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Tesco buy all nine Shoprite supermarkets- Monopoly?


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5 minutes ago, John Wright said:

Carnforth has a decent hinterland. That’s why there’s Booths there. And a Tesco Superstore. It’s just off the M6, gateway to the southern lakes, and Furness, and the western approach to the Yorkshire Dales ( Kirby Lonsdale ) . It serves Arnside, Silverdake, Milnthorpe, lots of villages to the east, then Bolton le Sands and Hest Bank to the south. The alternatives are Lancaster (including Morecambe ) or Kendal..

I suppose it’s catchment is nearer to 50,000 within a 10-15 minute drive.

As for Kirkwall, the huge difference from IoM is the SNP Scottish executive road pricing equivalency charging policy for freight on CalMac and other Scottish ferry operators. There’s not much in the way of supermarkets on the other inhabited islands, but there’s lots of ferries and weekly shopping is on Mainland catchment area about 20,000. Distribution costs aren’t much more than than Thurso, where there is a Lidl store.

Last time I went to Kirkwall it was a Morrisons. Has that gone now? Yes the outer islander flock to the main island for their shopping and it's a big event for them. Same in Shetland. It's hard way of life out there. God knows why anyone chooses to live there but hey. 

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5 minutes ago, John Wright said:

Carnforth has a decent hinterland. That’s why there’s Booths there. And a Tesco Superstore. It’s just off the M6, gateway to the southern lakes, and Furness, and the western approach to the Yorkshire Dales ( Kirby Lonsdale ) . It serves Arnside, Silverdake, Milnthorpe, lots of villages to the east, then Bolton le Sands and Hest Bank to the south. The alternatives are Lancaster (including Morecambe ) or Kendal..

I suppose it’s catchment is nearer to 50,000 within a 10-15 minute drive.

As for Kirkwall, the huge difference from IoM is the SNP Scottish executive road pricing equivalency charging policy for freight on CalMac and other Scottish ferry operators. There’s not much in the way of supermarkets on the other inhabited islands, but there’s lots of ferries and weekly shopping is on Mainland catchment area about 20,000. Distribution costs aren’t much more than than Thurso, where there is a Lidl store.

All of this, and additionally everywhere that has been talked about is in the UK. IOM is a separate jurisdiction with its own laws and various other foibles to contend with. It's easier for the like of Aldi to look elsewhere.

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2 minutes ago, woolley said:

All of this, and additionally everywhere that has been talked about is in the UK. IOM is a separate jurisdiction with its own laws and various other foibles to contend with. It's easier for the like of Aldi to look elsewhere.

What a load of nonsense. If it really has its own laws it should be able to use them to encourage competition not prevent it ! 

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6 minutes ago, Happier diner said:

Last time I went to Kirkwall it was a Morrisons. Has that gone now? Yes the outer islander flock to the main island for their shopping and it's a big event for them. Same in Shetland. It's hard way of life out there. God knows why anyone chooses to live there but hey. 

Theres a Tesco Superstore and a Coop Food as well as Lidl. Not sure about Morrisons.

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3 minutes ago, IOM said:

What a load of nonsense. If it really has its own laws it should be able to use them to encourage competition not prevent it ! 

Even if they/we did, do you understand the enormity of the scale of the project required for a business like Aldi to operate in a new jurisdiction with new laws?

It’s an absolute non starter.  There is no way on earth they could make it stack up when you look at the big picture, even if each store was subsidised by IOMg by hundreds of thousands a year!!

 

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2 minutes ago, IOM said:

What a load of nonsense. If it really has its own laws it should be able to use them to encourage competition not prevent it ! 

It isn't nonsense, this is a separate jurisdiction with its own laws.  Lidl or Aldi will need to appoint IOM lawyers if they want to open up here.  English lawyers will not advise on Manx law and will advise their client to appoint a local firm.   That is another factor in the decision and if there are any quirks of Manx law which impact their operational model, that is a further negative. 

Anyway, as has been said before, those laws do not look at competition.  So what should or shouldn't be is not what is.

 

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1 minute ago, CrazyDave said:

Even if they/we did, do you understand the enormity of the scale of the project required for a business like Aldi to operate in a new jurisdiction with new laws?

It’s an absolute non starter.  There is no way on earth they could make it stack up when you look at the big picture, even if each store was subsidised by IOMg by hundreds of thousands a year!!

 

I just don’t agree . It might have been said about Poundland in the past but they looked at it and realised if they set up Dealz they could charge out at £1.20 and it’s worked well for them . My point is Aldi plus 20% would still be a strong proposition. And it would keep Tesco  in check they would definitely not be acting in the way they are now and will likely do in the future if they are left unchecked. 

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Just now, IOM said:

I just don’t agree . It might have been said about Poundland in the past but they looked at it and realised if they set up Dealz they could charge out at £1.20 and it’s worked well for them . My point is Aldi plus 20% would still be a strong proposition. And it would keep Tesco  in check they would definitely not be acting in the way they are now and will likely do in the future if they are left unchecked. 

So, again, what are you going to do about it?  Who is going to force Aldi to open here and how? 

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1 minute ago, IOM said:

I just don’t agree . It might have been said about Poundland in the past but they looked at it and realised if they set up Dealz they could charge out at £1.20 and it’s worked well for them . My point is Aldi plus 20% would still be a strong proposition. And it would keep Tesco  in check they would definitely not be acting in the way they are now and will likely do in the future if they are left unchecked. 

Aldi plus 20 percent would cost them money to operate here.

Why would they bother?

I have agreed with you throughout that Tesco isn’t necessarily the saviour that people think it js, but if you are thinking Aldi or Lidl could come here and be competitive whilst making money then I am afraid you lose all credibility 

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4 minutes ago, Gladys said:

It isn't nonsense, this is a separate jurisdiction with its own laws.  Lidl or Aldi will need to appoint IOM lawyers if they want to open up here.  English lawyers will not advise on Manx law and will advise their client to appoint a local firm.   That is another factor in the decision and if there are any quirks of Manx law which impact their operational model, that is a further negative. 

 

I am fully aware it’s a separate jurisdiction. But if you follow that logic no retailer would ever come here . And how on earth did Tesco ever get through it when they first came !!!!!

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Once the ex ShopRite stores are rebranded there will be 10 Tesco's and 11 co-ops on the Island plus various Spar and other group and independent grocery stores. 

I think that's pretty good for a population of this size. None of these stores are more than 13 miles from Douglas .

I cannot see any way that an Aldi or Lidl or any other operator would want to move here with all the problems and expense of trading here just to trade at discount prices in a market that works on minimal percentage return anyway.

It would make no commercial sense whatsoever.

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Just now, CrazyDave said:

Aldi plus 20 percent would cost them money to operate here.

Why would they bother?

I have agreed with you throughout that Tesco isn’t necessarily the saviour that people think it js, but if you are thinking Aldi or Lidl could come here and be competitive whilst making money then I am afraid you lose all credibility 

Do you understand Aldi’s business model ? Do you know what return they make on their investments particularly in food ? The business in totality is largely a property play and they use grocery to drive cash . Any additional scale they get from new store openings helps them improve their buying terms . 

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5 hours ago, CrazyDave said:

I am not sure why you keep trying to claim something isn’t the case, when it very clearly is and is very quickly and easily demonstrated using the app to compare prices in hundreds of different stores.

Name something that is the same price here as in the Uk?

You haven't understood anything I posted or you wouldn't be asking me to name something that's the same price here as there. Did you even read it?

There are lots of examples, and I even included some right there in the post you replied to!! All of the Aldi price matches, many of the Clubcard and multibuy deals and some others besides. Taken together, these cover a lot of items. You seem to be comparing single unit prices on the app. Have you examined the Clubcard offers on those same items of which there are many at the same price as the UK? I gave an example of this too, and here's another: Actimel 12 x immune support yoghurt drinks. £4.50 UK. £4.75 IOM, but Clubcard £3.00 in both. And another Activia 4 x Yoghurts £2.50 UK. £2.75 IOM, but Clubcard £2.00 in both. And another 500g Grapes £1.80 UK. £1.90 IOM, but Clubcard £1.50 in both. Etc, etc.

I am not "trying to claim" anything or prove a point. I am not advocating for Tesco either. I am reporting our experience on shopping the same items here and there which I hope adds some useful information as the situation unfolds. Cost of similar basket for us works out around 3% more here at the moment which is slightly up on what was the case before the Shoprite stuff happened.

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9 minutes ago, IOM said:

I am fully aware it’s a separate jurisdiction. But if you follow that logic no retailer would ever come here . And how on earth did Tesco ever get through it when they first came !!!!!

It depends on their business model.  Either the IOM fits or it doesn't.

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