Tesco – the Cuddly Capitalists

Deub

odyssey06 wrote: »

This seems pretty unethical to me... no idea if the same thing happens here or is conducted by other supermarkets operating here though.

http://www.farmersjournal.ie/tesco-intentionally-delayed-payments-to-suppliers-to-support-profits-198992

UK retail giant Tesco has been found to have “seriously breached” a legally-binding code to protect suppliers to the grocery sector in the UK, according to the grocery market watchdog in the UK. Christine Tacon, the groceries code adjudicator, identified three key issues during her investigation into Tesco that arose after the retailer admitted to overstating profits in 2014. Tacon had serious concerns around unilateral deductions that Tesco had made against suppliers to maintain margins, the length of time the retailer had taken to pay some suppliers and in some cases, an intentional delay in paying suppliers in order to support profits.

To be honest, they are all at it. I don't remember the number of business that closed last year inthe UK due to companies not paying on time their invoices, but the number was not small (it was in the ten of thousands).

ThisRegard

jetsonx wrote: »

Much bigger economies of scale than Tesco.

Economies of scale built through their worldwide distribution of stores.

I don't think you're really aware of what you're saying.

For starters you're contradicting your very first post. By this post you're implying that the two Germans aren't using local suppliers and therefore not giving back to where they setup.

Junkyard Tom

Reed moar bookes.

CeilingFly

The German retailers have cut many costs out of the business model.

No music = no royalty payment

Smaller range of products - less choice, but more volume per product.

Only employ staff who are fit and willing to multi task and work hard - they pay better than dunnes / tesco.

Very little time wasted on stocking shelves - most items come in boxes ready for display. Even the opening is pre-cut out so rarely even have to open boxes.

Speed checkout system - if you are not fast enough, you pack at the window.

All these efficiencies add up. Doesn't suit all shoppers, hence there's a market for everyone.

odyssey06

ThisRegard wrote: »

You don't know if it happens here but still use it to answer the question?

Yes. Tesco is Tesco. If it wasnt, they couldnt use the same name here and across the water.

ThisRegard

odyssey06 wrote: »

Yes. Tesco is Tesco. If it wasnt, they couldnt use the same name here and across the water.

Two different legal entities, different head offices, buyers, suppliers etc.

odyssey06

ThisRegard wrote: »

Two different legal entities, different head offices, buyers, suppliers etc.

Who report to the same owners.
Tesco Ireland sources some products direct from the UK, reusing Tesco UK suppliers both for branded and tesco label products.

https://www.rte.ie/news/2009/0505/116976-tesco/

ThisRegard

odyssey06 wrote: »

Who report to the same owners.

You mean shareholders, board or CEO?

freshpopcorn

snowflaker wrote: »

.

Speed checkout system - if you are not fast enough, you pack at the window.

This is one thing I find Aldi/Lidl have gotten less strict on!

Richard Hillman

I think its a nice ad despite the virtue signalling.


I went to Lidl a while back and found it much more expensive than Tesco. Plus all the food goes off within a week.

coffee_cake

MilesMorales1 wrote: »

Lidl and Aldi are **** though.

I think they're brilliant!! The amount of decent stuff you can get and fill your shopping bags for like 20 quid

maudgonner

Junkyard Tom wrote: »

Reed moar bookes.

Francine Prose is a novelist. She writes books...and is promoting books, telling us how great books are and how we should all be reading (and buying) books. Ironic really

jetsonx

Richard Hillman wrote: »

I went to Lidl a while back and found it much more expensive than Tesco. Plus all the food goes off within a week.

Yes, maybe that's something to do with less preservatives...I'd prefer food to naturally "go off" rather then being chemically preserved.

odyssey06

ThisRegard wrote: »

You mean shareholders, board or CEO?

Whoever calls the shots at Tesco Plc... so despite the name unlikely to be the shateholders.

bluewolf

bluewolf wrote: »

This post had been deleted.

I'd venture 'money' is the answer?[?]. Companies which depend on the goodwill of the local community tend to support local clubs and societies all the time (i.e. give money back). It's called sponsorship, or advertising and is generally considered to be good for the company's image, and thus its bank balance. Why would you be surprised at this expectation?

Permabear wrote: »

I think you're confused about the role of a supermarket.

It's a business. Businesses operating in a locality tend to support social and cultural groups in the locality. It has been thus since the dawn of settlement, from long before the local lords gave patronage to/sponsored local harpists, bardic poets, church/monastery/hospital building and so on in the middle ages for the good public relations.

It's usually called sponsorship or advertising nowadays, and can cover anything from sponsoring the local GAA jersey to placing advertisements in the booklet for the local drama society's play. It tends to improve the company's pr in the community, and this transfers to more business. Why would you be surprised at an expectation that a supermarket/business in the locality, that depends upon goodwill from the community, is expected to do this sort of thing in return for the community's support for their business?

Junkyard Tom

maudgonner wrote: »

Francine Prose is a novelist. She writes books...and is promoting books, telling us how great books are and how we should all be reading (and buying) books. Ironic really

FANTAstic!

For Forks Sake

For Forks Sake wrote: »

Dunnes are a horrible company from the top down, some of their practices would put Tesco to shame, for some reason ("they're Irish") they seem to get a free pass from the complaining classes.

100% agree. The treatment by the Dunne family of their Irish suppliers has long been notorious, the terms of this 2006 deal being typical. There were many people in Ireland delighted to see RTÉ News that night in 1992 and watch Ben Dunne, high as a kite on cocaine with a prostitute pleading with him to come in off the ledge of that 17th floor balcony, piss away his position - and it wasn't just for Dunnes Stores support for apartheid South Africa/treatment of his employees who refused to handle apartheid goods. I would never shop in Dunnes for these two reasons in particular. I have never seen that company sponsor a single local club or society, either. Yet Lidl can manage it. There are too many people in the media today giving Dunne air time without asking tough questions about his support for apartheid, abuse of their dominant position against suppliers, or why he secretly gave a gift of £1 million to a politician.

nice_guy80

Deleted User wrote: »

100% agree. The treatment by the Dunne family of their Irish suppliers has long been notorious, the terms of this 2006 deal being typical. There were many people in Ireland delighted to see RTÉ News that night in 1992 and watch Ben Dunne, high as a kite on cocaine with a prostitute pleading with him to come in off the ledge of that 17th floor balcony, piss away his position - and it wasn't just for Dunnes Stores support for apartheid South Africa/treatment of his employees who refused to handle apartheid goods. I would never shop in Dunnes for these two reasons in particular. I have never seen that company sponsor a single local club or society, either. Yet Lidl can manage it. There are too many people in the media today giving Dunne air time without asking tough questions about his support for apartheid, abuse of their dominant position against suppliers, or why he secretly gave a gift of £1 million to a politician.

agree
I never shop in Dunnes

Mrs OBumble

Deleted User wrote: »

Compared to M&S, Tesco also does support the Irish food industry. M&S is really awful at not supporting the hundreds of thousands of people in our largest indigenous industry, agriculture. Unlike Tesco in Ireland, M&S in Ireland has a "Buy British" policy. More people should be made aware of this cost to our economy.

So what. There's a section of the grocery buying public in Ireland that like British brands, and goes out of its way to purchase them. We visited Iceland after it opened in Galway, and it was like Lidl/Aldi - except that the customers were mainly English/Scottish/Welsh, and the staff were African. Walking around the store was a whole new accent-experience.

I don't believe that such people should be forced to buy Irish brands, just because they happen to live in Ireland - any more than Irish people who happen to live in the UK should be prevented from buying Irish brands there.

Deleted User wrote: »

In short, give me Tesco over Super Valu - but I await a supermarket which can give us good value and give valuable support to local groups and societies.

I prefer supermarkets that give me cheaper groceries, and let me make my own choices about what local groups and societies I support.

Mrs OBumble

Mrs OBumble wrote: »

So what. There's a section of the grocery buying public in Ireland that like British brands, and goes out of its way to purchase them.

I don't believe that such people should be forced to buy Irish brands, just because they happen to live in Ireland - any more than Irish people who happen to live in the UK should be prevented from buying Irish brands there.

Feel free to do all that. If, however, M&S has a general policy of not buying from food producers in this state then it is absolutely right that this policy is pointed out for its obvious economic impact on local companies and communities. Then, people can decide to shop with a firm which supports jobs here, or one which doesn't. Nobody is "forcing" anybody to do anything so no need for the melodrama.

CeilingFly

odyssey06 wrote: »

Whoever calls the shots at Tesco Plc... so despite the name unlikely to be the shateholders.

Its ALWAYS the shareholders.

Underperform as ceo, or cfo or coo and the shareholders will make it known they want you out.

Shareholders vote in the board of directors and they have the real power.

whisky_galore

snowflaker wrote: »

wtf is a 'big shop'?

The "nuclear war" shopping trip.

I love Sean nos

jetsonx wrote: »

Yes, and that's the tip of iceberg. There appears to be an awful lot of evidence out there from reputable sources what a dirty player Tesco is.

The same can't be said for Aldi and Lidl.

I can't verify that. There have been a number of books and articles written on Tesco over the past decades and I've read some of them. Lidl and Aldi might be the same, but in German.

sbsquarepants

ThisRegard wrote: »

And unless you just bought a TV for the first time you'll have noticed that families have long featured in their ads.

I just bought a tv recently - 2 weeks ago, bought it from Tesco. Very impressed with it so I am, was a lot cheaper than Harvey normans. Cheers Tesco - keep up the good work.:D

sbsquarepants

snowflaker wrote: »

wtf is a 'big shop'?

Very similar to a small shop - just more of it.:)

I'm going to come right out with it and say I don't give a rats arse how Tesco or anybody else treat their suppliers - you don't have a god given right to grow turnips, or raise cattle - if you can't make money doing it, do something else plain and simple.

What I care about, is what I can get from them for my hard earned cash. I don't care if it comes from Termonfeckin or Timbuktu. My main concern is me and my family. If Tesco can put the squeeze on poor auld Paddy the turnip man and save me a few quid - then fúck Paddy, you squeeze away Mr. Tesco, squeeze good and tight.

Permabear

This post has been deleted.

Jawgap

Mrs OBumble wrote: »

.......





I prefer supermarkets that give me cheaper groceries, and let me make my own choices about what local groups and societies I support.

Indeed - in fact I'd argue the money I save shopping with Tesco helps me pay the subs for the various clubs myself and my family are members of. Which helps drive participation on various levels - I'd rather do that than put money I don't need to spend on over-priced stuff into the pocket of a local businessperson and have them make decisions about which clubs/societies are worthy of support.

Permabear

This post has been deleted.

RoboRat

Not sure why this advert is surprising people, Tesco have been targeting families for years. They are not going to compete with Aldi / Lidl as it would mean reducing margin which their shareholders wouldn't allow.

They are targeting ABC1 families as they spend more and generally are less cost conscious (it's hard to check prices when you have a ball of kids with you)... it's all about convenience to give you time to enjoy life, but at a price.

They were the first to roll out online shopping and delivery... convenience and it truly is convenient when you have a young family.

They are all about the 'community' now with their blue tokens, again targeting families as most of the groups are child orientated.

They regularly do specials on baby products, they regularly do specials on wine again something that targets the mature family audience as going out is rarely an option so an occasional bottle of wine is the alternative.

They have identified their cut in the market and they are going after it by trying to align themselves with that audience... 'we know what it's like to rear a family in Ireland, trust us to look after you etc etc'

freshpopcorn

RoboRat wrote: »

Not sure why this advert is surprising people, Tesco have been targeting families for years. They are not going to compete with Aldi / Lidl as it would mean reducing margin which their shareholders wouldn't allow.

'

Tesco's market share is better than Aldi/Lidl's combined tough!