Soldato
- Joined
- 8 Dec 2002
- Posts
- 21,445
- Location
- North Yorkshire
Care to link to this publicly available data you are referencing?
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Supermarket abuse of pricing?
- Thread starter NickK
- Start date
Good job they publish their accounts on line every year then isnt it. Like I said, its publically available information. Rather than having a rage on the internet from a point of ignorance, why not have a look for yourself?
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www.tescoplc.com
2024
Total Sales - £68.187bn
Profit before tax - £2.277bn
I make that a profit margin of 3.3%. Big profits being make there (or not).
To put this in an OCUK context, NVIDIA makes a margin before tax of 56% in FY ending Jan 2025. Yup, that is correct, their profit margin before tax was 55.84% to be exact.
https://nvidianews.nvidia.com/news/...al-results-for-fourth-quarter-and-fiscal-2025 - scroll about 2/3 down for the full year results.
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See above link, page 129.
Food retail is highly competitive, there is no space in the market for 'greed'.
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I was intrigued, quick Google found this:
Not really mate, I'm just educating you.Discussion is rage is it? Crikey, you must lead a very stressful life
Like I said, you can claim greed all you want but their margins are tiny.
Just like you did on the Screwfix and Toolstation accounts thing?
As for your margins stuff, Sainsbury's own statements draws a slightly different picture:
Preliminary Results for the 52 weeks ended 1 March 2025
corporate.sainsburys.co.uk
Really struggling huh? I bet they're crying themselves to sleep with their horrendous profit margins.
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Are you high?Preliminary Results for the 52 weeks ended 1 March 2025
Really struggling huh? I bet they're crying themselves to sleep with their horrendous profit margins.
Their profit was £242m but the part you missed was that on £32.8bn of revenue. That’s terrible and barely even sustainable.
Profit may be up 77%, but all that means is they made even less the previous year. £137m on £32.2bn of sales.
That has got to be the worst ‘zinger’ post I have seen all week.
Their profit margins haven't exceeded 5% for as far back as the above graph goes, which is 22 years.
How is this not sustainable? What are they living off? Debt?
Supermarkets have always been low profit margins, it's a cut-throat market but it's factored in to their business model.
Is this news to you?
Going back to my original point, I don't think I can make it any clearer. I don't care about their business model, I don't care about their dividends or share price. I care about what I get in return for my money, and that's declining more and more, and their predatory loyalty cards are starting to fail to hold the curtain back.
Not similar to chicken then? I seem to remember around the ol' brexit it was pointed out that cheap US chicken was very similar in price to cheap chicken sold over here, but with added 'benefits'.
J Sainsburys PLC made a profit margin before tax of 0.7%. That is really isn’t good even in a low margin sector like food retail no matter how you skin it.
You are getting ‘outraged’ about supermarkets ‘greed’ when they make low margins which you even seem to acknowledge now. How much less money do you want them to make?
You need to look further down the supply chain if you want to get angry, on the fresh product side, it mainly stems from input costs. E.g. Fertiliser is waaay up and is a commodity which is highly dependent on fossil fuels.
On the not so fresh produce side have a look at the margins of the likes of Neatle, Unilever, Kraft Heinz, Danone etc. and you’ll see where your money is going.
Basically yes.
There is nothing unsafe about chicken produced in the US, they just have a completely different approach to achieving basically the same thing.
The EU/UK takes a preventative approach to reducing contamination and salmonella etc.
The US takes a ‘fix it after’ approach with the chorine wash.
There isn’t fundamentally anything wrong with either approach, both end up with a safe product at the end.
The irony is we do chlorine wash other products where a preventative approach doesn’t work.
You can import chicken from outside of the U.K./EU as long as it’s been produced the U.K./EU way. I recall when I worked in a restaurant, some of the chicken products came from Thailand.
It’s a similar thing with eggs, the US wash them, we don’t and focus on contamination prevention.
P.S. if you refrigerate your eggs, you need to eat them quickly after taking them out of the fridge. Once they have been in the fridge, you can no longer store them outside of the fridge even though they don’t need to be refrigerated.
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Soldato
- Joined
- 7 Jan 2009
- Posts
- 6,896
Prices are definitely getting out of hand, I've noticed Tesco are adding HUGE amounts to certain things like Options Chocolate drink.
Within not even a whole year, Its gone from £2 - £2.50 - £4.00 - £4.50.
And there is NEVER a Clubcard deal on it.
Within not even a whole year, Its gone from £2 - £2.50 - £4.00 - £4.50.
And there is NEVER a Clubcard deal on it.
Tesco and Asda have been a bit too rigid in my opinion (despite PR otherwise) - not looking far enough ahead or willing enough to adapt to market conditions, Morrisons has been going through some problems which has probably impacted them, Sainsburys a bit more wary of the competition and rise of the likes of Aldi and been a bit more flexible. Though staff moral for most of the supermarkets is in the toilet if what I'm hearing via working in the distribution side of the industry is anything to go by - lots of burnt out people looking to get out.
EDIT: On the moral note - one of the guys I used to work with has hopped through several of the supermarkets and now working at Aldi and seems a lot happier there.
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Do you honestly think it’s Tesco ‘adding HUGE amounts’ to the price or could there be something else going on?
The underlying price of cocoa had doubled in the last year and tripled since 2022.
Options is owned by Twinings which is in turn owed by Associated British Foods.
A quick google suggests Twinings 2024 turnover was £234m and they had a profit before tax of £99m. A nice healthy margin of 42%. Not bad for Tea and hot chocolate…
Sorry to keep hammering this point but it’s really not the big supermarkets jacking up prices for the ‘lols’ here.
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I think it's time to unfollow this thread. @Diddums claims of money-grabbing companies, then pointing out one of them hasn't broken 5% profit margin for 22 years, so clearly keeping prices as close to what it costs them as they can... hmm. @b0rn2sk8 , you're doing a valiant job, but some people want to just rage and moan.