Tesco Hit Hard By Christmas Sales Plunge

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Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Thu Jan 12, 2012 6:03 pm

Tesco has had its worst Christmas sales performance in decades while a series of other British retailers have also posted poor results over the festive period.

Like-for-like UK sales at Tesco were down by 2.3% over Christmas, the supermarket giant has reported.
Britain's largest retailer said the results, for the six weeks to January 7, were "below expectations and disappointing".
It also warned that it expected "minimal" profit growth for the coming year.
The supermarket's share price plummeted by more than 14% on the news.
Tesco Share Price 1-Month Chart





Non-food sales were particularly bad and the fall came despite Tesco's Price Drop promotion.
Tesco chief executive Philip Clarke said: "We are disappointed with our seasonal trading performance in the UK.
"In a challenging consumer environment at home, and with early signs of more cautious behaviour emerging elsewhere, we have seen more strain than anticipated on our profitability during the important seasonal trading period."
The retail giant's UK market share has now declined to 30.1%, with rivals Asda and Sainsbury's benefiting the most.
The day before Tesco posted its losses, Sainsbury's revealed recording-breaking sales figures over the Christmas period.
A number of other British retailers have also announced a drop in sales in the run up to Christmas.
Catalogue retailer Argos reported a fall of 8.8% in the 18 weeks to the end of 2011.

Argos will close eight stores this year following poor Christmas sales

The brand is facing intense competition from supermarkets, specialists and internet players.
It is expected to close around eight stores this year.
DIY chain Homebase, also owned by Home Retail Group, saw sales fall by 2.6% over the same period.
Sales at Mothercare were also down - by 3% in the 12 weeks to January.
The poor figures for the mother and baby products retailer were mainly as a result of store closures due to the tough economic conditions.
Last November, the group launched a review of its struggling business, and in May detailed plans to close about 110 UK stores over two years as leases expire.
The company's chief executive Ben Gordon left in October after a profit warning.
Mothercare said its search for a new chief executive as well as the review of its UK business were progressing well.

Sales of chocolates at Thorntons failed to pick up over Christmas

Meanwhile, the troubled chocolate retailer Thorntons continued to suffer over the festive period, reporting a 4.2% fall in sales in their stores over the last quarter of 2011.
Sales at cycle and car parts shop Halfords also dropped - falling by 4.8% in the 13 weeks to the end of December.
The company said the mild weather had reduced spending on car maintenance products.
But there was better news for JD Sports and online grocer Ocado.
Christmas sales at the sports retailer were up by 1.6% while Ocado said it saw a 23.8% increase in gross sales in the seven trading days before Christmas.
JD Sports recently bought outdoor retailer Blacks Leisure in a £20m deal.


Tesco profits down, Argos closing 8 stores do we have to call the Argos staff workshy after the first sign on or do we giver them a couple of weeks grace?

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Thu Jan 12, 2012 6:47 pm

I'm not surprised that Tesco has failed to meet it's expected profits this year. I'm sure it is down the adverse publicity it has received in respect to it refusing to label it's meat properly and some of the strange and weird organisations that it decided to support. I, like many others never use Tesco's any more, as their produce, in particular their fruit, is IMO a waste of money. Tesco has lost direction and has taken their eye off the ball, they need to copy places like Morrisons and others who are ahead of the game.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Thu Jan 12, 2012 6:57 pm

fred bloggs wrote:I'm not surprised that Tesco has failed to meet it's expected profits this year. I'm sure it is down the adverse publicity it has received in respect to it refusing to label it's meat properly and some of the strange and weird organisations that it decided to support. I, like many others never use Tesco's any more, as their produce, in particular their fruit, is IMO a waste of money. Tesco has lost direction and has taken their eye off the ball, they need to copy places like Morrisons and others who are ahead of the game.

Well let's not be too hasty; are Tescos profits below those of their competitors. I reckon not. Which weird organizations has Tescos been supporting? Nothing sinister I hope Shocked

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by victorismyhero on Thu Jan 12, 2012 7:25 pm

snip<<<Tesco profits down, Argos closing 8 stores do we have to call the Argos staff workshy after the first sign on or do we giver them a couple of weeks grace?

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Posts: 2979
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well now nems..of course just like the 4000 booted out by rbs, these unfortunates will be known as parasites from day one, and of course lets not forget all their kids who will now shift status to that of "benefit babies". just to give the good tory kids at school something to bully, in practice for when they enter govt........


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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Thu Jan 12, 2012 7:29 pm

victorismyhero wrote:snip<<<Tesco profits down, Argos closing 8 stores do we have to call the Argos staff workshy after the first sign on or do we giver them a couple of weeks grace?

Nems Again
Witch Weatherwax


Posts: 2979
Points: 2280
Reputation: 64
Join date: 2011-03-01>>>>snip

well now nems..of course just like the 4000 booted out by rbs, these unfortunates will be known as parasites from day one, and of course lets not forget all their kids who will now shift status to that of "benefit babies". just to give the good tory kids at school something to bully, in practice for when they enter govt........



Rolling Rolling Rolling Rolling Rolling

And of course the wife will have to be on the pill, the husband will have to use a johnny or keep it in his pants, because no conoodling allowed, all babies conceived after the job loss must be declared and a suitable punishment given!

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Thu Jan 12, 2012 8:25 pm

victorismyhero wrote:snip<<<Tesco profits down, Argos closing 8 stores do we have to call the Argos staff workshy after the first sign on or do we giver them a couple of weeks grace?

Nems Again
Witch Weatherwax


Posts: 2979
Points: 2280
Reputation: 64
Join date: 2011-03-01>>>>snip

well now nems..of course just like the 4000 booted out by rbs, these unfortunates will be known as parasites from day one, and of course lets not forget all their kids who will now shift status to that of "benefit babies". just to give the good tory kids at school something to bully, in practice for when they enter govt........



Right I get you, and similarly we have to honour the RBS man's bonus because he had a contract (presumably not to do further harm because that is all that can be said of him) but it is OK to disregard the employees contract and take away their income, not their bonus, their income?!

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 5:51 am

Oh dear oh dear.

Have we all forgot how to debate and discuss and learn.

Anyway back to the story. I think Tesco's problem are multiple at this stage. They have become so large that if they take a hit then it will affect them badly. Their huge hypermarkets are a bit redundant now. Why go there for a bit of cheap clothing or electrical stuff when the online sales of thes have gone through the roof. Brits have really taken to online shopping for clothes, homeware, furniture, in fact nearly everything. In fact one of the few things some peope still actually go out shopping for is freash food.

Other supermarkets have really pushed hard on their fresh food and on their customer service. Sadly for Tesco they seem to have dropped the ball on their food. When I see reviews of Tesco's food it is never favourable. Some supermarkets have maybe seen that people actually want a healthy fresh diet and have catered to that. Have left the dvds and socks and everthing else to other shops. I mean even ASDA, yes they sell loads but have branched it off with ASDA living so their supermarkets can really concentrate on good affordable food.

I'm not sure how Tesco's will turn this around. We may be seeing the start of the end for them.

The jobs aside, and please people less sniping and more actually about the topic, I dislike Tesco's and would not miss it as I never shop there. I have never agreed with it's ethics and know many farmers up here who loath them with a vengence. They treat their suppliers with contempt and don't care one jot about animal welfare.

Does anybody remember Hugh's expose on chickens and how they are raised in order to give us the tesco 32 chicken. Maybe Tesco, the giant, suffered quited badly there through its arrogant treatment of Hugh through that program, who knows. I know that I hate the place.

How they steamroller their way over any local communities with their endless expansions? The thing about slumps in sales in big chains is that they are hard to turn around. They do not seem to have had any vison for a long time and seem to be a tired brand. A big brand, massive but tired.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 6:11 am

fred bloggs wrote:I'm not surprised that Tesco has failed to meet it's expected profits this year. I'm sure it is down the adverse publicity it has received in respect to it refusing to label it's meat properly and some of the strange and weird organisations that it decided to support. I, like many others never use Tesco's any more, as their produce, in particular their fruit, is IMO a waste of money. Tesco has lost direction and has taken their eye off the ball, they need to copy places like Morrisons and others who are ahead of the game.

I wouldn't say weird but some people see the use of weird as being detrimental. It can mean either weird like supernatural or unusual or odd, which is how you meant it.

Totally agree with you though and it seems as though others do too...

Tesco has triggered outrage by ending its support for the Cancer Research ‘Race for Life’ while deciding to sponsor Britain’s largest gay festival.

Some religious commentators and groups have condemned the decision and are calling for a boycott of the supermarket chain.

Tesco has worked with Cancer Research for more than ten years, raising hundreds of millions of pounds to help combat an illness that will affect one in three of the population.



Read more: http://www.dailymail.co.uk/news/article-2060559/Tesco-backs-gay-festival-drops-support-Cancer-Research-charity-event.html#ixzz1jJa5nQyY

We had this discussion a while ago about the gay pride thing and yes they can sponsor who they like. If Tesco's only operated in the SE and in London especially then maybe it would not have affected them as much, the publicity I mean not the slump in sales.

BUT Tesco's basically annoyed a lot of people in the Uk about this. I know millions live in the SE but there are millions in the UK and not everybody has the same mindset. I would love to see those sales figures broken down across the UK and see which areas are leaving Tesco's in their droves. Must be a lot to have had such an effect.

Agree about Morrisons. It's great and really just concentrates on good fresh food and brilliant customer service. They regularly award their staff but providing outstanding customer staff and promoting sales. Many other supermarket staff seem to have received little training here and sort of fit into that "boring shelf-stacking job" which many people mistakenly think working for a supermarket is about.

Also ASDA did brilliantly and they are another supermarket that I like. Their fresh fruit and vegetables are always nice and they do a great line in British meats. I know that farmers like dealing with ASDA more than Tesco's. I know our local Welsh dairy at Denbigh has had real problems with getting their products stocked in the big chains. Basically if you're not called cathedral City you don't get it. But many people know how nice Cadog Cheese is and it was all taken off the shelves after that Cathedral City arrived on the scence with a huge ad campaign. Tescos again.

Maybe that's it, Tesco's are more urbane which their scant regard for the actual suppliers and the products but in our urban societies consumers don't give a monkeys about stuff like that. They are like David Attenborough says, very detached from nature and the countryside beyond its a nice place for a walk. I mean what urban youngsters regularly go off-roading, white water rafting, mountain biking (real mountains mind), rock climbing down in the SE. I don't know I'm just asking. You can't drive along the A5 up here without seeing some farm doing the latest adrenaline sport here.

Urban people probably support gay Pride as a concept but many in more rural areas of the UK do not give a tuppence about some hyped event down south but know that dropping Cancer Research is wrong.

I'd like to see those figures though, would be interesting.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 5:19 pm

Interestingly Tesco is a willing participant in the Government's Workfare program



The graph above shows the weekly costs to the Tax Payer and the Unpaid Worker to engage in unpaid labour for the likes of Tesco's & Sainsbury's under the Tory workfare programme. Under this programme the worker is unpaid and provides his services full time to the company for free. At a basic living wage of £7.50 per hour, that costs the workers £105m a week since the government expects 350,000 to work unpaid.


But it also costs the state. Had these workers been paid for their labour, they would have paid the state £50.57 in tax per week, and so the state is losing nearly £18m a week in unpaid taxes from the worker alone. This excludes employers NICs as well as increased VAT etc. But not only that, throughout the time that Sainsbury's and Tesco's use these workers for unpaid labour, we continue to pay these youths benefits. Under the scheme we will be giving each forced worker a payment of £67.50. And so we pay a total of £23.6m in a weeks worth of benefit payments to the proposed 350,000 workers. The grand total of this loss to the worker and taxpayer is £150m for a week's worth of workfare.

http://eoin-clarke.blogspot.com/2011/11/it-costs-150-million-week-to-force.html

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 5:46 pm

Seren wrote:Interestingly Tesco is a willing participant in the Government's Workfare program


£150 million a week, well that will turn out to be at least doubled when the government 'revises' its figures

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 6:00 pm

Seren wrote:

I wouldn't say weird but some people see the use of weird as being detrimental. It can mean either weird like supernatural or unusual or odd, which is how you meant it.

Totally agree with you though and it seems as though others do too...



We had this discussion a while ago about the gay pride thing and yes they can sponsor who they like. If Tesco's only operated in the SE and in London especially then maybe it would not have affected them as much, the publicity I mean not the slump in sales.

BUT Tesco's basically annoyed a lot of people in the Uk about this. I know millions live in the SE but there are millions in the UK and not everybody has the same mindset. I would love to see those sales figures broken down across the UK and see which areas are leaving Tesco's in their droves. Must be a lot to have had such an effect.

Agree about Morrisons. It's great and really just concentrates on good fresh food and brilliant customer service. They regularly award their staff but providing outstanding customer staff and promoting sales. Many other supermarket staff seem to have received little training here and sort of fit into that "boring shelf-stacking job" which many people mistakenly think working for a supermarket is about.

Also ASDA did brilliantly and they are another supermarket that I like. Their fresh fruit and vegetables are always nice and they do a great line in British meats. I know that farmers like dealing with ASDA more than Tesco's. I know our local Welsh dairy at Denbigh has had real problems with getting their products stocked in the big chains. Basically if you're not called cathedral City you don't get it. But many people know how nice Cadog Cheese is and it was all taken off the shelves after that Cathedral City arrived on the scence with a huge ad campaign. Tescos again.

Maybe that's it, Tesco's are more urbane which their scant regard for the actual suppliers and the products but in our urban societies consumers don't give a monkeys about stuff like that. They are like David Attenborough says, very detached from nature and the countryside beyond its a nice place for a walk. I mean what urban youngsters regularly go off-roading, white water rafting, mountain biking (real mountains mind), rock climbing down in the SE. I don't know I'm just asking. You can't drive along the A5 up here without seeing some farm doing the latest adrenaline sport here.

Urban people probably support gay Pride as a concept but many in more rural areas of the UK do not give a tuppence about some hyped event down south but know that dropping Cancer Research is wrong.

I'd like to see those figures though, would be interesting.

Hmm, and which of those 3 would gay pride events fall into? I like supernatural Smile

Personally I would put any loss in Tescos (still huge) profits down to the other reasons mentioned (quality of products and services).

However if it really did turn out to be down to where it donates money then those who would make such a decision are either stupid or spiteful. And I make that assertion not unfairly. Tescos gives loads to charitites and shouldn't have to suffer any loss of custom because it is reported in a grossly negative way. The idea they 'chose' to 'switch' funding from a cancer charity to a pride event is so moronic anyone who chose to take their custom elsewhere on those grounds could only be described as a simpleton. What happened is the equivalent to one of us cancelling a monthly donation to a charity only then to drop a pound in bucket of another.

I cannot imagine more than a handful of people did make this decsion on those grounds. It is also ludicrous to place only people in the SE as the sort with an interest in gay issues (this shouldn't even be being talked about now but hey I didn't bring it up). Don't know if you realize but Machester and the NW in general happens to be a very gay friendly area where most people would not be angry at anyone supporting such events- indifferent maybe but angry, ffs no.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:00 pm

So all the politics aside, it would seem that maybe Tesco wll see some of these customers return during austere January but I'm not sure.

I have been reading many of the online comments on this story and the norm seems to be bad customer service, tired looking stores and food not up to scratch.

I think that people appear to view Tesco's as not being as ethical as the other supermarkets and although I haven't shopped there for a while apparently the Big Price Drop was a bit of a Big Price Drop. Many are saying that Tesco's raised their prices first just before the drop and apparently they also ended their double clubcard points promotion at the same time.

I doubt that Tesco's will go to the wall but it's a heck of a lot of money to have lost.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by victorismyhero on Fri Jan 13, 2012 7:13 pm

Seren wrote:Interestingly Tesco is a willing participant in the Government's Workfare program



NOW WHY DOES THIS...not surprise me one little bit.. Just What I have been saying all along....workfare , far from saving money will COST the state...and all to the benefit of big boys like tescos....I bet it wont be long untill they start sacking "real" staff to take on yet more "volunteers" (read slaves)
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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:17 pm

victorismyhero wrote:


NOW WHY DOES THIS...not surprise me one little bit.. Just What I have been saying all along....workfare , far from saving money will COST the state...and all to the benefit of big boys like tescos....I bet it wont be long untill they start sacking "real" staff to take on yet more "volunteers" (read slaves)

They'd love that, shelf stackers for £1.31 an hour, that would make their profits rise!

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:19 pm

Anyone got any personal experiences on shopping at any of the big four supermarkets or don't any of you shop there at all.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:32 pm

Seren wrote:Anyone got any personal experiences on shopping at any of the big four supermarkets or don't any of you shop there at all.

I do all my shopping on line, and I do it will Sainsburys because their service is excellent, they give you an hour slot and if they are 1 minute over that they give you a £10 voucher. Their basics range is good food at really good value, and whenever I have had a problem I have rung, got through straight and it has been dealt with efficiently and politely, so I can't fault them.

I had one delivery from Asda, never again under any circumstances, a total disaster.

Had a couple from Ocado (Waitrose on line) hate their website and their prices are stupid.

Used to use Tesco's, they were ok, but I found Sainsbury better.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:41 pm

Seren wrote:Anyone got any personal experiences on shopping at any of the big four supermarkets or don't any of you shop there at all.

My Hubby does the grocery shopping, it's easier than putting up with my mood when I return, it's the one thing that makes me really angry

Plus I think he likes the power, he brings me back lots of things to cook lol!

He shops mainly at Tesco's but also at Morrison's, their fresh food is excellent. Their flowers also beat any local florist for value

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:46 pm

Online shopping is a very good way to go through the whole shopping list with a fine toothcomb and make sure it's exactly right. i did it a lot this summer.

FTL, have to agree about Morrisons. i like the whole market place thing they have going on there. They have fresh food set out like the old indoor markets. They just bought Flower World so I'd hope their flowers are good.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 7:49 pm

Seren wrote:Online shopping is a very good way to go through the whole shopping list with a fine toothcomb and make sure it's exactly right. i did it a lot this summer.

FTL, have to agree about Morrisons. i like the whole market place thing they have going on there. They have fresh food set out like the old indoor markets. They just bought Flower World so I'd hope their flowers are good.

I'd love a Morrison's near us, my Dad always uses the one in Kings Lynn, I go with him and its great. Unfortunately is the only one Colchester doesn't have!

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 8:19 pm

Morrisons Is my local, I do 95% of my shopping there. I too like their market place and their fresh fruit and veg is good value. Son loves their made in house Pizzas!

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Fri Jan 13, 2012 9:33 pm

Shop at either ASDA or Morrisons; Morrisons is nearer but I actually prefer ASDA. The layout and 'look' of Morrisons is nicer without a doubt, ASDAs look so basic and drab across the country; but I do genuinley prefer their food to Morrisons, I find they offer more choice too as well as much lower prices.

Do have a local Tescos but not a fan tbh.

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Re: Tesco Hit Hard By Christmas Sales Plunge

Post by Guest on Sat Jan 28, 2012 3:34 pm

Morrisons and Sainsbury's for us. Stopped going to Tesco almost a year ago. Among other reasons Their fruit was absolutely dreadful. Their flowers were wilted and their so called half priced wines were nothing of the kind. Mostly their till prices were, in a number of cases different from the price on the shelf. It was best to check the purchases against the receipt before leaving the store. So we voted with our feet and no longer shop there.

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