crookedspire Posted October 12, 2016 Share Posted October 12, 2016 On tonights news their was a bit about Tesco running out of stock due to an fall out with a supplier on price. The prices which suppliers sell to the supermarket has risen due to falling pound this has put more pressure on the supermarkets who want to keep their prices low to keep their customers happy. The food market is worth millions a years is their enough trade to go round the big five supermarkets are already feeling the effects of Aldi and Lidi who have the lions share of budget market ? Link to comment Share on other sites More sharing options...
biotechpete Posted October 12, 2016 Share Posted October 12, 2016 This is a pretty complicated market to draw much conclusion from Unilever pulling out of supplying Tesco. On the face of it, Unilever have masses of brands, Helmans, Cif, Persil, Colemans, Marmite, Ben & Jerrys etc. You would assume from that, Tesco are planning to push own brands instead. So in that respect they will compete very well with Aldi & Lidl who one would imagine would suffer more from Brexit than Tesco. Asda will be fine, so Sainsbury or Morrisons will be most at risk. Link to comment Share on other sites More sharing options...
999tigger Posted October 12, 2016 Share Posted October 12, 2016 what Pete said its a complicated market and to start quesyioning whether one of them is going to fall because of pot noodles is ridiculous. Theres only a fall in stick because they are at loggerheads over who will foot the bill from supermarket , supplier and customer. Tesco still has 28% compared to Aldi at 6% and Lidl @ 4.4%. Link to comment Share on other sites More sharing options...
tinfoilhat Posted October 12, 2016 Share Posted October 12, 2016 what Pete said its a complicated market and to start quesyioning whether one of them is going to fall because of pot noodles is ridiculous. Theres only a fall in stick because they are at loggerheads over who will foot the bill from supermarket , supplier and customer. Tesco still has 28% compared to Aldi at 6% and Lidl @ 4.4%. I'd be interested in the difference in profit margins (in percentage terms) from the likes of Lidl and Aldi or Tesco and Sainsbury's. I reckon Morrisons will hit the buffers at some point. Link to comment Share on other sites More sharing options...
999tigger Posted October 12, 2016 Share Posted October 12, 2016 (edited) I'd be interested in the difference in profit margins (in percentage terms) from the likes of Lidl and Aldi or Tesco and Sainsbury's. I reckon Morrisons will hit the buffers at some point. Please dont make me dig them out. I found market share, sales, but then id need to look up each supermarkets shares and profits plis some progita biliyu rations , which would involve looking at each of their accounts as they are reported in different times of the year. Mot that interested. If I stumble across an article or a research report then I will post it for you. As far as I understand it this year Aldi was down, Tesco and Sainsburys were up, but id need to check..... Edited October 12, 2016 by 999tigger Link to comment Share on other sites More sharing options...
tinfoilhat Posted October 12, 2016 Share Posted October 12, 2016 Please dont make me dig them out. No worries, I'll have a look tomorrow. I'm reminded of the old adage turnover's vanity, profit is sanity. Aldi don't have millions of product lines so won't have lots of waste. Morrisons must get rid of loads - there was a few grands worth of salmon about to run out at the Morrisons at halfway the other day. Aldi wouldn't have that in a week! Link to comment Share on other sites More sharing options...
L00b Posted October 13, 2016 Share Posted October 13, 2016 (edited) This is a pretty complicated market to draw much conclusion from Unilever pulling out of supplying Tesco. On the face of it, Unilever have masses of brands, Helmans, Cif, Persil, Colemans, Marmite, Ben & Jerrys etc. You would assume from that, Tesco are planning to push own brands instead. So in that respect they will compete very well with Aldi & Lidl who one would imagine would suffer more from Brexit than Tesco. Asda will be fine, so Sainsbury or Morrisons will be most at risk. Not quite the same overheads though, even on a straight OB-for-OB competition, and don't forget that Aldi are family-owned unlike Tesco (ramifications about direction, profitability and accountability) and, through their non-trivial continental implantation and total market share, can lean on the Continental € strength and profitability for a good while: they buy a lot of their ranges for the whole pan-European store volume, not just for the UK stores. Agree with Morrisons, but I wouldn't rate Tesco as 'safer' than Sainsbury's. They still have the (financially non-trivial) fallout of that "accounting blip" to deal with as well. As mooted by 999tigger, this is fight across the supply chain to determine who amongst the supplier-manufacturers, the retailers and the customers will pay what share of the £ drop, in months to come. Unilever kicked it off (early before Xmas) because it's one of the biggest around, but you can bet that the entire supply chain across the ranges is watching that one under a microscope. Edited October 13, 2016 by L00b Link to comment Share on other sites More sharing options...
crookedspire Posted October 13, 2016 Author Share Posted October 13, 2016 Tesco biggest mistake was expending too fast buying or leasing pubs from Enterprise Inns or building stores that will never see an Tesco customer though its doors. They made mistakes by having too many foodlines that people seldom brought than they realised their was quite enough money to pay for their empire they had built. 24 hour opening went ,staff cut down, grand plans put on hold ( Sportsmen pub , Stannington was going to be a Tesco but now instead its derelict is an example) then Aldi turned up to spoil their plans they failed to understand the impact this German discounter would have on their trade. The falling pound will hit them all I expect food prices to rise the competition will get too much for one of the big boys the pack of cards will fall and their empire will be no more. Link to comment Share on other sites More sharing options...
999tigger Posted October 13, 2016 Share Posted October 13, 2016 Tesco biggest mistake was expending too fast buying or leasing pubs from Enterprise Inns or building stores that will never see an Tesco customer though its doors. They made mistakes by having too many foodlines that people seldom brought than they realised their was quite enough money to pay for their empire they had built. 24 hour opening went ,staff cut down, grand plans put on hold ( Sportsmen pub , Stannington was going to be a Tesco but now instead its derelict is an example) then Aldi turned up to spoil their plans they failed to understand the impact this German discounter would have on their trade. The falling pound will hit them all I expect food prices to rise the competition will get too much for one of the big boys the pack of cards will fall and their empire will be no more. Think you will find Tesco is improving its market share and customer base, so they are on the up. Still in line for £1.2 billion profit this year. Why is it a pack of cards? People still need to buy food. Retailers fail in every sector, its the nature of a competitive market. Look what happened in the past- Safeway- Somerfield- Kwik Save Link to comment Share on other sites More sharing options...
geared Posted October 13, 2016 Share Posted October 13, 2016 Morissons are probably most likely to hit the buffers, not because it's a bad supermarket but it's been having a tough time of it for some time and you have to question the ability of those in charge. Anyone can fail though if they don't prepare for the obvious tough times ahead, and likewise if someone plans well enough they can come out smelling like roses. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now