TESCO profits down (:'

[eastern]

At last the mighty TESCO wobbles, this is the best news I have heard in weeks. The higher up the ladder you climb the bigger the fall, Aldi up 40%-Lidl up a similar amount its good to see the smaller companies giving the bigger corporations a bloody nose. As TESCO's advertising says "every little helps".

[Philtaz]

I fail to see how this is the 'best news in weeks' as it may result in job losses.

I'm all for competition amongst supermarkets because it means we as consumers get the benefit but I wouldn't want anyone to lose their job, particularly in the current financial climate.

[Davethedog]

Not only do I agree with hiltaz but profits are not down like for like sales are. Profits are in line with expectations though at the lower end.

"Tesco said that while underlying pre-tax profits would be broadly in line with forecasts in the current financial year, group trading profit growth would be at around the low end of City expectations"

[Davethedog]

Sorry thats Philtaz I agree with

[jno]

Tesco used to be one of the smaller companies. If they cease to be the biggest, someone else will take over and you can hate them instead - who knows, it might be Aldi.

[redman41]

Sainsbury's had their best ever Xmas as well :-)

[rowanwitch]

Strange thing is waitrose seems busier than ever... maybe the market areas are simply diverging

[craft1948]

It's because I've moved my weekly shop from Tesco to Waitrose :-)

[jackthehat]

That's a helluva lot of gin sales to lose!!! :o)

[craft1948]

Exactly Jack..................don't forget the fags as well.

[Old_Geezer]

When finances are tight, the stores who have taken over the 'sell on lowest price' title will do better than those who used to have it but don't any longer. The 'sell on service, environment, & other extras' places should fare ok also as although money is also tighter for the better off, the extras will still be valued and the money found. The "squeeze" most affects those caught in the middle.

[McMouse]

The curse of AWT had more impact than first thought.

[Gromit]

From 2008:

// Aldi, the discount store chain, has vowed to open a new store every week in Britain as it cashes in on the credit crisis.
Its expansion plans were unveiled as industry reports show that soaring numbers of families are turning to Aldi as they are forced to tighten their belts in the face of higher household bills.
Paul Foley, the Aldi managing director, said yesterday that the German discounter is to spend £1.5 billion in the next five years, building a store a week and recruiting 1,500 staff. Aldi said it will eventually reach its target of 1,500 British stores and is working on opening 227 at the moment. //

Such expansion is bound to result in the increase in profits in the OP.

[eastern]

TESCO have bullied planners, ignored planning guidelines, targeted small business's in towns that vehemently did not want a TESCO, succeeded and then put the local business's out of business. Most of their staff are employed on a part time basis so they can juggle them about as they wish and whilst other stores are rising up to challenge them I don't know of any other chain who have such a "lets take it all" mentality as TESCO. If I sound slightly bitter then I have good reason as I had to close a shop as TESCO came in and shut me down within weeks, nobody said a word when I laid off my staff. If you support TESCO and their national/european "blitzkrieg" then one day you will have no choice where you shop. I know business is ruthless but to see TESCO get a bloody nose is payback for all the people they have stamped on. I hope it continues I have no sympathy for the company and very little for the staff as most of them will just go and get a job with the next supermarket that comes along.

[Philtaz]

Blitzkreig? Shouldn't that be aimed at Lidl or particularly Aldi, especially in light of the info given in Gromit's rather informative post?

[buildersmate]

If you were honest, Eastern, perhaps you would come to the conclusion that Tesco are just better at running a business than you. Understandable you don't like it but no reason to rant about planning or employment practices.

[cathfromsaron]

*whispers*

i went to aldi ...

[eastern]

Well as they've just seen a 15.99% drop in share price and reduced sales because they took their eye off the ball that wouldn't seem to be the case. And just to clarify they didn't put me out of business what I actually said was I had to close a shop. I am actually still in the business and have been for over 20 years. After the debacle I had with TESCO I took a keen interest in their rise and I can assure you there are a lot of councils where some questions need to be asked such as Highland Region where there a 4 Tesco's in one town.

[lady-janine]

agree with eastern. several small shops that i know of had to close when dub**** council agreement was given. their tactic is to undercut sall specialist shops and then when they (small shops) have closed tescos raise their prices or discontinue that commodity. very few small shops can combat such underhand tactics. it is up to the shoppers. i understand about going for the lowest price but it doesn't always work out that way in the end. i also know of instances where they have further forced down the price of vegetables from local farmers after they have been grown so that there is practically no profit for them.

[owdhamer]

I dont know why Tesco wobbles if the one in Oldham is anything to go by its always packed according to mrs owd