ChatterBank1 min ago
Supermarket Tesco Sees Sales Rise Again
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This is really good news, especially for its pensioners, as they can now afford to plug the ever-growing deficit in the Pension Fund.
This is really good news, especially for its pensioners, as they can now afford to plug the ever-growing deficit in the Pension Fund.
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I don't do business jargon, but to me that reads as - NOT good news at all, but slightly better than the utterly terrible news last time.
Sales grew by 0.6% and profit is down 28%. Hardly the stuff to be singing from the roooftops about.
Selling assets and cutting staff is just papering over the cracks. They cannot continue to do that to show a very small increase in profit, those are one off savings.
But we are really comparing Tesco's results with prevous years, which as we now know, were fraudulent.
Sales grew by 0.6% and profit is down 28%. Hardly the stuff to be singing from the roooftops about.
Selling assets and cutting staff is just papering over the cracks. They cannot continue to do that to show a very small increase in profit, those are one off savings.
But we are really comparing Tesco's results with prevous years, which as we now know, were fraudulent.
I am not really surprised, as I always thought that some of their promotions were to generous, which have now been stopped.
Their points for petrol/diesel was fantastic, and saved my family £££££, now stopped.
Their double up club-card vouchers was another one, where you could buy from Tesco.com, household stuff etc, now stopped
My daughter has saved ££££££ on Days out at children's events, Lego-land, Centre Parks, and last week at Walton Abbey, and even pizzas.
So I only have admiration for Tesco, and their on-line shopping is brilliant.
Their points for petrol/diesel was fantastic, and saved my family £££££, now stopped.
Their double up club-card vouchers was another one, where you could buy from Tesco.com, household stuff etc, now stopped
My daughter has saved ££££££ on Days out at children's events, Lego-land, Centre Parks, and last week at Walton Abbey, and even pizzas.
So I only have admiration for Tesco, and their on-line shopping is brilliant.
trt, I used to get at least £200 of clubcard vouchers every year, just by using my Tesco credit card for everything I possibly could. Always paid in full each month so it didn't cost me anything. Now I barely get £50 so I'm looking for a more generous credit card.
I used to do most of my shopping at Tesco but they have stopped selling a lot of brands that I prefer and my huge Tesco doesn't stock red potatoes so I am shopping more and more at other supermarkets. Shame, really
I used to do most of my shopping at Tesco but they have stopped selling a lot of brands that I prefer and my huge Tesco doesn't stock red potatoes so I am shopping more and more at other supermarkets. Shame, really
“Now I barely get £50 so I'm looking for a more generous credit card.”
You’re unlikely to find one. The perks offered by credit card companies were largely paid for by the charges they imposed on retailers (which in turn were passed on to the customers meaning the perks were paid for by the customers themselves). The EU put paid to those charges being levied. Since December last year the transaction fee levied by CC companies has been capped at 0.3% (though this does not seem to have stopped firms such as travel companies and airlines from charging their own (typically) 2% fee to pay by CC, but that’s another issue). Previously the fees were two or three times that, depending on the type of business. Credit Card companies used this to justify the reduction in the value of perks offered. After Brexit the government may decide that this is one of the EU measures that can be ditched, meaning customers will be able to pay for their own perks again.
“This is really good news, especially for its pensioners, as they can now afford to plug the ever-growing deficit in the Pension Fund.”
Tesco’s pension scheme deficit has almost doubled in the last six months from £3.5bn to £6.5bn. How can this be? It’s down to the ridiculous mechanism (FRS17) used to calculate these so-called “black holes” . In August the total deficit for UK pension schemes spiked by £40bn in a single DAY. It is clearly inappropriate to use short term trends in asset values to calculate long term liabilities for schemes such as pension funds and the method is in need of serious overhaul.
You’re unlikely to find one. The perks offered by credit card companies were largely paid for by the charges they imposed on retailers (which in turn were passed on to the customers meaning the perks were paid for by the customers themselves). The EU put paid to those charges being levied. Since December last year the transaction fee levied by CC companies has been capped at 0.3% (though this does not seem to have stopped firms such as travel companies and airlines from charging their own (typically) 2% fee to pay by CC, but that’s another issue). Previously the fees were two or three times that, depending on the type of business. Credit Card companies used this to justify the reduction in the value of perks offered. After Brexit the government may decide that this is one of the EU measures that can be ditched, meaning customers will be able to pay for their own perks again.
“This is really good news, especially for its pensioners, as they can now afford to plug the ever-growing deficit in the Pension Fund.”
Tesco’s pension scheme deficit has almost doubled in the last six months from £3.5bn to £6.5bn. How can this be? It’s down to the ridiculous mechanism (FRS17) used to calculate these so-called “black holes” . In August the total deficit for UK pension schemes spiked by £40bn in a single DAY. It is clearly inappropriate to use short term trends in asset values to calculate long term liabilities for schemes such as pension funds and the method is in need of serious overhaul.
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“NJ...Your large paragraph.........tell that to Tesco pensioners, present and to come !”
The point I’m trying to make, Mikey, is that the deficits exhibited by pension schemes fluctuate wildly and do not reflect their true state. The calculations used in FRS 17 basically calculate all the liabilities of the scheme (as if all the pensions for the next 20 years are payable immediately) and compare that figure to a valuation of the scheme’s assets. Although the liabilities are fairly easily quantified to a reasonable accuracy the assets are not. In the two examples I quoted the assets are shown to vary enormously on an almost daily basis because they include assets (shares, bonds, etc.) the value of which varies. As a result, very often the amount of the published deficit is very much dependent upon what day of the week the valuation was made. Those type of assets are intended for long term investment and this is appropriate because the liabilities become payable over a long term.
The mechanism used to make these deficit calculations is unfit for purpose and causes unnecessary alarm. It needs urgent reconsideration.
The point I’m trying to make, Mikey, is that the deficits exhibited by pension schemes fluctuate wildly and do not reflect their true state. The calculations used in FRS 17 basically calculate all the liabilities of the scheme (as if all the pensions for the next 20 years are payable immediately) and compare that figure to a valuation of the scheme’s assets. Although the liabilities are fairly easily quantified to a reasonable accuracy the assets are not. In the two examples I quoted the assets are shown to vary enormously on an almost daily basis because they include assets (shares, bonds, etc.) the value of which varies. As a result, very often the amount of the published deficit is very much dependent upon what day of the week the valuation was made. Those type of assets are intended for long term investment and this is appropriate because the liabilities become payable over a long term.
The mechanism used to make these deficit calculations is unfit for purpose and causes unnecessary alarm. It needs urgent reconsideration.
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