Tesco buy all nine Shoprite supermarkets- Monopoly?

[IOM]

8 hours ago, woolley said:

Utter nonsense, as usual. There is little difference in quality from the big UK supermarkets. A lot of the stuff is made on the same lines in the same factories, as is made embarrassingly obvious when there are product recalls.

This is absolutely wrong . Yes in some cases retailers will share the same supplier but not in every case . And even then each retailer will have their own specification so the same supplier will normally produce multiple variants. There is just no way Tesco quality is as good as M and S or Waitrose or Sainsbury’s. As I posted previously there is nothing wrong with Tesco product it’s ok but certainly not anything special it’s just bang average. 

[John Wright]

9 minutes ago, IOM said:

Sorry I have always made reference to Aldi price match and Club card offers being the same price if you look back at any of my posts . The fact is that out of the whole store those two combined account for circa 1000 products . As I have repeatedly said Lake Road will stock around 15000 plus lines so there are 14000 to vary . Do you really think nobody buys these products because I can tell you for sure Tesco wouldn’t stock them if they didn’t ! To be honest the more I examine it the more I believe the inflationary effect is more than 3% but only time will tell . 

Except I doubt that most families buy more than 250-400 different lines over the course of a year. I buy about 50-60 items and maybe 25-40 lines a week. But there are many repeats, week after week.

I gave an example. Beans. I buy one size, one brand, one flavour, no additions. Yet there are 40 different ones on the shelf. If I want added cheese, sausage, curry flavour, I add my own. If I want a small portion I’ve Tupperware and a fridge. I only buy in 6 packs when on offer.

Thats why Aldi or Lidl work.

Yes, people buy the other 14,000 lines. But it’s discretionary spend. They makes their choice and pays their money.

Being boring I checked my favourites list, which is what I tend to shop from. 191 items.

[IOM]

1 minute ago, John Wright said:

Except I doubt that most families buy more than 250-400 different lines over the course of a year. I buy about 50-60 items and maybe 25-40 lines a week. But there are many repeats, week after week.

I gave an example. Beans. I buy one size, one brand, one flavour, no additions. Yet there are 40 different ones on the shelf. If I want added cheese, sausage, curry flavour, I add my own.

Thats why Aldi or Lidl work.

Yes, people buy the other 14,000 lines. But it’s discretionary spend.

Being boring I checked my favourites list, which is what I tend to shop from. 191 items.

Of course people buy from a narrow repertoire. It just so happens your shopping list closely aligns to Aldi price match but for a lot of other people that will not be the case . I repeat there is zero chance Tesco would stock additional lines if they did not have a sufficient rate of sale . 

Also I am not sure at this stage but I wonder if they may drop some Aldi price matched products here . I thought bananas were price matched at 76-78p yet I think they are now 85p I Lake Road . Another one to watch . 

[IOM]

23 minutes ago, Gladys said:

.The deal is done, we have yet to see how this will impact in prices, so as IOM says, if people are price sensitive, shop around or modify what you buy in Tesco. 

I do not understand the Internet equivalent of sticking pins in voodoo dolls; it isn't going to undo the deal, nor is it going to encourage another supermarket to come here.  We have what we have and we have yet to see just how it will settle once all the stores are converted. 

 

Agreed the deal is done it’s just that some of us don’t think what we have is a competitive landscape. Long term there may be better solutions but who knows the free market will determine that . And I have said before this is a forum for sharing views ideas and opinions it’s not a case of sticking pins in voodoo dolls . What’s the alternative I and others don’t say anything? If people get fed up with the topic they don’t have to read it that’s fair enough . I just happen to think it’s worth commenting on . 

[Gladys]

1 minute ago, IOM said:

Agreed the deal is done it’s just that some of us don’t think what we have is a competitive landscape. Long term there may be better solutions but who knows the free market will determine that . And I have said before this is a forum for sharing views ideas and opinions it’s not a case of sticking pins in voodoo dolls . What’s the alternative I and others don’t say anything? If people get fed up with the topic they don’t have to read it that’s fair enough . I just happen to think it’s worth commenting on . 

No, you debate on facts not emotion.  No problem with that, it is just the continual "Tesco are shite" without anything to back that up.  It quickly becomes irrational and voodoo doll-like. 

[Andy Onchan]

11 minutes ago, IOM said:

This is absolutely wrong . Yes in some cases retailers will share the same supplier but not in every case . And even then each retailer will have their own specification so the same supplier will normally produce multiple variants. There is just no way Tesco quality is as good as M and S or Waitrose or Sainsbury’s. As I posted previously there is nothing wrong with Tesco product it’s ok but certainly not anything special it’s just bang average. 

Sainsburys are not the shopping experience in years gone by. I used them regularly a few years back (whilst working on projects in UK) but the quality of their own brand stuff went south and I stopped going there. Oddly enough to be replaced by Morrisons (if there was one close by) and they were cheaper.

As for pricing..... this from my previous post:

Quote

The prices will go up because....well, there's no real competition or choice and if you had the opportunity to improve your bottom line without having to put too much effort or money into it, then why wouldn't you? It's quite simple really.

 

[IOM]

3 minutes ago, Andy Onchan said:

Sainsburys are not the shopping experience in years gone by. I used them regularly a few years back (whilst working on projects in UK) but the quality of their own brand stuff went south and I stopped going there. Oddly enough to be replaced by Morrisons (if there was one close by) and they were cheaper.

As for pricing..... this from my previous post:

 

Whether you believe Sainsbury’s products are not what they were is subjective. What is an absolute fact is that retailers own brand is developed with their own specification so it’s entirely wrong to say all own brand is the same as was being suggested . 

[John Wright]

14 minutes ago, IOM said:

Agreed the deal is done it’s just that some of us don’t think what we have is a competitive landscape. Long term there may be better solutions but who knows the free market will determine that . And I have said before this is a forum for sharing views ideas and opinions it’s not a case of sticking pins in voodoo dolls . What’s the alternative I and others don’t say anything? If people get fed up with the topic they don’t have to read it that’s fair enough . I just happen to think it’s worth commenting on . 

To help the debate, please tell us your proposed solution. Starting from where we are.

 

[NoTailT]

3 minutes ago, IOM said:

Whether you believe Sainsbury’s products are not what they were is subjective. What is an absolute fact is that retailers own brand is developed with their own specification so it’s entirely wrong to say all own brand is the same as was being suggested . 

This is rarely the case, by the way.

In order to stay competitive, most if it is cost driven.

For example: McBride. Manufacturer the 'own brand' washing up liquid and other detergents for pretty much every major supermarket in the UK.

There are companies that exist specifically to supply white label own brand products to supermarkets and there is an awful lot of commonality in manufacturing across different supermarkets. Own brand is - in the most part - driven by cost to make and deliver to the customer.

Edited March 13 by NoTailT

[John Wright]

22 minutes ago, IOM said:

but for a lot of other people that will not be the case

But that is their choice.

 

23 minutes ago, IOM said:

they may drop some Aldi price matched products here

It’s not fixed in stone. The items on Aldi price match, and the club card specials, change, regularly.

[WTF]

20 minutes ago, IOM said:

Agreed the deal is done it’s just that some of us don’t think what we have is a competitive landscape. Long term there may be better solutions but who knows the free market will determine that .

the reality is that we have lost only  ONE of the options we had to shop at before tescos took over the shoprite stores. 

[IOM]

2 minutes ago, NoTailT said:

This is rarely the case, by the way.

In order to stay competitive, most if it is cost driven.

For example: McBride. Manufacturer the 'own brand' washing up liquid and other detergents for pretty much every major supermarket in the UK.

There are companies that exist specifically to supply white label own brand products to supermarkets and there is an awful lot of commonality in manufacturing across different supermarkets. Own brand is - in the most part - driven by cost to make and deliver to the customer.

Of course in some categories especially household there may be some commonality of supply base but in the majority it’s not . However on commonality you are just wrong . To provide a specific example I happen to know Yeo Valley do a lot of own brand supermarket yogurt and they were telling me they have 45 base products to produce the various own brand yogurts each to different recipes they said it drives them crazy ! And you will find it’s is the same in nearly all food categories. And that’s before you stop to realise there are umpteen suppliers competing against each other for supermarket own label . 

[IOM]

10 minutes ago, John Wright said:

 

 

It’s not fixed in stone. The items on Aldi price match, and the club card specials, change, regularly.

Agreed the lines are not fixed in stone . My point is I think they are still price matched to Aldi across but not here . There is no way they will ever move bananas off Aldi price match in stores across its too important a product. 

[IOM]

16 minutes ago, John Wright said:

To help the debate, please tell us your proposed solution. Starting from where we are.

 

I think a better solution would be

 

1) a more even distribution of the current retailers . The addition of a small number of M and S simply stores , a larger coop in Douglas and one in the South . And just to be clear I would have had added more Tesco stores just maybe not nine . 
 

2) One large Aldi or Lidl based on the outskirts of Douglas maybe near the B and Q site . 
 

This way you end up with a more balanced offer which ensures a competitive landscape and offers those that want to trade up more options . 

[John Wright]

Just now, IOM said:

I think a better solution would be

 

1) a more even distribution of the current retailers . The addition of a small number of M and S simply stores , a larger coop in Douglas and one in the South . And just to be clear I would have had added more Tesco stores just maybe not nine . 
 

2) One large Aldi or Lidl based on the outskirts of Douglas maybe near the B and Q site . 
 

This way you end up with a more balanced offer which ensures a competitive landscape and offers those that want to trade up more options . 

And will the catchment market support that?

My preferred solution is an M&S food store, with delivery

One Aldi or Lidl

A Booths

With those I’d abandon Tesco