To think that the supermarkets are the bigger profiteerers out there.

[dinosaurcookie]

I've had to do my first big shop since this properly hit. No offers on anything anymore. I realise that they have had to employ extra staff but that is due to increased sales so wouldn't affect their overall margins. Just venting really as I reckon I'm spending a lot more on basic groceries at the moment.

This again?

They removed offers to stop hoarding/overbuying

They could’ve reduced the price though.

Plus they now sell 420 tea bags instead of 80 for example

People in low wage or benefits will really struggle

They removed offers to stop hoarding/overbuying

This. Not sure what you expect really, they’re still running a business with huge overheads. They’re not a charity.

Of course they said it was to stop hoarding/overbuying, but surely this is achieved by restricting the number of each item you can buy? All taking away offers does IMO is increase their profit margins and make it harder for struggling families.

My dad just been telling me how impressed he was with Tesco yesterday for their handling of the CV ( I hate Tesco! ) and said that they’ve reported a 30% increase for March 2020 compared to March 2019.

Of course theyve had an increase

Everyone has to buy food now for home instead of eating out etc

Yep. I have to cover lunches 5 x 5 usually at school or work.
No takeouts, although a few deliveries available.

Plus where I would normally get x from one shop and y from another I now get what I can from as few places as possible.

@counciltaxquery I agree and you have explained my thinking more clearly. I understood the rationale initially but it's calmed down somewhat and the restrictions on the number of items you can buy should prevent over buying. I am concerned about the impact on low earners and wonder how this is sustainable long term for them.

Just venting really as I reckon I'm spending a lot more on basic groceries at the moment.
Not being grateful that they have kept supply chains open and shelves (semi)full? OK then.

Suppliers fund the offers not the supermarkets in most cases so with a few exceptions it isn't just down to the supermarket. Also, while its easy to say that increased staff costs are covered by increased sales, recruitment and training isn't without it's own costs.

To be fair, they’re a business, not a charity, why shouldn’t they profit?

Their increased March sales will be because people chose to panic buy, their sales will go down as people use up everything they overbought and start going shopping as little as possible. This will have caused extra expense for them too with staff off sick and all the new signs and extra cleaning etc.

People are buying more at supermarkets because they can’t eat out, but that shouldn’t make any difference to those people who made all their food at home because they’re low income.

They are profiting not profiteering.

Pharmacies selling face masks for £5 each are profiteering..

Ok there are some points I had not considered about training and the eventual slow down of purchasing. Was probably in too much shock to consider all angles I'll just have to suck it up.
And I do appreciate the work they have been doing, that was not in question.

DD works in a supermarket. They are being paid extra bonus payments for basically putting themselves at risk every time they go to work. The supermarket has also given them free meals whilst on shift and is buying in protective gear for them - visors for shop floor staff and screens for check out staff.

The supermarkets recognise that they are earning more and are ploughing some of it back to their staff. Local branches have also taken donations to care homes and NHS staff - not sure if this is down to local management or is nationwide instructions. They are also contributing to food banks and collections in our local area.

As pp says - most of the offers you see in a supermarket on branded products are funded by the manufacturer. It's only on their own brand stuff that the supermarket funds the promotional activity.

From the BBC...

'Tesco said the virus could add almost £1bn in extra costs due to extra staff and store expenses.'

Tesco are screwing their suppliers, doubling and tripling orders then fining the companies when they can’t produce at 3x the Xmas level which is what would be required. The nationwide dairy/cheese producer DH works for has 30% of production staff off self isolating, Tesco just keep ramping up the orders. None of the other supermarkets treat their suppliers as badly as Tesco, it was exactly the same when DH worked in chicken.

The offers on brands are deals done with suppliers. You really don't understand how grocery retail works so don't comment on it.

Any business that sees a huge increase in profits directly linked to the virus should donate/surrender the surplus profit to the country. It would help to offset the increased costs in benefits to furloughed staff, small businesses and the NHS.

Sadly I don't see this happening and some shareholders will come out of this better off while most of us will be facing many more years of austerity.

'Tesco said the virus could add almost £1bn in extra costs due to extra staff and store expenses.'

I read that too. They are letting staff stay home on full pay if they or their family are high risk/pregnant, and have taken on a huge number of extra staff. They've needed new equipment such as screens at every checkout, and hav spent a fortune on keeping the food chain going in other ways (I can't remember all the details).

I don't know at which end of profit and loss they'll be at the end of all this, but no, I don't think they're profiteering or over charging at all.

Tesco had had a couple of really shit years before 2019 though, hadn’t they? Not saying they are saint like charity types, but in general grocery trade is very low margin. Also I know a couple of people who have worked for them in a central capacity who said they were vg employers, also have supplied them from my old industry - they were bad but not the worst.

I think the supermarkets are doing very nicely out of this crisis - I'll look forward to seeing their profit figures at the end of the year proving my point. It did make me laugh when they said they were removing offers to discourage over-buying, this has the effect of raising prices and profits - they have been asked for years to stop with the 3 for 2 offers to reduce food waste - they never listened - why was that?

Supermarkets food will do well, of course they will. Panic buyers, & now households are buying food for 3 meals a day. I really don’t think often profiteering as being a bad thing.

DH works for a large supermarket, petrol is down 70% on this time last year.

YABU. Their sales may have gone up, but so have their costs. Recruitment and basic training is extremely expensive (hundreds of pounds per person).

Like most have said here: the increase in cost to keep the company running, as well as customers and colleagues safe has been massive.

They have not put anyone on furlough (therefore not using the tax payers money to pay staff who cant work) but are paying colleagues who cant work full pay as normal.

The jump in sales will not be sustained as people stop panic buying and there will likely be a huge shift in how people continue to shop once this is over. Most of the mid to long term strategy will need to be thrown out the window and started from scratch.

Costs have gone through the roof to get stuff to stores - more lorries, more drivers, more pickers, massive overtime. Turnover is way up in stores, but that won’t necessarily translate into profits once all the costs wash through.
Promos are cancelled because Suppliers can’t support them with additional stock at the moment. they’re focusing on getting essentials out to every retailer; they aren’t doing bulk deals - everyone gets their fair share of what’s coming off the production lines.