Tesco buy all nine Shoprite supermarkets- Monopoly?

[Gladys]

22 minutes ago, Omobono said:

Same applies to Robinsons staff who work in Shoprite as well as their delivery and whare house staff , if Tesco are going to import their own fruit and veg  then Robinsons miss out in a very big way with the loss of 95% of their  present retail outlets, 

Robinsons are still the biggest wholesale suppliers of veg and some dry goods to the  hotels , catering industry ,schools , hospital etc  should anything happen to this supply chain  it could bring difficulties to lots of other areas 

they are also the biggest wholesale buyers of local produce   , so the possible  knock on effect  in Island terms   certainly should not be underplayed by government 

There are already a lot of people shopping now  at Tesco filling their trolleys with wholesale volumes at retail prices.  Trolleys full of iceberg lettuce, chicken portions, and loaves of bread.  That has been the case for years now.  

[Manxman1234]

1 hour ago, Gladys said:

They have bought the stores not the company according to the press release.  

 

They are leasing the stores, and purchase the business 

[Manxman1234]

Apparently Victoria road becoming white goods and clothing and majority of others Tesco express 

[Fred the shred]

I have always thought that the heart meant you agreed with the sentiment expressed and the cup / trophy was you enthusiastically seconded the sentiment now I really am confused but am swerving that one because it causes dismay amongst some contributors.    😬  

[Fred the shred]

I know people who work in Shoprite/ Tesco and they do not have the information Manxman 1234 is quoting.

[Roger Mexico]

1 hour ago, WTF said:

2 things,  1 mentioned before but try to keep up ,  this monopoly bollocks , did shoprite have a monopoly with 9 stores ???  if the boot was on the other foot and shoprite bought the tesco site/store and had 10 stores would everybody be whining about shoprites monopoly ??  no they wouldn't  because  it would not be a monopoly courtesy of M&S , spar, co op's, EVF garages, there may be more. 

But you don't measure monopiles on how many stores they run - you measure them on what percentage of the market they have.  We don't know what the percentage are on the Island, but if say Tesco had 30% and Shoprite 35%, then expanded Tesco would have 65% of business, no matter how many other shops there were.

 

[1]  The Government should know but will probably be as uninterested in actually finding out as it is about most other significant date.

[Banker]

16 minutes ago, Fred the shred said:

I know people who work in Shoprite/ Tesco and they do not have the information Manxman 1234 is quoting.

That’s because he’s making it up!

[Roger Mexico]

39 minutes ago, Manxman1234 said:

Apparently Victoria road becoming white goods and clothing and majority of others Tesco express 

That would make sense.  Tesco arguably don't need two 'drive to' stores in Douglas and converting Winerite to an Express will pick up casual trade and is perhaps better situated for it.  Castletown, Michael Street and St Pauls Square are already branded Little Shoprite and Onchan would have similar trade.  Ramsey, Peel and Port Erin are big enough to convert.  I can see resistance from North Douglas and beyond about having to drive to Lake Road though.

[quilp]

1 hour ago, Omobono said:

The same applies to Robinson's staff who work in Shoprite, as well as their delivery and warehouse staff. If Tesco are going to import their own fruit and veg then Robinson's miss out in a very big way, with the loss of 95% of their  present retail outlets.

Is this a fact or did you make it up? There's still a market for Robinson's, they'll just have to up their game. They've had it good for a very long time, don't you think?

1 hour ago, Omobono said:

Robinsons are still the biggest wholesale suppliers of veg, and some dry goods; to the  hotels and catering industry, the schools and hospitals. Should anything happen to this supply chain it could bring difficulties to lots of other areas.

Where? Which other areas? Robinson's aren’t going to be suddenly excluded by market forces induced by tesco's presence.

1 hour ago, Omobono said:

They are also the biggest wholesale buyers of local produce so the possible knock-on effect in Island terms certainly should not be underplayed by government.

You're not really making sense. Are government "underplaying" these consequences? 

[Utah 01]

3 hours ago, Fred the shred said:

Tesco will turn the smaller stores into Express stores which are more expensive

........and will probably still be cheaper than Shoprite is/was.

[Happier diner]

37 minutes ago, Roger Mexico said:

That would make sense.  Tesco arguably don't need two 'drive to' stores in Douglas and converting Winerite to an Express will pick up casual trade and is perhaps better situated for it.  Castletown, Michael Street and St Pauls Square are already branded Little Shoprite and Onchan would have similar trade.  Ramsey, Peel and Port Erin are big enough to convert.  I can see resistance from North Douglas and beyond about having to drive to Lake Road though.

I guess we don't know. However I will be surprised if it's true. 

[Roger Mexico]

1 hour ago, Gladys said:

There are already a lot of people shopping now  at Tesco filling their trolleys with wholesale volumes at retail prices.  Trolleys full of iceberg lettuce, chicken portions, and loaves of bread.  That has been the case for years now.  

Oh quite, I don't think I've ever been in Tesco without seeing at least one obvious trade buyer.  But (except for some small players)  they may not be buying all their supplies there.  They may be picking and choosing what is best priced or picking up stuff that Robinsons didn't deliver or that they forgot to order or that they had a run on.  You often see the same in other shops (say the Coop in Port Erin) where someone in chef's checks hurries in for lemons or peppers or whatever.  So these people may still be getting supplies from Robinson's as well, possibly spending most there.

This isn't just about price.  Time is money as well and having to retail shop for all goods would cause extra time pressure and cost in terms of having to pay wages to cover the extra hours needed.  So most catering etc business will still rely on wholesaler deliveries for most of their supplies.

I think Omobono's point was related in that we don't know how much the health of Robinson's business relies on Shoprite sales and how vulnerable they will be to collapse now it's gone.  If it does stop trading, a whole range of businesses and institutions will be hit.

[WTF]

1 hour ago, Fred the shred said:

I know people who work in Shoprite/ Tesco and they do not have the information Manxman 1234 is quoting.

i know people that work in tesco and they do have that information

[Gladys]

9 minutes ago, Roger Mexico said:

Oh quite, I don't think I've ever been in Tesco without seeing at least one obvious trade buyer.  But (except for some small players)  they may not be buying all their supplies there.  They may be picking and choosing what is best priced or picking up stuff that Robinsons didn't deliver or that they forgot to order or that they had a run on.  You often see the same in other shops (say the Coop in Port Erin) where someone in chef's checks hurries in for lemons or peppers or whatever.  So these people may still be getting supplies from Robinson's as well, possibly spending most there.

This isn't just about price.  Time is money as well and having to retail shop for all goods would cause extra time pressure and cost in terms of having to pay wages to cover the extra hours needed.  So most catering etc business will still rely on wholesaler deliveries for most of their supplies.

I think Omobono's point was related in that we don't know how much the health of Robinson's business relies on Shoprite sales and how vulnerable they will be to collapse now it's gone.  If it does stop trading, a whole range of businesses and institutions will be hit.

I get the point, but I suspect that the business won't be so dependent on Shoprite as we think.   Certainly it will be a sizeable chunk, but presumably their wholesale side is the larger part?  Their range of veg at Cooil Road is much wider then is on the shelves at Shoprite.  So, they must have their own market not dependent on Shoprite outlets. 

 

 

[Gladys]

2 hours ago, Manxman1234 said:

They are leasing the stores, and purchase the business 

But not the company.