Tesco: 22% price reduction a sham

Rebelheart · 14-05-2009 04:55PM #1

Is anybody listening to Philip Boucher Hayes on RTÉ Radio 1 Drivetime at the moment (16.35-1645, Thursday 14 May)?

It is truly fascinating, and is bound to be politically explosive.

Some of the main points are:

* Tesco's actual price decrease is 8%, not 22% as claimed by Tesco's chief executive, Tony Keohane, several times (he played the interviews with Tony Keohane).

* That 8% decrease is in fact only a decrease on Tesco's 10% plus price increase in its stores since Christmas.

* Tesco has now approached all Irish suppliers demanding a 20% decrease in their prices.

* While Tesco has claimed Irish suppliers would not be affected by the "decrease", all Irish suppliers have reported that almost overnight Tesco has reduced the shelf space for Irish produce

* In 1997 when Tesco entered the Irish market, Richard Bruton, who was minister for Enterprise, signed an agreement with Tesco whereby Tesco committed themselves to purchasing a huge amount of Irish products. There was no attempt by the Irish government to renew this agreement in 2002. This is certainly going to be called for now.

* Tesco refused to respond to any of the report or defend its position.

Paul Cullen's article in today Irish Times covers all of this more fully: http://www.irishtimes.com/newspaper/ireland/2009/0514/1224246463054.html

This is one of the best pieces of investigative journalism in years. Well done, RTÉ and The Irish Times. We need much more on this.

Captain-America · 14-05-2009 05:05PM

Bastards.

Ann22 · 14-05-2009 05:06PM

No way! I used to shop in Dunnes but was really struggling to keep my grocery bill down to the stage where I was counting the number of dinners I'd need to buy for the week so for the past 6mths I've been shopping in Sainsbury's. My fridge and freezer has been full for less money than I was spending in Dunnes.
Last week however I shopped in Tesco in the Long walk shopping centre to see how it worked out. It turned out I got a grand load of shopping for €109. Was surprised. I was careful enough about what I put in the trolley though, I wasn't throwing stuff willy nilly into it the way you can up north.

admiralofthefleet · 14-05-2009 05:12PM

aldi or lidl is where its at

dsmythy · 14-05-2009 05:13PM

I'm starting not to like Tesco very much.

TheZohanS · 14-05-2009 05:15PM

Ann22 wrote: »

It turned out I got a grand load of shopping for €109.

Wow that's a saving of €891....impressive..

prendy · 14-05-2009 05:15PM

Rebelheart wrote: »

Is anybody listening to Philip Boucher Hayes on RTÉ Radio 1 Drivetime at the moment (16.35-1645, Thursday 14 May)?

It is truly fascinating, and is bound to be politically explosive.

Some of the main points are:
* Tesco's actual price decrease is 8%, not 22% as claimed by Tesco's chief executive, Tony Keohane, several times (he played the interviews with Tony Keohane).

* That 8% decrease is in fact only a decrease on Tesco's 10% plus price increase in its stores since Christmas.

* Tesco has now approached all Irish suppliers demanding a 20% decrease in their prices.

* While Tesco has claimed Irish suppliers would not be affected by the "decrease", all Irish suppliers have reported that almost overnight Tesco has reduced the shelf space for Irish produce

* In 1997 when Tesco entered the Irish market, Richard Bruton, who was minister for Enterprise, signed an agreement with Tesco whereby Tesco committed themselves to purchasing a huge amount of Irish products. There was no attempt by the Irish government to renew this agreement in 2002. This is certainly going to be called for now.

* Tesco refused to respond to any of the report or defend its position.
Paul Cullen's article in today Irish Times covers all of this more fully: http://www.irishtimes.com/newspaper/ireland/2009/0514/1224246463054.html

This is one of the best pieces of investigative journalism in years. Well done, RTÉ and The Irish Times. We need much more on this.

go to the consumes issues forum and look at the tesco threads, they do this constantly. raise prices before a drop.

On the irish goods issue: its a disgrace, they are going to put alot of small suppliers out of business. Unfortunatly there isnt alot that can be done as EU competition law means the Govt cant favour our own produce.

mike65 · 14-05-2009 05:15PM

Lets all burn Tesco down! Yay!

/zzzzzzzzzzzzzzzzzzz

admiralofthefleet · 14-05-2009 05:16PM

dsmythy wrote: »

I'm starting not to like Tesco very much.

ive gone off them completely, in the space of one year their bum wad has gone from €2.09 to €2.90 for 12 rolls of economy

Rebelheart · 14-05-2009 05:19PM

Boucher-Hayes was saying that Dunnes and the rest of them are already following Tesco's lead and that the suppliers he spoke with are now livid about the claims Tesco is making about its reductions with the suppliers contending that the claims are simply designed to squeeze Irish suppliers further out of the market. Boucher-Hayes said while some suppliers are big enough to take the pressure by reducing staff etc, many will not.

Mary Wilson, the presenter, wanted to know who the suppliers were but Boucher-Hayes said that the only reason they were talking to him was on condition of anonymity. They were not just afraid of Tesco but that if they are seen to be causing "trouble" for one major retailer, no other retailer would want to risk giving them business.

You should be able to listen to the Boucher-Hayes report here: http://www.rte.ie/radio1/drivetime/

Celticfire · 14-05-2009 05:20PM

TheZohan wrote: »

Wow that's a saving of €801....impressive..

Your wit is matched only by your inability to subtract correctly,:P check again...

Rebelheart · 14-05-2009 05:23PM

admiralofthefleet wrote: »

ive gone off them completely, in the space of one year their bum wad has gone from €2.09 to €2.90 for 12 rolls of economy

And those Mach 3 shaving blades were a massive 66% cheaper last December in Newry than they were in the Tesco Clearwater on the same day (I dropped in for milk on the way back). Stomach-turning stuff.

Fratton Fred · 14-05-2009 05:24PM

the trouble is, we can't find out how much Dunnes are ripping usoff by because they don't file accounts. the nearest i could find is this from 2006

http://archives.tcm.ie/businesspost/2006/12/10/story19512.asp

Dunnes Stores is an unlimited company and is not obliged to file accounts, but it is generally accepted to be one of the ten largest companies in the country. In 2001, the company had sales of €2.2 billion and that figure has undoubtedly increased since then. When Ben Dunne was bought out of the business in 1994, it was valued at about €760 million. The only insight into the company’s financial position comes in the North, where Dunnes files accounts for its 24 Northern stores.

According to its most recent accounts, it made a pre-tax profit of £39 million (€57.5 million) from sales of £231 million (€341million).That equates to a profit of €2.4 million per store. Based on those numbers, the company’s 110 stores in the Republic could be generating over €265 million in pre-tax profits every year. Furthermore, the company owns most of its properties, giving it access to one of the biggest retail property portfolios in the state.

Of course, we will ignore the fact Superquin is in a whole heap of **** as well, so maybe the supermarkets are in a lot of trouble.

I liked this bit from the OPs link to the IT as well

Meanwhile, Fianna Fáil TD Ned O’Keeffe said Tesco should leave Ireland. “What has Tesco offered us since they came over to Ireland?” said Mr O’Keeffe, in a statement issued before the company’s layoffs announcement.

“All we’ve seen is them exploiting Irish suppliers and continually pushing the prices down. They have been seeking price cuts of up to 20 per cent recently from Irish suppliers or else they will simply remove these products from their shelves. That’s disgraceful carry on.”

Mr O’Keeffe claimed Tesco shelves were being filled “to breaking point” with cheaper, British goods rather than higher-quality Irish products. This would have a huge impact on the Irish food production sector and, in the longer term, on Irish diets.

So, Tesco should bugger off and we should all pay more. Anyone would think Ned O'Keefe worked for Dairygold or something........

tatabubbly · 14-05-2009 05:24PM

Asda over the border........ the only way to go.. still way cheaper than the price reductions... i only buy whatever fresh bread, milk, fruit i need in tesco, rest goes to asda i'm afraid.

Bummer · 14-05-2009 05:25PM

TheZohan wrote: »

Wow that's a saving of €801....impressive..

Would that not be €891 of a saving??:eek:

Captain-America · 14-05-2009 05:25PM

They're like the Microsoft of the retail market. Completely abusing their position as market leader.

TheZohanS · 14-05-2009 05:28PM

Bummer wrote: »

Would that not be €891 of a saving??:eek:

It would, now thats real value.

Rebelheart · 14-05-2009 05:29PM

prendy wrote: »

On the irish goods issue: its a disgrace, they are going to put alot of small suppliers out of business. Unfortunatly there isnt alot that can be done as EU competition law means the Govt cant favour our own produce.

That's what I would have thought also but Boucher-Hayes made a point of saying that the government did, in fact, "interfere in the market" back in 1997 and that agreement lasted until it ran out in 2002. Perhaps they dressed it up some other way, but Boucher-Hayes was very clear and detailed about the Tesco-Irish government deal in 1997, and that it was designed to defend Irish producers following Tesco's takeover of Quinnsworth and Crazy Prices.

Tesco, in fairness, has been much better to the Irish food industry than Marks & Spensers which has done virtually nothing for indigenous industry. But it seems increasingly clear that Tesco is aiming to replicate Marks & Spensers in this regard. That will not be good for Ireland or Irish employment.

TheZohanS · 14-05-2009 05:29PM

Celticfire wrote: »

Your wit is matched only by your inability to subtract correctly,:P check again...

Ah thanks. Did you make that one up all on your own?

Ann22 · 14-05-2009 05:31PM

Now when I think of it I saw that list Tesco sent around of their price reductions, it said 80 Punjana teabags were reduced from €2.99 to €1.58. Well c'mere 'til I tell yiz, Dunnes had them last week at €1.98 so no bleedin' way were they ever €2.99!! If they were, it's daylight robbery:mad:. Now I'm mad with Mr Tesco too.

kraggy · 14-05-2009 05:32PM

I'm refusing to shop there anymore.

Their Tesco Value products have increased by 30+% in the last few months.

They're not codding me when they announce price reductions based on prices that were increased in the months beforehand.

Pricks.

connundrum · 14-05-2009 05:34PM

Old news I would have thought? I heard about these facts and figures on George Hook's show on Monday afaik.

Oh and for whatever you think of Tesco, they are still a massive employer, buyer and contributor to the economy. They are as big as they are because we all liked the low prices that they were offering back over the last few years, and they will continue to do well into the future, mainly due to the fact that the majority of shoppers will see them as the best value/choice provider.

I personally divide my shopping between Tesco, Aldi and Superquinn, mainly for convenience reasons. I try to buy the Irish products where I can, but I understand that my every little may not help the overall cause.

Rebelheart · 14-05-2009 05:35PM

Fratton Fred wrote: »

So, Tesco should bugger off and we should all pay more. Anyone would think Ned O'Keefe worked for Dairygold or something........

In fairness, Ned O'Keefe is the same Ned O'Keefe who came out in 1995 to call for the movie Babe (about a cute pig) to be banned because it would negatively affect the Irish pig industry. Some political stunts are unforgetable.

snubbleste · 14-05-2009 05:37PM

Ann22 wrote: »

Now when I think of it I saw that list Tesco sent around of their price reductions, it said 80 Punjana teabags were reduced from €2.99 to €1.58. Well c'mere 'til I tell yiz, Dunnes had them last week at €1.98 so no bleedin' way were they ever €2.99!! If they were, it's daylight robbery:mad:. Now I'm mad with Mr Tesco too.

They are normally €2.99
Dunnes had them on 33% off offer last week

meglome · 14-05-2009 05:41PM

In town now there a Tesco, Dunne, Lidl and Aldi all right next to each other. I buy almost nothing in Tesco it's so expensive. I buy meat on Moore street and veg in Aldi, saved a fortune.

Caoimhín · 14-05-2009 05:45PM

Now they have gone and invaded Denmark!!!

http://www.youtube.com/watch?v=20IpSch8sSk

Topmanager · 14-05-2009 05:53PM

Give Tesco a break,they create alot of employment in this country.It is good to see them put other retailers under pressure to match them.Competion is what is needed to get this economy back up again.

MikeC101 · 14-05-2009 05:57PM

Fratton Fred wrote: »

So, Tesco should bugger off and we should all pay more. Anyone would think Ned O'Keefe worked for Dairygold or something........

:D:D

Celticfire · 14-05-2009 06:00PM

TheZohan wrote: »

Ah thanks. Did you make that one up all on your own?

It's a variation of a classic, so I can't take all the credit

Biggins · 14-05-2009 06:02PM

Heard about this latest news on the radio.
People in my own home town copped it within a day or two. They went in to buy something and suddenly discovered that their wanted items had gone up a Euro or two each - if for no other reason than to let Tesco claim they they have dropped their prices on other food stuff.
Its a disgrace - pure and simple. They are treating the Irish public as if they are all just stupid.

Sorry Tesco - get stuffed. We going elsewhere now on for our shopping.

K-9 · 14-05-2009 06:12PM

Fecking Tesco exploiting Irish workers and Irish suppliers.

I'm off to Walmart Asda.

Tesco: 22% price reduction a sham

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