Big UK supermarket Tescos makes a record loss

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.

 

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.[1] 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.[2]

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.[3] 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.[4] 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.[5]

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.[6]

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.[7]

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[7]. 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[8]. In order to supply food at short notice delivery lorries are often half-empty.[8]

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.[9]

Top Luxury Casinos around the world

As the summer season draws around, people start planning their trips abroad. There are so many different types of vacations that you can take. A popular choice is a casino holiday. This is where you choose some of the most extravagant casinos to visit. A lot of the biggest casinos are part of resorts which house luxury hotels, multiple entertainment options, and amazing architecture as well as the gambling, so it’s easy to see why people might make a casino holiday their first choice. You don’t have to be a high roller to do this kind of holiday either. Many people just observe in the gambling halls, some people go as first timers, and some people go as experts, the level varies.

South Africa has many luxury casinos. The Sun City Casino isn’t too far from city of Johannesburg which is a popular holiday destination. You can find all the usual casino games here such as blackjack and American Roulette. Salon Prive and the International Rooms are the rooms to go to if you are a high roller-here there are high betting limits.

The Rio Casino is in the city of Klerksdorp. It has a Brazilian Carnival theme and offers slot machines and table games. Lots of South African casinos have a theme, but the Rio casino has really gone all out, and aside from the gambling, you can enjoy fine dining and entertainment.

American roulette is very popular in South Africa, so you might have to brush up on this if you are more used to the European version. Nowadays it’s only really professional gamblers and possibly users of online casinos like www.gamingclub.com/au/online-roulette. If you are wondering what the difference is, it is basically the wheel. The American Roulette wheel has an extra slot on the wheel, the 00, which doubles the casino’s advantage. You need to bear this in mind when deciding to play or not.

Supermarket giant Tescos is struggling

Tesco, who’s stores have without doubt put a lot of smaller stores out of business, has seen sales in the 13 weeks to 26 May were 1.5 per cent lower than the same period last year, although the fall was less severe than the 1.6 per cent drop for the preceding quarter.

Tescos have been trying to break into financial markets too such as travel insurance over 75 85 markets that cater for senior holidaymakers.

Tesco’s management, headed by new chief executive Phil Clarke, is struggling to re-energise the retailer, the UK’s largest, which boasts 2,800 stores across the UK, following the firm’s first profit warning in 20 years in January.

Fair Play to Cadbury as More Countries Go Fairtrade

cadbury-launches-fairtrade-dairy-milk-4551541Cadbury has announced that its Dairy Milk chocolate brand will be sold under the Fairtrade logo in New Zealand and Australia by next Easter.

The move follows British Cadbury’s ensuring that all Dairy Milk in Britain and Ireland is sold under the Fairtrade logo by the end of the 2009 summer, which is now in process.

The move to Fairtrade produce comes at no extra cost to the consumer, and the expansion of this policy to Australia and New Zealand means that about a quarter of Cadbury Dairy Milk global sales will be Fairtrade certified in 2010.

Cadbury’s increasing international commitment to Fairtrade, securing fair minimum prices for developing world producers on a range of products such as coffee and chocolate, transforms Fairtrade chocolate from a niche product to a mainstream staple, making the decisons landmark steps.