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Thread: Rip off Britain
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5th December 2011 #1
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Rip off Britain
No season of goodwill from the sly and greedy Big 4 supermarkets. This programme should be worth watching
The Truth About Supermarket Price Wars: Panorama is on BBC1 at 8.30pm (Monday, December 5)
Read more: http://www.dailymail.co.uk/news/arti...#ixzz1feVly1vW
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5th December 2011 #2
you can have a good at some of their prices, you wonder what people stick the labels on, i think its tesco, sometimes, they display what the price is, in morrisons and its nearly always the same price
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5th December 2011 #3
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They're up against it when I walk into their 'Superconmarkets'.
I started my sales career at the age of 16 and graduated into the cut and thrust of the FMCG field at the age of 20 (Sales Representative), just as the cosy 60s was morphing into the cut and thrust of 'American-style' marketing from the early 70s and beyond.
At that time ASDA (Associated Dairies) had only 4 stores, and all them were on my call list.
The original Morrisons on John Street in Bradford was also a customer of mine.
Tesco had a lot of stores, but they were still in the 60s at the that point....about the size of your average modern Tesco Express, and still high street based.
I've watched with great interest the development of the 'Hypermarket' over these past 40 years and all the hyper everything else that goes with them.
Everything is hard-nosed about these places and their management teams, the corporate culture within, and the manipulative marketing without.
That's how they have succeeded in gobbling up the market and all the family businesses that used to give variety to our high streets and the general shopping experience. Whether that is a good or bad thing is another subject of course.
Anyway, back to today; I enjoy the challenge of 'reading between the writing' as I stroll around Tesco, every prospective purchase being a challenge, a process of weighing (often literally) cost against benefit and need.
The result is VALUE....the magic word of the sales and marketing world, and my little pot of gold as I emerge from the exit.
The worst thing that can happen is getting home and realising that I missed that pack of expensive re-chargeable batteries that slid down and hid under those spare bags on the till chute.
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5th December 2011 #4
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I usually shop at Aldi these days, no special offers, just low prices on most items. I only buy what I need or what I fancy as a treat for me and the kids.
If I go to one of the larger supermarkets, it's only for specific items that I can't get at Aldi such as decent deodorant, razor blades and other non food items, and even then it's straight to the aisle I need, pick up the item and head to the till. I never take any notice of the 2 for £2 or BOGOF offers as they are usually on things I don't need or want.
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5th December 2011 #5
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The biggest Tesco in York just happens to be within walking distance...otherwise.
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5th December 2011 #6
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Aldi are great - although they're a bit sneaky when it suits them - an area manager told me in the main pricing of their new essentials range is pitched to match not undercut JS Basic/Tesco Value/Asda Smartprice
Sainsburys must think we're all mugs - Muller Fruit Corner Yoghurts - twice in the last 6 weeks or so chopped down to 30p each for a few days very shortly back up to 61p each or "Special Offer" 4 for £2.00.
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5th December 2011 #7
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Two questions;
How do you think our prices for food and clothing compares to the other major economies in the EU?
What do you think are the net profit margins of the major supermarkets?
I think a few people on here will be surprised to see that it is NOT rip off Britain at all.
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5th December 2011 #8
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I believe most of the big chains work on around 5% net on general groceries....compared to 17-20% for the same items in your corner shop.
Of course they buy in at vastly different rates, related to quantity.
Naturally 5% of a few billion nets rather more than 20% of £100,000.
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5th December 2011 #9
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5th December 2011 #10
oh i shopped here a few times in my past, The original Morrisons on John Street in Bradford
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5th December 2011 #11
there use to be a netto near me, but within a couple of weeks this happened to it
http://your.asda.com/2011/7/29/asda-...imelapse-video
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5th December 2011 #12
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The original Asda was at Pudsey (W.Yorks)
In style it was more like a warehouse/cash and carry....goods in original cases, but neatly cut open to display what was inside (by me), or flour, sugar etc, opened up and stacked up brick-laying fashion on the pallet it had arrived on...again, stacked by me. Every item individually priced.
At their stores I was expected to do 4 hours merchandising (shelf-filling) before being admitted to the (brutal) buyer's office. During that time I would price and stack around 200 cases of our various brands.
He had a rep's signing list on the wall of his 'waiting room', and you were admitted depending upon your original time of arrival at the store.
Since my company insisted that i was always number one on the list, I had to be there by at least 7.30am.
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5th December 2011 #13
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You chaps dont know how lucky you are. Supermarket prices in the UK are so much lower than here on the IOM. Oh for an Asda and / or a Lidl here!
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5th December 2011 #14
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I agree with you, I've been saying on here for a while that I think the UK is cheap for many non food items compared to many other places. Now that GBP/Euro exchange rates are circa 1.15 the UK is considerably cheaper. The internet retailers like Amazon have meant that prices are standardised globally for electronics goods and other large consumer items.
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5th December 2011 #15
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5th December 2011 #16
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5th December 2011 #17
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5th December 2011 #18
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Well, I am English. But those indiginous to the island are Manx. Having said that, there are a good few Scousers here.
I would add that if I am on the mainland visiting etc I normally fill up at Asda on both petrol and food for the week as it is more expensive on the island. There is also a much greater range of food products, clothing etc on the UK mainland. There are many pluses to living here but also drawbacks too.
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5th December 2011 #19
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My boss, who is also my employer, isn't really affected by the higher supermarket prices at all as where he loses on the one hand he more than gains on the other. A bit like you described in your earlier post. Those on lowest incomes don't get the big tax breaks so they are affected by the higher supermarket prices. In truth I don't sit in either of the two camps. So I wouldnt say I was laughing.
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5th December 2011 #20
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Anyway lastlid, you are a full member that exclusive club of 'silly-smile-husbands' married to a Filipina wife
Sorry to be off-topic again folks.
That's forum life
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5th December 2011 #21
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Anyway lastlid, you are a full member that exclusive club of 'silly-smile-husbands' married to a Filipina wife
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5th December 2011 #22
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Dunno - but this March 2011 UBS report states "UK food prices are rising more rapidly than most other OECD economies’ food prices, and have significantly outstripped food retailers’ cost inflation" - I read this that the price fixing supermarkets are ripping off UK consumers.
http://www.bbc.co.uk/blogs/thereport...cesfeb2011.pdf
I don't care too much about clothes prices they've not risen as much as food in recent years. Our spend on them is not as significant as the week in week out constantly rising food outlay.
Tesco's 2010 net profit of £2.6 billion was 10% up on 2009. All this is being achieved by putting independent retailers out of business as they increase the land bank they sit on and open up Tesco, Metro, Macro and locals in every nook and cranny of the country.
Graham is 100% correct in saying "Naturally 5% of a few billion nets rather more than 20% of £100,000"
I don't walk around thinking the big 4 Supermarkets are some sort of Charitable Demi Gods "helping us save money" as Asda nicely put it so I'm happy to carry on knowing we live in Rip off Britain
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5th December 2011 #23
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Interestingly Tesco is just about to open a branch of Tesco Express on my doorstep, after opening a full blown branch in the main town Douglas. It is certainly rattling some of the natives and others are super happy. Mixed emotion on that one. It just depends on ones circumstances as to how these things affect the individual. Personally I am pleased to see Tesco here as it brings more choice and variety to this part of the Island but I still hanker for an Asda and / or a Lidl as I have always found the latter cheaper.
And yes, it might well affect the local retailers...that is one of the concerns. But on the flipside Tesco Express might give a better service etc.
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5th December 2011 #24
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To answer my question raised earlier food and non-alcoholic beverages in the UK are cheaper than in France, Germany, Italy, Belgium, Denmark, Ireland, Cyprus, Luxembourg, Austria, Finland and Sweden. Bulgaria has the cheapest food prices of the 27 member states.
From my experience of UK supermarkets compared to those that I've visited abroad the UK ones have fresher, better quality produce and more variety. That in itself comes at a cost especially considering the rising transport costs of importing the goods.
Looking at the percentage increases doesn't show the whole picture. As far as increases are calculated if you start of from a lower starting point the percentage increase is going to be greater.
A 10 point increase on 10 is going represent a larger percentage than a 10 point increase on 15. Therefore if you start at a lower price point but increase it by the same amount then it will appear as a larger percentage increase.
When it comes to clothing only Malta, Hungary and Bulgaria are cheaper than the UK.
Rip off Britain - I don't think so.
The net margins are between 3% and 5.8% (Tesco). The size of the turnover is irrelevant. The point I'm making is that if the supermarkets were ripping consumers off with high prices the profit margins would be much higher.
At those margins you'd be better off putting your money in the bank account (until a couple of years ago anyway).
Fortunately I don't rely upon dumbed-down, selective media such as the Daily Mail or BBC to form my opinions.
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5th December 2011 #25
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So none of these costs are taken into account when calculating retailers cost inflation which the UBS report mentions. Do these nice charitable UK supermarkets absorb the cost of aviation fuel from Africa and diesel from Spain so we are able to buy string beans and strawberries all the year round ?
Sir Terry Leahy former CEO of Tesco trousered £1.4 million in 2009 - -if I'm not mistaken Fat Cat salaries are deducted from GP before you get to the net. No doubt on top of his declared salary will be share options, houses, substantial expense accounts etc
One wonders why they spent many years building up huge chains of retail temples when they could have run squealing to the Nationwide Building Society with truck loads of cash.
Which Supermarkets Press Office do you work for ?
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5th December 2011 #26
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'The size of turnover is irrelevant'.
Now that's silly talk.
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5th December 2011 #27
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5th December 2011 #28
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5th December 2011 #29
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Just watched the programme some fairly despicable practices detailed - I hope the Office of Fair Trading or whoever takes these shysters to court.
One example :-
Tesco Chickens widely advertised at £4 Jan - June 2011, increased by 25% and advertised at £5 July - Aug 2011 - Big Price Drop Sept 2011 slashed to £4 - what do you think about that Andy n Grasya ? (Tesco being charitable again flogging them at £4 ?)
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5th December 2011 #30
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I just watched it too. Nothing there I didn't already know.
That's what 'customer service' is all about today Dedworth.
Con the consumer from every angle...with a smile.
Marketing = manipulation.
Selling =shafting.
Professionals against amateurs.
.
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