The Tesco Phenomonon

[Mike]

£2.55 billion pounds profit and earning £1 for every £7 spent on the high street makes Tesco a capitalists dream company. It is interesting that the media are portraying the negative side of the company on the news this morning.

Tesco are renowned for throwing their weight around with farmers (prices), local government (building super markets which are bigger than the approved planning) and shopper (controversial!). However, my question is this.

Is Tesco a good thing, or bad?

On the one hand they employ hundreds and thousands of people. On the other they bully, reduce choice, and consume indiscriminately.

[Lizzie]

I think at the moment it is verging on being anti- competitive !! As some of you know I have recently abandoned Tescos, primarily for the reasons Mike mentioned above (and also their lack of throught when it comes to packaging, or abundance thereof !!)- I think this speaks for it iself.

[John Knight]

While it is very difficult to justify many of the business practices (bullying suppliers, buying land to leave undeveloped simply to damage local traders and competition etc etc etc) and the market dominance of Tesco

It is slightly annoying that so many people will take every opportunity to knock a British international success story.

Our local options are Tesco or Asda and I for one don't want to give the yanks my money unless I really have to.

[BarcelonAl]

I'm going to have to sit on the fence with this one as well.

I'd prefer to shop locally but the choice isn't available in Whitefield (mainly due to shops like Tesco) and what there is costs more. My local Tesco also has more convenient opening hours, useful if like me you can't get to the shops between 9-5 and hate shopping at the weekend!

On the other hand they don't seem to be good for local suppliers or local shops and frankly the amount of plastic and cardboard you throw away is incredible.

[Mike]

It is slightly annoying that so many people will take every opportunity to knock a British international success story.

That is the thing aint it. The fact Tesco is a great success should please us all greatly. I think that the worry will come when they start to supply everything. You must admit £1 in every £7 spent is pretty high!

I suppose the thing is, should Tesco be penalised and judged for being successful or should the others be mocked for doing so badly! Lets be honest, they have no real competition, why, because the others are not building the strength of the brand enough. It will all even out in the end. Look at Microsoft! :D

[Andy]

Whether I dislike Tescos or not, I am not sure.

What I am sure about is the fact that I seriously dislike supermarkets for the way they have ''killed off'' the town centre shops that seemed to evoke community atmosphere. Due to the fact that everything is available under one roof and a little bit cheaper, town centres are now merely a place which are seemingly dominated by cheap shops that do nothing to enhance the community.

[mr_e]

I personally wouldn't mind Tesco, if it wasn't for the way they push some farmers to the brink of bankruptcy and suicide, and that they're probably tax-dodging like most other large companies. They're reflective of the "growth at any cost" mentality that, having started as a survival trait, is becoming a negative thing for humanity as a whole. Having gained a critical mass of market share, it's going to be very difficult for anyone to claw it back.

It's largely a reflection on lifestyle: either Tesco stores being nearer, just cheaper, better than taking screaming kids around several stores, or quicker. Some people just like being anonymous, instead of the butcher knowing your name and how you like your chicken done. It's your choice, just remember that cheap and convenient doesn't always mean better for society as a whole: try thinking a little bit beyond your immediate desires and environment.

[Mike]

try thinking a little bit beyond your immediate desires and environment.

Are you suggesting we don't normally?

[mr_e]

Ahem. I shouldn't really have addressed that "to the reader". Some people don't think that way, but I'm sure most people here do. In my own case, I sometimes forget or cannot afford to act in those thoughtful ways, but I do try. Lack of information on products is one of the main issues for me.

[Mike]

Interestingly another article places Tesco earnings at £1 in ever £3 for groceries. That is probably just a representation of their market share but still very impressive. I would be interested to know what the statistics for the other supermarkets is.

[mr_e]

Tesco: 30.6%
Asda: 16.6%
Sainsbury's: 16.3%
Morrison's: 11.1%
Somerfield: 5.4%
Waitrose: 3.7%
Iceland: 1.8%

Source: TNS [via the BBC website]

They have a pretty hefty market share. Extending the logic a bit, it means that supermarkets get about £3.50 of that £7. It seems a bit excessive, but there we go.

[Mike]

We gotta eat though! They have us with that one! :D

[TAOWBST]

Our local options are Tesco or Asda and I for one don't want to give the yanks my money unless I really have to.

And you shop at ASDA for this reason? Maybe this is an old-post but ASDA was owned by Wal-Mart last time I checked, (which I often do of course ;) )

[mr_e]

We gotta eat though! They have us with that one! :D

Even so, after you've paid all your other expenses, does 50% of your disposable income go on food? That seems a bit high for anyone on above-average earnings, but certainly possible for someone on a lower income.

TAOWBST, you may want to re-read John Knight's post...