annoyed me too was that Tesco went 24 hours, making it convenient to shop at night, then had no staff and you HAD to self-checkout between 11pm and 5 or 6am. I don't know if they ever changed that, but I stopped going through the night after that.

Tesco are cheapskates. Dont like their supermarkets, and dont like their food.
Dont like the way they seem to treat staff or suppliers either.

I never shop in Tesco myself. Unfortunately my brother seems to think they are cheap, so to him they are the bees knees.
Regarding the self checkouts though. You can pack at the same time as scanning even with 1 person. Problem with Tescos though, is they dont give you enough time to get the item onto the weighing shelf, and even when you do it doesnt pick it up correctly. So its always alarming, and it takes ages to go through. With Sainburys though, the self checkouts are good.

Dont touch Tesco. Much prefer Sainburys or Waitrose.

 

[Zoe]

Who do you switch to? Petrol costs largely the same across the country whereas utilities use bait and switch on long contracts and goodness help you if you're poor and need a meter.

You could switch to public transport.

 

[mumrar]

Who do you switch to? Petrol costs largely the same across the country whereas utilities use bait and switch on long contracts and goodness help you if you're poor and need a meter.

I'll concede that energy has you largely snookered, but petrol, it's a case of changing your usage and habits. I used to drive 10,000miles a year and with only one change in my circumstances, a new baby, I no longer drive at all and use my bike. I refuse to be held to ransom anbd have aspects of my childrens lives spoilt by the price of this unnecessarry commodity.

 

[jon0844]

The trouble is too many Brits like to have a good moan but will stay and put up with the status quo.

That's why I think I've actually begun to take action against the likes of Tesco, Avis and Ryanair. Moaning just isn't enough.

So far neither Tesco, Avis or Ryanair have gone bust, but I've made a stand against various pubs and restaurants over the years, some of which HAVE gone out of business. Obviously it wasn't just me who took a stand, but collectively it did make a difference.

You can pack at the same time as scanning even with 1 person.

For a small basket you can, but it's hardly convenient and throws you out of rhythm. On the ones with a belt, it's certainly a case of packing after.

I like the system they have at Aldi, where they scan things at an IMMENSE speed (I've never seen scanning so fast, and the equipment they use seems light years ahead of the ones at Tesco - it seems capable of scanning items that are thrown at speed over the scanners!) and you then take the trolley away and pack in your own time.

It's the next best thing to self scanning and checking out, but fails when staff get chatting to customers who think of a day in the supermarket as a social networking event!

 

[Zoe]

I no longer drive at all and use my bike. I refuse to be held to ransom anbd have aspects of my childrens lives spoilt by the price of this unnecessarry commodity.

Well unless it's a pushbike I'd expect it would also use petrol.

 

[jon0844]

I think petrol is not quite unnecessary, but good on you for switching if your circumstances allow.

We also use our car a lot less (perhaps around 3,500 miles a year - and one year that included a two week jaunt around Europe) but still need access to one. The low mileage offsets the fact that our car averages around 25mpg, of super unleaded (a cool £1.41 a litre at the last fill-up).

It's easy to say you could hire a car or take taxis, and I accept that would probably be cheaper (but most of that is because our car isn't the cheapest model you could get to simply get from A to B - that argument would fall down if we bought a cheap and economical Ford Ka or something), but we pay for the convenience too. My wife cycles to work at times, but is more of a fair weather cyclist. I take the bus and train to work.

Even if we did sell the car and use taxis/hire cars, and perhaps this may one day become worthy of serious consideration, we'd still need petrol though!

 

[Zoe]

In the future it may well be that the average person quite simply won't be able to afford a car. Then there will be no choice but to use public transport/cycling for all journeys.

 

[jon0844]

Let's be realistic, there will always be cars that are affordable (certainly within our lifetime I'd imagine, even if fuel prices rocket as I expect they will). People may not be able to afford a luxury car with loads of features, but who can't afford an entry level Ford Ka (to repeat my example)?

If you get cars that can do 70mpg or above, diesel or petrol, or perhaps using electricity exclusively or partly, they'll be as cheap - or cheaper - to run than people are paying for their vehicles today.

It's just that you might not be driving a huge luxu-barge, or enjoying a car with an engine that can take you to 100mph in the blink of an eye.

Cycling is fine for many people, but you don't replace a car with a bike in most instances - nor does public transport suddenly replace a car for others. Besides the cost, public transport doesn't necessarily take you from where you are to where you want/need to be.

 

[WestCoast]

Then there will be no choice but to use public transport/cycling for all journeys.

I am huge fan of public transport (and I am sure many more on RailUK will be too) but without radical improvements to public transport provisions outside of urban areas this will not happen. Some settlements (and some examples are barely rural) see only a few buses a day, which cannot be practical.
--- old post above --- --- new post below ---
Regarding Tesco's profits, it's a sustained trend that shows no sign of stopping. I have mentioned this before (off-topic on another thread), I believe a considerable bulk of what all the big supermarkets sell is similar or even from the same supplier. Of course, there are differences with fresh produce, the basic meat from Tesco isn't brilliant, but the Finest ranges seem OK.

On the whole I find the UK a little obsessed about supermarkets though. I think if you have the time, why not get some meat from a local butcher or try the local greengrocers. Plus, the UK seems to have a ridiculous hierarchy system about where you should shop based upon class.

Shopping in the budget retailers is frowned upon, Lidl wanted to open a store in a supposedly 'posh' town near me, they were appalled, because they thought it would attract the wrong type of customer to the town! There is none of this nonsense in continental Europe, people shop at different places, depending on where they feel they get the best value to quality mix, not because they're scared to be seen with a budget retailer's bag!

I have shopped at Tesco for groceries, Lidl/Aldi for other basics including cheese and cold meats (plus they sell confectionery that beats all other supermarkets IMO), Booths (the local 'posh' supermarket in the North of England, which beats Waitrose IMO) for meat, fruit and veg and the local butcher, fishmonger and greengrocer.

My advice is don't just buy from one retailer; go to different places where you can, support local shops if possible and don't be afraid to try the budget supermarkets as well as visiting the mainstream ones.

 

[mumrar]

In reply to stuff above, it is a pushbike that I am using, my commute is 28 miles per day and this is usually leaving between 11am and returning up to 1am, dependant on shifts. I'm surprised, but not dictating to, the person who drives 3.5k per year but can't do without the car. That's less than 10 miles per day, but I'm not saying it's impossible.

We manage without the car with having a 4yo boy and a 16wk old boy, and it is possible to do all our shopping, in bits at a time, which means we're not just using Tesco and we're generally getting better prices on what we buy too.

 

[atomicdanny]

I like the system they have at Aldi, where they scan things at an IMMENSE speed (I've never seen scanning so fast, and the equipment they use seems light years ahead of the ones at Tesco - it seems capable of scanning items that are thrown at speed over the scanners!) and you then take the trolley away and pack in your own time.

It's the next best thing to self scanning and checking out, but fails when staff get chatting to customers who think of a day in the supermarket as a social networking event!

The reason why Tesco and the other supermarkets don't do it is because its also bad customer service to have items thrown through the checkouts at speed! (customers complaint if its too slow and also complain if its too fast, so cashiers can never win there I've found that out the hard way!)

Although with a lot of practice you can go fast, I know that Netto was the same with the till speed (keeping it below 2 seconds an item - mine varied between 1.4 - 1.8)

 

[jon0844]

I'm surprised, but not dictating to, the person who drives 3.5k per year but can't do without the car. That's less than 10 miles per day, but I'm not saying it's impossible.

It's not literally 10 miles per day, it's a lot less if the wife drives to work, but the car isn't used every day - and is then used for longer journeys and to places where using PT would make some trips unfeasible (not so much cost, but time).

 

[Trog]

I'm surprised, but not dictating to, the person who drives 3.5k per year but can't do without the car. That's less than 10 miles per day......

I only did about 2000 miles in my car last year, but with a house bound wife there are some trips for which it is a must. It also does a good few trips to the local DIY shed and comes back very well loaded.


On the supermarket front has anyone else tried ASDA's home delivery service?

Cheap but you get all the rotten and brusied fruit and produce that is right on date. This week for example we got a bunch of grapes that consisted largely of loose single grapes. They were all soft and grey at the stalk end, and we think they may have been part frozen at some time. :roll:

SWAMBO has rung up to complain about unfit produce and wrong items so often that they have started asking her questions about why she was ringing up so often to have items removed from the bill.

 

[jon0844]

We've used Ocado, given the HQ is about 500 metres up the road, but we still prefer to see what we're buying... and given the convenience of self scanning at Waitrose, it's really easier to shop there than have to wait in for your delivery slot!

Ocado is good though.

 

[junglejames]

You could switch to public transport.

But they have to pay for oil and energy as well.
Oh, and it could also be said that railways and buses are now stupidly expensive.

 

[Zoe]

Oh, and it could also be said that railways and buses are now stupidly expensive.

Yes but remember they are not run as a public service. They are run to make as much money as possible for shareholders.

 

[junglejames]

That's why I think I've actually begun to take action against the likes of Tesco, Avis and Ryanair. Moaning just isn't enough.

So far neither Tesco, Avis or Ryanair have gone bust, but I've made a stand against various pubs and restaurants over the years, some of which HAVE gone out of business. Obviously it wasn't just me who took a stand, but collectively it did make a difference.



For a small basket you can, but it's hardly convenient and throws you out of rhythm. On the ones with a belt, it's certainly a case of packing after.

I like the system they have at Aldi, where they scan things at an IMMENSE speed (I've never seen scanning so fast, and the equipment they use seems light years ahead of the ones at Tesco - it seems capable of scanning items that are thrown at speed over the scanners!) and you then take the trolley away and pack in your own time.

It's the next best thing to self scanning and checking out, but fails when staff get chatting to customers who think of a day in the supermarket as a social networking event!

Ryanair and Easyjety. Ive made a stand against them. Have never used either of them, and never will.
--- old post above --- --- new post below ---

Yes but remember they are not run as a public service. They are run to make as much money as possible for shareholders.

Yep. I know that. Bloomin pain in the neck it is.
But its backing up my point though. You say go by public transport instead of using your car, but you get the same thing.
The only way out is to walk or cycle, but that isnt always viable. So between them these companies have got you pretty much stuck.

 

[Zoe]

If more people started using public transport as driving was becoming unaffordable I expect the bus/train companies would respond by increasing their fares.

 

[The Barlow Boy]

Oh i know why they do it. But its still taking the pee. Any little excuse.
Taking your comment literally though. They make money when oil is at a decent price.

"Every little helps".

 

[junglejames]

If more people started using public transport as driving was becoming unaffordable I expect the bus/train companies would respond by increasing their fares.

Train companies will raise their prices anytime. They dont need an excuse. You just cant win with them.
--- old post above --- --- new post below ---
Sorry, that comment was perhaps unfair on some TOCs. Northern arent usually too bad, and neither are Chiltern. As for the rest though. Perhaps if we could take that privatisation champion out from under the desk of EC, they may do the decent thing and reduce their prices. Then again, perhaps not! Wasnt she Adonis' idea? I thought he liked the railways. He must have fancied her!!