New supermarket war which one of the big boys is going to fall?

[tinfoilhat]

Rubbish. Unilever has a lot more to lose out of this than Tesco, profits-wise.

Look at Tesco's market share. It's the equivalent of Iceland, Waitrose, Co-Op, Morrison's, and half of Asda. Unilever can't afford to lose all those sales.

 

http://i.dailymail.co.uk/i/pix/2016/03/08/10/31FB2C9B00000578-3481797-image-a-58_1457434402855.jpg

 

Supermarkets always have the power over suppliers - Tesco is a renowned bully.

I doubt anybody will start doing their weekly shops at Sainsbury's because they can't buy a jar of Hellmann's at Tesco.

 

http://www.dailymail.co.uk/news/article-3418428/Bullying-Tesco-behaved-just-like-mafia-Supermarket-used-strong-arm-tactics-squeeze-suppliers-waited-two-years-paid.html

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11399558/Tesco-faces-fresh-accusations-of-bullying-suppliers-over-price-cuts.html

 

In fairness, it depends on what price they are selling to Tesco, and what price they are selling to asda, morrisons etc etc. I'm not sure everyone gets the same price.

[Obelix]

Tesco will back down. Shoppers will just get their Unilever products from a rival who will probably absorb the cost.

 

Its just like when Wetherspoons fell out with Heineken, or when Virgin fell out with Sky

 

Assuming the other suppliers can do so... Unilever is quite large and the grocery business is very cut throat.

 

It's going to be interesting this one. You mess about with Marmite at your peril after all in the UK

 

As to which supermarkets are vulnerable it's got to be Morrisons. I'm surprised they've held on as long as they have.

[Revel]

In fairness, it depends on what price they are selling to Tesco, and what price they are selling to asda, morrisons etc etc. I'm not sure everyone gets the same price.

 

The way I see it is like O2 having a falling out with Apple, resulting in O2 refusing to sell iPhone contracts.

It's not ideal for Apple, but it has plenty more networks (or products/suppliers, for this comparison) to choose from. O2 would lose half of its custom (like Unilever will lose a lot of profit), and end up worse off.

 

Put simply, in my opinion: Unilever needs Tesco more than Tesco needs Unilever.

[the_bloke]

It's funny, I wonder how many people saying 'good on you Tesco, well done for standing up and refusing to pass price increases on to the consumer' were the same that got all uppity when the farmers were complaining they were going out of business because Tesco refused to charge more for milk..

[alchresearch]

All over.

 

Tesco and Unilever end price dispute

http://www.bbc.co.uk/news/business-37650234

 

But it hasn't stopped the DM and Iceland cashing in on the news:

 

http://ichef.bbci.co.uk/news/660/cpsprodpb/219A/production/_91920680_dmfrontpage14oct16-page-001.jpg

[BHRemovals]

Tesco will fallin the next 5 years.

[999tigger]

Tesco will fallin the next 5 years.

 

Why would that be? Theyve started increasing sales, market share and profits.

[alchresearch]

Another problem for Tesco:

 

Tesco faces legal action from staff in pay dispute

http://www.bbc.co.uk/news/business-37671752