Tesco....down The Pan ?

[mikey4444]

http://www.bbc.co.uk/news/business-32408661

These losses are astonishing...the largest in British retail history. I can't help feeling that some of this loss, at least, is down to stupidity and greed on Tesco's part.

Within a 10 miles radius of my home, there are at least 14 branches of Tesco, including 2 Mega stores, on of which is the size of a regional Airport.

Was it really feasible that so many stores could make money in such a small area ? We have all the other supermarkets as well, like ASDA, Morrisons, Sainsbury, Lidl, Aldi, Co-op. We just have too many ruddy supermarkets ! How many pints of milk and loaves of bread can we buy !

Given that Tesco is still being investigate by the Serious Fraud Office, how long will it be before Tesco collapses altogether ?

[mikey4444]

To add insult to injury, it seems that there is no good news for Tesco today ::

http://www.bbc.co.uk/news/technology-32395885

[ummmm]

Tesco won't collapse.

[sandyRoe]

I hope not I'm due to get 6 or 7 quids worth of club card vouchers soon.

[Svejk]

^lol, sandy.

[Retrochic]

Ummmm can you expand on that statement? They are closing around 30 stores and not constructing another 40,not a good sign when the likes of Lidl and Aldi are expanding

[Old_Geezer]

Not looking good but large organisations can turn themselves around. Tesco has been badly squeezed since they used to be the 'pile it high, sell it cheap' store, but saw opportunity with making the place more pleasant and charging a bit more for extra profit, over the years. The newcomers to the UK market, dedicated to being cheapest, has caused problems for Tesco, who are now 'caught between two stools'. A lumbering enterprise like them can not change overnight but they have had a fair amount of time to do better than this though.

[Old_Geezer]

Contracting may be a sign of doing something beneficial to the company, it need not be a sign of going out of business. Sad for the employees caught up in it though.

[B00]

My initial thought was "no way can Tesco go under, they're too big!", however that train of thought didn't help Woolworths any did it?

So who knows?

[ummmm]

Expand....they are closing non profit making stores. Good business sense.

[youngmafbog]

You really dont understand big business at all do you Mickey?

Tesco will not collapse, this is a major readjustment. If you readajust when down - close branches, sack people then the stocks will not get hit. They are also taking the opportunity to write down the property values.

Stocks this morning opened then dropped then picked back up and even went above open, but we are only looking at a 5p a share difference (on a av 237.5 share)

Supermarkets do need to adjust though, online shopping is hitting profits. I forsee out of town automated wharehouses where you order up and machines pick and pack.

//How many pints of milk and loaves of bread can we buy//

Have you ever even been in a hypermarket?

[youngmafbog]

Woolworths failed to adjust and move with the times as did HMV etc. Tesco are adjusting so no comparison.

Doesn't mean they are 100% safe, but a long way to go to total collapse.

[Retrochic]

Ummmmm Woolworths had thousands of profitable shops but still folded. I was one that said 'Woollies will never close!' Tesco have posted losses of 6 BILLION pounds so I think their problems extend a bit further than closing down a few unprofitable shops.

[ummmm]

Okay...whatever.

Woolworths was a heap of sugar. We only went in there for pick o mix.

Tesco, love or hate them, my fridge is jammed with their products.

[youngmafbog]

6 Billion may seem a lot to you but it's not so great. I'll give you that its not so good mind you.

It's no use a few store being profitable the whole company needs to be profitable and Woolworths was past its prime and not profitable. You need to look much further than your local high street store.

[youngmafbog]

//Woolworths had thousands of profitable shops//

Thousands? I think you need to do some research.

[cazzz1975]

With the decline of the big stores it wont be long before Aldi and Lidl will be slowly upping their prices.

[mikey4444]

I still maintain that they opened too many stores. In the Lower Swansea Valley where I live, there are now 3 branches, all with 15 mins drive of each other. The one in the middle is now almost empty, because the people that used to drive 5 miles down the valley to use it, now have one on their doorstep !

But the Lidl opposite this middle one is always busy. I can't help thinking that its just sheer greed on Tescos part that is responsible for this present fate. They should have realised that you can't keep on opening stores and expect your profit to keep growing.

It isn't just Tesco though. In my opinion Britain now just has too many shops. In the 90's, when I worked for BT in central London, there were 3 branches of Benetton in Oxford Street, and if you stood in the doorway of the middle one, you could see the frontages of the other two !

[douglas9401]

ummmm's fridge, the new measure of retail performance in the UK>

I'll inform the city. :-)

[joggerjayne]

So Tesco customers spend £bn's at Tesco ...

Then Tesco manage their business so badly, they make a huge loss.

So presumably Tesco's tax loss is made up by the rest of us?

You see, you should just stick to jolly little shops like Waitrose. They even have a handy tree outside the shop where you can chain your bike.

[B00]

not many of us have "jolly little shops like Waitrose" in our decrepid little towns Jayne.