Every little doesn’t always help!
Tesco’s is the UK’s largest supermarket and is famous for squeezing farmers and food producers. It’s also famous for poor quality food and ruining small local retailers, therefore the group’s latest loss figures is very much a good news story.
Here is what some of the other media outlets are saying…
From the UK Telegraph…
Here is some of the reaction from analysts:
Clive Black, analyst at Shore Capital, said: “To say that Tesco had a nightmare year in FY2015 would be an under-statement, an out-turn that would simply have been unfathomable in days gone by. The whys and wherefores of how Tesco reached this somewhat unedifying position have been well documented to our minds, and so perhaps the key take-away for investors from CEO, Dave Lewis’, first set of preliminary results should be what of the future.”
Bruno Monteyne at Bernstein: “The press headlines will be dominated by the loss, we instead focus on the pension deficit, which has not expanded as much as some had feared, the lack of any hidden surprises and the solid trading performance coming through in the UK.”
From the UK Guardian…
The annual result was worse than the City’s most dire predictions that the group would fall £5bn into the red. Chief executive Dave Lewis said he had tried to make a break with Tesco’s recent history by accounting for all likely events.
But Lewis warned that the food retail market remained “challenging” and that, despite signs of improving sales, Tesco’s performance would be volatile for some time to come.
Lewis, who joined Tesco in September, said: “We’ve got a long, long way to go and I don’t think it will be smooth as we move through the changes we want to make. We have sought to draw a line under the past and to rebuild from here. Everything we know [about] we have dealt with.”
The former Unilever executive was drafted in to turn around the fortunes of Britain’s biggest retailer following a series of profit warnings amid a ferocious price war with rivals.
So what is the future for big supermarkets in the UK? Well other big players such as Sainsburys, Morrison and Wal Mart’s ASDA are all struggling.
Could this mean the end of the supermarket in Britain and restoring of the small independent shops.
— ben turner (@BreakyWakey_Ben) April 22, 2015
Across Britain, the high street is in decline. The effects ripple through our communities. A major factor in this decline is the relentless rise of large supermarkets.
From Local Works – Supermarkets lead to local shops closing
Over 80% of independent shops on our high streets have closed. Our local butchers, fishmongers, greengrocers and bakeries are shutting down. Meanwhile, hundreds of new supermarkets are opening, and supermarkets like Tesco and Sainsbury’s are increasing the number of local convenience stores they own.
There is a devastating lack of choice for local people buying groceries because of the rise of the supermarkets: nowadays, supermarkets control a whopping 97% of the grocery market.
Supermarkets take money out of local communities
Half of the turnover of an independent local retailer goes back into the local community, while just 5% of the turnover of a supermarket does. They take money out of communities and put into the hands of profit-hungry supermarket bosses.
Supermarkets lead to fewer local jobs
Every time a new supermarket opens, 276 jobs are lost locally. Between 2008 and 2010, the big supermarkets Tesco, Asda and Sainsbury’s, pledged to create 67,000 new jobs. They fell far short of this target, creating just 28, 217 jobs.
In 2011, supermarket giants expanded their floorspace by 2,750,000 square feet. You might expect this to lead to more jobs. The opposite happened: the total number of people employed by these companies fell by over 400.
Supermarkets harm the environment
A staggering 17 billion portions of fruit and vegetables are left to rot by supermarkets, rejected because they are not considered “uniform”. To reach the standards supermarkets demand, intensive farming techniques are necessary, with a limited variety of food grown and use of chemicals to keep the fruit looking perfect.
Up to 30% of the UK’s vegetable crop is never even harvested because the perfectly edible vegetables fail look how supermarkets want them to. Supermarkets also demand that the food travels well, because food sold in supermarkets travels a lot further…
Most of the year, English apples are available, but only 25% of apples consumed in the UK are grown here. In fact, 90% of apples sold in our supermarkets are grown in France. The largest retailers have centralised distribution, meaning there is an enormous distance between producer, packager, distributor and ultimate retail outlet. In order to supply food at short notice delivery lorries are often half-empty.
Also travel insurance for the over 75 age group is also sold by most supermarkets now including Sainsburys for instance.
Supermarkets also produce vast quantities of waste that cannot be recycled. Items are overpackaged, and a total of 6.4 billion non-recyclable carrier bags were given to supermarket customers in 2010.