Tesco

[Bentley Bullet]

I'd build a little 'Tuck shop' hut next to it and call it 'Entrance'.

[River Don]

It the very fact Aldi has limited number of lines that makes it a more efficient retailer. Smaller stores and less complicated distribution. Tesco can't match that without a fundamental reassessment of their model. Aldi also work on smaller margins, it's something they can do more easily than Tesco because they are a family owned business, meaning they can plan for the longer term more easily. Tesco have shareholders to satisfy.

That's where I come in. The buying power of Tesco blows Aldi out of the water. What I'd do is divide their existing large stores into two. On the left there would be all the cheaper products that Aldi sell and on the right would be all the expensive stuff. If you like a small store and limited lines then just shop in the left hand side.

Sorted.

Tesco buying power doesn't blow Aldi out of the water. A quick search reveals Tesco is ranked 4. In the World, Lidl 5 and Aldi 8. Both the German discounter are much larger than the likes of Sainsbury's and Morrisons. Whilst Aldi and Lidl are a bit smaller they aren't that much smaller globally, even if their presence is still limited in the UK, they have all the muscle they need.

So now you cut Tesco in half, make one side Aldi and the other side M&S? That's radical surgery. Presumably cutting back on the number of lines Tesco value and Tesco Finest carry and separating their distribution and everything. Like two independent Stores? There will be some areas where the finest store doesn't work and areas where there isn't demand for the value stores. I can't see it happening, though I have read retail experts in the press suggesting splitting the business up.

Sainsbury's have already started down this path, buying into Netto as their discount brand. However Sainsbury like Tesco are still getting squeezed by the Germans at the bottom end and the likes of Waitrose at the top.

It really isn't so easy to regain market share.

[IC1967]

It the very fact Aldi has limited number of lines that makes it a more efficient retailer. Smaller stores and less complicated distribution. Tesco can't match that without a fundamental reassessment of their model. Aldi also work on smaller margins, it's something they can do more easily than Tesco because they are a family owned business, meaning they can plan for the longer term more easily. Tesco have shareholders to satisfy.

That's where I come in. The buying power of Tesco blows Aldi out of the water. What I'd do is divide their existing large stores into two. On the left there would be all the cheaper products that Aldi sell and on the right would be all the expensive stuff. If you like a small store and limited lines then just shop in the left hand side.

Sorted.

Tesco buying power doesn't blow Aldi out of the water. A quick search reveals Tesco is ranked 4. In the World, Lidl 5 and Aldi 8. Both the German discounter are much larger than the likes of Sainsbury's and Morrisons. Whilst Aldi and Lidl are a bit smaller they aren't that much smaller globally, even if their presence is still limited in the UK, they have all the muscle they need.

So now you cut Tesco in half, make one side Aldi and the other side M&S? That's radical surgery. Presumably cutting back on the number of lines Tesco value and Tesco Finest carry and separating their distribution and everything. Like two independent Stores? There will be some areas where the finest store doesn't work and areas where there isn't demand for the value stores. I can't see it happening, though I have read retail experts in the press suggesting splitting the business up.

Sainsbury's have already started down this path, buying into Netto as their discount brand. However Sainsbury like Tesco are still getting squeezed by the Germans at the bottom end and the likes of Waitrose at the top.

It really isn't so easy to regain market share.

I would still say that Tesco (and for that matter the other big supermarkets) have far greater buying power in the UK which is where most of their stuff is sourced. I accept maybe not globally. I think my idea is a brilliant one. No need to separate the distribution. Once it arrives at the store then just put it in the right part of the supermarket. The Tesco value stuff goes in the left hand side and anything else goes in the right hand side (including Tesco Finest). The shopper then has the best of both worlds under one roof.

Tesco could also have a word with all the branded food manufacturers in the UK and get them to provide a cheap version of the expensive stuff. It could even all be branded Tesco Value to keep things simple. The discounters couldn't stand that kind of competition for too long. They'd soon leave the country and go back to mainland Europe.

Sorted.

[River Don]

Who do you think make most of the 'like brands' for Aldi? Why the very same manufacturers who make the brands UK customers are used to.

You haven't thought your distribution idea through. Aldi is efficient because they don't deal with multiple brands, they get a palette load of detergent. That goes through the system from the factory gate to a space on the floor in the shop.

Tesco have half a dozen brands of detergent to deal with which all need to be dealt with and then stacked on the shelves in a Tesco by hand. Less efficient. On top of that you want the stores to then go through and sort through all their brands of detergent into cheap and expensive. Another layer of cost. Do this with every single line of the thousands of products Tesco deal with and you add another significant cost.

Aldi win.

[IC1967]

Who do you think make most of the 'like brands' for Aldi? Why the very same manufacturers who make the brands UK customers are used to.

You haven't thought your distribution idea through. Aldi is efficient because for instance they get a palette load of detergent. That goes through the system from the factory gate to a space on the floor in the shop.

Tesco have half a dozen brands of detergent to deal with which all need to be dealt with and then stacked on the shelves in a Tesco by hand. Less efficient. On top of that you want the stores to then go through and sort through all their brands of detergent into cheap and expensive. Another layer of cost. Do this with every single line of the thousands of products Tesco deal with and you add another significant cost.

Aldi win.

Having worked in distribution in the past it is fairly straightforward to deliver and locate products on the shop floor. Half the lorry could have cheap products and the other half could have the dear stuff. Simple.

Tesco need to lose money on the cheap side of the business if they have to until Lidl and the others leave the UK. They need to play the long game. Profits from the right hand side of the store could cover any losses on the left hand side. Once the discounters had gone, then they could bump up prices. in the long term they'd make more money.

Sorted.

[Dagenham Rover]

It the very fact Aldi has limited number of lines that makes it a more efficient retailer. Smaller stores and less complicated distribution. Tesco can't match that without a fundamental reassessment of their model. Aldi also work on smaller margins, it's something they can do more easily than Tesco because they are a family owned business, meaning they can plan for the longer term more easily. Tesco have shareholders to satisfy.

That's where I come in. The buying power of Tesco blows Aldi out of the water. What I'd do is divide their existing large stores into two. On the left there would be all the cheaper products that Aldi sell and on the right would be all the expensive stuff. If you like a small store and limited lines then just shop in the left hand side.

Sorted.

Tesco buying power doesn't blow Aldi out of the water. A quick search reveals Tesco is ranked 4. In the World, Lidl 5 and Aldi 8. Both the German discounter are much larger than the likes of Sainsbury's and Morrisons. Whilst Aldi and Lidl are a bit smaller they aren't that much smaller globally, even if their presence is still limited in the UK, they have all the muscle they need.

So now you cut Tesco in half, make one side Aldi and the other side M&S? That's radical surgery. Presumably cutting back on the number of lines Tesco value and Tesco Finest carry and separating their distribution and everything. Like two independent Stores? There will be some areas where the finest store doesn't work and areas where there isn't demand for the value stores. I can't see it happening, though I have read retail experts in the press suggesting splitting the business up.

Sainsbury's have already started down this path, buying into Netto as their discount brand. However Sainsbury like Tesco are still getting squeezed by the Germans at the bottom end and the likes of Waitrose at the top.

It really isn't so easy to regain market share.

I would still say that Tesco (and for that matter the other big supermarkets) have far greater buying power in the UK which is where most of their stuff is sourced. I accept maybe not globally. I think my idea is a brilliant one. No need to separate the distribution. Once it arrives at the store then just put it in the right part of the supermarket. The Tesco value stuff goes in the left hand side and anything else goes in the right hand side (including Tesco Finest). The shopper then has the best of both worlds under one roof.

Tesco could also have a word with all the branded food manufacturers in the UK and get them to provide a cheap version of the expensive stuff. It could even all be branded Tesco Value to keep things simple. The discounters couldn't stand that kind of competition for too long. They'd soon leave the country and go back to mainland Europe.

Sorted.

Erm they already do and have done for years, as do all the big supermarkets, One big supermarket went to a large bread manufacturer and said we don't want to flog your bread for £1.48 we want a same size loaf that we can flog for £1 it then went to the manufacturers "research dept" (for want of a better expression) where the recipe was cocked about with ingredients swopped about with until a very similar product under the same brand name/wrapping was come up with within the supermarkets guidelines the contract was too big for them to ignore it

[River Don]

Sorting through and stacking lorries 50:50 with products for two sets of stores is yet another inefficiency. You aren't getting it. Aldi don't need to do this, it's faster and easier to track, uses less man power and is consequently cheaper.

Aldi win.

We'll have to see how things go but I think you'll find Lidl and Aldi will continue to grow in the UK while Tesco's et all will remain on the backfoot.

[River Don]

IC

As for your point about Tesco having greater buying power than the German discounters, you're wrong. This article explains why.


http://www.ft.com/cms/s/0/cbdf0bfa-fd61-11e3-bc93-00144feab7de.html#axzz3QKXn4O00

[Donnywolf]

WRONG ?  WRONG ?

You have merely stoked the fire I reckon .... knocked the Ball over the net into play but it has yet to be returned

I could be WRONG but I doubt it   

[IC1967]

IC

As for your point about Tesco having greater buying power than the German discounters, you're wrong. This article explains why.


http://www.ft.com/cms/s/0/cbdf0bfa-fd61-11e3-bc93-00144feab7de.html#axzz3QKXn4O00

That link doesn't seem to be working. However I'll take your word for it.  My information must be out of date or the source is just plain wrong.  However I could get around that problem. I'd have a meeting with all the big supermarkets and form a buyers club that overall would have better buying power than the discounters.

Sorted.

[River Don]

It might be that if you search Aldi lidl FT on Google you will be able to access the article.

For me the German discounters are heroes. As good Germans they have kept a keen eye on efficiency and developed supermarkets that deliver quality at an unbeatable price. Tesco was once like this, pile it high and sell it cheap. They have got bogged down with marketeers and an endless quest to provide ever more choice. They've taken their eye off the ball.

My only concern with discount supermarkets and supermarkets in general is if their commitment to low prices adversely affects animal welfare. Which is why I stick to the local butcher. Slacks in Wadworth. He can tell you which farm his meat comes from. I've never tasted better bacon than his.

[IC1967]

It might be that if you search Aldi lidl FT on Google you will be able to access the article.

For me the German discounters are heroes. As good Germans they have kept a keen eye on efficiency and developed supermarkets that deliver quality at an unbeatable price. Tesco was once like this, pile it high and sell it cheap. They have got bogged down with marketeers and an endless quest to provide ever more choice. They've taken their eye off the ball.

My only concern with discount supermarkets and supermarkets in general is if their commitment to low prices adversely affects animal welfare. Which is why I stick to the local butcher. Slacks in Wadworth. He can tell you which farm his meat comes from. I've never tasted better bacon than his.

I agree. Well done to the German discounters and Netto. They have done us all a favour by getting prices down.

I don't think it's just the discounters that have an adverse affect on animal welfare but you may be right. Cheaper prices usually mean poorer welfare. Good on you for using a reputable butcher. I myself have taken it to the next level and have been vegetarian for 30 years.

Animal abuse is something I totally abhor. I just wish people would take a bit of time to see what goes into producing their meat. If they did, there would be a lot more vegetarians about.

[River Don]

I did say all supermarkets.

My thing with vegetarianism is that if we didn't eat animals we wouldn't keep so many animals, which is bad for animals.

I like meat but I don't eat as much of it as I used to, too much isn't healthy but I think a bit of meat keeps you healthy too.

[BobG]

I once won a free pint of beer for knowing what longpig is. I even know what it tastes like.  Didn't win another pint for that snippet though.

Meat. Luvverly meat.

BobG

[River Don]

Nothing beats a good bit of beef.

[BillyStubbsTears]

Once had braised reindeer heart with mashed potato with a cloudberry sauce at a hunting lodge-cum-hotel in the Swedish Arctic under the midnight sun.

You know that every once in a while you have a moment where you think that life cannot get any better?

Mind, I tell a lie. It could have got better if Inga, the receptionis,t had accepted my offer to explain the physical processes leading to the midnight sun of the midnight sun by means of showing her an analogy of something else that stayed up for 24 hours at a time.

[idler]

I once won a free pint of beer for knowing what longpig is. I even know what it tastes like.  Didn't win another pint for that snippet though.

Meat. Luvverly meat.
You haven't tasted it for real I hope Bob. ;0)

BobG