Tesco buy all nine Shoprite supermarkets- Monopoly?

[IOM]

13 minutes ago, John Wright said:

They didn’t. Not on everything. There were always exceptions. And there isn’t a UK wide price, not even a GB wide price. There are pricing differences in Northern Ireland and Scotland when compared to England ( I don’t know about Wales ).

Well there was never the level of differential from the U.K. that there is now it’s very clear a premium has been added recently which just happens to coincide with the Shoprite acquisition. There may have been exceptions but relatively few not it’s the majority excepting Aldi and Club card/ special offers . 

[joebean]

Of course Tesco prices will differ from those in most areas of the UK. The number of containers being brought over on the ferry will suggest why. If anybody on the Island wants to benefit from the cheapest prices, for the vast majority of goods, the answer is to move to the UK. The Isle of Man is an expensive place to live for those on average or low incomes. It’s just a fact. 

[IOM]

Just now, joebean said:

Of course Tesco prices will differ from those in most areas of the UK. The number of containers being brought over on the ferry will suggest why. If anybody on the Island wants to benefit from the cheapest prices, for the vast majority of goods, the answer is to move to the UK. The Isle of Man is an expensive place to live for those on average or low incomes. It’s just a fact. 

I understand the logic of that . But the facts are they didn’t vary significantly from the U.K. until the Shoprite acquisition . 

[Gladys]

17 minutes ago, IOM said:

I understand the logic of that . But the facts are they didn’t vary significantly from the U.K. until the Shoprite acquisition . 

They did when Lake Road first opened; I have posted about that before.  An assumption may be that the price increases reflect some recovery of set up costs. 

[finlo]

18 minutes ago, IOM said:

I understand the logic of that . But the facts are they didn’t vary significantly from the U.K. until the Shoprite acquisition . 

I did warn of all this some weeks ago and was quickly shot down by the fanboys!

[IOM]

3 minutes ago, Gladys said:

They did when Lake Road first opened; I have posted about that before.  An assumption may be that the price increases reflect some recovery of set up costs. 

Possibly but let’s be honest do you realistically see them dropping back ? I for sure find it extremely unlikely and significant inflation will be brought to the island as a result of this acquisition. 

[WTF]

56 minutes ago, IOM said:

I understand the logic of that . But the facts are they didn’t vary significantly from the U.K. until the Shoprite acquisition . 

or the new freight charges from the racket ,

[Gladys]

1 hour ago, IOM said:

Possibly but let’s be honest do you realistically see them dropping back ? I for sure find it extremely unlikely and significant inflation will be brought to the island as a result of this acquisition. 

I don't know, but they did in Lake Road after a few years.  

[John Wright]

I’ve no idea if they’ll drop back, this time. But Tesco did, originally, charge more at Lake Road than in England. They dropped back.

I think that was when delivery became an option and it was easy to compare prices. The web site was less sophisticated.

I think, after that it wasn’t worth it, apart from few exceptions, for one store.

Now we’ve got 10 stores, both super stores and express. They’ve upgraded computer systems and now have to programme price differences across island.

That'll have caused them to look at island pricing and general operating costs, including freight, and other overheads they didn’t previously have - such as local warehousing and distribution.

[IOM]

11 minutes ago, John Wright said:

I’ve no idea if they’ll drop back, this time. But Tesco did, originally, charge more at Lake Road than in England. They dropped back.

I think that was when delivery became an option and it was easy to compare prices. The web site was less sophisticated.

I think, after that it wasn’t worth it, apart from few exceptions, for one store.

Now we’ve got 10 stores, both super stores and express. They’ve upgraded computer systems and now have to programme price differences across island.

That'll have caused them to look at island pricing and general operating costs, including freight, and other overheads they didn’t previously have - such as local warehousing and distribution.

They probably dropped back because when they came Shoprite was more viable and likely given them a tougher ride from a competition perspective. 
 

There is no question their operating costs will be higher as we know they have to come across the sea which comes at a cost . I suspect they looked at all this as part of the acquisition. 
 

However why should we the customer be worrying about that ? The fact is they  have been happy to supply the island for any number of years and not really charge a premium but now that’s no longer the case . There is only one loser and that’s the customers. As people say there is probably little we can do about it now except shop around and let as many people know so they know to shop around too ! 

[John Wright]

7 minutes ago, IOM said:

There is no question their operating costs will be higher as we know they have to come across the sea which comes at a cost . I suspect they looked at all this as part of the acquisition. 

That’s the same for Tesco, Shoprite, Coop, Spar.

However, Tesco now have on Island warehousing and distribution as an extra cost. 

Operationally trailers came over to the store with supplies in cages, straight to the store compound. Sorting and sub division took place at the distribution centre they were despatched from.

That May continue for Lake Road. But for many of the ex Shoprite stores they’ll come into Wilson’s at Pulrose and then be transferred onto smaller trucks for distribution to the other stores.

Theres cost there. How they cover the extra costs is up to Tesco, absorb, have one price for Lake Road and one for the others, plus an express premium, or an island premium plus an express premium.

They'll want to divert some custom from Lake Road so best/most productive use is made of all floor space, and to allow clothing and white goods.

[Andy Onchan]

22 minutes ago, John Wright said:

That’s the same for Tesco, Shoprite, Coop, Spar.

However, Tesco now have on Island warehousing and distribution as an extra cost. 

Operationally trailers came over to the store with supplies in cages, straight to the store compound. Sorting and sub division took place at the distribution centre they were despatched from.

That May continue for Lake Road. But for many of the ex Shoprite stores they’ll come into Wilson’s at Pulrose and then be transferred onto smaller trucks for distribution to the other stores.

Theres cost there. How they cover the extra costs is up to Tesco, absorb, have one price for Lake Road and one for the others, plus an express premium, or an island premium plus an express premium.

They'll want to divert some custom from Lake Road so best/most productive use is made of all floor space, and to allow clothing and white goods.

Wouldn't be surprised if, after a period of time, they look to operate out of another warehouse and arrange deliveries to all the other non-Lake Road outlets from there.   

[IOM]

16 minutes ago, John Wright said:

That’s the same for Tesco, Shoprite, Coop, Spar.

However, Tesco now have on Island warehousing and distribution as an extra cost. 

Operationally trailers came over to the store with supplies in cages, straight to the store compound. Sorting and sub division took place at the distribution centre they were despatched from.

That May continue for Lake Road. But for many of the ex Shoprite stores they’ll come into Wilson’s at Pulrose and then be transferred onto smaller trucks for distribution to the other stores.

Theres cost there. How they cover the extra costs is up to Tesco, absorb, have one price for Lake Road and one for the others, plus an express premium, or an island premium plus an express premium.

They'll want to divert some custom from Lake Road so best/most productive use is made of all floor space, and to allow clothing and white goods.

I understand all of this I completely get there are additional costs . But ultimately it’s the customers that lose out ( actually those that shopped at Lake Road and online ) . But why on earth would customers care about their operating model and costs its what happens when they go in store that matters !

A few weeks ago I heard one MHK on Manx Radio trumpeting the acquisition saying it’s ok Tesco have said they will take over Shoprite and charge a few pennies for carriage !!!! Personally I think 5p-25p premiums on the majority of products is more than a few pennies ! 

[Fred the shred]

They have increased the price of my favourite wine by £1 in the last couple of weeks so not impressed.     On the other hand the staff are far better off financially so that is all good.

[John Wright]

4 minutes ago, Andy Onchan said:

Wouldn't be surprised if, after a period of time, they look to operate out of another warehouse and arrange deliveries to all the other non-Lake Road outlets from there.   

That’ll depend on the terms of the deal with Shoprite, and how long the lease they’ve taken on Wilson’s is for.