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Tesco buy all nine Shoprite supermarkets- Monopoly?


darenisepic

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6 minutes ago, Gladys said:

Just a couple of my own observations, neither supportive of or critical of either Shoprite or Tesco.

1. Shoprite sold to Tesco, presumably without holding any of Shoprite's family hostage.  It was a free transaction. 

2. In its origins, Shoprite followed the Kwik Save model, retailing mainly non-perishable goods from highly stacked shelves with just the front of the boxes cut out.  It was a pile it high, sell it cheap model.  No frills.  That worked at the time, but choice elsewhere broadened and Shoprite had to compete on range, fresh goods etc.  But they just did not have the buying power to compete on price.  They tried many tie-ups with other big retailers, presumably to piggy back on the buying power, but the market probably wasn't sufficient to make it work. 

3. If there are fears for the future of retailers such as the Co-op, it is because, again, Shoprite offered little credible competition in those small town markets. 

4. Succession has been quoted as a motivation for the sale, which is understandable, leaving basically a real estate company for the family with less need for close management and constant market tracking.  Who wouldn't take the option? 

5.  Tesco will introduce well tried models for each of the stores, including the Express and Superstore model.  What else do you expect?   They are not saviours, but a very large commercial operation with a proven track record.  What the consumer can expect, however, is consistency of range and quality.   

I can undersrand, partly, the concerns for the vulnerable in the Express store catchment areas, but are they actually going to be financially worse off with a Tesco Express?  By comparison with similar rural areas in England, I suspect access to Tesco Express for remote areas is likely to be better here.

Sorry for the long post, but let's see how it works out. It is a fait accompli, Shoprite have done the deal without which those smaller stores may have closed completely. 

These are all fair points . However Tesco Express does not have a 15-20% differential in England ( it’s a lot less ) plus they now stock some of the economy ranges over there too . As said in my earlier post I am not sure Tesco will bring the value difference that some people think they will . The only way to be sure of that is to get an Aldi on the island . 

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4 minutes ago, IOM said:

These are all fair points . However Tesco Express does not have a 15-20% differential in England ( it’s a lot less ) plus they now stock some of the economy ranges over there too . As said in my earlier post I am not sure Tesco will bring the value difference that some people think they will . The only way to be sure of that is to get an Aldi on the island . 

And how will that happen?  Aldi, or any other large supermarket retailer, will only consider coming if the market is big enough.  I would love for a big traditional open air market here, but there isn't the catchment, so no point pining for something that will never happen. 

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1 minute ago, Gladys said:

And how will that happen?  Aldi, or any other large supermarket retailer, will only consider coming if the market is big enough.  I would love for a big traditional open air market here, but there isn't the catchment, so no point pining for something that will never happen. 

I qualified in my earlier post that it’s unlikely but it would for sure improve the value position in a stroke . My point is I am not sure Tesco are the ‘ saviours’ some people think they are although I am happy to be proven wrong . 

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16 minutes ago, IOM said:

These are all fair points . However Tesco Express does not have a 15-20% differential in England ( it’s a lot less ) plus they now stock some of the economy ranges over there too . As said in my earlier post I am not sure Tesco will bring the value difference that some people think they will . The only way to be sure of that is to get an Aldi on the island . 

I haven’t seen anything yet to suggest that the difference between Tesco prices and express prices on island is more than anywhere else.

 

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8 minutes ago, IOM said:

These are all fair points . However Tesco Express does not have a 15-20% differential in England ( it’s a lot less ) plus they now stock some of the economy ranges over there too . As said in my earlier post I am not sure Tesco will bring the value difference that some people think they will . The only way to be sure of that is to get an Aldi on the island . 

You're basing a 15 - 20% differential on one item. 

There appears to be little difference on many other items. 

The reason Shoprite prices were the same access their stores is they were applying convenience store pricing across all stores. There Iceland and Sainsburys offerings (among others) were at 35%+ above RRP. 

Tesco Express is a convenience store, so why the surprise it costs a little more than a supermarket? Would you do your weekly shop in Spar?

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7 minutes ago, Gladys said:

And how will that happen?  Aldi, or any other large supermarket retailer, will only consider coming if the market is big enough.  I would love for a big traditional open air market here, but there isn't the catchment, so no point pining for something that will never happen. 

Tesco already price match against Aldi even though Aldi aren't here..  not sure what the OPs point is.

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3 minutes ago, Hairy Poppins said:

Tesco already price match against Aldi even though Aldi aren't here..  not sure what the OPs point is.

And how many products do you think they match Aldi on ? 

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47 minutes ago, IOM said:

With the emphasis on the word ‘ may ‘ . Possibly on some selected items and fresh fruit and vegetables but I suspect quite a lot not . 

i can't think of anything off the top of my head that was cheaper in shorite than it was in tesco on branded products before the buy out

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Just now, WTF said:

i can't think of anything off the top of my head that was cheaper in shoprite than it was in tesco on branded products before the buy out

Big frankfurters - pack of two £1 in Shoprite, pack of four Jumbo Herta frankfurters in Tesco near enough £4. Have a good stock of Shoprite's frankfurters in the freezer!

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10 minutes ago, Gladys said:

Big frankfurters - pack of two £1 in Shoprite, pack of four Jumbo Herta frankfurters in Tesco near enough £4. Have a good stock of Shoprite's frankfurters in the freezer!

I've got some good news for you @Gladys! They're cheaper in Tesco.

£1 each in Shoprite, they're only £0.83 in Tesco. 

 

Screenshot_20240219_215055_Tesco.jpg

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