Cost of Living - Shrinkflation is speeding up at an alarming rate

[platinum87]

You haven't read the financial statements close enough. Tesco STILL made £753m last year whilst shifting less volume. How do you shift less volume but make more revenue?

I think what is really going on (and sure, I am not a financial expert) is that their sales have decreased because people are unable to buy as much, so they have had to keep prices high to try to maintain their profit. But this is grossly unfair. I don't know, like I say, I am not an expert, but this situation should be looked in to. Certainly, in store prices seem wildly higher than they should be.

@ Dlockers The volume is not relevent, i didnt say the prices were not higher, simply that the costs have increase in-line.

@SpellowHouse, you say you are not an expert but you just assume things and begin writing facts, the only positive here is in the future you know dlockers is also the same type of expert

 

[BUDFORCE]

What dont you understand here exactly, Tesco/Sainsburys are public companies that publish audited financial statements, we can simply have a look and it does not appear to be any profiteering as you suggest.

Youd be amazed at how creative some well paid accountants can be.

 

[dlockers]

Sales increased 5% and profits reduced by 50% to £753m. Products are selling for more but they are making less. I don't think the 'greedflation' claims have much merit.

Sales have increased by 5% on much lower volume. Products are selling for significantly more to increase sales by 5% and offset the decrease in volume.

 

[200sols]

How about you actually go down to the local supermarket? I mean, no disrespect, but you can prove anything using articles from the internet. Get down to the supermarket. The prices are way higher than the media is reporting. And prices in the EU are a lot lower. Now it's true, my data is not all encompassing, there are only a limited number of things I buy every week, but it certainly doesn't align with what the media and the government are telling us.
And no, I don't believe your "hypothesis" either. There have to be some controls, or we end up in a total financial mess. Oh, wait! We are already in one!

Nope. You keep saying this, keep being shown that is not the case but seemingly cannot grasp it.

 

[dlockers]

Nope. You keep saying this, keep being shown that is not the case but seemingly cannot grasp it.

... takeaway/pets are luxuries.

I'm not frothing at the mouth over this but the graph above seems to say we are getting rinsed.

 

[200sols]

I'm not frothing at the mouth over this but the graph above seems to say we are getting rinsed.

Cant verify that graph link is broken but that is price growth not product costs, remember he said prices in the EU are a lot lower than the UK, not true. Also official stats show EU/UK food price inflation have been within a few percentage points of each other, UK currently slightly higher than the average but it changes each month. The difference is probably brexit, not profiteering.

 

[BUDFORCE]

Plenty of examples, pot noodles are still the same size, and they even keep the water fill line in the same spot, which if you fill to that point its too much water.

Ahhhhh had a pot noodle for the first time in ages yesterday and wondered why there was much liquid left over.

 

[D.P.]

You haven't read the financial statements close enough. Tesco STILL made £753m last year whilst shifting less volume. How do you shift less volume but make more revenue?

Have you checked Tesco's profit margin?

 

[chrcoluk]

Ahhhhh had a pot noodle for the first time in ages yesterday and wondered why there was much liquid left over.

Yeah now have to kind of guess the amount ,if you see water appear above it, then its too much. As there is empty gap at bottom which the noodles fall into once they become soft.

 

[Freakbro]

Salmon has got expensive, used to be in the £2.50 range (cheaper on a deal) for 2 fillets, now £4.95 in Tesco as of yesterday. And that price is literally going up weekly at the moment.

 

[UTmaniac]

4-pack of Tesco's Scotch eggs seem to be going up weekly of late, gone from £1-70 to £2!

 

[smilertoo]

I've noticed it's going both ways now, they're reducing weight AND increasing price.

 

[dlockers]

Have you checked Tesco's profit margin?

Yes, have you?

 

[Deleted member 77746]

I've noticed it's going both ways now, they're reducing weight AND increasing price.

Then we need to increase wages slightly.

 

[chrcoluk]

There is also quality drop happening, although thats been happening for years anyway.

Some people arent sensitive to it, but I am, I can tell very quickly if they messed with ingredients or manufacturing process.

Loads of sku's were dropped during covid which never came back as well.

 

[Loagi]

Anyone noticed any brandname products now having a different cheaper recipe when sold in Tesco compared to other supermarkets ? The brandname fresh soup 'Yorkshire Provender Roast Chicken Soup With Traditional Vegetables' has gone from being REALLY good to utterly awful. In Tesco they've shrunk the size from 600g to 560g and clearly changed the recipe. The ingredients suggest a drop from 6% to 5% chicken, but the new version is very watery and lost all its 'chunk'.

Where it gets interesting is that other supermarkets are still selling the 600g version with the original 6% chicken - and this is new manufacture so not old stuff stuck at the back of the shelf.

Maybe this is Tesco applying pressure for a price-point ? Which seems insane as they've removed everything that made it a premium product - so the price-point was a suicide pact for the brand.

 

[Kelt]

I've noticed it's going both ways now, they're reducing weight AND increasing price.

And reducing quality.

The proverbial triple whammy.

 

[GIBURROWS]

"Every little helps" as they say!

 

[D.P.]

Yes, have you?

well, either you have reading difficultities or you are just lying, otherwise you would see Tesco's operating margin has reduced by 35%y/y, so actually Tescos is absorbing the increased cost of products.

 

[dlockers]

well, either you have reading difficultities or you are just lying, otherwise you would see Tesco's operating margin has reduced by 35%y/y, so actually Tescos is absorbing the increased cost of products.

Sale revenue is up, volume is down, profit is still 753m (or 65% of what it was previously). They aren't absorbing anything - they are selling fewer products at higher price, and still making 753m on 60 odd billion of revenue.