Tesco plans discount chain.

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This seems more like an accounting trick to spin off losses to a new entity rather than meaningfully trying to compete. Even following the Booker deal it's tough to see Tesco regaining it's image in the long run.
21 Comments
Good news I think, but I have little confidence they can pull it off.
MSK.18 m ago

Good news I think, but I have little confidence they can pull it off.


I dunno they have plenty of resources sites to build new stores if required.
This seems more like an accounting trick to spin off losses to a new entity rather than meaningfully trying to compete. Even following the Booker deal it's tough to see Tesco regaining it's image in the long run.
chaywa3 m ago

This seems more like an accounting trick to spin off losses to a new …This seems more like an accounting trick to spin off losses to a new entity rather than meaningfully trying to compete. Even following the Booker deal it's tough to see Tesco regaining it's image in the long run.


Missed that can't be good news surely
theguardian.com/bus…ght
Wongy11043 m ago

Missed that can't be good news …Missed that can't be good news surelyhttps://www.theguardian.com/business/2017/nov/14/tescos-37bn-takeover-of-booker-given-green-light



you would think but thats not what the monopoly and mergers commission thought when they waved it through, the next one for them is two of the big utility companies and if that gets waved through we will all be sitting here shaking our heads thinking why do we bother with the commission.

On the new plans, read comments on another place which sums it up, tesco will think its all about cost with lidl and aldi but its not, sure cost are important but costs and quality go hand in hand. Tesco will think lets do their own brand version, their smart price whatever its called and that will be enough but if quality doesnt match then they have no chance.
Lessco?
why dont tesco just lower their prices?
themachman12 m ago

why dont tesco just lower their prices?




Because they want to make money
Aldi/Lidl have a very focused business plan
and to ape them completely they would have to refit every store and retrain nearly every employee.
eslick5 h, 54 m ago

you would think but thats not what the monopoly and mergers commission …you would think but thats not what the monopoly and mergers commission thought when they waved it through, the next one for them is two of the big utility companies and if that gets waved through we will all be sitting here shaking our heads thinking why do we bother with the commission. On the new plans, read comments on another place which sums it up, tesco will think its all about cost with lidl and aldi but its not, sure cost are important but costs and quality go hand in hand. Tesco will think lets do their own brand version, their smart price whatever its called and that will be enough but if quality doesnt match then they have no chance.


Own brand Aldi/LIDL + Marketing = Own brand Tesco/ASDA
davewave2 h, 6 m ago

Own brand Aldi/LIDL + Marketing = Own brand Tesco/ASDA


Wouldn’t say it’s added marketing, added quality yes but marketing no.we moved to Lidl a year ago and everything is own brands and think we have only see one or two poor quality items but we don’t buy the processed typed foods so could be that. One thing we always bought was Heinz tomato sauce, could never get away with any other but Lidl’s is better choice between the two and it’s Lidl’s from now on.
eslick13 m ago

Wouldn’t say it’s added marketing, added quality yes but marketing no.we mo …Wouldn’t say it’s added marketing, added quality yes but marketing no.we moved to Lidl a year ago and everything is own brands and think we have only see one or two poor quality items but we don’t buy the processed typed foods so could be that. One thing we always bought was Heinz tomato sauce, could never get away with any other but Lidl’s is better choice between the two and it’s Lidl’s from now on.


So you moved to own brands after buying from Lidl...you could move to own brand ASDA and find the items made in the exact same factory with Made for ASDA rather than Made for LIDL on the packaging...the marketing has you suckered imo.
davewave33 m ago

So you moved to own brands after buying from Lidl...you could move to own …So you moved to own brands after buying from Lidl...you could move to own brand ASDA and find the items made in the exact same factory with Made for ASDA rather than Made for LIDL on the packaging...the marketing has you suckered imo.


Could be but in many cases the stores have their own recipes, different quality product going in. of course there are something which are identical but not everything and even some of the own brands in the likes of Lidl and Aldi are made by the big name manufacturer just have to look at the threads on here to see people open multi packs to find the brand name package mixed in with the own brand. Cheese is cheese, quality fresh meat is fresh meat, carrots are well you get it,those are the things we buy and quality of those items don’t compare with the smart price items.

For us there are a couple of savings, first the brand piece but second is you only buy what you need you don’t come out with stuff you would just pick up in a the big supermarket as they don’t have that extra stuff. We are converts if we go to the big supermarket now we get shocked at how expensive it is even buying comparable item.
chaywa22 h, 2 m ago

This seems more like an accounting trick to spin off losses to a new …This seems more like an accounting trick to spin off losses to a new entity rather than meaningfully trying to compete. Even following the Booker deal it's tough to see Tesco regaining it's image in the long run.



How do you see that working?
Tesco have a completely different business model to Aldi / Lidl so then can never compete.

Don't forget that Tesco charges suppliers if they want their products at the important eye level shelf area, they charge suppliers each time a customer returns something and when they have an offer or buy one get one free etc, it's the supplier who is providing the offer, not Tesco. Suppliers are also required to help pay for store upgrades, and other fees to get Tesco to stock their products. Tesco also have a lot of money tied up in land/property they have bought in order to prevent rival supermarkets aquiring it.

The discounters, on the other hand, can't operate most of these money making schemes as most of the products are own label, so they compete on the quality of their products and the efficiency of their operations.

This is why Aldi had just been voted the UK's best supermarket ahead of Waitrose and why Tesco was in the bottom third.
Pandamansays19 m ago

Tesco have a completely different business model to Aldi / Lidl so then …Tesco have a completely different business model to Aldi / Lidl so then can never compete. Don't forget that Tesco charges suppliers if they want their products at the important eye level shelf area, they charge suppliers each time a customer returns something and when they have an offer or buy one get one free etc, it's the supplier who is providing the offer, not Tesco. Suppliers are also required to help pay for store upgrades, and other fees to get Tesco to stock their products. Tesco also have a lot of money tied up in land/property they have bought in order to prevent rival supermarkets aquiring it.The discounters, on the other hand, can't operate most of these money making schemes as most of the products are own label, so they compete on the quality of their products and the efficiency of their operations. This is why Aldi had just been voted the UK's best supermarket ahead of Waitrose and why Tesco was in the bottom third.



Suppliers don't help pay for store upgrades or special offers.

They do get charged for prime shelf space and obviously for items returned/product recalls etc.
CoeK46 m ago

Suppliers don't help pay for store upgrades or special offers.They do get …Suppliers don't help pay for store upgrades or special offers.They do get charged for prime shelf space and obviously for items returned/product recalls etc.



they do, every bog off special isn't paid for by the retailers, its the suppliers whether they are big or small the supplier pays the likes of tesco a fortune. they also pay for special point of sale, in store adverts. to make matters worse, if you supply a supermarket they expect you to wait for payment until they are ready to pay, again size of supplier does not matter they will hold out as long as they can, but when you have to pay them for the bog offs specials, etc that has to be there on the terms, an hour late and they are on the phone.
eslick54 m ago

they do, every bog off special isn't paid for by the retailers, its the …they do, every bog off special isn't paid for by the retailers, its the suppliers whether they are big or small the supplier pays the likes of tesco a fortune. they also pay for special point of sale, in store adverts. to make matters worse, if you supply a supermarket they expect you to wait for payment until they are ready to pay, again size of supplier does not matter they will hold out as long as they can, but when you have to pay them for the bog offs specials, etc that has to be there on the terms, an hour late and they are on the phone.



Do you have something recent that says all that? As far as i know the new CEO changed all of the charges in 2015.
Pandamansays2 h, 34 m ago

Tesco have a completely different business model to Aldi / Lidl so then …Tesco have a completely different business model to Aldi / Lidl so then can never compete. Don't forget that Tesco charges suppliers if they want their products at the important eye level shelf area, they charge suppliers each time a customer returns something and when they have an offer or buy one get one free etc, it's the supplier who is providing the offer, not Tesco. Suppliers are also required to help pay for store upgrades, and other fees to get Tesco to stock their products. Tesco also have a lot of money tied up in land/property they have bought in order to prevent rival supermarkets aquiring it.The discounters, on the other hand, can't operate most of these money making schemes as most of the products are own label, so they compete on the quality of their products and the efficiency of their operations. This is why Aldi had just been voted the UK's best supermarket ahead of Waitrose and why Tesco was in the bottom third.


Yes that why they are thinking of setting this up

Both points you made are mentioned inthe articles in the op
CoeK2 h, 16 m ago

Do you have something recent that says all that? As far as i know the new …Do you have something recent that says all that? As far as i know the new CEO changed all of the charges in 2015.



work in the industry, nothing has changed, still the same and we are one of the biggest suppliers. would add more but better not
Edited by: "eslick" 13th Feb
Seems like this is imminent.

theguardian.com/bus…idl
Jack's ? a little AC/DC with your carrots ?
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