Was mothballed, now cancelled!
I'm worried that they will just leave the site empty as if they allow another supermarket to open this would impact their stores in Huntington and March!
Tesco in crisis
- Thread starter Merlin5
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Was mothballed, now cancelled!
I'm worried that they will just leave the site empty as if they allow another supermarket to open this would impact their stores in Huntington and March!
Cheaper variety of tuna, flaky Skipjack ends, not Blue Fin tuna, smaller amount and canned in water not oil, still pretty tasty though.
I live near that place in Chatteris and what's quite funny is they are committed to paying the rent for 25 years.
The Whittlesey shop up the road yet to be built is also funny in that they have signed the contract to build it and have been told by the council they're holding them to it.So that will probably be built then boarded up like the Chatteris shop.
To be honest I haven't really followed this whole thing.
From the little I've paid attention to, Tesco still operates at a significant profit, it's just that the profit has reduced.
This is just a problem for investors and it doesn't affect the customer at all, right? if so what's the big deal?
From the little I've paid attention to, Tesco still operates at a significant profit, it's just that the profit has reduced.
This is just a problem for investors and it doesn't affect the customer at all, right? if so what's the big deal?
Can't force them to do anything and Tesco have already said they will only let other stores take it over if they approve.
Think the big deal for some was that they grew too big, too fast and now there's a load of land they've purchased in an attempt to expand, will now have to be mothballed or left empty.
They've made some promises with councils to invest in return for them opening a hypermart somewhere, and they can no longer do that with a change in the helm and trying to cover a £250m gap they've acquired from bad accounting.
Further to being an investor problem, it spooks future investment and current investors pulling out, leaving them in deeper problems with their company value. Factoring to their multi layer of management, departments and fingers in too many honey pot, they can't be as competitive as they use to in the groceries sector.
This in turn drives their prices up and people not shopping there for 2 reasons: They've landed themselves in the market where their prices aren't low enough for the budget shoppers and their quality isn't high enough for the premium shoppers.
The food industry have been rife with this, along with unreasonable 90 days (some even goes up to 180 days!) for payment of goods and services.
i.e. Supplier don't get paid till 90 days later after delivery of order.
There will be another loophole for them to get around asking supplier for investment of business. It's just recent momentum from Premium Foods wording that put the issue in the spotlight and will soon fade out again.
Welcome to the world of groceries!
Yeah, I did a tour of a produce supplier when I worked for Sainsbury's a few years back, the guys showing us round were rather bitter about how the retailer treated them and the crap deal they got but said it was better than not supplying at all so they didn't have much choice.
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From what I understand it was very clever accounting which artificially inflated their reported assets and profits. Though I understand it to be somewhat dubious ethically. What we'e seeing now probably isn't a real terms loss of profit but more accurate reporting of their financial health.
They're horrendous to suppliers. When I worked for their customer services as a student we passed the cost of any gesture of goodwill to the supplier, along with a £25 admin fee. All I did was read the letter, select a apology letter template appropriate to the complaint, and then mail merged the the details from the complaint letter to print off a letter to both the customer and the supplier. Could easily get through 8-10 such letters hourly, and there were lots of us doing the same thing. Small change perhaps in the grand scheme of things perhaps, but a clear indication as to who held the power in the relationship.
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Morrisons made the National news this morning as the worst performing over Christmas and closures to come.
I hope my local one closes down.
About to walk in there last night for a pack of cigarettes. 15 minutes before closing time and the manager shouts "No no we're closed". I'm going to be contacting their head office and telling them these guys are closing shop early. Half the ****ers in there cant even speak English which I think is a disgrace.
About to walk in there last night for a pack of cigarettes. 15 minutes before closing time and the manager shouts "No no we're closed". I'm going to be contacting their head office and telling them these guys are closing shop early. Half the ****ers in there cant even speak English which I think is a disgrace.
I'm not really sure either. I think I read that they still made 3 billion profit or something last year : /
They are still hugely profitable, just not as profitable as they have been in previous years which makes investors nervous. This means they don't have the capital to invest in the business for new stores/store refreshes, expanding their overseas markets etc. The £250 million accounting gap was more of a PR problem than a financial one.
Looking at their figures released last week they appear to be starting to turn things around. Sales over the festive period were better than expected although still down on last year. That being said the only part of their business which is showing consistent growth year on year is Tesco Bank.
/Salsa
Looking at their figures released last week they appear to be starting to turn things around. Sales over the festive period were better than expected although still down on last year. That being said the only part of their business which is showing consistent growth year on year is Tesco Bank.
/Salsa
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The supermarket chains know that they've got their suppliers' balls in their hand and if a supplier just says one bad word about the supermarket chain, the said chain can ruin them and tell them that the suppliers' produce has suddenly become very
sub-standard and the chains won't stock their produce any more.
sub-standard and the chains won't stock their produce any more.