The Tesco & other non-Morrisons supermarket thread

barcode · Wed 22 Apr, 2015 19.54

There going to have to shut more stores, I can see that happening. I also think Tesco need to get rid of its banking services and insurance, like it did with its phone and Online video services.

Martin Phillp · Wed 22 Apr, 2015 20.04

British Land. who own the Meadowhall Shopping Centre in Sheffield lease back some of the stores back to Tesco, JS and Asda.

simonipswich · Wed 22 Apr, 2015 20.44

Interesting to hear the guy being interviewed at 8pm on the BBC News Channel about Tesco's future: Asked if there was a possibility that Tesco could go bust he said he seriously doubted it and that there would be another two that would go first and said that Tesco would probably be around in 10 years time whereas the other two probably wouldn't be. He was then asked who the two were and he answered: Co-Op and Morrisons.

AJ · Wed 22 Apr, 2015 22.32

barcode wrote:There going to have to shut more stores, I can see that happening. I also think Tesco need to get rid of its banking services and insurance, like it did with its phone and Online video services.

I'd imagine that the banking and insurance services are amongst the more profitable divisions of Tesco, otherwise they would have offloaded them already.

barcode · Thu 23 Apr, 2015 00.21

AJ wrote:
barcode wrote:There going to have to shut more stores, I can see that happening. I also think Tesco need to get rid of its banking services and insurance, like it did with its phone and Online video services.
I'd imagine that the banking and insurance services are amongst the more profitable divisions of Tesco, otherwise they would have offloaded them already.

That will come in handy to help pay off its Debt and Pension blackhole.

WillPS · Thu 23 Apr, 2015 11.14

Yes, profit does certainly help when it comes to paying off debt.

barcode · Thu 23 Apr, 2015 20.14

WillPS wrote:Yes, profit does certainly help when it comes to paying off debt.

I was kind of imply, Tesco could sell them off to plug the holes.

AJ · Thu 23 Apr, 2015 21.08

barcode wrote:
WillPS wrote:Yes, profit does certainly help when it comes to paying off debt.
I was kind of imply, Tesco could sell them off to plug the holes.

Long term profitability is better than a short term sell off.

barcode · Thu 23 Apr, 2015 21.24

AJ wrote:
barcode wrote:
WillPS wrote:Yes, profit does certainly help when it comes to paying off debt.
I was kind of imply, Tesco could sell them off to plug the holes.
Long term profitability is better than a short term sell off.

What is Tesco plan to pay down its debts? Are we looking at a 15 years repayment? Any more plans for Sell offs assets? Could it sell off more stores or even better spare land.

WillPS · Fri 24 Apr, 2015 09.00

Their plan will be to return to profitability. Selling a growing financial arm to their business, which they can use to enhance loyalty to their supermarkets, would be a pretty daft plan.

The sell offs/shut downs of the Blinkbox businesses were about damage limitation. Tesco ISP (which was profitable although not enormously so) was part of the price. The sell-off of Dunnhumby has more to do with the feeling that they are probably at or around their peak valuation.

As for land sell off, it probably has a lot to do with whether they are incentivised to sell (or penalised for holding on to it); balanced by an assessment by Tesco of whether any opportunity remains.

barcode · Fri 24 Apr, 2015 17.41

WillPS wrote:Their plan will be to return to profitability. Selling a growing financial arm to their business, which they can use to enhance loyalty to their supermarkets, would be a pretty daft plan.

The sell offs/shut downs of the Blinkbox businesses were about damage limitation. Tesco ISP (which was profitable although not enormously so) was part of the price. The sell-off of Dunnhumby has more to do with the feeling that they are probably at or around their peak valuation.

As for land sell off, it probably has a lot to do with whether they are incentivised to sell (or penalised for holding on to it); balanced by an assessment by Tesco of whether any opportunity remains.

There plans to return the company to profitability has yet to hit rock bottom. The accounting problem have yet to be finally sorted out and that might make the problem even worse. You may think its daft but Tesco has to cut a hell of alot of losses, and while at the same time fill in alot of black holes. Remember Tescos is a Supermarket, thats it bread and butter.

I also dont see any overall change but this whole problem has been cause because it lost 3% of its customers? Alarm bells should be ringing out here. Tesco had so many fingers and so many pies it took eye off the ball. It clear people are not ruining back to Tesco. In many places Tesco was the only supermarket in town but since new people have managed to get in at last the damaged was done.

Its also very clear Tesco has also caused alot of its own downfall, by buying up land to keep the competition out. The land has now gone down in value, Was it really worth it? I doubt it. At the same time a good number of councils are now penalised Tesco just for holding on to it. I know Tesco near me, brand new hand to get open, it did not HUGE fines were on the way. There got away with it with weeks to spare.