Tesco profits down - where they have gone wrong?(304 Posts)
Not so very long ago, Tesco used to be held up as a massive UK business success story. I've read Tescopoly and sure some people despise them - they've enraged farmers and the protest lobby by aggressive policy with suppliers,store-expansion and squeezing out independent shops.
They've made a bunch of bad decisions outside the UK; but they had a huge loyal customer-base in the UK and a lot of their problems must come down to complacency and not thinking enough about their home-grown customers, despite the masses of data they collect through clubcards.
I'll post my own personal reasons for reducing my shopping with them, but think it would be interesting to have an open-forum to see just how out of touch and poor they have become, with stories from MNetters. Maybe someone from Tesco will read it and have a think about what they can change.
This is where you have gone wrong...
Actually,that is a good point about Tesco being the only choice in some areas and they are embraced with open arms.
I love living in a city with all the choice, howev I used to live in a very small town and the choice was Somerfield (lovely) or coop. So when Tesco came to town everyone was quite simply delighted as it represented choice and value (coop and Somerfield were very expensive and small stores so very little choice).
I admire coop for their ethical principles but their food is utterly dire. I would never buy anything (apart from wine admittedly) from there.
The lovely in brackets next to Somerfield is sarcasm.
It was the worst shop ever.
My mum was always going on about how good her local Somerfield was. Now she is chuffed to bits about rumours that it's going to become a Morrisons so I guess the novelty has worn off . At least it's not yet another Tesco though, there are quite enough of them around here. The latest thing is buying up failing pubs.
I've been boycotting Tesco for months because of their use of workfare.
I very rarely go into a Tesco. Had to call into one the other week at lunchtime for some stuff. Wanted full fat milk and some meat.
I usually pay £1 for the milk at aldi, lidl, Iceland or asda. All within a mile of my house. Tesco was about 30% dearer, but the multibuy was 3 for £3. Whose fridge is big enough to keep 3 before one of them goes off! But hey ho I couldn't buy any anyway, as at 12.15 pm the milk section was totally out of full fat.
I did get my meat which I stored in the fridge at work and took home in the coolbox I keep in my car. So it didn't go off in transit or anything I am sure. I usually buy meat from a local butcher whose family owns a farm 5 miles from me. I hadn't realised what spectacular quality and value I am used to from this man, until myds1 - who will eat ANYTHING - said his meat was horrible and started spitting it out!
So, I haven't been in a Tesco for several years, and won't be going back.
and btw aldi started springing up near us 20 years ago and I have never been embarrassed or ashamed to say I shop there!
Just seem to be bullies, food not fresh and I deliberately go out of my way to avoid them. The exterior of shop is a complete eyesore. Amazed that it has lump of concrete wall no planting or landscaping and just brings down a really lovely neighbourhood in London.
Makes me feel ill going past them.
LeGavrOrf our somerfield was bad, it's been bought up by Coop and is now even worse. Other choices a spar (£££££) and a too small sulking Tesco.
Tesco is sulking because the council did give them planning for a decent sized shop. Therefore no investment and frequently broken freezers.
I really wish they had. I don't think it would have hurt the middle of town at all, just bought people in from a huge area.
What kills small towns is parking charges and business rates not supermarkets.
tesco donated to the tories - 50 K via CAtherine baxendale
if thats not enough - google 'cheshunt oversees' the tax dodge company through switzerland saving them 100mil also google how they dont pay stamp duty land tax - about 100 mil
they squeeze the farmers profits and positively encourage awful farming practices - as do all big supermarkets
they kill small business.
My local Express part of petrol station so making loads of money selling stale food, flowers that don't smell - flippin awful interior. We all know that they are screwing suppliers and giving us terrible food at rip off prices. Gawd knows what they do to staff. I dread to think.
They can't be arsed for for over 15 years to do anything with rear wall and 25 x3 foot strip street area adjoining Harley Davidson shop. It looks like a half built concrete bunker. Why not make it look good? Plant it up Grow food and give it away. Sell stuff for charity. Let people selling use it to sell stuff.
Harley Davidson spent millions on their place. Every other retailer here make such an effort. I will never buy petrol or goods here and ban my friends from doing the same.
Hate to think how they treat their staff and why should this shop have free parking and others don't? It should make itself a hub for doing good. all that financial muscle and the locals don't benefit in any way.
Why don't all shops in Fulham and Chelsea have free 45 min parking for locals? Come on Eric Pickles help us out here.
Reading all the other stuff about tax - Blimey they should be run out of the country. What are they doing for UK plc. It looks like theft and fraud - Jeez what incentive is there to shop there?
Why don't big companies like that have a bigger heart. They need someone who is not left or right with a big heart to run that company for the benefit of the country. Someone with some spiritual values. Shareholders will get honest dividends. How can they sleep at night knowing they are part of the BIG/MAJOR problems in this country?
Surely if you deal with the big problems the smaller ones will come good.
Where have they gone wrong and would they change it- probably not!!!
They grabbed the market with their cheap prices on everything from a curry to a tv but then started playing roulette with the prices, hikes, hikes and then supposed 'offers', when in fact in reality these 'offers' were no way as low as the original prices.
People are not idiots and i for one noticed their scams when i noticed my shopping totting up by £ £ £ every week! I no longer shop there apart from occasionally.
I also noticed their outfits for kids have gone up from average £10 to £12-£15
Have to agree with usual, i do agree it's become trendy to shop in aldi for whatever reason. When i was a teenager, about 13 - 16ish my dad was unemployed for a while taking care of me and my teenage brother and aldi was where we HAD to go, we just couldn't afford anywhere else and we had the piss taken out of us for it. Now aldi is "cool!"
Also the reason tesco's customer service is so shit is because they treat their staff like shit. They only get time and a half on a sunday now and the odd bank holiday, like a boxing day, if their attendance goes above 3% which doesn't take much, they have to go through awful meetings where the managers ask them every detail about illnesses (including things people might not want to go into detail about like cancer issues, miscarriages etc) then leave them waiting for ages whilst they decide if said staff member needs a "displinary" for being ill Also the old express's used to have a mystery shopper bonus which gave staff an incentive to work hard and provide good service, it's now been scrapped so tesco can save money! You get treated like shit working for them and for some people right now, it's hard to find another job these days and you get stuck there in a job you hate!
As well, in our town tesco is actually your main option! The nearest supermarket is a very small morrisons so you can't get all you need there and you have to go a good 7 miles to get to asda. But we do have a large tesco extra and two express' in our small town. :/
Everyone says Tesco's staff are treated badly and yet our Tesco's has far nicer, mote helpful and more cheerful staff than anywhere else.
For awful miserable staff, I give you toysRus
" if their attendance goes above 3% which doesn't take much, they have to go through awful meetings where the managers ask them every detail about illnesses (including things people might not want to go into detail about like cancer issues, miscarriages etc)"
That's fairly standard hr procedure, 3% of full time is 8 days a year. My public sector job does the same so it's hardly a big evil capitalist thing.
The same goes for part timers though, so if they are contracted 2 days a week it won't take much for them to be pulled in about it. They make a LOT of profit to and don't pay for the first three days sickness either. Tbh i can see why the staff are so miserable working there.
the main reason is an absolute refusal to move the parent and child spaces from immediately outside the store, whilst the disabled places are further away.
Other than that, rubbish fruit, rubbish veg and a significant increase in price whilst there is a decrease in size, for example, own brand tinned drinks (lemonade, ginger beer) are in packs of four now, rather than six.
For me, the main reasons I don't shop at Tesco anymore are because their prices are not competitive enough and I have also,discovered the delights of Aldi!
I still get my petrol at tesco for the club card points but I always get the impression I'm being ripped off if I ever do a big food shop there.
Tesco does NOT represent good value for money!
Amusing reading posts about Aldi up thread. I think it's brilliant how popular its become and I never feel embarrassed about shopping there. I'm more embarrassed for the people who are
You are far too pricey,I pay 75-85 for a big shop in Aldi and 120 plus in tesco!
You've hit the nail on the head valium
I'm always so pleased and surprised when I get to the till at Aldi. I average about £60 a week for a family of 5. Bet it'd be loads more at tesco.
Aldi is very cool isnt it. We dont have one around here but have almost everything else. Tesco are predatory. They come into a town regardless and use their money to tempt the council to allow them in. The Tesco in Gerrards Cross took 10 years to get in here. They just wouldnt give up. Now the shop has been here about 4 years. Complete rubbish. Had a big car park built with a nice little gate to take you to another part of the town. Then Waitrose came in. Tesco tried to close the gate and failed!
So, now people using Waitrose (which is lovely) park in Tesco and just walk through the gate to get to Waitrose.
I think councils should limit how many supermarkets come into a town. Gerrards Cross is not big, has been ruined by greedy landlords so consequently it has a Waitrose, a Sainbury, a tesco and a M&S food. The High Street is now full of charity shops..
Customer services is APPALLING! I never complain, but complained last year because a woman on customer services was so rude, she really upset me. I got a phone call from them asking me to tell them what had happened, but no apology.
I resent the clubcard scheme. I'd much rather their prices were lower, with no need to award points and give vouchers, like Asda...I feel they are more honest. Clubcard is just a sneaky way of Tesco finding out your shopping habits and using it to increase their profits even further. I'd love to know how many clubcard vouchers never get redeemed too.
Meat terrible quality compared to farmers' markets.
If they weren't the closest shop to me I'd never use them.
And yes, I agree about staff continually looking bored and disinterested. I worked for them when I was 18 and they had this policy of '1st class service' . That's obviously been abolished. I thought they were great up until very recently. I really don't get what's happened...have they had a change of management?
Saw this thread whilst wondering if to post on Tescos new look stores.
I have 2 large Tescos near me, they have both been re laid out with the result of half the store not having a sole in and the other half has people queuing to get down the cheese aisle.
Last Thursday I ended up abandoning my basket because it was taking me so long to get down the aisles. I expect to queue to pay but I do not expect to queue for each item.
I went into my other local Tescos today only to ask where they have put different items. Stock reply was they don't stock that item anymore.
Together with them loosing my years points online and no longer being sure whether they stock the item I have gone in for my Tesco days are behind me.
I cannot see myself venturing in there again. Life's too short. Long live Lidl.
Tesco treat everyone like they are stupid with extremely short term memory. They are rude and expect you will not notice. They charge ridiculous prices and the amount of profit they make on individual items is truly shocking!!
Think a £3 mark up on Kelloggs cereals Yet they appear to think customers do not notice.
The difference in quality of their fresh fruit, veg and meat as opposed to any other shop is terrible. In fact, there is only one other supermarket who I point blank refuse to go to based on quality of food and that is Asda.
They rip off farmers and force small businesses to close and they flout rules that other businesses have to abide by. For example, they will apply for planning permission to build a 20000sqft store in X town. This will be granted. Tesco will then build a 25000sqft store, and when it is built, if it is opposed, Tesco go to the press and accuse X council of preventing it's people from securing employment because X council want the new store demolishing. They manipulate councils through the press as well as in other ways.
From my own personal experience, the staff are unknowledgable. I accept the argument that the staff have probably had very little training, but when I am stood at the butchery counter and I ask them if the beef I am looking at is OTM or not,
yes I have explained to the staff what OTM means or if I could use a particular cut in a stew, they look at me blankly and say they don't know. They then wander off to find someone who does know. I am kept waiting about 10 minutes until the same member of staff returns and says they can't find anyone. Bad service.
They do not expect customers to ask their advice on a butchery or a deli counter. They do not know the answers.
On Christmas eve, I nipped into the Tesco Express, and whilst at the till, mentioned that I was glad they were open or I would have had to go without what I was buying. The staff member raised her eyebrows and said 'It's not good for us working Christmas eve, It's crap!!' The other checkout assistant then chirped in 'We shouldn't have to work today, it's only the customers who are happy about it.' She then rolled her eyes.
I said nothing. It all seemed too much of an inconvenience for the staff, they sighed and rolled their eyes.
I don't really see why they shouldn't work on Christmas Eve.
Have shopped at Tesco for over 30 years and have enjoyed lots of holidays and days out courtesy of clubcard BUT this year I have taken my business elsewhere and probably only go to Tesco once a month if that.
Mainly because of what others have said but my own reasons were no BOGOFs to speak of, smaller portions in the 3 for £10 meat packs, boned chicken thighs going from a cheap meal to nearly £5 a pack, ham changed from 2 for £3 to 3 for 2 for a while along with other sneaky re-pricing, never any bargains or specials on the meat/cheese counter could go on and on, own brand Eco wash stuff very rare now along with everyday kitchen towels.
The worst thing is e.g. Crisp aisle, major BOGOF on 24 pack of walkers but all have been sold and replaced with non-discounted slightly different bags BUT the BOGOF label hasn't been removed. Aaargh! This happens so often that everything you pick up has to be checked for weight and name to make sure you have the right product.
I notice they copy other supermarkets when they think they are missing a trick but don't have what it takes to carry it off. E.g. Bakery makeover, a complete copy of Morrisons but without the products or personality.
Don't like Sainsbury's for overpriced stuff. Bagged salads and potatoes are the worst! Like Waitrose but can't afford to do major shop for non-food stuffs there. Would love a Morrisons !
I like self-scanning at Tesco though, it's a good way of checking prices as you're going round. And also grated cheese is still on the 2 for £3 offer. Sorry Tesco, these two things are not enough to make me want to come back to you!
Join the discussion
Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.Register now
Already registered with Mumsnet? Log in to leave your comment or alternatively, sign in with Facebook or Google.
Please login first.