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I am surprised the shareholders buy the excuses of german supermarkets diluting their sales... Tesco's current management is poor... people have got clever to the basic supermarket tricks (if not all of them)... this new CEO needs to go, along with a few board members. Short and silly TV adverts do not work.. Pre-recession you can probably trick many into thinking they are getting a good deal, but its not the mind games in store... hard up families have realised their pay hasn't gone so far when times are hard by budgeting at home and have decided to go get a better deal. This is why all these people (loyal customers) went to Tescos all those years back... it was much cheaper than any independent or local retailer.. and by some margin! clubcard is a clever feature to the success of Tesco but they have forgotten how to keep their customer base... they were too big and too rich to care about losing customers... now its starting to show. People's attitudes change, people felt good that the "British" supermarket was making 2 billion plus annual profits; this snobbishness stopped when the penny dropped, realising they were paying for these massive profits... and by forcing the price down on manufacturers the quality of food was getting worse and worse. They might have 20 years before becoming a Woolworth - I await the future to see what happens - Morrisons (the "following" supermarket that copies everyone else a few years later) are pushing on price now, be interesting to see if they are able to take custom from Tesco and ASDA . Sainsburys have been trying to make themselves more competitive and their bottom line shows this. The increasing fall of Tesco is a positive thing for competition!
Wednesday, June 04, 2014