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Tesco profits down - where they have gone wrong?

303 replies

Funions · 02/10/2013 19:47

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.

Dear Tesco....

This is where you have gone wrong...

OP posts:
Howstricks · 02/10/2013 22:38

I've moved away from Tesco because of the quality. The staff in our local Tesco are, on the whole, very friendly. The location is convenient. The prices aren't great and the deals are usually worthless trickery (do they really think we are that daft!) ...but the quality. Gristly meat, bacon with so much water it boils rather than fries, fruit and veg that is damaged and spoils within hours, rock hard french sticks. Waitrose and M&S have the quality. Lidl and Aldi have the prices and often the quality also, Morrisons has good deals and variety...but Tesco is expensive without quality.(I don't like Asda..ours always seems to be full of people shouting at their children!!). I might link this to Tesco head office to see if anyone is listening!

eggyhead · 02/10/2013 22:40

Special offers are just too confusing.
I feel like they are constantly trying to rip me off - reducing pack sizes but keeping price the same in the hope we won't notice. Just put the price up!!!
Not enough British produce in veg/fruit/meat.
Meat and fish always looks horrid.
Ridiculous price increases - tortilla chips jumped from something like 25p to 46p.
Some of the shops are too bloody huge.

Give me ALDI and LIDL any day... or Waitrose if I'm feeling flush.

usualsuspect · 02/10/2013 22:40

The only way Tesco can compete with Aldi or Lidl is to reduce prices.

BeCool · 02/10/2013 22:42

Aldi and Lidl have shown if you focus on the food instead of customer manipulation it works.

Ie my big tesco will sell cashew nuts all over the place - at least 6 different places that I've noticed - and the prices vary hugely. Different shoppers, different priorities and motivations will buy different cashews. Some paying well over the odds. Clever tesco and their marketing analysis team.

Aldi/lidl will have 2 bags of cashew nuts together. Cheap. Tasty. Clever lidl. Grin

Howstricks · 02/10/2013 22:43

Usualsuspect...I've always shopped in Lidl regardless of the economy....I used to feel like (and still do) I was at a continental supermarket, like on a day trip to France..and it was rather exotic!! Maybe I should get out more. Grin

usualsuspect · 02/10/2013 22:45

I was shopping in Aldi 10 years ago.

Way before MN discovered it Grin

Mind you, I only get a few bits from there. I much prefer Asda.

feelthis · 02/10/2013 22:48

My local tesco could have red lentils in 4 different places in the store, all different packing and different prices. Drives me absolutely crazy and make me rage inside!

I feel by doing this that Tesco belittles their customers and show complete disregard for them.

usualsuspect · 02/10/2013 22:50

I have loads of Tesco points saved for Xmas,plus my DDs discount.

So Tesco is not all bad.

TheOneWithTheNicestSmile · 02/10/2013 22:54

even at 4 to 1 (ie 4%) Tesco points are worth less than the savings from shopping in Aldi instead (ie c 25%)

pindorasbox · 02/10/2013 22:54

This reply has been deleted

Message withdrawn at poster's request.

TheOneWithTheNicestSmile · 02/10/2013 22:56

oh, now I understand

usualsuspect Wed 02-Oct-13 20:36:20
I prefer Asda, it's cheaper and has better offers.
Can't stand Aldi, too small and scruffy and hate the faff at the till and packing bit.

usualsuspect Wed 02-Oct-13 20:41:24
My DD works in Tesco,I will tell her how shit she is shall I?

usualsuspect · 02/10/2013 22:58

You understand what?

BeCool · 02/10/2013 22:58

I was shopping in Aldi 20 years ago - in Germany! I loved it then and I love it now.

I'm not flush but I'm not skint. And I don't have an Aldi or Lidl close to where I live. So I shop there when visiting friends etc.

I do like the prices, but I actually shop there because I like it. I do feel a bit as if I'm abroad. And it is more straightforward and therefor appears, at least, to be more honest.

trikken · 02/10/2013 23:01

I love Tesco. Its the best around here.

BeCool · 02/10/2013 23:04

Tesco certainly aren't alone in reducing content rather than increasing price.

All the supermarkets and most major brands have been using those tricks since the recession started. It's well documented.

Follyfoot · 02/10/2013 23:04

To those of you complaining about the customer service in Tesco, there is another aspect to this... my DD works on a customer service desk part time whilst she is studying. There are normally two people on the desk but because no-one is keen to work one particular shift she does, she always works alone on what is one of the busiest times of the week. She is regularly sworn at, people try to steal things, she has to refuse to serve drunk people who are then vile to her, people lie about giving her a £20 note when they actually gave her £10, one man staged a sit in when she wouldnt phone a mobile company to refund his top up because he had bought a card for the wrong provider, she has been threatened and has to deal with all sorts of oddball characters during every shift.

One regular - nice - customer told DD recently how sorry she felt for her having witnessed how customers behave.

Its not always easy on the other side of the counter.

niceguy2 · 02/10/2013 23:05

Oh and whilst we're at it, ffs stop building these giant Tesco Extra's.

The new one near us is literally the size of a football stadium. It's baffling and takes me too long to get from one side to the other. I really don't want to see a Gregg's and a Costa coffee in my supermarket.

To make matters worse for some reason my phone barely gets a signal in it meaning when my wife inevitably wanders off I spend ages trying to find her.

As I'm sure many posters will tell you, size isn't everything and there comes a point where something that's too big isn't welcome anymore.

buss · 02/10/2013 23:07

security guards very visible as you walk in...I don't like that. Unwelcoming.
Quality of fresh veg/fruit is poor.
Stores don't look as clean as Sainsbury's and Waitrose.
Queues at checkout too long.
The 'offers' are always on junk food.

I love Aldi and have become a bit obsessed with going there now...!
It's quick to get round, staff are friendly but not in your face and the quality is amazing for the price.

BeCool · 02/10/2013 23:08

niceguy. It's virtually impossible to make a phone call in most of Westfield London - Dear Vodafone, your customers do like to shop and use their phone!!!

Kills me that does.

GobbySadcase · 02/10/2013 23:08

I boycott due to their employment terms.

Howstricks · 02/10/2013 23:09

Becool..glad to hear someone else enjoys the continental buzz..it's like a little holiday for me without Easyjet!!! My goodness, I need a hobby!

niceguy2 · 02/10/2013 23:12

Becool, signal returns as soon as I exit Tesco. Personally I think it might have something to do with the roof and also the fact that Vodafone are pretty shite.

But ultimately I go to Aldi and have been doing so for over a decade now quite simply because I get same/better quality food at a fraction of the price.

We can do a weekly shop for 5 for less than £100. The equivalent shop in Tesco I think would easily be 40-50% more.

Monty27 · 02/10/2013 23:12

I'm answering the OP.

Where have they gone wrong? Just about everywhere imo, the greedy low down, low life, lying, misleading cheating scumbags. Hell rub it up them, may they continue their demise.

I think it was the horse meat and Workfare that rumbled them. Well, that's what did it for me anyway.

Hope you're reading this Mr Tesco Angry

BoffinMum · 02/10/2013 23:15

I just cancelled my Tesco order on the basis of this thread, and redid it on Ocado, and it was cheaper, so thanks everyone! Grin

buss · 02/10/2013 23:15

I've only been shopping in Aldi for about 8 weeks.
I am kicking myself about all the money I've wasted shopping at overpriced supermarkets over the years...I could have saved thousands.
It really is bonkers to shop anywhere else - such a waste of cash.